The case involves M/s. G.K. Business Centre (P) Ltd., based in New Delhi, against the Income Tax Officer, Ward-10(4), New Delhi. Filed in response to an assessment order dated 12.04.2019 for the assessment year 2010-11, the case highlights significant procedural and jurisdictional disputes.
The appeal was lodged against the procedures used in the reassessment under sections 143(3) and 147 of the Income Tax Act. The appellant raised multiple issues concerning jurisdictional errors, such as the recording of reasons for reassessment by a non-jurisdictional officer and subsequent approval by authorities without proper jurisdiction.
The primary contention was the legitimacy of the reopening of the assessment, initiated by an officer without jurisdiction, which was deemed not only a procedural oversight but a significant legal error impacting the rights of the assessee. The tribunal, after careful consideration of the submissions and precedents, concluded that the reassessment was void ab initio due to these jurisdictional flaws, leading to the quashing of the assessment order.
This case sets a critical precedent on the importance of adhering to jurisdictional protocols in tax assessments. It underscores the necessity for assessing officers to follow strict legal procedures in initiating reassessments, thus ensuring fairness and legality in tax proceedings. The decision highlights key aspects of legal jurisprudence in tax law, particularly concerning the powers and responsibilities of tax officers under the Income Tax Act.
Order pronounced in the open court on the 2nd day of February, 2021, providing significant relief to GK Business Centre and clarifying procedural requirements for future cases.
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