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TMI Blog1984 (6) TMI 106X X X X Extracts X X X X X X X X Extracts X X X X ..... ntly, the IAC,BhopalRange,Bhopal, also forwarded the draft order along with the objection to the IAC (Assessment),Indore, for issuing necessary directions under section 144B of the Income-tax Act. The IAC (Assessment),Indore, has issued the directions dated21-8-1980. This order is being passed keeping in view the directions issued by the IAC (Assessment),Indore." 6. On the above facts the grievance of the assessee stood brushed aside by the learned Commissioner (Appeals), and the narration in the impugned order (vis-a-vis ground Nos. 2 and 3 taken by the assessee before us), reads as under : "The objection of the appellant is that though the assessment proceedings have been validly transferred under section 127 from ITO, B-Ward, Bhopal, to the ITO I, Indore, there is no valid transfer of the pending reference under section 144B(1) from IAC, Range-X, Bhopal, to the IAC (Assessment), Indore. The learned counsel argued that the IAC (Assessment),Indore, does not assume jurisdiction over the reference as a consequence of the order passed under section 127. Unless the Commissioner passes a specific order under section 123(1) transferring the aforesaid reference from IAC,Bhopal, to th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nsidering the foregoing discussion it is held that IAC (Assessment),Indore, was fully competent to dispose of the reference under section 144B. The challenge to the validity of assessment, therefore, fails. No relief is due to the appellate on this account." 7. Before us the case of the assessee is that the learned first appellate authority in his reasoning contained in paragraph 1.6 of the impugned order has brushed aside the legal objections in a summary manner since what he has observed is wholly misconceived and is against facts and law. The learned authorised representative of the assessee strongly relied on the provisions of law as contained in sections 123, 127 and 144B of the Income-tax Act, 1961 ('the Act') and contended that there was inherent lack of jurisdiction on the part of the IAC, Indore, since he was not competent in law to have assumed jurisdiction under section 144B and, accordingly, he could not have issued the directions on the basis of which the assessment has been framed. The assessee in a nut shell contends that since the assessment order is based on the directions of the IAC, Indore, and since the IAC, Indore, had not on facts and in law, jurisdiction to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... such opportunity to be given where the transfer is from any Income-tax Officer or Income-tax Officers (whether with or without concurrent jurisdiction with the Inspecting Assistant Commissioner) to any other Income-tax Officer or Income-tax Officers (whether with or without concurrent jurisdiction with the Inspecting Assistant Commissioner) and the offices of all such officers are situated in the same city, locality or place : Provided further that-- (a) where any case has been transferred from any Income-tax Officer or Income-tax Officers to two or more Income-tax Officers, the Income-tax Officers to whom the case is so transferred shall have concurrent jurisdiction over such case and shall perform their functions in accordance with such general or special orders in writing as the Board or the Commissioner or the Inspecting Assistant Commissioner authorised by the Commissioner in this behalf, may make for the purpose of facilitating the performance of such functions ; (b) where any case has been transferred from any Income-tax Officer or Income-tax Officers (whether with or without concurrent jurisdiction with the Inspecting Assistant Commissioner) to two or more Income-tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s, the same area or the same persons or classes of persons or the same incomes or classes of income or the same cases or classes of cases, they shall have concurrent jurisdiction and shall perform their functions in relation to the said area, or persons or classes of persons, or incomes or classes of income, or cases or classes of cases, in accordance with such general or special orders in writing as the Commissioner or the Inspecting Assistant Commissioner authorised by the Commissioner in this behalf, may make for the purpose of facilitating the performance of such functions. (3) Within the limits of the area assigned to him, the Income-tax Officer shall have jurisdiction-- (a) in respect of any person carrying on a business or profession, if the place at which he carries on his business or profession is situate within the area, or where his business or profession is carried on in more places than one, if the principal place of his business or profession is situate within the area, and (b) in respect of any other person residing within the area. (4) Where a question arises under this section as to whether an Income-tax Officer has jurisdiction to assess any person, the qu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sioner may, by general or special order in writing, specify, for the distribution and allocation of the work to be performed." 12. A bare reading of the above makes it clear that an IAC has to perform his functions in respect of such areas or of such persons or classes of persons or of such incomes or classes of income or of such cases or classes of cases as the Commissioner may direct. 13. A comparison of sections 123 and 124 makes it clear that jurisdiction of an ITO and an IAC is what is vested in them by the Commissioner and that both the officials have to perform their functions as the Commissioner may direct, but these are not automatic or interlinked. 14. Now on the facts of the assessee's case, the assessment order itself speaks of the fact that earlier the jurisdiction over the assessee was held by the ITO,Bhopal, who forwarded the draft order dated25-2-1980which was received by the assessee on26-2-1980. The IAC,Bhopal, was also seized of proceedings under section 144B. Subsequently, jurisdiction was transferred to the ITO,Indore, and the IAC,Bhopal, transferred proceedings pending before him to IAC,Indore, despite the fact that there was no change in his jurisdictio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re conferment of concurrent jurisdiction with a pecuniary limit on another Income-tax Officer 'B' cannot take away the jurisdiction of 'A' in respect of that assessee even though such assessee falls within the stated pecuniary limit [Kistoor Mall v. C.P. Singh, ITO [1983] 140 ITR 95 111-12 (Raj.)]. In that case, the assessee was being assessed atBombayup to assessment year 1950-51. He closed his business atBombayand shifted his residence toJodhpursometime in the year 1949. For subsequent years, he filed his returns atJodhpurand was assessed by the Income-tax Officer,Jodhpur. The Jodhpur Officer issued reassessment notices to the assessee in respect of assessment years 1946-47 to 1949-50. It was held that in the facts of the case the notices were not without jurisdiction even though no transfer order under section 5(7A) of the 1922 Act [corresponding to section 127(1) of the 1961 Act] was made by the Board." 16. In view of the above facts, the reasoning and the authoritative pronouncement of the Hon'ble Calcutta High Court in Ashoke Glass Works' case, it has to be held that on the facts and in the circumstances of the case, with which we are seized of, the IAC, Indore, had no juri ..... X X X X Extracts X X X X X X X X Extracts X X X X
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