Reassessment jurisdiction fails without valid transfer of authority; timely issued notice by registered post was upheld.

Reassessment notice issued within the six-year limitation period was treated as duly issued where it was sent by registered post to the assessee's last known address and returned refused, so the challenge based on non-service failed. Reassessment framed by a transferee officer was held unsustainable where the reopening originated with one officer but the assessment was completed by another without a valid transfer chain under section 127 and without fresh valid jurisdiction in the completing officer. The Tribunal held that reassessment under sections 147 and 148 must be initiated and completed by the Assessing Officer having relevant jurisdiction, or by a duly transferred successor officer. The reassessment order was quashed for want of valid jurisdiction.

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Issues: (i) Whether the reassessment notice issued within limitation was invalid for want of timely service; (ii) Whether the reassessment framed by the transferee officer was without jurisdiction for absence of a valid transfer order and fresh notice by the officer having jurisdiction.

Issue (i): Whether the reassessment notice issued within limitation was invalid for want of timely service.

Analysis: The notice under section 148 was issued within the prescribed period of six years from the end of the assessment year. The record showed that it was sent by registered post to the assessee's last known address and returned with the endorsement that it had been refused. On these facts, the Tribunal treated the notice as having been duly and timely issued, and did not accept the challenge based on limitation or non-service.

Conclusion: This objection was rejected and was against the assessee.

Issue (ii): Whether the reassessment framed by the transferee officer was without jurisdiction for absence of a valid transfer order and fresh notice by the officer having jurisdiction.

Analysis: The reassessment was initiated by one officer, but the assessment was completed by another officer. The transfer order produced on record showed transfer from a different range than the one from which the reopening had originated, and no valid transfer chain from the initiating officer to the assessing officer was established. The Tribunal held that reassessment under sections 147 and 148 can be validly exercised only by the Assessing Officer having relevant jurisdiction under section 2(7A), and that a proper transfer under section 127 was necessary before another officer could lawfully continue the proceedings. In the absence of a valid jurisdictional transfer and a fresh valid reopening by the officer who completed the assessment, the reassessment was unsustainable.

Conclusion: This objection was accepted and was in favour of the assessee.

Final Conclusion: The reassessment order was quashed for want of valid jurisdiction, and the departmental appeal failed while the assessee's cross objection succeeded on the jurisdictional ground.

Ratio Decidendi: Reassessment is valid only when initiated and completed by the Assessing Officer vested with relevant jurisdiction, or by a duly transferred successor officer under section 127; a notice or assessment made by an officer lacking such jurisdiction is invalid.

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