2023 (3) TMI 784 - HC - Income Tax

Transfer of case u/s 127 - transferring the Income Tax File of the petitioner from Kolkata to Lucknow - As argued order has been passed without providing any material to the petitioner on the basis of which such decision of transferring the file of the petitioner has been taken and without giving any opportunity of personal hearing in spite of his representation - HELD THAT - Neither the materials as asked for by the petitioner nor opportunity of personal hearing was provided to the petitioner though in this case a show-cause- notice was issued to the petitioner to file objection to the impugned action of transfer of the petitioner s file but it is the case of the petitioner that he is not able to file any effective objection in view of non-providing of any materials for taking such action of transfer against the petitioner. As considering case of Nouvelle Advisory Services Private Limited 2023 (2) TMI 866 - CALCUTTA HIGH COURT this writ petition is disposed of by directing the respondent authority concerned to provide relevant documents to the petitioner indicating the basis for taking such order of transfer of the petitioner s file and to provide opportunity to file further objection, if such material is supplied and also to give opportunity of personal hearing to the petitioner, within eight weeks from the date of communication of this order.

Summary

Issues involved:
The issues involved in the judgment are the challenge to the order transferring the Income Tax File of the petitioner from Kolkata to Lucknow under Section 127 of the Income Tax Act, 1961, based on the lack of providing material to the petitioner and denying an opportunity of personal hearing.

Challenge to Impugned Order:
The petitioner filed a writ petition challenging the order transferring the Income Tax File from Kolkata to Lucknow, contending that no material was provided to him for the decision and no opportunity of personal hearing was granted despite his representation. The petitioner cited a decision of the Hon'ble Division Bench in another case to support his argument.

Court's Observation:
After considering the facts and submissions, the Court noted that neither the requested materials nor an opportunity of personal hearing were provided to the petitioner. Although a show-cause notice was issued, the petitioner claimed inability to file an effective objection due to the lack of materials for the transfer action.

Respondent's Argument:
The respondent's counsel opposed the writ petition, arguing that the petitioner was given an opportunity to file objections but failed to demonstrate that a personal hearing or the requested materials were provided. The respondent stated that the impugned transfer order had already been implemented.

Court's Decision:
In light of the circumstances and a previous decision of the Hon'ble Division Bench, the Court disposed of the writ petition. The respondent authority was directed to provide relevant documents to the petitioner, indicating the basis for the transfer order, and to allow the petitioner to file further objections if the materials were supplied. The petitioner was also granted an opportunity of personal hearing within eight weeks. If the petitioner satisfies the authority during the hearing, the transfer order under Section 127 of the Income Tax Act, 1961, was to be revoked.

Status Quo Maintenance:
Until a new decision is made following the personal hearing, the respondent authority was instructed to maintain the status quo regarding any further proceedings related to the transfer of the petitioner's file.