1990 (2) TMI 111 - AT - Income Tax

Summary

Issues:
Jurisdiction of assessing officer over the assessee for assessment years 1984-85 and 1985-86.

Detailed Analysis:
The case involves appeals by the assessee challenging assessments for the years 1984-85 and 1985-86, asserting that the assessing officer lacked jurisdiction. The Central Board of Direct Taxes transferred jurisdiction over the assessee from one Income-tax Officer to another through an order under sec. 127 of the Income-tax Act, 1961. The assessee argued that the transfer was ineffective as the original officer had jurisdiction due to the nature of the assessee's income activities. However, the Tribunal found that the order transferring jurisdiction was specific and effective, taking away jurisdiction from all officers and conferring it on the designated officer, ITO, Central Circle VIII, New Delhi.

The assessee contended that the order under sec. 127 was not served on them promptly, thus challenging its effectiveness. The Tribunal clarified that sec. 127 is an administrative power that becomes effective upon issuance, regardless of service on the parties involved. Therefore, the order transferring jurisdiction became effective from the specified date, irrespective of when it was physically served on the assessee.

Regarding the requirement to supply reasons for transferring jurisdiction, the Tribunal distinguished the case from those involving seizure of property. It emphasized that in administrative transfers, an assessee does not have a vested right to be assessed by a particular officer. As the assessee was not previously assessed, and no returns were filed before the transfer, there was no prejudice caused by conferring jurisdiction on the new officer. The Tribunal upheld the validity of the order transferring jurisdiction and affirmed that the designated officer had the authority to assess the assessee for the relevant years.

In conclusion, the Tribunal dismissed the appeals, upholding the jurisdiction of the assessing officer designated by the Central Board of Direct Taxes through a valid order under sec. 127. The decision emphasized the administrative nature of jurisdiction transfers and the effectiveness of such orders from the date specified, regardless of immediate service on the parties involved.