2023 (6) TMI 357 - HC - Income Tax

Transfer of case u/s 127 - transferring the Income Tax File of the petitioner from Kolkata to Lucknow - As argued transfer is done 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. 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.

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 and opportunity of personal hearing.

Summary:

Challenge to Transfer Order:
The petitioner filed a writ petition challenging the order transferring their Income Tax File from Kolkata to Lucknow under Section 127 of the Income Tax Act, 1961. The petitioner argued that the decision was made without providing any material or opportunity for personal hearing, despite submitting a representation. The petitioner relied on a previous decision of the Hon'ble Division Bench of the Court to support their claim.

Court's Observation:
After considering the facts and submissions of both parties, the Court noted that the petitioner was not provided with the materials requested or an opportunity for personal hearing, even though a show-cause notice was issued. The respondent contended that the petitioner had the opportunity to file objections but failed to demonstrate that personal hearing was granted or requested materials were provided. The impugned order of transfer had already been implemented.

Court's Decision:
In light of the circumstances and the precedent set in a previous case, the Court disposed of the writ petition by directing the respondent authority to provide the petitioner with relevant documents outlining the basis for the transfer order. The petitioner was granted the opportunity to file further objections upon receiving the materials and to have a personal hearing within eight weeks. If the petitioner satisfies the authority during the personal hearing, the order of transfer under Section 127 of the Income Tax Act, 1961, shall be revoked. Until a new decision is made post the personal hearing, the respondent authority was instructed to maintain the status quo regarding any further proceedings.