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TMI Blog1990 (2) TMI 111X X X X Extracts X X X X X X X X Extracts X X X X ..... n these appeals is that the assessing officer had no jurisdiction over the assessee. This is the case of a person who has not been assessed for any year prior to assessment year 1984-85. The Central Board of Direct Taxes passed an order dated 14-9-1984 conferring jurisdiction over the case of the assessee on ITO, Central Circle VIII, New Delhi by way of transfer from ITO, Pvt. Salary Circle (Main), New Delhi. The order purports to have been passed by the CBDT in exercise of powers under sec. 127 of the Income-tax Act, 1961. In pursuance of the said order the ITO, Central Circle-VIII issued a notice under sec. 148 of the Act to the assessee in respect of assessment year 1984-85. The said notice was served on 17-9-1985. For assessment year 19 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ness. For this reason, according to the learned counsel for the assessee, the jurisdiction lay with the territorial ITO, i.e., ITO, Distt. VI(9) and, therefore, the Board's order transferring the case, from ITO, Pvt. Salary Circle (Main) to ITO, Central Circle VIII, New Delhi was ineffective. This contention, in our view, has no force. What is important is that on 14-9-1984, when the Board passed the order under consideration purporting to be under section 127, no return of income filed by the assessee was pending consideration before the ITO, Pvt. Salary Circle and the assessee had never been assessed before. A search had taken place at the premises of the assessee on 13-9-1983, i.e., much before the order under reference was made and, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . VIII, New Delhi was, in our view, an effective order under sec : 127 of the Income-tax Act, 1961 taking away jurisdiction from all Income-tax Officers and conferring the same on ITO, Central Circle VIII, New Delhi. 5. The learned counsel for the assessee contended that the order under sec. 127 was not served on the assessee till 15-10-1986 and that this was, therefore, did not become effective till it was served on the assessee. This contention, in our view, has no force. Section 127 of the Act deals with a purely administrative power and does not require that a copy of the order should necessarily be served on the assessee. In any case, there is nothing in sec. 127 indicating that the order shall not become effective unless communicat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Commissioner's decision according his approval will not become effective. The relevant observations of Hon'ble the Supreme Court is as below :--- " It is true that sub-sec. (8) does not in terms provide that the Commissioner's approval or the recorded reasons on which it might be based should be communicated to the concerned person but in our view since the person concerned is bound to be materially prejudiced in the enforcement of his right to have such books and documents returned to him by being kept ignorant about the factum of fulfilment of either of the conditions, it is obligatory upon the Revenue to communicate the Commissioner's approval as such the recorded reasons to the person concerned. In the absence of such communication t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... even directed that a copy of the order be supplied to the assessee. The ITO, Central Cir. VIII served notices on the assessee under sec. 148 for assessment year 1984-85 and under sec. 139(2) for assessment year 1985-86. Up to that time the assessee had not filed return before any Income-tax Officer whatsoever. If the assessee's conduct had been bona fide and straightforward and he wanted to challenge the jurisdiction of the ITO, Central Cir. VIII, New Delhi, he would have immediately written to him to enquire how he acquired jurisdiction to assess him. The assessee, however, did not do so nor did he file the returns of income before ITO, Central Circle VIII, New Delhi within the time prescribed in the notices. On the other hand, he has tri ..... X X X X Extracts X X X X X X X X Extracts X X X X
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