Retrospective amendment to section 2(7A) validated Additional Commissioner's assessment powers under the Income-tax Act.

Retrospective amendment to the statutory definition in section 2(7A) of the Income-tax Act, 1961 with effect from 1-6-1994 altered the legal position on who could exercise the powers and functions of an Assessing Officer. On that basis, an Additional Commissioner of Income-tax was held competent to make the assessment, and the Tribunal's reason for quashing the assessment no longer survived. The question was answered in the negative, and the issue was decided in favour of the Revenue and against the assessee.

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Issues: Whether an Additional Commissioner of Income-tax was competent to exercise the powers and functions of an Assessing Officer for making the assessment in view of section 2(7A) of the Income-tax Act, 1961.

Analysis: The relevant statutory definition had been amended retrospectively with effect from 1-6-1994. In view of that amendment, the legal basis on which the Tribunal had quashed the assessment no longer survived, and the question had to be answered in the negative.

Conclusion: The issue was answered in favour of the Revenue and against the assessee.

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