Contact us   Feedback   Subscription   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Extracts
Home List
← Previous Next →

2015 (5) TMI 434 - KARNATAKA HIGH COURT

2015 (5) TMI 434 - KARNATAKA HIGH COURT - TMI - Notices u/s 153A - assessment proceedings of petitioner transferred from jurisdictional ACIT / DCIT, Circle - 6(2)(1), Bengaluru, to ACIT / DCIT,- Income Tax, Central Circle - 8(2), Mumbai - Held that:- There are no reasons forthcoming from the impugned order as to why the assessment proceedings of the petitioner pending before the jurisdictional Assessing Officer at Bengaluru is being transferred to Assessing Officer at Mumbai, except indicating t .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

the matter, it would suffice and meet the ends of justice if the impugned order is set aside and matter is remitted back to the Principal Commissioner of Income Tax, Bengaluru-560 006 to redo the matter after affording opportunity to petitioner. If further objections, if any, is filed to proposed transfer same shall also be considered. Decided in favour of assessee. - Writ Petition Nos. 16038/2015, 17799-803/2015 (T-IT) - Dated:- 28-4-2015 - Aravind Kumar, J. For the Petitioner : Sri Narasimha P .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ioner of Income Tax, Circle - 6(2)(1), Bengaluru, to the Assessing Officer, Assistant Commissioner of Income Tax / Deputy Commissioner - Income Tax, Central Circle - 8(2), Mumbai. 2. I have heard the arguments of Sri.Narasimha Prasad.B.S, learned counsel appearing for petitioner and Sri.K.V.Aravind, learned panel counsel appearing for respondents. 3. Search proceedings came to be conducted under Section 127 of the Act at the residence of petitioner, consequent to search conducted in the business .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ngaluru, to second respondent at Mumbai and called upon petitioner to submit his objections, if any, to such transfer by fixing the hearing date as 22.01.2015. Petitioner appeared and filed his response on 20.01.2015 and through his authorized representative made oral submissions in support of his objections filed for transfer. 5. On account of change of incumbent Officer who had issued notice of transfer, second notice came to be issued to petitioner calling for personal hearing before the firs .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ures - E to K calling upon petitioner to deliver a true and correct return of income for the assessment years under reference. Petitioner is questioning said notices and order of transfer contending interalia that: (i) order of transfer is not communicated to petitioner; (ii) reasons are not assigned in the order of transfer; (iii) all relevant particulars ought to have been made available to petitioner at the time of issuing notice viz., reasons for transfer ought to have been disclosed; (iv) r .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

respondents would support the impugned order and contends that on account of search conducted in the business premises of Associate Group, Mumbai, it resulted in consequential search conducted on petitioner's premises and certain share holders of Associate Group of Mumbai / Directors being associated with the company ADL, Malur, of which petitioner is the Managing Director, necessitated Commissioner to exercise the power under Section 127 of the Act to transfer the assessment proceedings of .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ector General or Principal Chief Commissioner or Chief Commissioner or Principal Commissioner or Commissioner to transfer any case from one or more Assessing Officers subordinate to him to any other Assessing Officer or Assessing Officers, whether with or without concurrent jurisdiction after giving the assessee a reasonable opportunity of being heard in the matter. 8. In the instant case, undisputedly petitioner is assessed under income tax under the jurisdiction of Deputy Commissioner of Incom .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

irectors in Mumbai. A consequential search operation also came to be conducted at the residence of petitioner and at the office of ADL. This resulted in issuance of notice dated 14.01.2015, Annexure-A, whereunder the Commissioner of Income Tax, Bengaluru, proposed to transfer the petitioner's case from Bengaluru to Mumbai in exercise of his power under Section 127 of the Act namely from Deputy Commissioner of Income Tax, Circle 6(2)(1), Bengaluru, to Deputy Commissioner of Income Tax / Deput .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

proposed under show cause notice dated 14.01.2015, Annexure-A. Said order has been impugned in the present writ petition. 9. Any order that is passed by the Commissioner in exercise of power under Section 127 of the Act should contain reasons and recording of reasons is mandatory as otherwise the noticee would not be in position to assail the said order before this Court under the extraordinary jurisdiction. In fact, Coordinate Bench of this Court had an occasion to consider the import of Secti .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

city, locality or place, the assessees will invariably be put to undue hardship and inconvenience. Therefore, there must be justifiable and valid reasons for such transfer. Whenever several files pending with various assessing authorities are transferred to a single authority, it is necessarily to facilitate co-ordinated investigation. Hence, that cannot be the reason for the transfer. To say that the transfer of several files is being done to facilitate proper co-ordinated investigation does no .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

makes a distinction between a transfer to another authority in the same city/locality and a transfer to an authority outside the city/locality. Sub-section (2) of section 127 provides that if the transfer is to another assessing authority in the same city or locality, no opportunity to show cause need be given. That is because there is no stigma attached to such a transfer as the transfer is deemed to be merely a matter of convenience. But if the transfer is outside the city, the transfer ceases .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

or several of the parties constituting the group is assumed. Before such a stigma is cast, it is necessary that the affected parties should be notified of the reason for the proposed transfer in the show-cause notice, so that they can effectively explain why such a course is not necessary. Similarly, it is necessary that the order communicated should also contain the reasons for making the order for transfer. Thus, where the transfer is to another city, then mere mention of stock - phrases like .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

te co-ordinated investigation' or similar formal words as reason for the transfer in compliance with the statutory requirement in section 127(1) relating to giving and communicating reasons, then I respectfully dissent from such a view." 11. Hon'ble Apex Court in the case of AJANTHA INDUSTRIES vs. CBDT reported in (1976) 102 ITR 281 has held that while making an order of transfer under Section 127 of the Act requirements of recording reasons is mandatory and non communication of sam .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

Constitution in an appropriate case for challenging the order, inter alia, either on the ground or special leave mala fide or arbitrary or that it is based on irrelevant and extraneous considerations. Whether such a writ or special leave application ultimately fails is not relevant for a decision of the question. We are clearly of opinion that the requirement of recording reasons under section 127(1) is a mandatory direction under the law and non communication thereof is not saved by showing tha .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 



|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version