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2023 (3) TMI 1496 - AT - Income TaxIssues Involved: 1. Jurisdiction of Additional CIT to perform functions of the Assessing Officer. 2. Validity of the assessment order in the absence of necessary orders u/s 120(4)(b) and u/s 127 of the Act. Summary: Issue 1: Jurisdiction of Additional CIT to perform functions of the Assessing Officer The assessee raised an additional ground challenging the jurisdiction of the Additional CIT who passed the assessment order, arguing that he was not conferred jurisdiction u/s 120(4)(b) of the Act. The Tribunal found that the jurisdiction of the AO to frame an assessment is a legal issue and not a factual one. The definition of "Assessing Officer" u/s 2(7A) of the Act requires an authorization u/s 120(4)(b) for an Additional CIT or JCIT to perform the functions of an AO. The Tribunal held that without an independent order u/s 120(4)(b), the Additional CIT or JCIT could not be considered as an AO as defined u/s 2(7A) of the Act. Additionally, there should be a separate transfer order u/s 127 of the Act. Issue 2: Validity of the assessment order in the absence of necessary orders u/s 120(4)(b) and u/s 127 of the ActThe Tribunal noted that despite requests, the Revenue failed to produce the necessary orders u/s 120(4)(b) and u/s 127 of the Act. The Tribunal referred to previous decisions, including Vertiv Energy Pvt Ltd vs Additional CIT, which addressed similar issues. The Tribunal reiterated that the absence of these orders invalidates the jurisdiction of the Additional CIT/JCIT to perform the functions of an AO. Consequently, the assessment orders framed by the Additional CIT/JCIT were quashed. The Tribunal emphasized that the issue of jurisdiction goes to the root of the matter and must be addressed before considering other grounds. Conclusion:The Tribunal quashed the assessment order framed by the Additional CIT for the year under consideration due to the absence of necessary orders u/s 120(4)(b) and u/s 127 of the Act. As a result, the other grounds raised in the appeals became academic and were left open. The appeal of the assessee was allowed, the appeal of the revenue was dismissed, and the cross objection of the assessee was dismissed as infructuous.
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