2025 (1) TMI 1239 - HC - Income Tax

Transfer of the assessee s case from Mumbai to Kochi - petitioner submits that without furnishing a copy of the transfer proposal and the comments on the petitioner s objections the petitioner was disabled from showing appropriate cause why the proceedings should not be transferred - HELD THAT - This does appear to be a case of denial of fair opportunity and consequently a violation of the principles of natural justice. On this ground we set aside the impugned orders and remand the matter to PCIT to decide on the proposal for transfer from Mumbai to Kochi afresh. The copy of the transfer proposal and response/comments on the petitioner s objections have already been furnished/made known to the petitioner. Therefore there is no question of granting any further documents to the petitioner. The petitioner may if it so chooses file a fresh response or additional response within 15 days from today to the PCIT. PCIT should then grant the petitioner an opportunity for a personal hearing and dispose of the proposal for transfer in accordance with law and on its own merits. A reasoned order must be made and communicated to the petitioner. This exercise must be completed on or before 28 February 2025.

Summary

**Summary of Judgment: Bombay High Court****Case Details:**- **Judges:** M.S. Sonak & Jitendra Jain, JJ.- **Petitioner's Counsel:** Mr. Madhur Agrawal- **Respondent's Counsel:** Mr. Akhileshwar Sharma**Key Issue:**The petitioner challenged the orders dated 04 August 2023 and 01 September 2023 by the Principal Commissioner of Income-Tax, Mumbai-20 (PCIT) regarding the transfer of the assessee's case from Mumbai to Kochi.**Legal Reasoning:**1. **Denial of Fair Opportunity:** The court found a violation of the principles of natural justice as the petitioner was not served with the proposal from ADIT (Investigation)-2, Kochi, or the comments on the petitioner's objections. This lack of information disabled the petitioner from adequately responding to the proposed transfer.2. **Violation of Natural Justice:** The court determined that the petitioner was not given a fair opportunity to contest the transfer, as the reasons and comments were only disclosed through the impugned order dated 01 September 2023.**Court's Decision:**- The impugned orders dated 04 August 2023 and 01 September 2023 were set aside.- The matter was remanded to PCIT for reconsideration of the transfer proposal.- The petitioner was given 15 days to file a fresh or additional response.- PCIT must provide a personal hearing and issue a reasoned order by 28 February 2025.- The petitioner is required to cooperate and not delay proceedings.**Conclusion:**The rule is made absolute on the grounds of breach of natural justice, and no cost order was issued. All parties' contentions remain open.