Assessment done by CIT-OSD promoted on situ basis upheld. Contention was that CIT could not be AO

Assessment done by CIT-OSD promoted on situ basis upheld. Contention was that CIT could not be Assessing Officer u/s 2(7A) of Income Tax Act

ABCAUS Case Law Citation
ABCAUS 2369 (2018) 06 ITAT

The instant appeal was filed by the assessee challenging the order passed by the CIT(A) in confirming the order of the Assessing Officer (AO).

During the course of hearing before the Tribunal, the assessee raised an additional ground and prayed its admission claiming it purely a legal ground.

The objection of the assessee was that the assessment order passed by the CIT (OSD) was illegal and as ‘’Commissioner of Income Tax’’ is not covered by definition of ‘’Assessing Officer’’ as per Section 2(7A) of the Income Tax, 1961 (the Act) and therefore the order passed was without jurisdiction and null and avoid ab initio.  

It was submitted that the assessee had participated in the proceedings in terms of the notice issued by the Additional Commissioner of Income Tax and all the replies were filed to the Adl. CIT, and no notice whatsoever was received from the Commissioner of Income Tax (OSD) assuming the jurisdiction thereon.

It was further submitted that an order passed by assessing officer is appealable before CIT (Appeals), i.e. authority who is higher in hierarchy than Assessing officer and thus empowered with authority to adjudicate the orders passed by lower authority. However, both CIT (Admn.) and CIT (Appeals) are of same rank and if CIT (Admn.) acts as assessing officer and passes assessment order, appeal can not be decided by CIT(A) who is also having equivalent authority on the same footing as the appeal against the orders passed by CIT (Admn.) u/s 263 can be filed before Income Tax Appellate Tribunal and not before CIT(A).

During the course of hearing, the Revenue supported the order of the CIT(A) and filed the promotion order issued by the CBDT according to which the Board had issued the Promotion Order to the Grade of CIT on situ basis and it had been clearly mentioned in the said order that promotion at their place of posting till their formal posting in the grade of CIT, they will continue to discharge the function of the present posting.

Accordingly, the ground raised by the assessee was dismissed.

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