TMI Blog1991 (3) TMI 134X X X X Extracts X X X X X X X X Extracts X X X X ..... Income-tax, Central Circle II(8), Madras. It is stated in the order that "this transfer is effected to facilitate detailed and co-ordinated investigation." The order was preceded by the issuance of a show-cause notice on September 4, 1990. In the notice, it is indicated that "the transfer of the case is to facilitate co-ordinated investigation and enquire/restore the case to territorial ITO/A. C". Obviously, the inapplicable portion-"restore the case to territorial ITO/A. C." has not been deleted. It is not the case of the Department either in the counter or otherwise that any question of restoration of the case to the territorial ITO/A. C. arises. The petitioner sent a reply dated September 10, 1990. The petitioner contended that it will b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t the notice and order of transfer cannot be said to be vitiated merely because "they do not disclose all the reasons that weighed with the first respondent in effecting the transfer". It is also contended that disclosure of the relevant reasons in the order of transfer would militate against the interests of the Revenue as there is every possibility of such a course stifling the enquiry that has to be made. It is agreed by both counsel that the judgment of this court in Vijayasanthi Investments P. Ltd. v. Chief CIT [1991] 187 ITR 405 squarely applies to the case on hand. After referring to the decided cases on the subject, it was observed therein at page 411 : "From the aforesaid decisions, it is clear that, in the matter of the transf ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssioner for effecting the transfer need not be disclosed in the showcause notice and the final order and in case such reasons are disclosed, there is every possibility of interfering with the enquiry that has to be taken up after transfer. We are not inclined to agree with the submission of learned standing counsel. Realising the fact that the order of transfer of an assessee's case from one place to another would entail certain amount of prejudice to the assessee, the Legislature has advisedly made a provision for giving to the assessee a reasonable opportunity of being heard in the matter. It is also enjoined that the reasons for the transfer shall be recorded by the concerned authority. These are the procedural safeguards that are prov ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o project his view-point. The requirement of reasonable opportunity will then be reduced to an idle formality. It is, therefore, incumbent upon the authorities to spell out the basic reason for transfer, at least briefly and broadly, so that the assessee may have the opportunity of making an effective representation and an opportunity to question the final order in writ proceedings or otherwise. The phraseology "co-ordinated investigation", without anything more, does not convey any intelligible reason from the assessee's point of view. Learned standing counsel contends that the disclosure of reasons may at times defeat the very purpose of the transfer and may come in the way of proper and effective enquiry in a case relating to the asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pect any further. In the light of the above discussion, we affirm the principle laid down in Vijayasanthi Investments' case [1991] 187 ITR 405 (AP) subject to the clarification given above. We, therefore, quash the impugned order of the first respondent dated October 5, 1990, with liberty to proceed with the transfer of the petitioner's case afresh according to law keeping in view the legal position declared by us. Before parting with the case, we have to advert to one more contention of learned standing counsel, viz., that this is not a case where any prejudice could be said to have been caused to the petitioner by reason of non-communication of the reasons for transfer and the petitioner has not pointed out any ground worth mentioning ..... X X X X Extracts X X X X X X X X Extracts X X X X
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