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2014 (9) TMI 1026 - HC - Income TaxTransfer of cases - Held that:- Section 127(2) makes it explicit that in case of inter-jurisdiction transfer, first there has to be an agreement regarding transfer of an assessment case between the Directors General or Chief Commissioners of two jurisdictions. Thereafter the assessee has to be given hearing by the Director General or Chief Commissioner or Commissioner of the transferor jurisdiction. If not actual hearing, an opportunity of hearing has to be given. Then the file can be transferred, recording reasons for the transfer. These stipulations are not empty formalities. When the assessee’s case is transferred from Kolkata to Bhubaneshwar great inconvenience is caused to them. Their officers have to go from Kolkata to Bhubaneshwar to attend to the officers, carry documents, to be produced before them, answer interrogatories etc. There must be compelling reasons before such a transfer is made. For example, in this case if the department is referring to the assessment of Ganesh Sponge Pvt. Ltd., at least the relationship of the petitioner with Ganesh has to be mentioned. How the petitioner appears to be connected with the financial transactions of Ganesh has also to be mentioned. Even a reasonable suspicion of connection is enough. But, unfortunately, in this case there are no reasons. In those circumstances, the order dated 12th September, 2013 is set aside with a direction upon the Chief Commissioner to pass a fresh order with reasons after giving an opportunity of hearing to the writ petitioner within three months from the date of communication of this order.
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