HARISH CHAND GUPTA,DELHI vs. INCOME TAX OFFICER, WARD 34(1), DELHI, DELHI

ITA 671/DEL/2025Status: DisposedITAT Delhi23 December 2025AY 2017-18Bench: SHRI S. RIFAUR RAHMAN (Accountant Member), SHRI VIMAL KUMAR (Judicial Member)7 pages
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What did the Tribunal hold?

The Tribunal found that the assessment order was passed pursuant to a notice under Section 143(2) issued by an AO who lacked territorial jurisdiction over the assessee. Citing judicial precedents, the Tribunal held that an assessment order based on a notice from a non-jurisdictional AO is invalid and must be quashed, as participation in proceedings does not confer jurisdiction. Ground No. 1 of the appeal was allowed, and other grounds were not pressed.

What were the facts?

The assessee filed an ITR for AY 2017-18, which was selected for scrutiny due to discrepancies in import purchases, customs duty, and cash deposits. The AO made additions under Section 144, which were set aside by the CIT(A) for de novo assessment. The assessee appealed, arguing that the assessment proceedings were illegal as the Section 143(2) notice was issued by a non-jurisdictional AO (Ward-66(1) Delhi), while the assessment was completed by the jurisdictional AO (Ward 34(2), Delhi).

What were the issues?

Whether an assessment order passed by a jurisdictional AO, but initiated by a Section 143(2) notice issued by a non-jurisdictional AO, is valid in law, especially when Section 292BB is not applicable.

Which sections of the Income-tax Act were involved?

Section 250,Section 144,Section 143(1),Section 143(2),Section 142(1),Section 69A,Section 115BBE,Section 68,Section 145(3),Section 145(1),Section 2(7A),Section 120(3),Section 292BB

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Income Tax Appellate Tribunal, DELHI BENCHES : C : NEW DELHI

Before: SHRI S. RIFAUR RAHMAN & SHRI VIMAL KUMAR

For Appellant: Shri S.K. Gupta, CA
For Respondent: Shri Om Parkash, Sr. DR
Hearing: 29.10.2025Pronounced: 23.12.2025

PER VIMAL KUMAR, JM:

The appeal filed by the Assessee is against the order dated 02.12.2024 of the ld. Commissioner of Income-tax (Appeals), NFAC, Delhi, [hereinafter referred to as the Ld. CIT(A)] u/s 250 of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) arising out of the assessment order dated 20.12.2019 of the ld. AO/Income-tax Officer, Ward 34(2), Delhi (hereinafter referred to as ‘the ld. AO’) u/s 144 of the Act for Assessment Year 2017-18. 2. The brief facts of the case are that the return of income declaring an income of Rs.4,29,700/- was filed on 31.10.2017. The return was processed u/s 143(1) of the Act. The assessee had derived income under the head ‘Income from business or profession’ ‘incom

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