NAND KISHORE GUPTA,NOIDA vs. ITO WARD 2(3), NOIDA

The assessee has raised the following grounds of appeal:- “1. That the Learned Assessing Officer, Ward-2(3), Noida erred in issuing Notice Under Section 148 of the Act as the Appellant has been regularly assessed with Assessing Officer 3(1), New Delhi for the last several years. The proceedings u/s 147 of the Act and Assessment Order passed by the Assessing Officer not having jurisdiction over the Assessee is totally illegal and liable to be quashed.

As per the assessment order, there was an AIR information received from the office of the Commissioner of Income Tax, Noida regarding sale of immovable property as on 8.10.2011 for Rs.40,20,500/-, whereas the market value of the property was Rs.72,26,000/-. Based on this information the Income Tax Officer, Ward 2, Noida, has recorded the reasons which are as under:- “ REASONS UNDER SECTION 147 OF THE Act. 1961 Name & address of assessee : Nand Kishor Gupta, C-87A, Sector-26, Noida. 1. PAN : --- 2. Assessment Year : 12-13 3. Date : 20-03-2015. As per AIR information received from the office of the Commissioner of Income Tax, Noida regarding sale of immovable property as on 08-10-2011 for Rs 4020500/- and Market value of property was Rs.7226000/- Notice u/s 133(6) of the I.T. Act 1961 dated 09-01-15 was issued and served upon the assessee. But assessee could not filed reply. It has been found from the information that assessee has sold the property as on 08-10.2011 for Rs.4020500/- whereas the sale consideration as per Sec. 50 C of the property was at Rs.7226000/-. The difference is Rs.3205500/- is taxable u/s 50 C of I. T. Act. The Assessee has not filed his return for A.Y. Considering the above facts, I have reason to believe that assessee has escaped the income to Rs. 3205500/- which is chargeable to tax A, Y. 2012-13 within the meaning of section 147 of the I.T. Act 1961.

Accordingly, notice under Section 148 of the Act was issued by the Income Tax Officer Ward-2{3), Noida on 20.03.2015. In response the assessee filed earlier return in response to notice under Section 148 of the Act. During the course of assessment proceedings the assessee had categorically objected the jurisdiction of the Assessing Officer, Noida treating that now the assessee is being regularly assessed by the Assessing Officer, Ward 54(4), New Delhi, for the last several years and the present Assessing Officer has no jurisdiction. The assessee has also submitted copy of computation of income filed alongwith the original return of income. However, the Assessing Officer did not consider such objections as nothing is borne out from the assessment order.

Before the ld. CIT (Appeals) the assessee has raised this specifically additional ground according and which has been placed in the paper book page 31. However, the ld. CIT (Appeals) has not decided this issue.

Before me the ld. Counsel drew my attention to copies of Income tax returns filed from assessment year 2008-09 to assessment year 2018-19 and submitted that, all throughout the jurisdiction of Assessing Officer was at New Delhi and at the time of issuance of notice under Section 148 of the Act the jurisdiction of the Assessing Officer was Ward 54(4) Delhi. Thus, the Income Tax Officer, Ward 2(3), Noida never had jurisdiction either at the time of the issue under Section 148 nor at the time of passing of the assessment order.

On the other hand, the ld. DR submitted that some more time should be given to find out whether any transfer order under Section 127 has been passed by the ld. CIT (Appeals) / Pr. CIT transferring the jurisdiction from Delhi to Income Tax Officer Ward 2, Noida. However, I find that on earlier occasion, similar direction was given. Till date, however, no compliance was made. 9. After considering the aforesaid fact and on perusal of the record, I find that all throughout the assessee has been filing his return of income with the Assessing Officer having jurisdiction at New Delhi. From Assessment Year 2015-16 till date, assessee has been electronically filing the return of income and the jurisdiction of the Assessing Officer has been assigned with Ward 54(4) Delhi. Thus, at the time of issuance of notice under Section 147 of the Act Assessing Officer, Ward 54(4) Delhi has the jurisdiction. At no point of time, the jurisdiction was ever transferred to Income Tax Officer, Ward 2(3), Noida. In so far as the contention of the ld. DR that further time should be given to ascertain, whether any order under Section 127 has been passed transferring jurisdiction from Delhi to Noida, I find that already sufficient time was given and moreover, after the notice u/s 148 has been issued in March, 2015 and till this date, the return of income has been accepted in the jurisdiction of Assessing Officer, Ward 54(4) Delhi which means that the Page 6 of 8 assessee’s jurisdiction was never transferred from Assessing Officer, Ward 54(4) to Income Tax Officer, Ward 2(3) Noida, specifically when Income Tax returns are up-loaded on the portal of the Income Tax Department. Thus, not only the issuance of notice under Section 148 of the Act was invalid as Income Tax Officer, Ward 2(3) Noida did not have jurisdiction to issue notice under Section 148; nor he could have passed the assessment order. If the Assessing Officer had received any information, then he should have forwarded the said information to the jurisdictional Assessing Officer to initiate action under Section 148 of the Act and to proceed with the assessment / reassessment. Simply receiving information about escapement of income to any Assessing Officer does not mean that Assessing Officer can acquire jurisdiction automatically on a assessee. Jurisdiction is acquired in accordance with the statute and as per territorial jurisdiction or jurisdiction which have been assigned by the order of the CBDT. Thus, the entire proceedings initiated under Section 148 of the Act and passing of the assessment order by Income Tax Officer, Ward 2(3) Noida is void ab initio and the same is quashed.

In the result, the appeal of the assessee is allowed.