TMI Blog1964 (10) TMI 8X X X X Extracts X X X X X X X X Extracts X X X X ..... hat in regard to cases falling under the proviso, an opportunity need not be given to the assessee, and the consequential need to record reasons for the transfer is also unnecessary, and this view is plainly consistent with the scheme of the provision and the true intent of its requirements. We would accordingly hold that the impugned orders cannot be challenged on the ground that the Board has not recorded reasons in directing the transfer of the cases pending against the assessee from one Income-tax Officer to another in the same locaity. Appeal dismissed. - - - - - Dated:- 6-10-1964 - Judge(s) : P. B. GAJENDRAGADKAR., K. N. WANCHOO., M. HIDAYATULLAH., RAGHUBAR DAYAL., J. R. MUDHOLKAR JUDGMENT The judgment of the court was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... case from one Income-tax Officer to another : Provided that nothing in this sub-section shall be deemed to require any such opportunity to be given where the transfer is from one Income-tax Officer to another whose offices are situate in the same city, locality or place." Sub-section (2) lays down that the transfer which is authorised to be made by sub-section (1) can be made at any stage of the proceedings, and shall not render necessary the re-issue of any notice already issued by the Income-tax Officer from whom the case is transferred. There is an Explanation to section 127 which it is unnecessary to mention. It is common ground that the impugned orders do not record any reasons why the Board thought it necessary to transfer th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d to require any such opportunity to be given in a case like the present. It is plain that the transfer in the present case is from one Income-tax Officer to another whose offices are situate in the same locality ; and so, the point to consider is, what is the effect of this proviso ? It is urged by Mr. Jain that the effect of the proviso is that the requirement as to the giving of a reasonable opportunity alone is dispensed with in respect of cases falling under the proviso, but not the requirement as to the recording of reasons. If the words used in the proviso are literally construed, it may have to be conceded that there is some force in this contention. But, on the other hand, the provision that nothing in sub-section (1) shall be d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ermining the true scope and effect of the proviso. There is another consideration which is also relevant. Section 124 of the Act deals with the jurisdiction of Income-tax Officers. Section 124(3) provides that within the limits of the area assigned to him, the Income-tax Officer shall have jurisdiction (a) in respect of any person carrying on a business or profession, if the place at which he carries on his business or profession is situate within the area, or where his business or profession is carried on in more places than one, if the principal place of his business or profession is situate within the area, and (b) in respect of any other person residing within the area. This provision clearly indicates that where a transfer is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dia, the validity of section 5(7A) of the earlier Act of 1922, was challenged before this court. The said section had provided that the Commissioner of Income-tax may transfer any case from one Income-tax Officer sub-ordinate to him to another, and the Central Board of Revenue may transfer any case from any one Income-tax Officer to another. Such transfer may be made at any stage of the proceedings, and shall not render necessary the re-issue of any notice already issued by the Income-tax Officer from whom the case is transferred. The argument which was urged before this court in challenging the validity of this provision was that it infringed the citizen's fundamental rights conferred by articles 14 and 19(1)(g) of the Constitution. In sup ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee resided or carried on business. That is how section 5(7A) was sustained. Even so, this court observed in the case of Pannalal Binjraj that it would be better if an opportunity is given to the assessee in cases where the powers conferred by section 5(7A) were intended to be exercised, because he would then be able to mention his objections to the intended transfer. It is in that connection that this court further expressed its opinion that if the reasons for making the transfer " are reduced, however briefly, to writing, it will help the assessee in appreciating the circumstances which make it necessary or desirable to order such a transfer. " It is obviously in pursuance of these observations that the legislature has made the re ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
