Jurisdictional defect in reassessment notice cannot be cured by section 292B; invalid initiation renders reassessment unsustainable.

Reassessment proceedings initiated by an officer lacking jurisdiction were void because the reasons were recorded and the notice under section 148 was issued by a non-jurisdictional Income-tax Officer, and no fresh reasons or valid notice were later issued by the officer having jurisdiction. The defect went to the root of the reassessment process, so jurisdiction was not validly assumed. Section 292B could not cure this fundamental jurisdictional defect because it applies only to procedural or clerical irregularities, not to invalid initiation of reassessment. The assessment was therefore annulled as unsustainable in law.

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Issues: Whether reassessment proceedings initiated by a non-jurisdictional Income-tax Officer by recording reasons and issuing notice under section 148 were valid, and whether section 292B could cure the defect.

Analysis: The return was processed and a notice under section 148 was issued by an officer at Delhi, although the assessee was regularly assessed at another station. The record was later transferred to the jurisdictional officer, but no fresh reasons were recorded and no fresh notice under section 148 was issued by the officer having jurisdiction. A notice issued and reasons recorded by an officer lacking jurisdiction goes to the root of the reassessment process. Section 292B can cure only procedural or clerical irregularities and not a fundamental jurisdictional defect. In these circumstances, the jurisdiction to complete reassessment was not validly assumed on the basis of the original notice.

Conclusion: The reassessment was invalid and unsustainable in law. The assessee succeeded on the jurisdictional challenge, and the revenue appeal did not survive.

Final Conclusion: The assessment was annulled for want of valid jurisdiction in the initiation of reassessment proceedings, leaving the merits of the additions unexamined.

Ratio Decidendi: A reassessment notice and reasons recorded by an lacking jurisdiction are void, and such a fundamental jurisdictional defect cannot be cured by section 292B.

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