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2023 (1) TMI 223 - RAJASTHAN HIGH COURTTransfer of case u/s 127 - Denial of natural justice - non providing any opportunity of hearing - grievance of the petitioner is that by order Annexure-7, the assessment file of the petitioner has been transferred to the Deputy/ACIT, Central Circle-14, New Delhi, without providing any opportunity of hearing - HELD THAT:- Whenever it is proposed to transfer the case of assessee from one assessing authority to another, providing opportunity of hearing to the assessee is essential and can be circumvented only if the competent authority feels, for reasons to be recorded in writing, that it is not possible to do so. In the present case, the respondents have neither setup any such case that it was not possible to provide opportunity of hearing to the assessee, nor any reasons to do so were recorded before taking the decision to transfer the case from Circle Udaipur to Circle New Delhi. The assessment proceedings under the Income Tax Act, have now become faceless, it cannot be denied that the assessee would be entitled to engage Counsel/ Advisors of his choice to defend himself even in the faceless proceedings and thus, the requirement of following the principles of natural justice cannot be evaded in a casual manner. In the case of Advantage Strategic Consulting (P) Ltd. [2020 (12) TMI 1361 - MADRAS HIGH COURT] relied upon by counsel Shri Bissa, the factual situation was totally different because transfer had been made from one Circle to another in the same city. Furthermore, during pendency of the proceedings, the assessment order had been passed. In that situation, Hon’ble Division Bench went on to hold that proceedings before the High court, had become infructuous. In the present case, the transfer order and the notices issued in furtherance thereof, have been stayed by this Court and as such, the facts of the case at hand are totally distinguishable. A Division Bench of this Court in the case of Smt. Jeewan Kumari [1979 (4) TMI 27 - RAJASTHAN HIGH COURT] has held that as per Section 127(1) of the Income Tax Act, it was incumbent for the Board to have provided opportunity of hearing to the assessee before ordering transfer of her case. Similar view was taken by Hon’ble the Supreme Court in the case of Noorul Islam Educational Trust [2016 (10) TMI 982 - SUPREME COURT] Consequently, we are of the opinion that the impugned transfer order and the notices as a consequence thereof, do not stand to scrutiny and hence, the same are declared invalid and set aside. The respondents are permitted to resume the proceedings from the stage former to the transfer order (Annexure-7) dated 21.11.2019, was passed.
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