Assessment jurisdiction failed where the Additional Commissioner lacked valid empowerment and no transfer order existed.

Assessment orders were held to be without jurisdiction because the Additional Commissioner was not validly empowered to act as Assessing Officer under the statutory scheme. The Tribunal treated the jurisdictional objection as a pure question of law and held that section 120(4)(b) required specific empowerment for an Additional Commissioner to exercise assessment powers, while section 127 required a valid transfer where proceedings had already commenced before another officer. As the Revenue's notifications did not confer the necessary authority and no transfer order existed, the assessments were void ab initio and the assessee's jurisdictional challenge succeeded.

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Issues: Whether the assessment orders were without jurisdiction because the Additional Commissioner of Income Tax was not validly empowered to act as the Assessing Officer and there was no valid transfer of jurisdiction.

Analysis: The issue was treated as a pure question of law going to the root of the matter and was therefore admitted even though raised as additional grounds. The controlling statutory scheme was read to mean that an Additional Commissioner could exercise the powers of an Assessing Officer only if specifically empowered in the manner contemplated by section 120(4)(b), and that where proceedings had already commenced before another officer, a transfer of jurisdiction under section 127 was necessary to substitute the officer conducting the assessment. The Tribunal held that the notifications relied upon by the Revenue did not validly confer the required authority on the Additional Commissioner, and the absence of a transfer order meant the assessment was not lawfully assumed or continued by him.

Conclusion: The assessment orders were held to be without jurisdiction and void ab initio, and the challenge to their validity succeeded in favour of the assessee.

Final Conclusion: The assessee's appeals were allowed, the Revenue's appeal was dismissed, and the cross-objection was dismissed as the jurisdictional challenge succeeded and the merits became infructuous.

Ratio Decidendi: An assessment can be sustained only when the officer completing it is validly vested with authority under the statute, and an Additional Commissioner cannot assume or continue assessment jurisdiction without the requisite empowerment and, where needed, a valid transfer of the case.

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