Law:

Section:

Section 124 of the Income-tax Act, 1961 [Corresponding to section 64 of the Indian Income-Tax Act, 1922] - Assessing Officer - Jurisdiction of - Whether where no objection as to place of assessment or to Assessing Officer was raised before ITO, Tribunal was competent to overrule attempt of assessee of raise it at a later stage after assessment had been made - Held, yes FACTS Notice under section 22 of 1922 Act having been served on the assessee by the ITO. Salaries Circle, Ranchi and no return having been made in response to the notice, the assessee was summarily assessed under section 23(4) of 1922 Act. On appeal to the Assistant Commissioner, however, this assessment was cancelled. A fresh notice under section 22 of 1922 Act was then served calling upon the assessee to make a return of his income. He then made a return showing loss. As a result of his failure to appear in support of the return, he was again summarily assessed. The assessment showed the world income of the assessee as well as income from sources within British India. He did not raise any objection to being assessed by the ITO Salaries circle, Ranchi. An appeal against this assessment was dismissed, but the Assistant Commissioner held that the assessment had been made by an officer who had no power to make it. An appeal to the Appellate Tribunal was dismissed. On reference, the ground on which the validity of this assessment was challenged was that by a notification of the Central Board of Revenue, the ITO of the circle in which the greater part of the assessee's income was derived was designated as the authority to make the assessment and, therefore, the ITO Salaries Circle, Ranchi, was not an officer who had been empowered to make the assessment on the assessee. HELD The second proviso to section 64(3) of 1922 Act declares that the place of assessment shall not be called in question by an assessee if he has made a return in response to the notice under section 22(1) of 1922 Act and has stated therein the principal place wherein the carries on his business, profession or vacation, or, if he has not made such a return and has not called in question the authority of the taxing officer before the…

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