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HIGH COURT OF JUDICATURE FOR RAJASTHAN BENCH AT JAIPUR
MR. JUSTICE AVNEESH JHINGAN, MR. JUSTICE MANEESH SHARMA, JJ
Rajeshwari Bhatt W/o Late Shri Ganga Dhar Bhatt – Appellant
Versus
Principal Commissioner Of Income Tax, Jaipur-2 – Respondent
Order :
AVNEESH JHINGAN, J.
1. This petition is filed seeking quashing of order dated 17.11.2017 passed by the Principal Commissioner of Income-tax, Jaipur-2 under Section 127 of the Income Tax Act, 1961 (for short ‘the Act’) transferring the case of assessment of the assessee from Jaipur to ACIT, Central Circle-Bikaner (hereinafter referred to as ‘ACIT’).
2. The grievance raised in the present petition is that the order passed is in violation of principles of natural justice and without following the procedure prescribed u/s 127 of the Act. Reliance is placed upon decision of the Supreme Court in case of Ajantha Industries and Ors. vs. Central Board of Direct Taxes, New Delhi and Ors. reported in AIR 1976 SC 437 .
3. Learned counsel for the respondents submits that ACIT, Bikaner has passed the assessment order against which petitioner preferred an appeal. Argument is that transfer order has been acted upon by the department.
4. The petitioner raised objection before the ACIT that the order of transferring jurisdiction was not communicated to the petitioner and that the order was passed without providing an opportunity of hearing. The objections were noted but ACIT proceeded to pass ass
Transfer orders under Section 127 of the Income Tax Act must comply with principles of natural justice, including providing an opportunity for the assessee to be heard.
The court established that the requirement of a hearing before transferring cases under Section 127 of the Income Tax Act is fundamental to ensuring natural justice.
The court reaffirmed the necessity of natural justice in administrative decision-making, stressing the need for consideration of a party's objections prior to adverse decisions.
The court upheld the transfer order under Section 127(2) of the Income Tax Act, confirming its reasoned nature and the existence of agreement between jurisdictional Commissioners.
The court upheld the validity of an administrative order transferring a tax case based on existing connections to other investigated parties, concluding that sufficient opportunity and reason for the....
Opportunity of hearing is mandatory for the concerned authority before transferring a case under Section 127 of the Income Tax Act.
Jurisdictional transfers in income tax assessments must comply with statutory provisions, including the requirement to record reasons and provide the assessee an opportunity to be heard.
The administrative nature of transfer orders and the limited scope of interference unless the exercise of power is without authority or for mala fide reasons.
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