Law: Income Tax Act, 1961

Section: 127

Law: Income Tax Act, 1961

Section: 127

Section 127 of the Indian Income-tax Act, 1961 - Income-tax Authorities - Power to transfer cases - Assessment years 1954-55 to 1961-62 - Whether in case of transfer of a case from one ITO to another ITO in same city, Commissioner need not hear assessee though he is duty bound to record reasons for such transfer - Held, yes - Whether, however, an assessee is not entitled to have a copy of reasons recorded by Commissioner in case of such transfer - Held, yes FACTS While the assessment proceedings against the petitioner-company was pending before the ITO, the respondent, Commissioner made an order, in exercise of his power under section 127(1), transferring the case of the petitioner from one ward to another of the same district. On writ : HELD When transfer of a case from one ITO to another ITO in the same city is made, that relieves the Commissioner from hearing the assessee, whose case he proposes to transfer. However, nothing contained in the proviso relieves him of the duty of recording his reasons for the transfer under the main part of section 127(1). In the instant case the reasons given for transfer was 'administrative convenience'. The reasons recorded by Commissioner were produced before the Court. The petitioner is not entitled to have a copy of the reasons recorded. He has not even prayed for supply of such a copy. The Supreme Court has held in the case of K.S. Rashid & Sons v. ITO [1964] 52 ITR 355 , 363, 364 dealing with reasons to be recorded under the first proviso to section 34(1A) of the Income-tax Act, 1922, which section is also similarly worded, that an assessee is not entitled to have a copy of the reasons. The petitioner was dismissed accordingly. Note : The case has been decided in favour of the revenue. CASE REFERRED TO K.S. Rashid & Sons v. ITO [1964] 52 ITR 335 (SC). JUDGMENT The petitioner, Messrs. Vyapar Mandal Ltd., is a public limited company, Raving its registered office at No. 47, Khengraputty Street, in the town of Calcutta. For the assessment years 1954-55 to 1961-62, the Income-tax Officer, "J" Ward, Companies District III, Calcutta, ordinarily having jurisdiction over the petitioner-company, dealt with the assessment…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492