VANSHIKA MOTORS (P) LTD.,MEERUT V. ACIT, CIRCLE- 2, MEERUT

ITA 6212/DEL/2017

AI Insights

The case involves three appeals by Vanshika Motors (P) Ltd. against the assessments made by the ACIT, Circle-2, Meerut for the assessment years 2008-09, 2009-10, and 2010-11. The primary issue was the jurisdiction of the Assessing Officer to frame the assessments, given that the assessee had declared a taxable income below Rs. 15,00,000. The Tribunal referenced a CBDT circular that allocated jurisdiction to Income Tax Officers (ITOs) in municipal areas for cases where the returned income was up to Rs. 15,00,000. The Tribunal accepted the assessee's legal ground regarding the lack of jurisdiction, leading to the quashing of the assessments.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 471594 (ITAT-DELHI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-03-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: F
• Assessment Year: 2008-2009
• Other Referred Cases: Krishnendu Chowdhury vs. ITO (2017) 78 taxmann.com 89 (Cal.)
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SUNIL YADAV
• Assessee Lawyers: SANKALP MALIK
• Section: 143(3)

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘F’, NEW DELHI Before Sh. Satbeer Singh Godara, Judicial Member & Sh. Amitabh Shukla, Accountant Member ITA No. 6212/Del/2017 : Asstt. Year: 2008-09 ITA No. 6213/Del/2017 : Asstt. Year: 2009-10 ITA No. 6214/Del/2017 : Asstt. Year: 2010-11 Vanshika Motors (P) Ltd., Vinod Kumar Goel, 282, Boundry Road, Civil Lines, Meerut Vs ACIT, Circle-2, Meerut, U.P. (APPELLANT) (RESPONDENT) PAN No. AACCV5241R Assessee by : Sh. Sankalp Malik, Adv. Revenue by : Sh. Sunil Yadav, CIT-DR Date of Hearing: 20.03.2025 Date of Pronouncement: 20.03.2025 ORDER Per Satbeer Singh Godara, Judicial Member: These assessee’s three appeals ITA Nos. 6212, 6213 & 6214/Del/2017 for Assessment Years 2008-09, 2009-10 & 2010- 11, arise against the CIT(A), Meerut’s in case Nos. 300, 301 & 302/2015-16, dated 21.09.2017, in proceedings u/s 143(3) of the Income Tax Act, 1961 (in short “the Act”), appeal-wise; respectively. 2. Heard both the parties at length. Case files perused. 3. It emerges at the outset during the course of hearing that the assessee’s instant three appeals raise the first and foremost ITA Nos. 6212, 6213 & 6214/Del/2017 Vanshika Motors (P) Ltd. 2 issue of validity of the impugned “second” round assessments(s) itself framed by the learned ACIT, Circle-2, Meerut in furtherance to the tribunal’s remand directions dated 23.12.2014. As it is evident from a perusal of the case file, the assessee had admittedly declared/returned taxable income of Rs.15,00,000/- i.e. loss of Rs.2,66,088/- in it’s return filed on 14.09.2009. 4. Learned counsel further takes us to page 6 in the assessment order wherein the assessee had objected to the above Assessing Officer having assumed jurisdiction to frame assessment in it’s case. That being the case, we hereby quote CBDT landmark circular No. 1/2011 dated 31.01.2011 allocating jurisdiction to the “ITOs” only in municipal areas in those cases wherein the returned income was falling upto Rs.15,00,000/-. 5. The Revenue on the other hand vehemently argues that the learned Assessing Officer had rejected the assessee’s foregoing objections in his order sheet entry dated 18.03.2016 wherein once the assessee had declared loss of Rs.17,66,795/- in assessment year 2013-14. 6. We find no merit in the Revenue’s instant technical objection going by the assessee’s returned income figures; in ITA Nos. 6212, 6213 & 6214/Del/2017 Vanshika Motors (P) Ltd. 3 all these three cases, coming to less than Rs.15,00,000/- as it is evident from a combined perusal of the corresponding assessment orders. We thus accept it’s instant first and foremost legal ground going to the root of the matter to quash this assessee’s impugned assessment in light of Krishnendu Chowdhury vs. ITO (2017) 78 taxmann.com 89 (Cal.) for want of the Assessing Officer’s jurisdiction in very terms. Ordered accordingly. 7. All other pleadings on merits herein stand rendered academic. 8. These assessee’s three appeals i.e. ITA Nos. 6212, 6213 & 6214/Del/2017 are allowed in above terms. A copy of this common order be placed in the respective case files. Order Pronounced in the Open Court on 20/03/2025. Sd/- Sd/- (Amitabh Shukla) (Satbeer Singh Godara) Accountant Member Judicial Member Dated: 20/03/2025 *Subodh Kumar, Sr. PS* Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR "