1981 (8) TMI 47 - HC - Income Tax

Summary

Issues involved:
The issues involved in this case are the transfer of cases u/s 127 of the Income Tax Act, 1961 from one jurisdiction to another, the opportunity of being heard before the transfer, the requirement of giving reasons for transfer, and the rejection of submissions made by the petitioners.

Transfer of Cases u/s 127 of the Income Tax Act:
The petitioners, educational institutions, were being assessed by the ITO, Sikar, and later transferred to the ITO, Trust Circle, Jaipur. The Central Board of Direct Taxes proposed to transfer their cases to ITO, X Ward, Bombay for coordinated investigation. The petitioners objected to the transfer, but the Board passed the transfer order on the grounds of facilitating coordinated investigation.

Opportunity of Being Heard:
The petitioners contended that they were not given a reasonable opportunity of being heard before the transfer order was passed. However, it was found that the petitioners were served with a notice informing them of the proposed transfer and were given a chance to appear before the Member (Income-tax) of the Board, which they did not utilize. Thus, the contention of not being afforded a reasonable opportunity was dismissed.

Requirement of Giving Reasons for Transfer:
The petitioners argued that the order of transfer did not provide reasons as required by s. 127(1) of the Act. The Supreme Court precedent was cited where non-communication of reasons for transfer was considered a serious infirmity. However, in this case, the order stated that the transfer was to facilitate coordinated investigations, which was deemed a valid reason for the transfer.

Rejection of Submissions by Petitioners:
The petitioners claimed that the Board should have given reasons for rejecting their submissions against the transfer. It was noted that the petitioners' objections did not address the reasons for the proposed transfer, and therefore, the Board's decision to transfer the cases was upheld. Precedents cited by the petitioners were deemed inapplicable to the present case.

In conclusion, the writ petitions were dismissed as they lacked merit, and the transfer of cases from ITO, Trust Circle, Jaipur to ITO, X Ward, Bombay was upheld for coordinated investigation purposes.