“Section 120(1)(2)”
The decision most relied on for Section 120(1)(2) is Commissioner of Income-tax v. Ramesh D. Patel (362 ITR 492), cited in 91 judgments on BharatTax.
Leading authorities on Section 120(1)(2)
Section 124(3) of the Income-tax Act, which restricts an assessee from objecting to an Assessing Officer's jurisdiction, applies only to disputes concerning territorial jurisdiction as conferred by Section 120(1) or (2). It does not apply to objections regarding the Assessing Officer's inherent jurisdiction to frame an assessment.
An assessee who participates in assessment proceedings without challenging the Assessing Officer's jurisdiction, particularly concerning a Section 148 notice for reassessment, cannot subsequently dispute that jurisdiction.
An appellate authority can admit additional legal grounds for the first time, even if not raised earlier, provided these grounds are purely legal, go to the root of the matter, and the relevant facts for their adjudication are already on record.
An Income Tax Appellate Tribunal (ITAT) cannot reach a conclusion contrary to an earlier decision by another bench of the same Tribunal on identical facts, as the Tribunal acts as a consistent institution regardless of changes in its members.
Section 292BB of the Income Tax Act, 1961, is a rule of evidence that validates service of notice in certain circumstances. It introduces a deeming fiction that if an assessee appears in any proceeding or cooperates in any inquiry relating to assessment or reassessment, it shall be deemed that any required notice was duly served, precluding objection to such service.
A question of law concerning the root of jurisdiction can be raised for the first time before the Income Tax Appellate Tribunal. A defect of jurisdiction is incurable, and jurisdiction, which cannot be conferred by default or agreement, is determined by its initiation date and operates prospectively, not retrospectively.
The restriction under Section 124(3) of the Income-tax Act on an assessee to object to an Assessing Officer's jurisdiction is triggered only when the dispute concerns the territorial jurisdiction vested under Section 120(1) or (2).
An assessment notice issued under section 143(2) is invalid if it is not issued by the Income Tax Officer (ITO) as per CBDT Instruction No. 1/2011, even if issued by an Assistant Commissioner of Income Tax (ACIT). Such an invalid notice renders the subsequent assessment void.
