×Latest Case Laws on Income Tax by various Income Tax Appellate Tribunals in India
These are the latest case laws decided by various Income Tax Appellate Tribunals (ITAT) of India on Income Tax which have been published recently. The case laws are open for discussion and we invite expert comments from our members on its applicability and effect on relevant issues.
This appeal has been preferred by the assessee against the order of the Ld. CIT(A)- 21, Kolkata dated 22.04.2019 for Assessment Year 2015-16.
2. At the outset itsel , the Ld. AR drew our attention to the legal issue that has been raised for the first time before this Tribunal, which is as under:
“2. For that the appellant was originally been assessed by Ld. DCIT, Central Circle-1, Ranchi since 2007. The return for the year under consideration was filed on 30.09.2015 against which notice u/s. 143(2) was issued by Ld. DCIT, Circle-21(1), New Delhi. As a matter of fact Ld. DCIT 21(1), New Delhi had no jurisdiction over the appellant company. Further order u/s. 127 was passed by Ld. CIT, Central Patna vide which the current AO got jurisdiction over the appellant company. Ld. AO proceeded on basis of 143(2) issued by Ld. DCIT, Circle-21(1) New Delhi. No notice under 143(2) was issued at Ranchi or current AO. As such, as a matter of fact no valid notice u/s. 143(2) was issued against the return filed, as such, assessment framed thereby is ab initio void and fit to be quashed.”
3. From a perusal of the aforesaid ground of appeal, we note that the issue which is canvassed before us is a pure legal issue. As held by the Hon’ble Supreme Court in NTPC Vs. CIT 229 ITR 383 (SC), such legal issue can be raised before this Tribunal and accordingly we admit this legal ground raised for the first time before us by the assessee though vehemently opposed by the Ld. CIT, DR. Moreover we note that this legal issue goes to the root of the matter and since all material facts for deciding this legal issue are available at the time of hearing, the parties were heard on this issue only with the understanding that if the assessee does not succeed, then the appeal will be re-fixed for hearing on merits.
4. The brief facts pertaining to the legal issue is that the assessee company’s Headquarters is at 101, Pragati Towers, 26 Rajendra Place, New Delhi-110007. The appellant was initially assessed by DCIT, Circle-15(1), New Delhi. By an order dated 08.10.2008 passed u/s 127(1) by the Ld. CIT, Del. V, New Delhi, the jurisdiction over the appellant’s case was transferred to the charge of DCIT, Central Circle-1, Ranchi. Pursuant to the order dated 08.10.2008, the income-tax assessments from AY 2007-08 and onwards were passed by the said DCIT, Central Circle-1, Ranchi. For the assessment year 2015-16 i.e. the year under consideration, the return of income was electronically filed by the assessee on 30.09.2015 declaring total income of Rs.1,27,03,820/-. Subsequently a notice u/s. 143(2) (paper book page 3&4) dated 28.07.2016 was issued by the ACIT, Circle-21(1), New Delhi to the assessee and this was followed by a notice u/s 142(1) dated 30.06.2017 issued by the same officer. Upon receipt of the notice u/s 142(1), the assessee furnished its letter dated 17.07.2017 objecting to the validity of the notices on the ground that the officer issuing the notices did not have jurisdiction over the appellant’s case. Subsequent to issuing of the said notices, the Ld. Pr. CIT-7, New Delhi issued show cause notice dated 07.08.2017 proposing to transfer the jurisdiction over the appellant’s case to DCIT/ACIT, Central Circle-3(1), Kolkata under the administrative control of Pr. CIT (Central), Kol-2, Kolkata (page 6 of paper book). On receipt of the said show cause notice, the appellant furnished its objection vide letter dated 16.08.2017 (page 7 of paper book)which is reproduced as under:
5. Appreciating the objections raised by the assessee (supra), the Ld. Pr. CIT, Delhi-7 did not proceed any further. The Pr. CIT, Central Patna however issued a notice dated 24.10.2017 (page 8 of paper book) proposing centralization of case records with ACIT/DCIT, Central Circle-3(1), Kolkata and sought the assessee’s objections, if any, to the proposed transfer. Thereafter, by an order u/s 127 of the Act dated 03.11.2017 (page 9 of paper book), the assessee’s case records were transferred to the charge of ACIT, Central Circle-3(1), Kolkata. On receiving the jurisdiction over the assessee’s case in terms of the order u/s 127 dated 03.11.2017, the ACIT, Central Circle-3(1), Kolkata issued notice u/s.