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Sec. 147 of Income Tax Act, 1961— Reassessment — Reassessment invalid as assessment is bad in law, in view of the non-issual of the statutory notice u/s 143(2) by the Assessing Officer having jurisdiction over the assessee.
Facts: A notice was issued u/s 148 reopening the assessment by the ITO after recording reasons for reopening. The assessee complied with the notice by filing income tax return declaring –Nil- income. Thereafter the assessee requested for reasons for reopening of assessment u/s 147. Thereafter, the ITO issued notice u/s 143(2). Then the file was transferred to the Assessing Officer having jurisdiction over the assessee i.e., ITO . ITO issued a notice u/s 143(2) . He also issued notice u/s 142(1). The assessee filed objection before the IT,. The assessee objected to the notice issued u/s 148. It was contended by the assessee that the ITO had no jurisdiction over the case of the assessee, in view of the transfer of jurisdiction on the basis on Pin code. This letter was received on 20/04/2015 by the ITO Ward-2(2), Kolkata. The ITO passed an order u/s 144(1)/147 determining the total income of the assessee at Rs. 3,66,02,690/-. On these facts, CIT(A) allowed the appeal of the on the ground that the order passed u/s 147 is without jurisdiction. Being aggrieved, assessee went on appeal before Tribunal.
Held, that Assessing Officer who had jurisdiction over the assessee i.e., ITO Ward – 8(3), Kolkata had not issued the notice to the assessee u/s 143(2) as mandatorily required under the Act, the assessment framed u/s 143(3) is bad in law as held by the Hon’ble Supreme Court in the case of ACIT & Anr. Vs. Hotel Blue Moon: 321 ITR 362 (SC) . Hence we quash the same. As we have held that the assessment is bad in law, in view of the non-issual of the statutory notice u/s 143(2) by the Assessing Officer, having jurisdiction over the assessee, we would not go into the merits of the case as it would be an academic exercise.” Applying the propositions of law to the facts of the case on hand, we have no alternative but to uphold the order of CIT(A) and dismiss this appeal of the revenue. - DEPUTY CIT V/s BOAST TRADERS PVT. LTD. -  26 ITCD Online 080 (ITAT-KOLKATA)