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Income Tax , by Yuvraj  on : April 21, 2017

Income Tax

Assessment framed under an unauthorised notice held invalid

This case is quite interesting!!!! One AO who had no authority to issue scrutiny notice issued the notice. And even started doing the assessment. Later on, when wrong AO came to know of unauthorised issue, he got the right AO issue the notice, even though the time to issue notice had lapsed. And they continued the assessment. Beleaguered assesee knocked the door of CIT(A), who did justice

Facts in Brief:

1. CIT(A) annulled the assessment.

2. In support of the order of the ld. CIT(A), the assessee has filed cross objection. ITAT held,

3. we find that undisputedly the first notice under section 143(2) of the Act was issued by the Income Tax Officer and at the relevant point of time, in view of the Instruction of the CBDT, the Income Tax Officer was not having jurisdiction over the assessee, as the assessee's returned income is more than Rs.10 lakhs and the jurisdiction over the assessee lies with the ACIT/DCIT.

4. The second notice issued by the ACIT is admittedly barred by limitation. Therefore, the jurisdiction was assumed to complete the assessment over the assessee through an invalid notice by an incompetent Officer.

5. In the light of these facts, we are of the view that the assessment framed consequent to an invalid notice is not a valid assessment and deserves to be quashed.

6. We accordingly find no infirmity in the order of the ld. CIT (A) and we confirm the same.

 


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