Assessing Officer Powers: Additional Commissioner's assessment authority upheld, with the matter remanded for merits review.

An Additional Commissioner of Income-tax was held capable of exercising the powers and functions of an Assessing Officer for assessment purposes, notwithstanding that the term "Additional Commissioner" did not appear in section 2(7A). The court followed its earlier view in a connected matter and answered the legal issue against the assessee and in favour of the Revenue. Because the Tribunal had not examined the controversy on merits, the matter was remanded to the Tribunal for fresh consideration and decision on the substantive issues.

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Issues: Whether an Additional Commissioner of Income-tax could exercise or perform the powers and functions of an Assessing Officer for making an assessment, despite the absence of the term "Additional Commissioner" in section 2(7A) of the Act.

Analysis: The question of law was answered by following the earlier view taken in a connected matter. The Tribunal had not examined the dispute on merits, and the legal issue was resolved against the assessee and in favour of the Revenue. As the matter had not been adjudicated on the merits by the Tribunal, it was sent back for fresh consideration.

Conclusion: The legal question was answered in the negative, holding that the assessment by the Additional Commissioner could not be quashed on that ground, and the matter was remanded to the Tribunal for decision on merits.

Ratio Decidendi: Where the court answers the legal question against the assessee, the matter may still be remitted for merits adjudication if the Tribunal has not dealt with the controversy substantively.

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