TMI Blog2014 (7) TMI 770X X X X Extracts X X X X X X X X Extracts X X X X ..... ase from Ghaziabad to New Delhi - no opportunity of hearing was provided and consequently the order of Commissioner of Income Tax dated 9.3.2006 passed u/s 127 (2) of the Act, cannot be sustained and is quashed – Thus, the DCIT, New Delhi, does not have any jurisdiction to issue a notice u/s 147 of the Act - Decided in favour of Assessee. - Writ Tax No. - 620 of 2010 - - - Dated:- 7-7-2014 - Hon'ble Tarun Agarwala And Hon'ble Dinesh Gupta,JJ. For the Petitioner : Nikhil Agrawal, Dhruv Agrawal For the Respondent : C. S. C. ,A. N. Mahajan, Dhananjay Awasthi ORDER We have heard Shri Nikhil Agrawal, assisted by Shri Piyush Agrawal, the learned counsel for the petitioner and Shri Dhananjay Awasthi, the learned coun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the transfer order for the first time when the Deputy Commissioner of Income Tax, New Delhi issued a notice under Section 147 of the Act for reopening the assessment proceedings for the assessment year 2003-04. At that stage, the petitioner upon coming to know about the transfer order has filed the present writ petition. An interim order dated 20.4.2010 was passed staying further proceedings under Section 148 of the Act. The learned counsel submitted that prior to an order being passed under Section 127 of the Act, it was essential and imperative for the authority to issue a show cause notice containing the reasons for exercising the powers under Section 127 as well as the reasons for transferring the case from one area to another ar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ral or Chief Commissioners or Commissioners to whom such Assessing Officers are subordinate are in agreement, then the Director General or Chief Commissioner or Commissioner from whose jurisdiction the case is to be transferred may, after giving the assessee a reasonable opportunity of being heard in the matter, wherever it is possible to do so, and after recording his reasons for doing so, pass the order, (b) where the Directors General or Chief, Commissioners or Commissioners aforesaid are not in agreement, the order transferring the case may, similarly, be passed by the Board or any such Director General or Chief Commissioner or Commissioner as the Board may, by notification in the Official Gazette, authorise in this behalf. (3) No ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ench of this Court had the occasion to consider the provisions of Section 127 (2) of the Act, held that the authority was required to give a reasonable opportunity of hearing and that reasons were also required to be recorded before passing the order. Since the order transferring the case did not record any reason nor opportunity of hearing was provided to the assessee, the Court held that impugned order could not be sustained and accordingly quashed the order transferring the case from one area to another area. In Ajantha Industries and others vs. Central Board of Direct Taxes and others, 102 ITR 281, the Supreme Court held that the authority was required to record reasons prior to passing the order of transfer and since the impugned or ..... X X X X Extracts X X X X X X X X Extracts X X X X
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