Jurisdictional defect under section 127 can invalidate an assessment where no valid transfer order exists and the objection may be raised on appeal.

An assessment framed by an Assessing Officer without a valid transfer order under section 127 lacks jurisdiction and is void, because lawful transfer of jurisdiction from one officer to another requires a reasoned order. The jurisdictional objection was treated as a pure question of law arising from admitted facts and could therefore be raised at the appellate stage. Decisions involving a subsisting transfer order were distinguished on that basis. The additional ground was accepted, the assessment was quashed for want of jurisdiction, and the appeal succeeded for the assessee.

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Issues: Whether an assessment order is valid when the Assessing Officer assumes jurisdiction without an order under section 127 transferring the case, and whether such a jurisdictional objection can be entertained at the appellate stage.

Analysis: The jurisdictional objection went to the root of the assessment and, being a pure question of law ascertainable from admitted facts, was capable of being raised even at a later stage. Section 127(1) of the Income-tax Act, 1961 requires an order recording reasons for transfer of jurisdiction from one Assessing Officer to another. Where no such transfer order exists at all, there is no lawful transfer of jurisdiction, and the assessment framed by the officer lacking authority is vitiated. The cited decisions upholding transfer under section 127 were distinguished because they proceeded on an existing transfer order or materially different facts.

Conclusion: The additional ground was accepted, the assessment was held invalid for want of jurisdiction, and the appeal was allowed in favour of the assessee.

Ratio Decidendi: An assessment framed by an officer who lacks jurisdiction due to the absence of a valid transfer order under section 127 is void and liable to be quashed, and such a foundational jurisdictional defect is not cured by delay in raising the objection.

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