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2017 (4) TMI 1416 - HC - Income TaxPower of transfer u/s 127 - reasons given in impugned order is "decentralization of cases from central charges" and should be taken a "sufficient reason"- Requirement of reason under Section 127 - Held that:- Careful reading of Section 127(2)(a) leads no manner of doubt that requirement of "reasonable opportunity" to Assessee is subjected and conditional i.e. "whenever it is possible to do so" department may proceed to pass an order of transfer without giving such opportunity. When a phrase has actually been used by Legislature in a statute, we cannot either ignore it or omit or render it redundant by reading that in every case an opportunity is must, else order of transfer would be rendered bad. The words used by legislature have to be read and given due meaning and effect and that is the basic principle of interpretation. Each and every word used by legislature has some meaning or consequence and whenever an statute is considered, every word must be given its logical meaning and consequence unless there appears to be some inconsistency or conflict resulting in consequences to be disturbing or there are other compelling reasons showing that some part does not convey the same meaning as it ought to be or the same is redundant or is inconsistent with rest of the provisions. However that is not so particularly in this case and from judgment of Constitution Bench in Panna Lal Binjraj Vs. Union of India [1956 (12) TMI 1 - SUPREME COURT] also we find that requirement of opportunity has not been held mandatory. The mandate is available only for requirement of recording of 'reason'. Requirement of reason under Section 127 has a basic condition that before causing some inconvenience or prejudice to Assessee, Competent Authority passing order of transfer must show, from order of transfer, a conscious application of mind on its part that transfer order is not a mechanical exercise. Requirement of reasons does not mean that order must contain a detailed discussion on several grounds for justifying order of transfer, but requirement of statute stands satisfied if from a bare reading of order, any person of ordinary prudence may come to know as to what is the reason which has prevailed in the mind of Competent Authority to exercise power of transfer and such reason or ground is not flimsy, imaginary, whimsical. It must disclose that patently, logic and prudence has been applied before passing it. Looking to the entire facts and circumstances and the impugned order, we find it difficult to read substantial compliance of Section 127(A) that any reason has been given in the impugned order. Hence we allow this writ petition, partly, to the extent that impugned order passed by Principal Commissioner of Income Tax (Central), Kanpur under Section 127, in so far as it pertains to petitioner, is hereby set aside.
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