Transfer of cases u/s 127 - Income Tax - 557/CBDT

INSTRUCTION NO. 557/CBDT Dated : June 15, 1973 Section(s) Referred: 127 Statute: Income - Tax Act, 1961 I am directed to say that the Board has in consultation with the Ministry of Law decided that before passing an order u/s 127 transferring a case, the reasons for such a transfer should be communicated to the assessee. In view thereof, it has become necessary that while sending proposals for assignment of jurisdiction u/s 127 by the Board, the Commissioners will indicate the precise reasons justifying such a transfer. For instance, if a case is desired to be transferred on account of the fact that the connected cases are being assessed by a different I.T.O. and the transfer would facilitate coordinated investigations, the Commissioners of Income-tax should communicate these acts to the Board. Similarly, when a case is proposed to be transferred to the Central Circle for detailed investigations, the prima facie information available to justify such a transfer should be communicated to the Board. Such information may be; (a) wealth is in excess of the known sources of the assessee; (b) inflated purchases; (c) suppressed sales; (d) peniami assets and so on. A similar procedure of intimating the information and pointing out that the case needs to be investigated by an officer who has the necessary time, experience and expertise must be followed when transferring a case from one place to another within the Commissioner's charge. If the assessee's objections are overruled, the reasons for doing so must be properly recorded in the file. 2. These instructions come into effect immediately and all proposals sent hereafter must be accompanied by the reasons for the proposed transfer of cases.