Jurisdictional defect in assessment invalidates an order where no valid empowerment or transfer order exists.

An Additional Commissioner can exercise Assessing Officer powers only when specifically empowered under section 120(4)(b), and any transfer or assumption of jurisdiction must be backed by a valid order under section 127(1). In the absence of such authorisation or transfer order on record, the assessment was completed without legal competence and was void ab initio. Participation by the assessee did not cure the jurisdictional defect. The assessment order was therefore held invalid and quashed for want of jurisdiction.

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Issues: Whether the assessment order passed by the Additional Commissioner was without jurisdiction for want of a valid order under section 120(4)(b) and section 127(1) of the Income-tax Act, 1961.

Analysis: The Tribunal held that an Additional Commissioner can exercise the powers of an Assessing Officer only when specifically empowered under section 120(4)(b), and that transfer or assumption of jurisdiction must also be supported by a valid order under section 127(1). In the absence of any such authorisation or transfer order on record, the officer who completed the assessment lacked legal competence. The Tribunal also applied the settled principle that participation by the assessee does not cure a jurisdictional defect, and that an order passed without jurisdiction is void ab initio.

Conclusion: The assessment order was held to be invalid and was quashed for want of jurisdiction.

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