Law:

Section:

Section 127 of the Income-tax Act, 1961 - Income-tax Authorities - Power to transfer cases - Whether power conferred on Commissioner or CBDT under section 127 is not purely of administrative nature but is also of a quasi-judicial nature, inasmuch as a reasonable opportunity of being heard and recording of reasons are contemplated by section 127 - Held, yes - Whether if there is no compliance with two requirements mentioned by section 127, matter will be justiciable and court of law would be able to interfere with such an order - Held, yes - Whether giving of some reason at stage of filing a return in writ proceeding would not be in strict compliance with requirements of section 127 - Held, yes - Whether where no reason was recorded in order of transfer such order suffered from an infirmity inasmuch as it was in contravention of mandatory provisions of section 127(1) and therefore, it deserved to be quashed - Held, yes FACTS The first respondent issued a show cause notice, proposing to transfer the petitioner's cases from Indore to Bombay under section 127 for facility of investigation. After getting a reply from the petitioner the first respondent passed the transfer order which itself, however, did not give any reason for transfer. It was not the contention of the respondents that reasons for transfer had been recorded independently of the said order of transfer. On writ, the petitioner urged that the two essential ingredients of section 127(1), namely,(a) a reasonable opportunity of being heard; and (b) recording of reasons by the authority passing the transfer order, ought to have been complied with before the Board or Commissioner passd any order of transfer, and on account of non-compliance thereof the said order of transfer was vitiated. On the other hand, the respondent contended that such orders of transfer were of an administrative nature, and, as such, the authorities passing the orders had to take into consideration other factors as well, such as convenience of parties and so on. HELD The power conferred on the commissioner or the Board under section 127 is not purely of administrative nature, but is also of quasi-judicial nature, inasmuch as a…

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