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DCIT v. Proficient Commodities Pvt Ltd ( 2020) The Chamber’s Journal -June -P. 82 ( Kol) (Trib)

S. 143(2) : Assessment – Notice – Appellate Tribunal- Ground on pure question of law can be raised before the ITAT- Notice issued by the ITO who did not have a jurisdiction to issue notice – Statutory notice u/s 143(2) lacks jurisdiction and order is bad in law [ S. 143(3) 254(1) ]

The jurisdictional issue was first time raised by the assessee  before the ITAT which was admitted by the ITAT .  The assessee contended that as per the instruction No 1/2011 dt 31-1 2011 ,when the monetary limits falls above Rs 30 lakh  the jurisdiction for the year was lied with DCIT /ACIT  and the notice issued u/s 143(2) by the ITO and assessment order was passed by DCIT without issuing the notice u/s 143(2) is held to be bad in law . Tribunal held that as per the Instruction No 1/2011 dt 31-1 2011   when a notice ought to have been issued by ACIT/ DCIT a statutory  notice issued by ITO u/s 143(2) lacks jurisdiction and assessment is bad in law . Referred  West Bengal State Electricity Board v. DCIT ( 2005) 278 ITR 218 9 Cal) (HC)  , Krishnendu Chowdhury v.ITO  ( 2017) 78 taxmann.com 89 (Kol) (Trib) , Sukumar Ch. Sahoo v. ACIT ( ITA No. 2073 /Kol/2016  . ( ITA No. 1346/Kol/ 2016 dt .18-3 -2020 ) (AY. 2012 -13)