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2015 (4) TMI 1335 - HC - Income TaxTransfer u/s 127 - "reasonable opportunity of being heard" - HELD THAT:- Merely stating that the transfer is for the purpose of coordinating in itself is not a ground to consolidating the cases at one place. The cause of action has arisen within the State of Himachal Pradesh. The convenience of the party cannot be overlooked. The order passed by the competent authority transferring cases is a quasi judicial order and not an administrative order. The decision to transfer the case must comply with the provisions of section 127(2)(a) - The principles of natural justice have to be complied with at every stage. Violation of principles of natural justice at the initial stage cannot be cured at the subsequent stage. Moreover, the order should be self-contained/speaking and not merely a paper-decision. Recording of reasons is also sine qua non, as per mandatory provisions of section 127(2)(a) of the Income-tax Act. We are of the considered opinion that the petitioners at least should know the gist of enquiry carried out against them and were also liable to be supplied adverse material gathered against them during assessment proceedings or information available, in order to enable them to represent their cases effectively before the Commissioner of Income-tax. The adverse material gathered against the petitioners by way of inquiry, information etc. was to be made available before hand and not at the time of assessment proceedings. There is a difference between pre-decisional hearing and post-decisional hearing. In the instant case, taking into consideration the legal/factual assessment involved, petitioners are entitled to pre-decisional hearing in order to contest the show cause notice(s) dated 20.1.2015. There is a prima facie case and balance of convenience is also in favour of the petitioners.
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