J M CHEMICAL CO.,DELHI V. ASST. COMMISISIONER OF INCOME TAX, CIRCLE-58(1), NEW DELHI, NEW DELHI

MA 114/DEL/2025

AI Insights

The case involves J M Chemical Co., which filed a Miscellaneous Application seeking rectification of the Tribunal's earlier order concerning the jurisdiction of the AO who issued a notice under section 143(2) of the Income Tax Act. The Tribunal had previously remanded the matter back to the AO to decide on the jurisdiction issue, as the jurisdiction had transferred from Ward 47(1) to Circle 58(1) after the notice was issued. The assessee argued that the Tribunal should have decided all issues on merit, including the jurisdictional challenge. The Tribunal acknowledged the need to address the jurisdictional issue first and then proceed to the merits if the AO was found to have jurisdiction.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 712291 (ITAT-DELHI)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 28-07-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Assessment Year: 2015-2016
• Other Referred Cases: Siksha \'O\' Anusandhan v. CIT & Others [2011] 336 ITR 112 (Orissa)
• Laws Referred To: Income Tax Act
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: NEEJU GUPTA
• Keywords: Rectification of order
• Section: 142(1)

Judgement Text

"1 MA No. 114/Del/2025 (In ITA No. 3595/Del/2024) A.Y. 2015-16 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “SMC” NEW DELHI BEFORE SHRI RAMIT KOCHAR, ACCOUNTANT MEMBER M.A No. 114/Del/2025 (Arising out of ITA No. 3595/Del/2024) Asstt. Yr. 2015-16 J M Chemical Co., 405, 4th Floor, DDA Building, District Centre, Laxmi Nagar, delhi- 110092. v. ACIT, Circle-58(1), New Delhi. \u0001थायीलेखासं./जीआइआरसं./PAN/GIR No: AAAFJ 4384 L Applicant .. Respondent Assessee : Sh. Pankaj Sharma, Adv. Department by : Ms. Neeju Gupta, Sr. DR Date of Hearing 25.07.2025 Date of Pronouncement 28.07.2025 O R D E R PER RAMIT KOCHAR, AM: This Miscellaneous Application (MA) bearing No. 114/Del/2025arising out of ITA No. 3595/Del/2024 for assessment year 2015-16 has been filed by the assesseeto seek rectification of Tribunal’s order dated 09.04.2025 passed in ITA No. 3595/Del/2024 for A.Y. 2015-16. Printed from counselvise.com 2 MA No. 114/Del/2025 (In ITA No. 3595/Del/2024) A.Y. 2015-16 2. It is stated in the application that the assessee had filed appeal in ITA No. 3595/Del/2024 for assessment year 2015-16, which was allowed by the Tribunal for statistical purposes, and matter was remanded back to the AO by the Tribunal’s vide order dated 09.04.2025. It was submitted that the Tribunal has restored the matter back to the non-jurisdictional AO to decide the jurisdiction of issuance of notice u/s 143(2) of the Act. It was submitted that the Tribunal ought to have decided all the issues on merit. He submitted that the jurisdiction of the AO was transferred from Ward 47(1), Delhito Circle 58(1), Delhi on 25.07.2017, while notice u/s 143(2) was issued much prior to that on 12.09.2016. Prayers was made to rectify the order of the Tribunal dated 09.04.2025. It was also submitted that the assessee has raised additional ground before the ITAT as to the jurisdiction of the AO, as well other grounds were raised on merits of the issue. The Tribunal ought to have decided all the grounds. Reliance was placed on the judgment and order of Hon’ble Orissa High Court in the case of Siksha ‘O’ Anusandhan v. CIT & Others [2011] 336 ITR 112 (Orissa). 3. Ld. Sr. DR submitted that the Tribunal has taken a decision and the powers u/s 254(2) are limited only to rectify the mistake apparent from record. 4. After hearing both the parties, I have observed that the Tribunal has considered the additional ground of appeal raised by the assessee whereby the assessee has challenged the assumption of jurisdiction by the AO by issuingof notice u/s 143(2) without having requisite authority in this regard, which is dulyrecorded in the Tribunal’s order dated 9.4.2025 in ITA No. 3595/Del/2024 for A.Y. 2015-16. The said ground is raised for the first time before the Tribunal , and since it requires verification of facts, the Tribunal considered it fit and appropriate to restore the matter back to the file of the AO to decide the controversy towards Printed from counselvise.com 3 MA No. 114/Del/2025 (In ITA No. 3595/Del/2024) A.Y. 2015-16 issuance of notice u/s 143(2) for assumption of jurisdiction , and the assessee was given opportunity to raise all the pleas connecting to such jurisdictional controversy. It is pertinent to mention that the jurisdiction of the assessee vested with Circle 47(1), Delhi, and effective 25.07.2017, the jurisdiction got vested with Circle 58(1), Delhi (Ref. PB/page 179-180/Response of the CPIO to RTI application filed by the assessee F.No. ACIT/Cir 58(1)/RTI/2024-25/27R dated 18.12.2024).The first notice u/s 143(2) was issued by the AO , Circle 47(1), while the New AO at Circle 58(1) , Delhi issued notice u/s 142(1) after assuming jurisdiction, as is emerging from the assessment order. Thus, the jurisdiction was transferred within Delhi.It is also observed that while restoring the matter back to the file of the AO, the Tribunal in its order dated 09.04.2025 has not adjudicated on merits of the issue arising in the appeal. No doubt, the scope of Section 254(2) is limited to rectification of mistakes apparent from records, and I am not allowed to review the decision of the Tribunal(SMC Bench passed the order dated 09.04.2024), but it is well established that an Act of Court should not prejudice anybody. It clearly appear that the Tribunal did not stated any thing on the issues arising on merits of the additions made. Thus, once AO decide that jurisdiction wasrightly and legally assumed, then the AO shall decide on the issues on merits(which of course may be reiterated by the AO as are contained in the original assessment order ), otherwise the assessee will remain remedy-less. Thus, AO will firstly determine and decide jurisdictional issue as raised by the assessee vide additional ground, and then according to law pass the assessment order if he is so having the jurisdiction to pass the order. Thus, to that extent , the Tribunal order needs to be modified, otherwise I donot find any fault in the appellate order dated 09.04.2025 passed by the Tribunal in setting aside the matter back to the file of the Printed from counselvise.com 4 MA No. 114/Del/2025 (In ITA No. 3595/Del/2024) A.Y. 2015-16 AO with directions contained therein. Thus, MA is disposed off in the manner as indicated in this order. I order accordingly. 5. Misc. application of the assessee in MA No. 114/Del/2025 arising out of ITA no. 3595/Del/2024 for assessment year 2015-16 is disposed off as indicated above. Order pronounced in the open court on 28.07.2025. Sd/- (RAMIT KOCHAR) ACCOUNTANT MEMBER Dated :28.07.2025. PS: *MP* Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR ITAT DELHI Printed from counselvise.com "