Case Number: ITA 1997/DEL/2022
Appellant: Raghuraj Laminates Pvt. Ltd., Muzaffarnagar
Respondent: ITO, Ward-3(2)(2), Muzaffarnagar
Assessment Year: 2011-12
Case Filed On: 2022-08-25
Order Type: Final Tribunal Order
Date of Order: 2023-05-31
Pronounced On: 2023-05-31
PER CHANDRA MOHAN GARG, J.M.
This appeal has been filed against the order of CIT(A), NFAC dated 03.06.2022 for AY 2011-12.
The assessee filed an application seeking condonation of a 22-day delay. The delay occurred because the director of the assessee company was traveling and returned on 19.08.2022. The physical appeal set was then signed and sent via speed post on 20.08.2022. Despite opposition from the Senior DR, the delay was condoned as the online appeal was filed on 30.07.2022.
Ground no. 3 of the assessee stated that the notice issued under Section 148 by DCIT, Circle 3(1), Haridwar was illegal and without jurisdiction as the jurisdiction lay with ITO, Ward-2(2), Muzaffarnagar. The assessee filed several objections and submitted that:
The notice issued by DCIT, Circle 3(1), Haridwar was challenged as being without jurisdiction, making the reassessment proceedings invalid.
The Tribunal noted that the reassessment order was passed by ITO, Ward 2(2), Muzaffarnagar based on a notice issued by DCIT, Circle 3(1), Haridwar. It was held that a notice under Section 148 must be issued by the jurisdictional AO. The issuance of a notice by an officer without jurisdiction renders the reassessment proceedings void.
The reassessment order was deemed invalid as the initial notice was issued by an officer without proper jurisdiction. This aligns with the judgment of the Hon’ble Allahabad High Court in PCIT vs. Mohd. Rizwan, which stated that reassessment proceedings initiated by a non-jurisdictional officer are void ab initio.
In conclusion, the reassessment proceedings for AY 2011-12 were declared void due to the lack of jurisdiction of the officer who issued the notice under Section 148.
Raghuraj Laminates Pvt. Ltd. vs. ITO, Ward-3(2)(2), Muzaffarnagar, Assessment Year: 2011-12
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