Assessing officer jurisdiction upheld where territorial nexus and authorised representative consent existed, so the assessment remains valid.

The article addresses whether territorial jurisdiction for income-tax assessment rests with the officer of the assessee's place of business or residence and how administrative transfer powers affect that right. It explains the distinction between administrative power to transfer files and the substantive right to assess under the place-of-business/residence rule, notes factual findings of territorial nexus and the assessee's authorised representative's consent to transfer, and concludes that where jurisdiction properly vested in the Madurai officer the assessment is not vitiated by file-handling mechanics or a subsequent intra-city transfer order, rendering the assessment valid.

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Issues: Whether the Second Income-tax Officer, Madurai, had jurisdiction to assess the petitioner and whether the assessment order dated 19 March 1962 is invalid.

Analysis: The Court examined the statutory scheme under Section 5(7A) and Section 64 of the Income-tax Act, 1961, distinguishing the administrative power to transfer cases (Section 5(7A)) from the substantive right to be assessed by the officer of the place of business or residence (Section 64). The Court considered the facts showing that the assessee's business activities and residence were effectively at Madurai, the Karaikudi officer's communication to the assessee so stating, and the assessee's authorised representative's unequivocal reply consenting to transfer of the file to Madurai. The Court held that these facts established that jurisdiction to assess vested with the Madurai officer irrespective of the mechanics of file transmission or the Commissioner's subsequent intra-city transfer order, and that reference to the Commissioner's order in the assessment did not vitiate the assessment where jurisdiction otherwise existed.

Conclusion: The writ petition is dismissed; the assessment dated 19 March 1962 by the Second Income-tax Officer, Madurai, is valid and within the officer's jurisdiction (decision in favour of the Revenue).

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