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TMI Blog2015 (5) TMI 434X X X X Extracts X X X X X X X X Extracts X X X X ..... sferred from jurisdictional Assessing Officer namely Assistant Commissioner of Income Tax / Deputy Commissioner of Income Tax, Circle - 6(2)(1), Bengaluru, to the Assessing Officer, Assistant Commissioner of Income Tax / Deputy Commissioner - Income Tax, Central Circle - 8(2), Mumbai. 2. I have heard the arguments of Sri.Narasimha Prasad.B.S, learned counsel appearing for petitioner and Sri.K.V.Aravind, learned panel counsel appearing for respondents. 3. Search proceedings came to be conducted under Section 127 of the Act at the residence of petitioner, consequent to search conducted in the business premises of Associate Group, Mumbai on 24.02.2014 and 25.02.2014. Sworn statement of the petitioner came to be recorded during the search pro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... questioning said notices and order of transfer contending interalia that: (i) order of transfer is not communicated to petitioner; (ii) reasons are not assigned in the order of transfer; (iii) all relevant particulars ought to have been made available to petitioner at the time of issuing notice viz., reasons for transfer ought to have been disclosed; (iv) reasons assigned in the impugned order namely for the sake of administrative convenience, is vague, general and stock phraseology is used and not based on valid, specific or cogent reasons, which can be said as germane for having nexus to the facts of case; Reasons assigned does not fulfill the parameters fixed under Section 127 of the Act for the Commissioner to transfer the case of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tant case, undisputedly petitioner is assessed under income tax under the jurisdiction of Deputy Commissioner of Income Tax, Circle 6(2)(1). Petitioner is the Managing Director of ADL having its registered office at Malur near Bengaluru. Said company is a joint venture between Associate Group, Mumbai and petitioner and they hold 67% and 37% shares respectively and said Associate Group which is engaged in the business of real estate, trading, timber, etc. was subjected to search under Section 132 of the Act on 24.02.2014 and 25.02.2014 namely business premises of Associate Group and residential premises of its Directors in Mumbai. A consequential search operation also came to be conducted at the residence of petitioner and at the office of A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... OFFICER reported in (1993) 71 TAXMAN 177 (KAR.) the Co-ordinate Bench of this Court after considering the various contentions raised at the bar has held to the following effect: "17. Whenever a group of files are transferred from the jurisdictional Assessing Officers at the place where the assessees are carrying on business or reside, to a place outside the city, locality or place, the assessees will invariably be put to undue hardship and inconvenience. Therefore, there must be justifiable and valid reasons for such transfer. Whenever several files pending with various assessing authorities are transferred to a single authority, it is necessarily to facilitate co-ordinated investigation. Hence, that cannot be the reason for the transfer. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ommissioner orders transfer of the files of a group from one city to another, a tax evasion or misdemeanour by all or several of the parties constituting the group is assumed. Before such a stigma is cast, it is necessary that the affected parties should be notified of the reason for the proposed transfer in the show-cause notice, so that they can effectively explain why such a course is not necessary. Similarly, it is necessary that the order communicated should also contain the reasons for making the order for transfer. Thus, where the transfer is to another city, then mere mention of stock - phrases like 'to facilitate coordinated investigation' or variations thereof will not be in compliance with the mandatory requirement of section ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at it is based on irrelevant and extraneous considerations. Whether such a writ or special leave application ultimately fails is not relevant for a decision of the question. We are clearly of opinion that the requirement of recording reasons under section 127(1) is a mandatory direction under the law and non communication thereof is not saved by showing that the reasons exist in the file although not communicated to the assessee." "When law requires reasons to be recorded in a particular order affecting prejudicially the interests of any person, who can challenge the order in court, it ceases to be a mere administrative order and the vice of violation of the principles of natural justice on account of omission to communicate the reasons i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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