TMI Blog2023 (3) TMI 1145X X X X Extracts X X X X X X X X Extracts X X X X ..... e that the procedure as envisaged under section 127 of the Act for transfer of files was fulfilled in the instant set of facts. It is a well-settled principle of law that power of transfer is a quasi-judicial function and was be exercised in a fair and reasonable manner and not in an arbitrary or mechanical way. The opportunity of being heard must be given to the assessee not only when the case is to be transferred despite the objection of the assessee, but also when it is not to be transferred despite his request. Needless to say, the objections raised by the assessee must be appropriately dealt with by the Commissioner and an order that does not consider the objections is liable to be quashed. As decided in case of Melco India (P.) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Act. Appeal of the assessee is allowed. - ITA No. 149/Ahd/2021 - - - Dated:- 21-3-2023 - Shri Waseem Ahmed, Accountant Member And Shri Siddhartha Nautiyal, Judicial Member For the Assessee : Shri M.S. Chhajed, A.R. For the Revenue : Shri Ritesh Parmar, CIT-D.R. ORDER PER : SIDDHARTHA NAUTIYAL, JUDICIAL MEMBER :- This is an appeal filed by the assessee against the order of the ld. Principal Commissioner of Income Tax, PCIT, Ahmedabad-3, in proceeding u/s. 263 vide order dated 31/03/2021 passed for the assessment year 2015- 16. 2. The assessee has raised the following grounds of appeal: 1. Order passed by the Ld. PCIT is bad and illegal as it is in violation of principle of natural justice. 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e case record and relevant files for AY 2010-11 to 2013-14 were already transferred to you. The territorial jurisdiction over the assessee rests with you. A copy of the notice has been reproduced for us at page 8 of paper book. The final assessment order was passed by ITO Ward 3(3)(2) Ahmedabad. Accordingly, the grievance of the assessee is that while the initial notice of assessment was issued to the assessee by ITO Ward 4, Palanpur, the assessment order was passed by ITO Ward 3(3)(2) Ahmedabad in absence of valid order under section 127 of the Act. Therefore, the condition of the counsel for the assessee is that in absence of valid order under section 127 of the Act, the assessment order passed by ITO Ward 3(3)(2) Ahmedabad is illegal a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t have to be complied with. Before us, the Ld. DR has not been able to bring forth any material on record to substantiate that the procedure as envisaged under section 127 of the Act for transfer of files was fulfilled in the instant set of facts. It is a well-settled principle of law that power of transfer is a quasi-judicial function and was be exercised in a fair and reasonable manner and not in an arbitrary or mechanical way. Therefore, notice has to be given to the assessee under section 127 of the Act whenever it is proposed transfer case from one Officer to another. It has also been held by various Courts that it is also necessary to mention in the notice the reasons for the proposed transfer so that the assessee can make an effectiv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ry procedure for transfer of case was not followed in the instant set of facts, the assessment order in the instant set of facts is null and void. 5.1 We further observe that in the case of PCIT v. Nopany Sons136 taxmann.com 414 (Calcutta) where case of assessee was transferred from ITO, Ward-3 to ITO, Ward-4 and impugned order under section 143(3) was passed by ITO, Ward-4 without issuing notice under section 143(2) and only in pursuance with notice issued by ITO, Ward-3, who had no jurisdiction over assessee at relevant time, said impugned order would be null and void. In the instant case, we observe that no fresh notice of assessment was issued by ITO Ward 3(3)(2) and for this reason also, the assessment order passed by ITO Ward 3( ..... X X X X Extracts X X X X X X X X Extracts X X X X
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