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S.N. Bhargava vs Income-Tax Officer on 12 November, 1986

7. Considering the above discussion, it is clear that the ITO, Agra was not having jurisdiction over the assessee, therefore, should not have recorded the reasons for reopening of assessment and further, he was having no reasons to believe that income chargeable to tax has escaped assessment because the order of ADM, Agra has not reached finality on admission of writ petition by the Hon'ble High Court. The Assessing Officer at Aligarh did not do anything in the matter and merely followed the reasons recorded by the ITO at Agra and continued with the re-assessment proceedings against the assessee on borrowed satisfaction of ITO, Agra, who has also borrowed satisfaction from the office of DCIT-2, Agra. The reasons which are not in accordance with law have been recorded at Agra by the ITO, who was not authorized to do so, as was having no jurisdiction over the assessee and the Assessing Officer having jurisdiction over the assessee at Aligarh did not do anything with regard to the initiation of re-assessment proceedings and has not recorded any reasons for re- assessment proceedings and merely acted on the borrowed satisfaction. The issue is, therefore, squarely covered by the order of ITAT, Agra Bench in the case of Late Shri S.N. Bhargava (supra). In view of the above discussion, we are of the view that the initiation of re-assessment proceedings u/s. 147 of the IT Act is clearly bad in law and ITA No. 5529/Del/2013 13 against the provisions of law. The AO at Aligarh has, therefore, no validly assumed the jurisdiction to pass re-assessment order because he has merely followed the reasons recorded by the ITO, Agra, who was having no jurisdiction over the assessee. We accordingly set aside the orders of the authorities below and quash the re-assessment proceedings u/s. 147 of the IT Act. In the result, all additions would stand deleted. There is no need to decide the addition on merit, which is wholly academic in nature."
Income Tax Appellate Tribunal - Delhi Cites 7 - Cited by 7 - Full Document
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