TMI Blog2015 (3) TMI 810X X X X Extracts X X X X X X X X Extracts X X X X ..... ioner. Since Section 127(2)(a) is nothing, but a machinery provision and since no serious allegations have been levelled against the appellants/respondents, this Court is of the considered view that the first respondent/first appellant is having power of transfer even without assigning any reason and therefore the order passed by the first appellant/first respondent is perfectly valid in law and the same need not be quashed. The learned Single Judge has simply observed that such transfer is not factually justifiable and consequently allowed the writ petition. In view of the discussion made earlier, this Court has received considerable force in the contention putforth on the side of the appellants/ respondents and therefore the impugned order passed by the learned Single Judge is liable to be quashed. - W.A(MD)No.98 of 2010 - - - Dated:- 20-3-2015 - A. Selvam And T. Mathivanan JJ. For the Appellant : Mr.R.Krishnamoorthy Sr. Standing Counsel for Income Tax For the Respondent : Mr.K.Vamanan JUDGMENT (Judgment of the Court was delivered by A.SELVAM,J.) Challenge in this Writ Appeal is to the order passed in W.P(MD)No.60 of 2009 dated 11.12.2009 by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d 16.12.2008 made by the first appellant/first respondent is valid as per law or the same is liable to be quashed? 7.The entire order of transfer has been made only on the basis of provision of Section 127 of the Income Tax Act, 1961 and the same reads as follows: ?Power to transfer cases: (1)The Director General or Chief Commissioner or Commissioner may, after giving the assesee a reasonable opportunity of being heard in the matter, wherever it is possible to do so, and after recording his reasons for doing so, transfer any case from one or more Assessing Officers subordinate to him (whether with or without concurrent jurisdiction) to any other Assessing Officer or Assessing Officers (whether with or without concurrent jurisdiction) also subordinate to him. (2)Where the Assessing Officer or Assessing Officers from whom the case is to be transferred and the Assessing Officer or Assessing Officers to whom the case is to be transferred are not subordinate to the same Director General or Chief Commissioner or Commissioner,- (a)Where the Directors General or Chief Commissioners or Commissioners to whom such Assessing Officers are subordinate are in agreement, then the Dire ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dition made in Section 127(2)(a) is that such transfer should be made after giving reasonable opportunity to the concerned assessee. Further Section 127 does not speak about any reason. Therefore it is pellucid that the first respondent/first appellant is having unfettered power of transfer under the said Section. With these legal backdrops, the Court has to analyze as to whether the impugned order dated 16.12.2008 is liable to be quashed? 10.The learned Senior Standing Counsel for Income Tax appearing for the appellants/ respondents has contended with great vehemence that the Chairman of the respondent is having some institutions in Kerala State and the same are within the purview of third respondent and further an undisclosed income of ₹ 70,17,400/- is detected in his case and only for having coordinate enquiry and investigation both in Noorul Islam Group cases as well as individual case, after observing all formalities mentioned in Section 127(2)(a) of the Income Tax Act, 1961, the first respondent has passed the impugned order and the learned Single Judge without considering the fact that the said Section is nothing, but a machinery to collect income tax, has erron ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be quashed? 16.The learned Senior Standing Counsel for Income Tax appearing for the appellants/ respondents has relied upon the decision reported in K.P.Mohammed Salim v. Commissioner of Income Tax [(2008)300 ITR 302 (SC)], wherein the Hon'ble Supreme Court has had an occasion to decide the power mentioned in Section 127 and also the purpose for which the said provision is in existence. In paragraph No.14 of the decision referred to supra, it is stated like thus: ?An order of transfer is passed for the purpose of assessment of income. It serves a larger purpose. Such an order has to be passed in public interest?. In paragraph No.17, it is observed that power of transfer is in effect provides for a machinery provision. It must be given its full effect. It must be construed in a manner so as to make it workable. Even Section 127 of the Act is a machinery provision, it should be construed to effectuate a charging section so as to allow the authorities concerned to do so in a manner wherefor the statute was enacted. 17.From the conjoint reading of the observation made by the Hon'ble Supreme Court, it is made clear that transfer is nothing, but a machinery for t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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