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2006 (3) TMI 224 - AT - Income TaxValidity of assessment - jurisdiction of the authority to act as the AO - Jt./Adl. CIT heading the Ranges - authorised officers u/s. 120(4)(b) - term "AO" defined under sub-s. (7A) of s. 2 - HELD THAT:- Section 2 of the Act which defines expression "AO" opens with the expression "In this Act, unless the context otherwise requires". While interpreting a definition, it therefore, has to be borne in mind that the interpretation placed on it should not only be not repugnant to the context, it should also be such as would add the achievement of the purpose which is sought to be served by the Act. The IT Act has been enacted with the object to charge income-tax on the total income of a person of the previous year in accordance with and subject to the provisions contained therein. Procedure for assessment of such total income is contained under Chapter XIV. The appointment and control of IT authorities is contained under Chapter XIII while the jurisdiction of such IT authorities is regulated by Chapter XIII-B. The machinery provision regulating procedure for assessment in various sections like, 142, 143, 144 or 148 has used the expression "AO to carry out these functions". For the purpose of this Act, an AO is not a class of IT authorities. This is only a designation given to certain IT authorities to exercise or perform all or any of the powers and functions conferred on or assigned to them. There been the intention to include Addl. CIT to be an AO or that the powers of AO were to be delegated to the Addl. CIT, then, his name would have been included in s. 120(4)(b) itself or at least in the definition of AO contained under sub-s. (7A) of the s. 2 of the Act. If the Parliament in its wisdom did not include Addl. CIT in the definition of AO such authority would be barred to act as an AO even if the powers arepowers ed upon him, when the purpose can be achieved by delegation of authority to Jt. CIT or Jt. Director, and it shall not be mandatory that one should mechanically attribute the meaning assigned to Jt. CIT under sub-s. (28C) of s. 2 of the Act and import the same in the definition clause of "AO" given under sub-s. (7A) of s. 2 of the Act. Thus, we are satisfied that in view of the definition contained under sub-s. (7A) of s. 2 of the Act, an Addl. CIT cannot be an authority to exercise or perform all or any of the powers and functions of an AO to make assessment of income and as such the assessment made on appellant by such Addl. CIT, Range-20, New Delhi, is liable to be quashed. In the result, the appeal stands allowed.
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