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Issues involved: Challenge to transfer order u/s 127(1) of the Income-tax Act, 1961 due to lack of reasons provided by the Commissioner of Income-tax-1, Indore.
Issue 1: Lack of reasons for transfer order The petitioners challenged the transfer order u/s 127(1) of the Income-tax Act, 1961, issued by the Commissioner of Income-tax-1, Indore, regarding the assessment proceedings of Dr. Ashok Sharma and his wife Aparna Sharma. The petitioners contended that the order lacked any reasons for the transfer, despite detailed objections filed by the assessee in response to a show-cause notice. The petitioners argued that the transfer orders were in violation of the mandatory provisions of section 127(1) of the Act. Decision: The High Court noted that the transfer order was devoid of any reasons for the transfer, which is a requirement under the law. The Court emphasized that the reasons provided by the Transferring Authority should have a clear connection to the proposal of transfer and should be self-explanatory. As the impugned order was found to be cryptic and non-speaking, lacking any valid reasons, the Court allowed the petition and quashed the order, giving the Commissioner the option to issue a fresh order under section 127(1) of the Act, if deemed necessary and in compliance with the law. Final Decision: The High Court, after considering the arguments presented by both parties, ruled in favor of the petitioners due to the lack of valid reasons provided in the transfer order u/s 127(1) of the Income-tax Act, 1961. The Court emphasized the importance of providing clear and relevant reasons for such transfers, as mandated by the law. Consequently, the Court allowed the petition and annulled the transfer order, granting the Commissioner the opportunity to issue a new order in accordance with the legal requirements.
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