ACIT Vs Sh. Mukesh Kumar Mohta (ITAT Delhi)
Assessment Quashed for Invalid Jurisdiction: ITAT Holds Section 143(2) Notice by Wrong Officer Makes Reassessment Non Est
The Delhi ITAT allowed the assessee’s cross-objection and quashed the reassessment on the ground of lack of valid jurisdiction, holding the entire assessment to be non-est in law. The Tribunal noted that the statutory notice under Section 143(2) had been issued by the ITO, Ward-63, whereas the reassessment order was ultimately passed by the ACIT, Circle-63(1), without any evidence of lawful transfer of jurisdiction between the two authorities.
Since the issuing officer was not the jurisdictional Assessing Officer and no valid transfer order was placed on record, the very foundation of the assessment proceedings was held to be illegal. The Revenue could not justify the competence of the officer who issued the notice. Accordingly, the reassessment framed on 29.12.2017 was quashed, rendering all other issues academic. The Revenue’s appeal was dismissed and the assessee’s cross-objection was allowed in full.
FULL TEXT OF THE ORDER OF ITAT DELHI’
This Revenue’s appeal ITA No.4886/Del/2024 along with the assessee’s cross objection C.O. No. 93/Del/2025 for assessment year 2015-16, arises against the Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre [in short, the “CIT(A)/NFAC”], Delhi’s DIN and order no. ITBA/NFAC/S/250/2024-25/1067097678(1), dated 29.07.2024 involving proceedings under section 143(3) of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’).
