Tribunal powers to call for reassessment records and allow inspection where documents are relevant to jurisdictional challenge.

The Tribunal may call for assessment records and permit inspection where those materials are relevant to deciding a jurisdictional challenge to reassessment. Section 255(6) of the Income-tax Act, 1961 gives the ITAT wide powers for discharging its functions, and Rule 29 of the ITAT Rules, 1963 allows production of documents or other material necessary for passing orders or for any other substantial cause. The processing intimation, the note initiating reassessment, and the reassessment order sheet were treated as relevant to determine whether reassessment was validly initiated and whether the Assessing Officer had applied his mind. The Tribunal was therefore empowered to require the records and allow inspection by the assessee or counsel.

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Issues: Whether the Tribunal could direct production of the assessment record and permit inspection of documents to decide the challenge to reassessment proceedings; and whether the requested record and documents were relevant for adjudicating the jurisdictional objection.

Analysis: The Tribunal held that, for discharging its functions, it has wide powers under section 255(6) of the Income-tax Act, 1961, and that Rule 29 of the Income-tax Appellate Tribunal Rules, 1963 enables it to require production of documents or other material if necessary for passing orders or for any other substantial cause. It found that the intimation relating to processing of the return, the original note that triggered reassessment, and the order sheet of the reassessment proceedings were relevant to decide whether the reassessment was validly initiated and whether the Assessing Officer had applied his mind.

Conclusion: The Tribunal was empowered to call for the relevant records and to permit inspection by the assessee or his advocate.

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