Reopening by officer having no jurisdiction vitiate the entire proceedings

Charu K. Bagadia Vs ACIT (Madras High Court)

Reopening the assessment under section 148(2), by officer having no jurisdiction over the appellant, vitiate the entire reassessment proceedings initiated against the appellant.

Facts-

After a period of five years, the appellant received a notice issued by the first respondent, Assistant Commissioner of Income Tax-23(2), Mumbai u/s. 148 of the Act purportedly to re-assess the return of income submitted for the AY 2011-2012. In response, the appellant submitted that the first respondent has no jurisdiction to issue such notice u/s. 148 of the Act and therefore, she requested to drop the reassessment proceedings. Subsequently, the first respondent transferred the files of the appellant to the second respondent. The second respondent continued the reassessment proceedings by issuing notice u/s. 143(2) r/w 129 of the Act, directing the appellant to appear and file the return of income to the notice u/s. 148 of the Act along with supportive documents. The aggrieved appellant filed a Writ petition.

Conclusion-

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