M/S. ARYAN CORPORATE SOLUTION (P) LTD.,NOIDA vs. ITO, NEW DELHI

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ITA 4565/DEL/2012Status: DisposedITAT Delhi27 May 2016AY 2008-093 pages

In favour of the assessee: the assessee's appeal was allowed. From the AI summary of this appeal.

AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the ITO, Ward 2(1), New Delhi had no jurisdiction over the assessee's case as the company's registered office and return filing jurisdiction were in Noida. Consequently, the assessment order passed by the Delhi officer was deemed bad in law.

What were the facts?

The assessee company, with its registered office in Noida, filed its income tax return with ITO, Company Ward 1(2), Noida. However, ITO, Ward 2(1), New Delhi issued notices and passed an assessment order despite the assessee asserting lack of jurisdiction.

What were the issues?

The primary issue was whether the Assessing Officer in New Delhi had the territorial jurisdiction to assess the income of a company whose registered office and return filing jurisdiction were in Noida.

Which sections of the Income-tax Act were involved?

Section 142,Section 144

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH ‘A’, NEW DELHI

Before: SHRI I.C.SUDHIR & SHRI J. SUDHAKAR REDDY

ORDER

PER J. SUDHAKAR REDDY, ACCOUNTANT MEMBER

1.

This is an appeal filed by the Assessee directed against the order dated of Ld.CIT(A)-V, New Delhi pertaining to the Assessment Year (hereinafter referred to as the A.Y.) 2008-09.

2.

We have heard Shri K.P. Garg, the Ld.Counsel for the assessee and Sh. K.K.Jaiswal, Ld.D.R. on behalf of the Revenue. 3. The sole issue that is in dispute before us, is that the jurisdiction of the Assessing Officer to assess the income of the assessee. It is the case of the assessee that it falls within the jurisdiction of ‘ITO-Ward 1(2), Noida’ and not ‘ITO, Ward 2(1), New Delhi’.

ITA 4565/Del/2012 A.Y. 2008-09 Aryan Corporate Solution (P) Ltd., Noida 4. After perusing the record, we find that the assessee company has its registered office at Noida, U.P. The PAN details recorded shows that the assessee company is having its address at A 31, Second Floor, Vaishali International, Sector 3, Noida, G.B. Nagar, U.P. 201 301 and that for filing returns of income the assessee should contact ITO, Company Ward 1(2). The assessee has filed the return for the A.Y. 2008-09 with the ITO, Company Ward 1(2), Noida. The Central Processing Centre processed the return accordingly recording the Noida address of the assessee. 4.1. The ITO, Ward 2(1), New Delhi issued notice u/s 142 of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) dated 6th December,2010 to the assessee. In reply the assessee on 13th December,2010 stated that it has filed its e-return of income with the ITO, Circle 1(2), Noida and that the ITO, Ward 2(1) Delhi has no jurisdiction over the case. A copy of the Company’s Incorporation Certificate, PAN etc. were filed. Again on 15th December,2010 the ITO, Ward 2(1), Delhi was informed that he has no jurisdiction. Despite that the ITO, Ward 2(1), New Delhi passed an order u/s 144 of the Act. From the above discussion it is clear that the ITO, Ward 2(1), New Delhi has no jurisdiction in the case. No Officer can confer jurisdiction on himself, without an order from the competent authority. Thus the order passed is bad in law. The assessment is quashed and the appeal of the assessee is allowed.

5.

In the result assessee’s appeal is allowed.

Order pronounced in the Open Court on 27th May, 2016.

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