2006 (5) TMI 69 - HC - Income Tax

Order of the Commissioner made under section 127 for transfer of case - it appears to us that after giving a chance of being heard to the petitioner, the order was passed by the said authorities - It would be evident from the said order and the show cause notice that the reason of transfer proposal was made for the purpose of co-ordinated investigation and further for centralisation of the case -in our opinion, the said reason is a good reason. - we do not find any reason to interfere with the order so passed

Summary

Issues: Challenge to order under section 127 of the Income-tax Act, 1961 based on non-disclosure of reason in show-cause notice.

Analysis:
The appeal challenged an order dismissing a writ application against the Commissioner of Income-tax's order under section 127 of the Income-tax Act, 1961. The petitioner contended that the non-disclosure of reasons in the show-cause notice denied a reasonable opportunity of hearing as required by the Act. The petitioner relied on legal precedents to support this argument. The court reviewed the show-cause notice and the impugned order, noting that the transfer proposal was made for coordinated investigation, as mentioned in the notice. The court accepted the respondent authorities' contention that the show-cause notice contained sufficient reasons. The respondent's counsel cited legal cases to bolster this position. The court, after considering the arguments and legal precedents presented, disagreed with the petitioner's claim that the show-cause notice lacked reasons. It found that a chance for the petitioner to be heard was given before the order was passed. The court determined that the reason for the transfer proposal was valid, as it aimed at centralizing cases for a coordinated investigation involving numerous entities linked to the petitioner. Consequently, the court upheld the order passed by the first court, dismissing the applications and appeals.