Clipped from: https://www.taxscan.in/notice-u-s-1432-not-issued-by-ao-itat-quashes-income-tax-assessment-order/276997/
The Kolkata Bench of Income Tax Appellate Tribunal (ITAT) has quashed the assessment order holding that notice under Section 143(2) of the Income Tax Act, 1961 was not issued by the assessing officer (AO) who completed assessment.
The assessee, Community For Social Work was a trust registered under Section 12AA of the Income Tax Act, 1961. The main activity of the Trust was to start and run social and scientific research centres, social welfare centres etc Assessee filed its return of income on 11.09.2017 reporting total income as NIL.
The assessee referred to notice under Section 143(2) of the Income Tax Act, dated 09.08.2018 which was issued by the ITO, Ward-51(1), Kolkata. Later under Section, a letter was issued by ITO, Ward-1(1), Exemption, Kolkata, dated 24.07.2019 to the Income Tax Officer (ITO), Ward-51(1), Kolkata requesting for sending the assessment folder along with order under Section 127 of the Income Tax Act for completing the pending proceedings of the assessment.
In the said letter, ITO, Ward-1(1), Exemption, Kolkata noted that notice under Section 143(2) of the Act was issued from the office of ITO, Ward-51(1), Kolkata as the PAN was lying under that jurisdiction. Now, that the PAN was currently lying with ITO, Ward-1(1), Exemption, Kolkata, the request was made to forward the assessment folder along with relevant order under Section 127 of the Income Tax Act to him for completing the necessary proceedings.
Subsequently, vide document titled as “Transfer of assessment record” dated 15.11.2019 ITO, Ward-50(5), Kolkata transferred the assessment record by noting that in the ITBA module, PAN of the assessee lied under the charge of ITO, Ward-1(1), Exemption, Kolkata and that the assessment proceedings were due by 31.12.2019, the assessment records were transferred to the proper jurisdiction of ITO, Ward-1(1), Exemption, Kolkata.
P.S Gupta, who appeared on behalf of the Assessee. the assessee asserted that the assessment order was bad in law since notice under Section 143(2) of the Income Tax Act was never issued by AO who completed the assessment. placed reliance on the decision of the Coordinate Bench of ITAT, Kolkata in the case of ACIT vs. Debabrata Kayal
Ranu Biswas, appeared on behalf of the Revenue.
The two-member Bench of Sanjay Garg, (Judicial Member) And Girish Agrawal, (Accountant Member) allowed the appeal holding that the assessment was not in accordance with the provisions of law since the assessment order had been passed by ITO, Ward-1(1), Exemption, Kolkata whereas assumption of jurisdiction for the assessment was done by ITO, Ward-51(1), Kolkata who issued the notice under Section 143(2) of the Income Tax Act.
The Bench further held that, a valid order under Section 127 of the Income Tax Act which was required to be passed for transferring a case from one Assessing Officer to another Assessing Officer could not be brought on record, though claimed to have been mentioned in the referred documents.To Read the full text of the Order CLICK HERE
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Community For Social Work vs ITO
CITATION: 2023 TAXSCAN (ITAT) 971
Counsel for Appellant: Sh. P.S Gupta, Sh. K.M. Roy, and Sh. Piyal Gupta
Counsel for Respondent: Smt. Ranu Biswas
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