Manjit Singh Vs DCIT (ITAT Chandigarh)
Income Tax Appellate Tribunal (ITAT) Chandigarh allowed the appeal filed by Manjit Singh against the reassessment order issued under Section 148 by the Income Tax Officer (ITO), Dasuya. The dispute stemmed from a ₹30.68 lakh deposit flagged through AIR (Annual Information Return), prompting the ITO Dasuya to issue notices for verification. However, the assessee, an NRI residing in the United States for over 30 years, maintained that he did not have taxable income in India and regularly sent remittances to family through Western Union. He supported his claims with documents such as his passport, PAN card, and proof of permanent residency in the U.S.
Despite this, the ITO Dasuya proceeded with reassessment under Section 148. The case was later transferred to the Deputy Commissioner of Income Tax (International Taxation), Chandigarh, who finalized the assessment based on the original notice issued by the ITO Dasuya. The assessee challenged the jurisdiction of the initiating officer, arguing that the initial notice itself was invalid since Dasuya’s ITO lacked territorial and subject matter jurisdiction over an NRI taxpayer. Furthermore, the transfer of the case under Section 127 was not carried out by a competent authority, rendering the entire reassessment process void.
