TMI Blog2007 (1) TMI 291X X X X Extracts X X X X X X X X Extracts X X X X ..... n transfer of assessee-company records from Pune, where the assessee was previously assessed to tax. The assessee had duly filed its Return of Income in the year under consideration showing total income of Rs. 4,11,48,265 with the Jt. CIT, Spl. Range-4, Pune on 30-11-1998. The assessment proceedings were initiated by Jt. CIT, Spl. Range-4, Pune by issue of notice under section 143(2) on 3-9-1999 wherein the assessee was asked to appear before the Assessing Officer on 23-9-1999. Another letter was issued by the Jt. CIT, Spl. Range-4, Pune on 30-9-1999 intimating the assessee regarding the selection of the case under scrutiny for the assessment year 1998-99 for which notice under section 143(2) of the Act had already been issued. The assessee thereafter received a letter dated 16-10-2000 from Jt. CIT, Spl. Range-4, Pune intimating transfer of Income-tax records of the assessee-company from Jt. CIT, Spl. Range-4, Pune to DCIT, Central Circle-32, Mumbai. In the said letter reference was made to CCIT, Pune s letter No. PN/CC/Coord/561/00900-01-191, dated 11-4-2000 and it was also mentioned in the said letter This is for your information . The assessee in reply vide its letter dated 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat the provisions of section 127(2) of the Act has been examined and as per the provisions of the Act the assessee is not required to be communicated the reasons for transfer of jurisdiction. But, the competent authority is required to record reasons for doing so. A copy of the order wherein the reasons for transferring the files have been mentioned in column No. 6 of the body of the order of the order under section 127(1) was enclosed along with the said letter. As the said letter did not address the question whether the reasons for transfer of jurisdiction were or were not communicated to the assessee, another letter was written/addressed to the CCIT, Pune by the CIT(A) on 12-4-2002. In reply the ACIT (Coord.), Pune responding on behalf of CCIT, Pune vide letter dated 17-4-2002 categorically stated that the reasons for transfer were not communicated to the assessee-company. It is further mentioned in the said letter that the copy of the order dated 11-4-2002 passed by the CCIT, Pune was not marked to the assessee and thus it was not served on the assessee from the CCIT s office. But the concerned Assessing Officer was directed to intimate the change in jurisdiction of the asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... umbai. Reliance was placed on the decision of Hon ble Supreme Court in Ajantha Industries v. CBDT [1976] 102 ITR 281. The learned DR for the revenue vehemently relying on the order of CIT(A) stated that the assessee had participated in the assessment proceedings and also filed the Returns of Income for the succeeding years voluntarily before the DCIT, CC-32, Mumbai and as such cannot raise any plea for the assumption of jurisdiction by the DCIT, Mumbai. The learned DR also submitted with due respect the Tribunal cannot entertain the appeal against the order of transfer of the case under section 127 as no such appeal is provided under the Act. Reliance was placed on the decision of ITAT Chandigarh Bench in Remal Dass v. Asstt. CIT [1995] 53 TTJ (Chd.) 111. In rejoinder the Learned AR for the assessee submitted that the provisions of section 124 talks for place of assessment wherein section 127 deals with transfer of jurisdiction and it was clarified by the Learned AR that the assessee-company is not denying its liability to be assessed by the Assessing Officer but is questioning the procedure adopted in transferring the case records from Pune to Mumbai in violation of provis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... this section, the word "case", in relation to any person whose name is specified in any order or direction issued thereunder, means all proceedings under this Act in respect of any year which may be pending on the date of such order or direction or which may have been completed on or before such date, and includes also all proceedings under this Act which may be commenced after the date of such order or direction in respect of any year." 7. The provisions of section 127(2) of the Act are relevant for the assessee herein as the case records were transferred from the jurisdiction of DG/CCIT/CIT, Pune to DG/CCIT/CIT, Mumbai. Clause ( a ) to section 127(2) of the Act categorically talks of after giving the assessee a reasonable opportunity of being heard in the matter and after recording his reasons for doing so, pass the order . The CCIT, Pune under whose jurisdiction assessee was being assessed, before transferring the case records, was required to give a reasonable opportunity or hearing to the assessee in the matter i.e., the matter of transfer of records. The rider in the said provision is "wherever it is possible to do so". In the facts of the present case, the Register ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on 127 of the Act. 11. The question for further adjudication before us is whether any appeal is provided against the order under section 127 of the Act. The assessee has raised the issue of existing of jurisdiction in the Assessing Officer, Mumbai on transfer of records from Assessing Officer at Pune. The vesting of jurisdiction is pursuant to the order passed under section 12 of the Act and the question of maintainability of appeal against the order of transfer under section 127 is to be decided before going into the question of vesting of jurisdiction in the Assessing Officer at Mumbai. 12. Their Lordships of Hon ble Supreme Court in Ajantha Industries case ( supra ) had held as under : "The reason for recording of reasons in the order and making these reasons known to the assessee is to enable an opportunity to the assessee to approach the High Court under its writ jurisdiction under article 226 of the Constitution or even this Court under article 136 of the Constitution in an appropriate case for challenging the order, inter alia, either on the ground that it is mala fide or arbitrary or that it is based on irrelevant and extraneous considerations. Whether such ..... X X X X Extracts X X X X X X X X Extracts X X X X
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