2014 (10) TMI 703 - HC - Income Tax

Validity of Power to transfer cases u/s 127 Ten cases transferred Direction made to file reply - Held that - The assessee s are directed to file reply/objection petition/ representation before the AO to whom the case has been transferred vide order dated 18.05.2011 within a period of 30 days from today challenging the jurisdiction to initiate the action under the provisions of Income Tax Act 1961.

Summary

Issues involved:
Challenge to the impugned order transferring cases under the Income Tax Act, 1961 based on jurisdiction and legality.

Analysis:

1. Challenge to Impugned Order:
The petitioner challenged the order dated 18.05.2011 transferring 10 cases under Section 127 of the Income Tax Act, 1961 from one Assessing Officer to another. The petitioner argued that the action was illegal and without jurisdiction, emphasizing that the petitioner-Company, registered under the Registration of Companies Act, Sikkim 1961, did not fall under the definition of an "Indian Company" as per the Income Tax Act, 1961.

2. Submission of Objections:
During the proceedings, the respondents suggested that the petitioner should first raise objections before the relevant authority. The petitioner, through their counsel, agreed to approach the Assessing Officer to whom the cases were transferred. They requested to raise all objections mentioned in the writ petition and urged the Assessing Officer to decide on the question of jurisdiction first, after providing an opportunity for a hearing to the petitioner.

3. Court's Disposition:
Upon considering the submissions from both parties, the Court disposed of the writ petition with specific directions:
- The petitioner was instructed to file objections before the Assessing Officer within 30 days, challenging the jurisdiction under the Income Tax Act, 1961, and presenting all relevant legal arguments.
- If a jurisdictional issue was raised, the Assessing Officer was directed to address and decide on it before proceeding further, ensuring a fair hearing for the petitioner.
- The petitioners were granted the right to challenge any adverse order before the appropriate forum as per the law.
- The interim stay order issued by the Court was lifted, and each party was directed to bear their own costs.

This comprehensive analysis of the judgment highlights the core issues, arguments presented, and the Court's directives, ensuring a detailed understanding of the legal proceedings and outcome.