Jurisdiction for departmental appeals and limits on reference courts: only the proper officer may act on the Commissioner's direction.

Under section 33(2) of the Indian Income-tax Act, 1922, the Commissioner's power to direct a departmental appeal extended only to an Income-tax Officer having present jurisdiction over the assessee or the matter; the officer was not a free nominee unconnected with the case. Because the assessee had changed residence before the appeal was filed, the officer of the new jurisdiction was the proper authority to act. On reference under section 66, the court could not rely on facts outside the statement of the case and had to seek a supplementary statement if necessary. The referred question was answered in the affirmative, against the assessee and in favour of the Revenue.

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Issues: Whether, under section 33(2) read with section 64(2) of the Indian Income-tax Act, 1922, the Commissioner could direct the Income-tax Officer having jurisdiction over the assessee at the time of filing the appeal to prefer the departmental appeal, and whether the High Court could decide the reference by relying on facts not found in the statement of the case.

Analysis: The right of appeal under section 33(2) vested in the Commissioner, while the Income-tax Officer acted only on the Commissioner's direction. The expression "the Income-tax Officer" was held to mean an officer having jurisdiction over the assessee or the matter, so the Commissioner could not nominate any officer unconnected with the case. Since the assessee had shifted his residence before the appeal was filed, the Income-tax Officer of the new jurisdiction was concerned with the matter within section 64(2). The High Court, in dealing with the reference under section 66, went beyond the statement of the case by finding fresh facts instead of calling for a supplementary statement.

Conclusion: The departmental appeal could validly be filed by the Income-tax Officer having jurisdiction over the assessee at the relevant time, and the answer to the referred question was in the affirmative, against the assessee and in favour of the Revenue.

Ratio Decidendi: Under section 33(2), the Commissioner may direct only an Income-tax Officer who has present jurisdictional concern with the assessee or the matter to file the appeal, and a reference court under section 66 cannot supply missing facts beyond the statement of the case without calling for a supplementary statement.

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