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2022 (8) TMI 1332 - AT - Income TaxTransfer of case u/s 127 - Income tax return having the residential address of Jaipur, was e-filed by the assessee but Notice u/s 143(2) was served by Asst. Director of Income Tax, International Taxation, New Delhi - whether u/s 127 AO on his own can transfer an income-tax file to another officer and whether an order is required to be passed? - HELD THAT:- From a reading of the language of section 127(3) it is evident that when a file is transferred from one AO to another whose offices are located in the same city, locality or place, though other statutory formalities are required to be complied with, the opportunity of hearing as postulated in section 127(1) and (2) in case of intercity transfer, is not required. Scheme of the Income-Tax provides that when an officer has jurisdiction over the assessee, the same cannot be transferred and assumed by the another officer, unless there is an appropriate order passed by the competent authority transferring the jurisdiction. In this case, assessee himself has requested for transfer of his case from Delhi to Jaipur, which can be deemed to be no-objection from the side of assessee. However, the necessity of passing order u/s 127 cannot be dispensed with. It is undisputed fact that the AO at New Delhi had transferred the file to the AO at Jaipur and, therefore, even if they are both under the jurisdiction of the same Director-General or the Pr. CIT, the notice u/s 127(1) was to be given to the assessee and order u/s 127(3) was to be passed by Director-General or Pr. CIT who can transfer the case u/s 127 - No such procedure has been followed by the revenue. Therefore, we are of the opinion that the notice u/s 143(2) by DDIT, Jaipur is without jurisdiction and authority, and consequently the order passed u/s 143(3) is held to be void ab-initio. Appeal of assessee allowed.
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