COMMISSIONER OF INCOME TAX Vs. KAPIL JAIN

JUDGEMENT

(1.) "Whether the Tribunal, while deleting the additions, was correct in law and on facts in holding that the order of the AO was without jurisdiction though it has been passed after due compliance of the procedure envisaged under s. 158BD - 158BD r/w s. 158BC of the IT Act, 1961 (hereinafter referred to as 'the Act') was served upon the assessee. The income as 'nil'. The AO, however, made the assessment for the aforesaid block period by assessing the income at Rs. 25,61,147. The assessee filed an appeal before the CIT(A), who allowed the same partly by deleting some of the additions made and confirmed some other additions made by the AO. It is worthwhile to point out that before the CIT (A), the assessee had also raised the question of jurisdiction of the AO. This objection was turned down by the CIT(A). The Income -tax Appellate Tribunal (hereinafter referred to as 'the Tribunal'), however, has accepted the objection qua jurisdiction of the AO and on that ground alone, the assessment made by the AO is set aside vide impugned decision dt. aforesaid facts would disclose that we are concerned with the issue as to whether the order passed by the concerned AO was without jurisdiction. Insofar as this issue is concerned the following facts may be spelled out :

(2.) THE search was conducted at the premises of father of the assessee. The concerned AO in the case of the father of the assessee was Asstt. CIT, Circle 36(1), New Delhi, whereas the AO having jurisdiction over the assessee was the ITO, Ward 29(1), at the time of the issue of notice under s. 158BD. In the case of the assessee, however, the notice under s. 158BC was issued by the Asstt. CIT, Circle 36(1), New Delhi, who had no jurisdiction over the assessee.

(3.) SUBSEQUENTLY , the case of the assessee was transferred to Circle 36(1) and as such transfer order was passed by the It is thus clear that Asstt. CIT, Circle 36(1), New Delhi, on the date of issuance of notice, had no jurisdiction to issue such a notice.