Dismissed

M/S. Eklavya Career Academy Trust v. Income Tax Officer, Ward 2, Rourkela

Orissa HC21 Jul 2022ITA/38/2022

Case brief

AI extract

What is this about?

This court dismissed the appeal against an ITAT order remanding a tax assessment. The ITAT had set aside an order passed by an ITO for lack of jurisdiction and directed fresh assessment by the ACIT, who initiated proceedings. The court upheld the remand as a consequential direction, finding no substantial question of law.

What did the court decide?

The appeal was dismissed; no relief granted to the appellant.

M/S. Eklavya Career Academy Trust Vs Income Tax Officer, Ward 2… — Income Tax | Orissa HC (2022)

¶1

IN THE HIGH COURT OF ORISSA AT CUTTACK

¶2

ITA No. 38 of 2022

¶3

…. M/s. Eklavya Career Academy Trust, Appellant Rourkela

¶4

Mr. Sidhartha Ray, Advocate

¶5

-versus-

¶6

…. Income Tax Officer, Ward-2, Rourkela Respondent Mr. R.S. Chimanka, Sr. Standing Counsel Along with Mr. A. Kedia, Jr. Standing Counsel

¶7

CORAM: THE CHIEF JUSTICE JUSTICE R. K. PATTANAIK

ORDER

Order No.

21.07.2022

1. This is an appeal filed by the Assessee aggrieved by an order dated 31^st May 2022, passed by the Income Tax Appellate Tribunal, Cuttack Bench (ITAT) in ITA No.176/CTK/2016 for the Assessment Year 2010-11.

¶12

The short ground which is urged for consideration by the Assessee is whether after finding the assessment order passed by the ITO, Rourkela Circle-2 to be entirely without jurisdiction, the ITAT was justified in remanding the matter to the Assistant Commissioner of Income Tax (ACIT), who admittedly had jurisdiction, to proceed afresh in the matter?

¶13

The facts are not in dispute. A notice was issued by the ACIT, Rourkela Circle, Rourkela, who had jurisdiction to conduct the assessment, to the Assessee under Section 143(2) of the Income Tax Act, 1961 (Act). However, before he could further proceed in the matter, the Joint Commissioner of Income Tax (JCIT), Rourkela Range, Rourkela transferred the file from the ACIT to the ITO

¶14

Page 1 of 2

¶15

Ward-2, Rourkela. This was clearly without jurisdiction and all the actions taken consequent thereto by the ITO, Ward-2, Rourkela was also without jurisdiction. Correctly, therefore, the ITAT set aside the assessment order as it had been vitiated by an ‘incurable defect’.

¶16

Mr. Sidhartha Ray, learned counsel for the Appellant states that in support of its decision to remand the matter to the ACIT for fresh assessment, the ITAT relied on the decision of this Court in Commissioner of Income Tax v. Shivkumar Agrawal (1990) 186 ITR 734 in which only a passing remark was made that if the penalty had been imposed by an officer not having jurisdiction, the proceeding by itself does not come to an end and that “the same has to be finalized by the officer having jurisdiction.”

¶17

This Court is of the view that once the order was set aside for lack of jurisdiction, the consequential direction of the ITAT that the assessment should now be by the officer having jurisdiction cannot be said to be erroneous in law. It was a consequential order and which was only natural because the ACIT, admittedly the officer having jurisdiction, had initiated the proceedings by issuing the notice under Section 143 (2) of the Act. The proceedings had to therefore be taken to the logical next step.

¶18

In that view of the matter, no substantial question of law arises. The appeal is dismissed in the above terms.

¶19

(Dr. S. Muralidhar)

¶20

Chief Justice

¶21

(R. K. Pattanaik)

¶22

Judge

¶23

S. Behera

¶24

Page 2 of 2

M/S. Eklavya Career Academy Trust v. Income Tax Officer, Ward 2, Rourkela

Case brief

What is this about?

What did the court decide?

M/S. Eklavya Career Academy Trust v. Income Tax Officer, Ward 2, Rourkela

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Cases cited

Statutes considered

Parties & counsel

Coram

Case details

Similar cases

Ajay Kumar Mohanty Vs State of Odisha

Pradeep Kumar Dash Vs the Commissioner -Cum -Secretary, S and Me Dept.

Bir Surendra Sai Krushak Mahasangha Ciub, Kumir of Jharbandh Block, Bargarh Vs State of Odisha

Sumita Moharana Vs Dist Judge,Kandhamal

State of Orissa Vs Bandana Bera

Kalinga Institute of Industrial Technology (Kiit) Vs Asst. Commissioner of Income Tax Exemption Circle Bbsr