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2016 (8) TMI 370 - MADRAS HIGH COURT

2016 (8) TMI 370 - MADRAS HIGH COURT - TMI - Transfer of cases - extent and manner of hearing and reasons - Held that:- Section 127 of the Act refers to suo motu jurisdiction, but it is settled law that such jurisdiction can be triggered either by an assessee or by the Revenue and the power is conferred to remedy any injustice and it is always open to bring to notice any error, illegality or injustice. On examining the impugned order, which was subject matter of the said case, it was held to be .....

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respect of other submissions, which would have an impact on the assessment to be made, this Court refrains from making any reference to the same and this Court does not propose to go into the factual contentions raised by the petitioners and the averments set out in this regard in the counter affidavits. Ultimately, while upholding the validity of the impugned orders, this Court grants liberty to the respondent to proceed in accordance with law. - The learned counsel for the petitioners sub .....

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which came to be passed by the Authority concerned. Therefore, at this distance of time, this Court is not inclined to give any liberty to the petitioners to challenge the order, which had been passed by such Authority prior to the impugned notifications. - Writ Petition Nos.17112 to 17117 of 2005 & WMP.Nos.18584 to 18589 of 2005 - Dated:- 3-8-2016 - T. S. Sivagnanam, J. For the Petitioners : Mr. Niranjan Rajagopalan for M/s. G. R. Associates For the Respondent : Mr. T. Pramod Kumar Chopda ORDE .....

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ons have not been furnished to the petitioners as mandated in terms of the law laid down by the Hon'ble Supreme Court in the case of Ajantha Industries Vs. C.B.D.T. [reported in 1976 1 SCC 1001]. 4. The learned counsel for the petitioners, by referring to paragraphs 10, 11 and 13 of the said judgment, submitted that the requirement of recording of reasons under Section 127(1) of the Income Tax Act, 1961 (hereinafter referred to as the Act) is a mandatory direction under the law and non commu .....

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in the said case. 5. The learned Standing Counsel appearing for the respondent sought to sustain the impugned orders by contending that the same have been passed by scrupulously following the provisions of Section 127 of the Act, that the petitioners also submitted their objections and that the reason was clearly stipulated in the notices. 6. In reply to the said submission, the learned counsel for the petitioners would submit that if that it is the case, then the notice itself is an empty forma .....

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ome Tax-II, Coimbatore on 31.8.2015. Therefore, at this juncture, this Court has not been informed as to the present state of affairs. Be that as it may, the correctness of the impugned proceedings has to be tested. 8. It is worthwhile to refer to the scope of the relevant provision viz. Section 127 of the Act, which reads as follows : "127. Power of transfer cases:- (1) The Director General or Chief Commissioner or Commissioner may, after giving the assessee a reasonable opportunity of bei .....

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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 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 .....

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n where the transfer is from any Assessing Officer or Assessing Officers (whether with or without concurrent jurisdiction) to any other Assessing Officer or Assessing Officers (whether with or without concurrent jurisdiction) and the offices of all such officers are situated in the same city, locality or place. (4) The transfer of a case under Sub-Section (1) or Sub-Section (2) may be made at any stage of the proceedings, and shall not render necessary the re- issue of any notice already issued .....

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after the date of such order or direction in respect of any year.]" 9. On a reading of the above provision, it is seen that the object, for which, such provision was enacted is for the purpose of administrative convenience. The said provision does not empower the Assessing Officer to transfer a case from his jurisdiction to that of nature and even when the Director General or the Chief Commissioner or the Commissioner, exercising such power, can transfer any case after recording his reasons .....

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seizure operation in the case of M/s.Ravindra Agency, Karungulapalayam, Erode/M/s.Kothari Finance, Erode. Thus, the reason, though not elaborate, has been stated in the notices dated 15.9.2004 and the petitioners/assessees have understood the scope of the notices and that is why they submitted their objections raising a contention that the search and seizure operations conducted in those places would have no impact on the assessments to be made. Therefore, I am of the view that these are not ca .....

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plication, calling in question the jurisdiction of an Assessing Officer and for transfer of a case to the other Assessing Officer, is rejected. 14. In the decision in Devidas Vs. Union of India, the Revenue, in defence of the impugned order, stated that a statute can, in appropriate cases, exclude the principle of natural justice, since the assessee has no legal right of being assessed by any particular Assessing Officer; that Section 127 of the Act restricts the obligation of hearing and passin .....

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he case of Kanji Mal and Sons Vs. CIT [reported in (1982) 138 ITR 391], in the decision in the case of Devi Dayal Marwah Vs. CIT [reported in (1964) 52 ITR 829] and in the decision in the case of Autofin Ltd. Vs. CIT [reported in 1977 (106) ITR 638], it was held by the Bombay High Court that it is true that Section 127 of the Act refers to suo motu jurisdiction, but it is settled law that such jurisdiction can be triggered either by an assessee or by the Revenue and the power is conferred to rem .....

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