2023 (4) TMI 749 - HC - Income Tax

Transfer order u/s 127 - denial of natural justice - Not 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 - HELD THAT - Considering the facts and circumstances of the case and the decision 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. In case the petitioner is able to satisfy the respondent authority concerned, in course of personal hearing, in that event the respondent authority concerned shall revoke its order of transfer u/s 127 of the Income Tax Act, 1961. Till any fresh decision is taken after the personal hearing provided to the petitioner, the respondent authority concerned shall maintain status quo with the regard to any further proceedings.

Summary

Issues involved: Challenge to the order transferring Income Tax File from Kolkata to Lucknow under Section 127 of the Income Tax Act, 1961 without providing material or opportunity of personal hearing.

Summary:
The petitioner filed a writ petition challenging the order transferring the Income Tax File from Kolkata to Lucknow, alleging lack of material and opportunity of personal hearing. The petitioner cited a previous decision of the Hon'ble Division Bench in a similar case to support his claim. The Court noted that no materials were provided to the petitioner, and no personal hearing was granted despite a show-cause notice being issued. The respondent's advocate argued that the petitioner was given an opportunity to file objections but failed to show evidence of personal hearing or material provision. The Court, considering the circumstances and the precedent, directed the respondent authority to provide relevant documents to the petitioner, allowing for further objections and a personal hearing within eight weeks. If the petitioner satisfies the authority during the hearing, the transfer order will be revoked. Until a new decision is made post the personal hearing, the status quo regarding further proceedings shall be maintained by the respondent authority.