Notice u/s 143(2) of the Act, issued by an AO who has no jurisdiction over the assessee, is bad in law and void-ab-initio

The Income Tax Appellate Tribunal ruled that a notice issued under Section 143(2) of the Income Tax Act is invalid if the Assessing Officer (AO) issuing it lacks jurisdiction over the assessee. Such a notice is considered void from the beginning. The tribunal considered an appeal where the initial notice was issued by an AO without proper jurisdiction, leading to subsequent proceedings being deemed unlawful.

IN THE INCOME TAX APPELLATE TRIBUNAL
 KOLKATA ‘B’ BENCH, KOLKATA

 (Before Sri J. Sudhakar Reddy, Hon’ble Accountant Member & Sri Aby T. Varkey, Hon’ble Judicial Member)
 ITA No. 457/Kol/2020
 Assessment Year: 2012-13

M/s. Cosmat Traders Pvt. Ltd......……...........Appellant
8, AJC Bose Road
3rd Floor
Circular Road
Kolkata – 700 017
[PAN : AABCC 0990 R]

Vs.

Income Tax Officer, Ward-(2), Kolkata........................…......Respondent

Appearances by:
Shri Miraj D. Shah, A/R, appeared on behalf of the assessee.
Smt. Ranu Biswas, Addl. CIT, D/R, appearing on behalf of the Revenue.

Date of concluding the hearing : March 31st, 2021
Date of pronouncing the order : April 21st, 2021

ORDER

Per J. Sudhakar Reddy, AM :-

This appeal filed by the assessee is directed against the order of the Learned Commissioner of Income Tax (Appeals) - 7, (hereinafter the “ld. CIT(A)”), passed u/s. 250 of the Income Tax Act, 1961 (the ‘Act’), dt. 28/03/2018, for the Assessment Year 2012-13.

2. The assessee is a company and is in the business of share transactions and investments. It has it registered office at “8, AJC Bose Road, Kolkata -700 017”. It filed its return of income for the impugned Assessment Year on 17/01/2013, declaring total income of Rs.38,220/-. Notice u/s 143(2) of the Act was issued to the assessee by the Income Tax Officer (ITO), Ward (Wd) – 6(1), Kolkata on 23/09/2013. On 03/10/2013, the assessee filed a letter objecting to the notice given u/s 143(2) of the Act, dt. 23/09/2013 by the ITO, Wd -6(1), Kolkata, on the ground that this officer does not hold jurisdiction over the assessee. Thereafter, the Commissioner of Income Tax passed an order u/s 120 of the Act, transferring the jurisdiction of the assessee to the file of Tax Recovery Officer (TRO), Range-2, Kolkata. The details of this transfer orders are at page 1 para 2 of the assessment order. Thereafter, the TRO-2, Kolkata, passed an order u/s 144 of the Act, determining the total income of the assessee at Rs. 5,02,98,220/- 

2.1. Aggrieved the assessee carried the matter in appeal. The ld. First Appellate Authority passed an ex-parte merits. He dismissed the case for non-prosecution, which is not permissible in law.

3. Aggrieved the assessee is in appeal before us.

4. The ld. Counsel for the assessee, filed an additional ground 11 of the Income-tax (Appellate Tribunal) Rules, 1973 (‘Rules’). The original grounds of appeal and the additional groud.

To know more in details find the atatchment file