TMI Blog1997 (7) TMI 103X X X X Extracts X X X X X X X X Extracts X X X X ..... 7 of the Income-tax Act, 1961 (for short "the Act"). The petitioners submitted their reply indicating about the inconvenience that would ensue on such transfer. According to the petitioners, neither sanction thereafter was taken by the respondents, nor the respondents responded to the show-cause reply of the petitioners. Subsequently, the Assistant Commissioner, respondent No. 1, issued notices on the petitioners from time to time under section 142 of the Act for submitting their return and production of accounts. The very assumption of jurisdiction of respondent No. 1 is, therefore, assailed in these petitions. The respondents filed their affidavits-in-opposition and submitted that in exercise of power under section 120 of the Act the As ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the category of those who came under search and seizure. According to the respondents, the cases were lawfully transferred to the Assistant Commissioner in question and, therefore, there was no illegality in assumption of jurisdiction. Dr. A. K. Saraf, learned counsel appearing for the petitioner, firstly submitted that respondent No. 1 exceeded his jurisdiction in assuming jurisdiction over the matter which was not lawfully conferred. Dr. Saraf in the course of his argument pointed out that the same Commissioner of Income-tax in exercise of his power under section 127 of the Act initiated process for transfer and accordingly notices were issued upon the petitioners to which the petitioners responded by submitting their show-cause reply ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ication dated April 8, 1992, which was issued in exercise of power under section 120 of the Act. Learned standing counsel for the Revenue has further submitted that if a power is lawfully exercised within the parameters of the statute, a wrong reference to the power cannot invalidate an action. Mr. Joshi lastly submitted that as it is a case of exercise of discretion by the statutory authority in the fact situation, unless the said exercise of discretion can be said to be without authority of law or otherwise, the same cannot be held to be arbitrary and unreasonable and this court will undoubtedly be slow in such matters in exercising its powers under article 226 of the Constitution of India. Learned counsel for the Revenue also submitted ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fer any case from-- (i) any Income-tax Officer or Income-tax Officers, or (ii) any Income-tax Officer or Income-tax Officers having concurrent jurisdiction with the Inspecting Assistant Commissioner, to any other Income-tax Officer or Income-tax Officers (whether with or without concurrent jurisdiction with the Inspecting Assistant Commissioner) : Provided that nothing in this sub-section shall be deemed to require any such opportunity to be given where the transfer is from any Income-tax Officer or Income-tax Officers (whether with or without concurrent jurisdiction with the Inspecting Assistant Commissioner) to any other Income-tax Officer or Income-tax Officers (whether with or without concurrent jurisdiction with the Inspecting ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion 124 or, as the case may be, under sub-section (2) of section 125A. (2) The transfer of a case under sub-section (1) may be made at any stage of the proceedings, and shall not render necessary the re-issue of any notice already issued by the Income-tax Officer or Income-tax Officers from whom the case is transferred." Section 120 of the Act empowers the income-tax authorities to perform the functions of any other Income-tax Officer that may be assigned to them by the Board and when a statutory power is conferred on a statutory authority, the said authority is competent to exercise such power fully and effectively. It is in-built in the section itself. The income-tax authorities under the scheme of the Act are authorised to exercise t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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