2014 (11) TMI 268 - HC - Income Tax

Order u/s 127 Power to transfer case Held that - The transfer order is bereft of any reason thus, the order is set aside and the Chief Commissioner is directed to pass a fresh order with reasons after giving an opportunity of hearing to the assessee Decided in favour of assessee.

Summary

Issues:
Challenge to impugned order under Section 127 of the Income Tax Act, 1961 lacking reasons.

Analysis:
The judgment delivered by I. P. Mukerji, J. addresses the challenge to an impugned order under Section 127 of the Income Tax Act, 1961, passed on 4th September 2013. The petitioner's counsel argued that the facts of the case were similar to two other matters previously disposed of by the Court. It was noted that the transfer order in question lacked any reasons, making it difficult to ascertain its basis. Consequently, the Court set aside the order and directed the Chief Commissioner to issue a fresh order with proper reasons. The petitioner was granted an opportunity for a hearing within three months from the date of the order's communication.

Furthermore, the judgment emphasized the importance of maintaining the status quo regarding the location of the file and the assessment until the issuance of the new order by the Chief Commissioner. The Court clarified that no additional affidavits were required for the disposal of the writ application, indicating that the decision was made based on the available documents. The judgment concluded by stating that a certified photocopy of the order would be provided to the parties upon completion of all necessary formalities, thereby concluding the matter.

In summary, the judgment highlights the significance of providing reasons for administrative decisions under the Income Tax Act, ensuring transparency and fairness in the process. The Court's intervention in setting aside the order underscores the importance of procedural regularity and the right to a fair hearing for the parties involved.