2025 (3) TMI 875 - HC - Income Tax

Validity of transfer order u/s 127 - as argued order impugned was issued without assigning any reasons for transferring the assessment from the Income Tax Officer Theni to the Deputy Commissioner of the Income Tax Central Circle Kochi - HELD THAT - There are no sufficient grounds to interfere with the impugned order. The petitioner has not demonstrated any compelling reason for the Court to set aside the transfer of the case particularly in the light of the search conducted u/s 132/132A of the Act and as per the relevant CBDT guidelines which necessitated the transfer to Central Circle 2 Kochi for the purpose of the coordinated investigation. This Court is of the opinion that the impugned order does not warrant interference.

Summary

In the case before the Madras High Court, the petitioner challenged an order dated 05.02.2025, which transferred their case from the Income Tax Officer in Theni to the Deputy Commissioner of Income Tax, Central Circle, Kochi. The petitioner argued that the order, issued under Section 127 of the Income Tax Act, 1961, lacked reasons, rendering it arbitrary and violating principles of natural justice. The petitioner's counsel contended that the assessment could remain in Theni due to the "faceless" nature of the process.Conversely, the respondents' counsel justified the transfer, citing a search conducted on the petitioner's property in Kerala where Rs. 50 lakhs were seized. According to CBDT Guidelines under F.No. 286/88/2008-IT (Investigation II), dated 17.09.2008, assessments following a search under Section 132/132A must occur in the Central Circle. The transfer to Central Circle - 2, Kochi, was deemed necessary for coordinated investigation, and the petitioner had been given sufficient opportunity to respond.After reviewing the submissions and materials, the Court found no sufficient grounds to interfere with the impugned order. The Court concluded that the transfer was justified under the circumstances and dismissed the writ petition, with no order as to costs, closing any connected miscellaneous petitions.