- (1.) THE main question involved in this reference is, Whether under section 144(B) of the Income Tax Act, 1961 (the Act) the draft assessment order was required to be sent to, THE Inspecting Assistant Commissioner (IAC) having territorial jurisdiction (or administrative control) over the Income tax Officer (ITO); or THE IAC, who was also conferred powers and functions (jurisdiction) of the ITO jurisdiction under section 125A of the Act. THE FACTS Some Observations
(2.) THERE is difference in the dates in the statement of the case as well as the orders passed by the different authorities. The statement of the case mentions one set of dates; whereas, the orders indicate the other set of dates. The counsel for the parties are also not able to make statements regarding the correct dates. Luckily, it does not effect the decision of the case. In the judgement, we have indicated the date that appeared to be correct and the other date (either in the statement of the case or in the different orders) are mentioned in the brackets. We say no more, except, a greater care ought to have been taken; we leave it here. Facts of the Case M/s Saraya Sugar Mills Pvt Ltd. Gorakhpur (the Assessee) is a private limited company, it manufactures and sells sugar. The Assessee filed its return for the assessment year (AY) 1977-78 before the Income Tax Officer A-ward, Gorakhpur (the ITO-Gorakhpur). He was the assessing officer for the Assessee. According to the territorial jurisdiction, the Inspecting Assistant Commissioner, Gorakhpur (the IAC-Gorakhpur) had the administrative control over him.
(3.) THE Commissioner Income Tax (the Commissioner) by notification dated 31.7.1977 (31.1.1977) under section 125A of the Act, conferred powers and functions of the ITO-Gorakhpur regarding the Assessee on the Inspecting Assistant Commissioner, Range-II, Allahabad (the IAC-Allahabad) rather than on the IAC-Gorakhpur. The IAC-Gorakhpur sent a letter dated 1.9.1977 to the ITO-Gorakhpur informing him to assess the Assessee keeping in touch with the IAC-Allahabad. This was also acknowledged by the ITO-Gorakhpur by his letter dated 5.9.1977.;