Law:

Section:

Section 127 of the Income-tax Act, 1961 - Income-tax Authorities - Power to transfer cases - Whether Board has independent power to transfer cases under section 127 - Held, Yes - Whether Court under Article 226 of the Constitution of India cannot act as an appellate Court and revise discretion exercised by Board under section 127 - Held, Yes - Whether where Board persued entire records, obtained necessary information reports and after giving petitioners a reasonable opportunity of being heard, concluded that petitioner - assessee who were assessed at Gauhati, and certain firms in Delhi were one group, and therefore, it was necessary to transfer cases from Gauhati to New Delhi, it could not be said that transfer was vague and without any basis - Held, yes FACTS The petitioners claimed that they were residents of Gauhati, and the ITO, at Gauhati had made assessments of their income for last several years. However, searches of the premises of their firm, residential premises of the partners/shareholders/offices, by the Department under section 132 resulted in the seizure of books of account, documents, jewellery and allegedly "undisclosed funds". The Commissioner Shillong, promptly ordered transfer of all the cases of the petitioners to the ITO, Gauhati. Enquiries uncovered funds, assessments made to the prejudice of the petitioners who appealed. While the appeals were pending, they received notices under section 127(1) calling upon them to show cause why their cases should not be transferred from the ITO Gauhati to ITO, New Delhi. On receipt of the said notice the petitioners submitted written objections. The Board having considered the petitioners objections transferred the cases to the ITO Gauhati to the ITO Delhi. Against said order instant writ petition was filed wherein the petitioners stated that they had dealings with the firms, etc., of the North Eastern Region and had not had any connection with any firm, company or group, in any other part of the country. Further they claimed that if the cases were transferred they would sustain heavy pecuniary losses and expenditure. It was also contended that no reasonable opportunity of being heard was granted and…

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