ITO Vs. KRISHAN KUMAR GUPTA
INCOME TAX APPELLATE TRIBUNAL
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C.L. Sethi, J.M. -
(1.) IN the present appeal filed by the revenue against the order dated 31-10-2003 passed by the Commissioner (Appeals) in the matter of an assessment made by the assessing officer under Section 143(3)/148 of the INcome Tax Act, 1961 for the assessment year 1995-96, the revenue has raised the following grounds:
The learned Commissioner (Appeals)-XXVI, New Delhi has erred in cancelling the order passed by the assessing officer under Section 147 of the Act holding that the notice under Section 148 was issued by an assessing officer not holding jurisdiction despite the fact that:
(a) The notice under Section 148 was issued by the assessing officer who exercised jurisdiction in respect of the address under which the assessee himself maintained account with the SBI, Rohtak Road INdustrial Complex, Delhi and in respect of which bank account the assessing officer received information from the Deputy Director of INcome-tax (INvestigation), Faridabad.
(b) The pending Section 147 proceedings were transferred to the assessing officer who exercised jurisdiction in respect of the residential address furnished by the assessee and who thereafter completed the assessment.
(c) The assessee apparently filed a forged photocopy of the Section 148 notice containing assessee's residential address, claiming that the assessing officer (INcome Tax Officer, Ward 25(4)) issued the said notice without jurisdiction whereas in fact no notice under section148 was issued to the assessee at his residential address as per the case records.
(2.) The issue raised in the aforesaid grounds of appeal is as to whether the assessing officer, who had issued notice under Section 147 of the Act had any jurisdiction over the assessee to issue notice under Section 148 of the Act and as to whether the assessment completed by the assessing officer, Ward 33(2), New Delhi was valid in the eyes of law.
A notice under Section 148 was issued by the Income Tax Officer, Ward 25(4), who initiated proceedings under Section 147 of the Act on the basis of information received by him from Deputy Director of Income-tax (Investigation), Faridabad that the assessee had introduced the funds amounting to Rs. 4,75,000 through the accommodation entry in the form of agricultural income with the help of Jai Trading Co. in his bank account No. 25/4202, SBI, Rohtak Road, Delhi, by using the address 487/107, New Ramlila Ground, Peera Garhi, Delhi. Having received the notice issued by the assessing officer under Section 148 of the Act, the assessee raised an objection before the assessing officer challenging the jurisdiction of the Income Tax Officer, Ward 25(4) vide his letter dated 30-4-2002 and requested to drop the proceedings. Before the Income Tax Officer, Ward 25(4) the assessee furnished his address as 1821/50, Naiwala, Karol Bagh, New Delhi. On the basis of this information as to the address of the assessee, the Income Tax Officer, Ward 25(4) transferred the case to Income Tax Officer, Ward 33(2), New Delhi. Thereafter, the Income Tax Officer, Ward 33(2) issued notice under Section 142(1) of the Act to the assessee and then completed the assessment under Section 143(3)/148 of the Act vide order dated 24-3-2003.
(3.) BEING aggrieved with the action of the Income Tax Officer, Ward 33(2), New Delhi in completing the assessment under Section 148 on the basis of the notice issued under Section 148 by the Income Tax Officer, Ward 25(4), the assessee preferred an appeal before the Commissioner (Appeals) challenging the validity of the proceedings initiated under Section 147 of the Act as well as the assessment so completed under Section 147 of the Act.;
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