Law: Income Tax Act, 1961

Section: 127,127(2),127(3)

Income-tax--Transfer of case---Conditions to be fulfilled for valid transfer ---Show­ cause notice not giving reasons for proposed transfer of cases from Delhi to Faridabad---Reasons for transfer not recorded in some orders of transfer--­ Order of transfer vitiated and liable to be quashed---Indian Income Tax Act, 1961, S.127(2). (b) Income-tax--- ----Transfer of case---Transfer from one Assessing Officer to another in same city---No opportunity of being heard necessary---Indian Income Tax Act, 1961, S.127(3). The respondents, income-tax authorities in exercise of the powers under subsection (2) of section 127 of the Income Tax Act, 1961, passed orders against four assessees transferring their cases from different wards in New Delhi to the DCIT (Central Faridabad. In the case of another assessee, the order was passed under section 127(3) for transfer of the case from one ward in Faridabad to the DCIT (Central), Faridabad. The reason for transfer in the case of assessee No.3 was stated to be administrative. convenience and coordinated investigation. No reasons were given in the case of the other assessees. On a writ petition to quash the orders of transfer: Held, that in the three show-cause notices issued to assesses Nos.1, 2 and 5 there was no indication whatsoever of the reasons for the transfer. In the notice issued to assessee No.3 though it stated the reason for transfer "for the sake of coordinated investigation" it did not spell out any reason requiring coordinated investigation. Furthermore, even some orders of transfer were mere communication of transfer from one ward to another and did not contain any reason. In the records, there was no indication that the disclosure of specific reasons for the transfer was withheld by reason of any satisfaction having been recorded by either the Director-General of Income-tax (Investigation) or any other Commissioner concerned that communication of specific reasons to the assessees would be detrimental to the interests of the Revenue. Therefore, the assessees were not granted adequate opportunity of being heard before their cases were ordered to be transferred from Delhi to Faridabad. Accordingly, the transfer…

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