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TMI Blog1987 (1) TMI 178X X X X Extracts X X X X X X X X Extracts X X X X ..... allowed as deduction in computing the net income of the assessee. 3. The assessee was under the jurisdiction of the ITO, A-Ward, Guntur. For the assessment year under appeal the following facts are relevant: "Date Event 31-3-1981 Date on which order under section 143(3) read with section 144B of the Income-tax Act, 1961 (draft assessment) was made by Income-tax Officer, A-Ward, Guntur. 5-5-1981 Date on which the draft assessment order was served on the assessee. 9-5-1981 Date on which objections were filed against the draft assessment order. 30-9-1981 Date on which the file of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under section 127(1) of the Act. No notification under section 123(1) of the Act was made in the case of the assessee. Notwithstanding the objections of the assessee, the assesse was completed by the IAC (Assessment) who was the regular IAC, Vijayawada, holding additional charge of the IAC (Assessment) having concurrent jurisdiction over the assessee with the ITO, Special Investigation Circle. The assessee's preliminary objection is that such a course of actions is not open to the IAC (Assessment), unless the jurisdiction of the IAC Range-I, Hyderabad, was taken away or removed by an appropriate order under section 123(1). 4. Another objection of the assessee is that there was no notification under section 125A of the Act conferring juri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e IAC for which no time limit has been prescribed. So, the question of jurisdiction could be raised at any stage of the proceedings including the appellate stage. 7. It was the submission of Shri Swamy that when the draft assessment order together with the objections was forwarded by the ITO, A-Ward, to the IAC Range-I, under section 144B(1), it was the latter who was in seisin of the matter. It was his responsibility to give directions to the ITO under section 144B(4). At that point of time, if at all the Commissioner wanted to effect a transfer of file, he ought to have passed an order under section 123(1) transferring the file from one IAC to another IAC. This he did not do. Instead, he sought to transfer the file from the ITO, A-Ward, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ment), the transfer of file from one ITO, viz., ITO, A-Ward, to another ITO, viz., ITO, Special Investigation Circle, was valid in terms of section 127(1) and there was not need to give any opportunity to the assessee for such transfer especially when all such officers are situated in the same city, locality or place. In the circumstances, no order need be passed under section 123(1). 9. Having regard to rival submissions and the materials on record, we uphold the order of the IAC (Assessment). There is no dispute that the ITO, A-Ward, proposed a draft assessment order which was served on the assessee; within the time prescribed under section 144B the said draft order together with the objections thereto was forwarded to the IAC, Range-I, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d in G. R. Steel Alloys (P.) Ltd. v. CIT [1984] 17 Taxman 29 (Kar.) that section 144B contains procedure for completing the assessment and it cannot have the effect of invalidating the assessment when not complied with. In that case, the ITO varied the income returned by more than Rs. 1 lakh without following the procedure laid down in part of the ITO to follow the procedure laid down in section 144B. The Tribunal reversed his order and directed the ITO to make fresh assessment after complying with section 144B. The High Court upheld the order of the Tribunal holding that section 144B contained only procedure for completing the assessment and it cannot have the effect of invalidating the assessment when not complied with. In H. H. Maharaj ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntext, we may usefully recall the explanation of the word 'case' for purposes of section 127, 121, 123, 124, and 125 of the Act. It is provided: "..... the word 'case', in relation to any person whose name is specified in any order or direction issued thereunder, means all proceedings under this Act in respect of any year which may be pending on the date of such order or direction or which may have been completed on or before such date, and includes also all proceedings under this Act which may be commenced after the dated of such order or direction in respect of any year." [Explanation to section 127] Thus, 'case' would cover not only the past, the present, but also the future proceedings under the Act. Therefore, we uphold the contentio ..... X X X X Extracts X X X X X X X X Extracts X X X X
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