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2020 (1) TMI 983 - AT - Income TaxTransfer u/s 127 - validity of Revision order u/s 263 - Assessment framed without having jurisdiction over the assessee - as per assessee case of the assessee was transferred from the jurisdiction of the ITO 12(1), Ahmedabad to Dy.CIT Circle 12, Ahmedabad to the present ITO 2(3), Ahmedabad (the A.O. for short) without following the procedure for the transfer of a case - whether the transfer of jurisdiction of the assessee in the light of the facts and circumstances described above, is within the provisions of law as specified under section 127? - HELD THAT:- Jurisdiction of the assessee from one AO to the other AO can be transferred by Director General, Principle Commissioner or Commissioner only after recording the reason and giving an opportunity of being heard to assessee in pursuance to the provisions specified under section 127 of the Act. However, we note that there was no compliance of the provision of section 127 of the Act for transferring the case of the assessee from ITO ward 12(1) to DCIT-Circle 12 and then further transfer to ITO ward 2(3) of the income tax office. On a question to the learned DR to ascertain whether there was any order passed by the competent income tax authorities under section 127 of the Act for transferring the case of the assessee from one AO to the AO. But he could not make any satisfactory reply. Therefore, we are of the view that the assessment order passed under section 143(3) of the Act dated 27 December 2007 by the DCIT-Circle 12 and consequential assessment order under section 143(3) read with section 263 of the Act dated 7 December 2010 by the AO of ward 2(3) is invalid as such income authorities never had jurisdiction over the assessee in the manner provided under section 127 of the Act. Thus both the orders are liable to be quashed. See AJANTHA INDUSTRIES AND OTHERS VERSUS CENTRAL BOARD OF DIRECT TAXES AND OTHERS [1975 (12) TMI 1 - SUPREME COURT] Order passed by the AO as discussed above is not sustainable in the eyes of law. Accordingly, any addition made to the total income of the assessee in such order cannot be upheld - Decided in favour of assessee.
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