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1. Legality and validity of transferring the file of the assessee under section 127 of the Income-tax Act, 1961. Analysis: The judgment of the High Court of GAUHATI dealt with the legality and validity of transferring the file of the assessee under section 127 of the Income-tax Act, 1961. The petitioners, who were assessees under the Income-tax Act, received notices proposing the transfer of their cases to another jurisdiction under section 127 of the Act. The petitioners raised concerns about the inconvenience that would result from such transfer. The respondents, on the other hand, argued that the transfer was lawful based on a notification dated April 8, 1992, which vested jurisdiction in the Assistant Commissioner of Income-tax (Investigation Circle). They contended that the transfer was in accordance with the provisions of the Act and there was no illegality in assuming jurisdiction. The petitioners' counsel argued that the Assistant Commissioner exceeded his jurisdiction in assuming authority over the matter. They highlighted the distinction between the powers under sections 120 and 127 of the Act, asserting that the actions of the Assistant Commissioner were arbitrary. The counsel also referred to relevant legal precedents to support their argument. On the contrary, the Revenue's counsel contended that the transfer was lawfully executed based on the notification issued by the Commissioner of Income-tax under section 120 of the Act. They emphasized that a wrong reference to the power could not invalidate the action if lawfully exercised within the statutory framework. The judgment delved into the provisions of sections 120 and 127 of the Income-tax Act, outlining the powers and jurisdiction of income-tax authorities. It emphasized that when a statutory power is conferred on a statutory authority, that authority is competent to exercise such power effectively. The Court noted that the Assistant Commissioner had acted within the scope of the notification dated April 8, 1992, which transferred cases to the Investigation Circle. The Court concluded that the assumption of jurisdiction by the Assistant Commissioner could not be faulted on the grounds of lack of jurisdiction. In the final analysis, the Court found no merit in the writ petitions and dismissed them. Any interim orders were automatically vacated, and no costs were awarded. The judgment provided a detailed examination of the legal provisions, arguments presented by both parties, and relevant legal precedents to arrive at its decision regarding the legality and validity of transferring the assessee's file under section 127 of the Income-tax Act, 1961.
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