Jurisdictional authorisation for assessment orders required written direction and transfer order; assessment quashed for want of authority.

Assessment orders passed by an Additional Commissioner or Joint Commissioner were held to be jurisdiction because no written direction under section 120(4)(b) and no transfer order under section 127 were produced. The Tribunal construed section 2(7A) to mean that such officers can act as Assessing Officers only when specifically authorised in writing, and it treated the jurisdictional objection as going to the root of the matter, so the additional grounds were admitted. The contrary Revenue authorities were distinguished as not dealing with the same absence of authorisation and transfer. The assessment orders were quashed in favour of the assessee.

---

---

Issues: Whether the assessment orders passed by the Additional Commissioner of Income Tax / Joint Commissioner of Income Tax were without jurisdiction for want of a written order under section 120(4)(b) and a transfer order under section 127, and whether the additional jurisdictional grounds could be admitted.

Analysis: The Tribunal held that the question of jurisdiction went to the root of the matter and could be raised as additional grounds. It construed section 2(7A) to mean that an Additional Commissioner or Joint Commissioner can function as an Assessing Officer only when specifically directed by a written order under section 120(4)(b). It further held that a separate order transferring jurisdiction under section 127 was also required. No such orders were produced despite opportunities, and the Tribunal distinguished the contrary authorities relied on by the Revenue on the basis that they did not cover the same issue of absence of authorisation under section 120(4)(b) and transfer under section 127.

Conclusion: The assessment orders were held to be without jurisdiction and were quashed. The additional grounds were admitted and allowed in favour of the assessee.

---