Shri Bharat kumar Abhechand Shah vs. ACIT - (Income Tax Appellate Tribunal) (12 Jun 2023)

Person who has been authorized to frame the assessment can only do the same

MANU/IB/0284/2023

Direct Taxation

In present case, the assessee has challenged the validity of the assessment framed under Section 158 read with Section 254 of the Income Tax Act, 1961 (IT Act) on the ground that the same has been framed without proper jurisdiction.

The controversy in the present case is limited to decide which authority of income tax whether Additional CIT/ Joint CIT Range-1 or ACIT has jurisdiction over the assessee for the block period in dispute so as to frame the assessment.

There remains no ambiguity to the fact that the jurisdiction was vested with the additional/ joint Commissioner of Income Tax for framing the assessment for the block period in dispute whereas the assessment has been framed by the ACIT. It is the trite law that the person who has been authorized to frame the assessment can only do the same. In the present case, the assessment framed by the authority without having valid jurisdiction. Accordingly, the assessment framed by the AO in the given case is not maintainable and sustainable. Accordingly, present Tribunal quash the same.

Furthermore, once it is held that the assessment framed in dispute is not sustainable as the same has been made by the person having no jurisdiction over the assessee, present Tribunal is not inclined to adjudicate the issue raised by the assessee on merit. Appeal filed by the assessee is partly allowed.

Tags : ASSESSMENT FRAMING OF JURISDICTION