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Initiation Of Reassessment Proceedings By Income Tax Officer Without Jurisdiction: Delhi High Court Quashes The Proceedings
Mariya Paliwala
20 May 2022 12:14 PM IST
The Delhi High Court bench of Justice Manmohan and Justice Dinesh Kumar Sharma held that since the petitioner jurisdictional Assessing Officer is headquartered in Delhi, the income tax officer from Jaipur had no authority to send a notice proposing the beginning of reassessment proceedings. The petitioner/assessee challenged the order passed by the Income Tax Officer under Section 148A...
The Delhi High Court bench of Justice Manmohan and Justice Dinesh Kumar Sharma held that since the petitioner jurisdictional Assessing Officer is headquartered in Delhi, the income tax officer from Jaipur had no authority to send a notice proposing the beginning of reassessment proceedings.
The petitioner/assessee challenged the order passed by the Income Tax Officer under Section 148A (d) of the Income Tax Act, 1961, and the initiation of reassessment proceedings.
The petitioner contended that there was no valid jurisdiction with the Income Tax Officer located at Jaipur for the issuance of notice or proposed initiation of reassessment proceedings. The jurisdiction over the petitioner lies solely with the Income Tax Officer at New Delhi.
The petitioner stated that the notice was issued on factually incorrect grounds. The petitioner had not purchased the immovable property located at Barmer. During the relevant year, the property had only been taken on a lease for the installation of a tower, as the assessee was engaged in providing passive infrastructure telecom services.
The court quashed the notice under Section 148A (b) as well as the order under Section 148A (d) as it was issued by a non-jurisdictional Assessing Officer.
"If the law permits the respondents/revenue to take steps in the matter, they shall be at liberty to do so. Needless to state that if and when such steps are taken and if the petitioner has a grievance, it shall be at liberty to take its remedies in accordance with the law," the court said.
Case Title: Indus Tower Ltd. Versus ITO
Citation: 2022 LiveLaw (Del) 477
Dated: 10.05.2022
Counsel For Petitioner: Advocate Rohit Jain
Counsel For Respondent: Sr.Standing Counsel Ajit Sharma
