Case Number: ITA 958/DEL/2021
Appellant: Hari Dass Singla, Delhi
Respondent: Income Tax Officer, Delhi
Assessment Year: 2011-12
Result: 2011-12
Case Filed on: 2021-08-11
Order Type: Final Tribunal Order
Date of Order: 2022-06-23
Pronounced on: 2022-06-23
Tribunal: IN THE INCOME TAX APPELLATE TRIBUNAL, DELHI BENCH, ‘SMC’, NEW DELHI
Before: Shri Sanjay Garg, Judicial Member
Introduction
This appeal was filed by Hari Dass Singla against the order of the Commissioner of Income Tax (Appeals), National Faceless Centre, Delhi, dated 30.07.2021, for the assessment year 2011-12. The case was heard by the Income Tax Appellate Tribunal (ITAT), Delhi Bench, on 23.06.2022, and the judgment was pronounced on the same day.
Background
The appellant, Hari Dass Singla, contested the jurisdiction of the Income Tax Officer (ITO) who framed the reassessment order. The primary contention was that the reassessment proceedings were initiated by ITO, Ward-37(4), Delhi, who issued the notice under Section 148 of the Income Tax Act, but the assessment was completed by ITO, Ward-50(4), Delhi, without issuing a fresh notice under Section 148 of the Act.
Key Issues and Arguments
The appellant raised the following grounds of appeal:
Tribunal’s Analysis and Findings
The tribunal focused on the jurisdictional issue, noting that the reassessment proceedings were initiated by ITO, Ward-37(4), who issued the notice under Section 148 of the Act, but the assessment order was passed by ITO, Ward-50(4), who did not issue any notice under Section 148. The tribunal referred to the decision in the case of Mukesh Kumar vs ITO, where a similar situation occurred, and the reassessment was deemed invalid due to lack of jurisdiction.
Judgment
The tribunal found that the notice issued by ITO, Ward-37(4), was without jurisdiction and had no legal sanctity. The assessment framed by ITO, Ward-50(4), was invalid as no notice under Section 148 was issued by the concerned officer. The tribunal quashed the reassessment proceedings and deleted the consequential additions.
Conclusion
The appeal filed by Hari Dass Singla was allowed. The assessment framed by ITO, Ward-50(4), was quashed, and the consequential additions were deleted.
Final Judgment
Order pronounced in the open court on 23.06.2022.
Signed:
Shri Sanjay Garg, Judicial Member
Dated: 23.06.2022
Copy forwarded to:
Assistant Registrar, ITAT, New Delhi
Relevant Legal Provisions and Precedents
This case centered around the procedural aspects of issuing notices and framing reassessment orders under the Income Tax Act. The appellant successfully challenged the jurisdiction of the ITO who framed the reassessment order, leading to the quashing of the reassessment proceedings.
Impact of the Judgment
This judgment highlights the importance of adhering to procedural requirements in tax assessments and reassessments. It underscores the necessity for the concerned officer to issue the notice under Section 148 before proceeding with the assessment.
Key Takeaways
The case illustrates the procedural intricacies involved in reassessment proceedings and emphasizes the importance of jurisdictional validity in tax litigation. It serves as a precedent for similar cases where jurisdictional issues are contested.
Hari Dass Singla vs Income Tax Officer: Jurisdiction and Reassessment for AY 2011-12
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