ACIT or DDIT can act as AO of an assessee only when they are conferred with such jurisdiction by CBDT

RELEVANT PARAGRAPH

From the above provision, it is clear that the authorities mentioned in the definition of AO in section 2(7A) of the Income-tax Act, 1961, must be assigned the jurisdiction to any authorities mentioned in the definition by the CBDT under the provisions of section 120 of the Income-tax Act, 1961, to act as an Assessing Officer. Only in that circumstances that Assistant Commissioner or Dy. Director of Income-tax, other authorities mentioned in the definition u/s 2(7A) of the Income-tax Act, 1961, can act as fee Assessing Officer) In this case, the Dy. Director of Income-tax (Investigation II), Indore, who issued the commission u/s 131(l)(d) has not been assigned jurisdiction to act as an Assessing Officer of the assessee Shri Rajeev Mewara. Therefore, the finding of the CIT(A) that the DDIT (Investigation IT), Indore, is an Assessing Officer by virtue of the provisions of section 2(7A) of the Income-tax Act, 1961, is not valid. Further, the Dy. Director of Income-tax (Investigation) has made reference to the Valuation Officer by virtue of powers conferred on him under sub section (1A) section 131. However, such reference by the Dy. Director of Income-tax (Investigation) , Indore, is illegal and he has exaggerated his jurisdiction as the power under sub section (1A) of Section 131 has been conferred on the Dy. Director of Income Tax (Investigation) for entirely different purposes and not for the purpose of valuation of the house property. For the sake of convenience, the relevant provisions of sub section (1A) of section 131 is reproduced as under:-

“131. (1) The [Assessing] Officer, [Deputy Commissioner (Appeals)], [Joint Commissioner] , Commissioner (Appeals)] and [Chief Commissioner or Commissioner] shall, for the purposes of this Act, have the same powers as are vested in a court under the Code of Civil Procedure, 1908 (5 of 1908), when trying a suit in respect of the following matters, namely

(a) discovery and inspection;

(b) enforcing the attendance of any person, including any officer of a banking company and examining him on oath;

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