Jurisdiction of Authorities Validity of Transfer of Case on Ground of Effective and Coordinate Investigation

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The Tax Publishers Income Tax--Jurisdiction of Authorities Validity of Transfer of Case on Ground of Effective and Co-ordinate Investigation CA. Nisha Bhandari The present write up analyses the power of authorities under Section 127 to transfer a case from one assessing officer to another assessing officer for the purpose of effective and co-ordinate investigation and assessment, in the light of related statutory and judicial position. 1. Power for transfer of case from one assessing officer to another Section 127(1) provides that the Principal Director General or Director General or Principal Chief Commissioner or Chief Commissioner or Principal Commissioner or Commissioner may after giving the assessee a reasonable opportunity of being heard in the matter, wherever it is possible to do so, and after recording his reasons for doing so, transfer any case from one or more assessing officers subordinate to him, whether with or without concurrent jurisdiction, to any other assessing officer or assessing officers, whether with or without concurrent jurisdiction also subordinate to him. 2. Transfer of case without serving any notice or without granting opportunity of being heard not valid As per Section 127(2) reasonable opportunity of being heard is required to be provided. In the instant case no such opportunity was given nor reasons had been recorded. Hence entire action on revenue's part lacked compliance of Section 127(2) requirement and being against settled legal position decision to transfer the case could not be sustained.--Vide Manohar Sweets v. CIT (2009) 177 Taxman 23 (MP). SUBSCRIBE FOR FULL CONTENT

The Tax Publishers

Income Tax--Jurisdiction of Authorities

Validity of Transfer of Case on Ground of Effective and Co-ordinate Investigation

CA. Nisha Bhandari

The present write up analyses the power of authorities under Section 127 to transfer a case from one assessing officer to another assessing officer for the purpose of effective and co-ordinate investigation and assessment, in the light of related statutory and judicial position.

1. Power for transfer of case from one assessing officer to another

Section 127(1) provides that the Principal Director General or Director General or Principal Chief Commissioner or Chief Commissioner or Principal Commissioner or Commissioner may after giving the assessee a reasonable opportunity of being heard in the matter, wherever it is possible to do so, and after recording his reasons for doing so, transfer any case from one or more assessing officers subordinate to him, whether with or without concurrent jurisdiction, to any other assessing officer or assessing officers, whether with or without concurrent jurisdiction also subordinate to him.

2. Transfer of case without serving any notice or without granting opportunity of being heard not valid

As per Section 127(2) reasonable opportunity of being heard is required to be provided. In the instant case no such opportunity was given nor reasons had been recorded. Hence entire action on revenue's part lacked compliance of Section 127(2) requirement and being against settled legal position decision to transfer the case could not be sustained.--Vide Manohar Sweets v. CIT (2009) 177 Taxman 23 (MP).