Jurisdictional Issue Vitiates Assessment

The Delhi Bench of the Income Tax Appellate Tribunal quashed a reassessment initiated under Sections 147/148 of the Income-tax Act, 1961, holding that the notice under Section 148 had been issued by an officer who lacked inherent jurisdiction over the assessee. 

The Tribunal observed that under the applicable CBDT jurisdictional instructions, the assessee’s case fell within the jurisdiction of the Income Tax Officer (ITO) and not the Assistant Commissioner of Income Tax (ACIT). 

Since the reassessment proceedings were initiated by an authority not vested with jurisdiction, the entire reassessment was rendered invalid and was consequently set aside.