9911796707
TMI Blog1970 (10) TMI 18X X X X Extracts X X X X X X X X Extracts X X X X ..... respective petitioner at Indore to the Income-tax Officer, Bombay. The first respondent issued a show cause notice, dated May 16, 1968 (petitioner's annexure " A "), calling upon the petitioner to show cause as to why the cases pending at Indore should not be transferred to Bombay under section 127 of the Income-tax Act, 1961. The reason mentioned in the show-cause notice was " facility of investigation ". To that show-cause notice, the petitioner sent a reply, dated May 30, 1968 (petitioner's annexure " B "), and thereafter the first respondent passed the order of transfer on August 3, 1968. The order of transfer itself does not give any reason as to why the case has been transferred from Indore to Bombay. It is pertinent to note at this ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e as the Board or the Commissioner (or any Inspecting Assistant Commissioner authorised by the Commissioner in this behalf) may, by general or special order in writing, specify, for the distribution and allocation of the work to be performed. (2) The transfer of a case under sub-section (1) may be made at any stage of the proceedings, and shall not render necessary the reissue of any notice already issued by the Income-tax Officer or Income-tax Officers from whom the case is transferred. Explanation.-In this section and in sections 121, 123, 124 and 125, the word 'case' in relation to any person whose name is specified in any order or direction issued thereunder, means all proceedings under this Act in respect of any year which may be pen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... strative nature, but is also of a quasi-judicial nature, inasmuch as a reasonable opportunity of being heard is contemplated by the section. Where the opportunity of being heard is required to be reasonable, the matter, in our opinion, will be justiciable and it will not depend on the sweet will of the authority concerned. The question whether the opportunity given is reasonable or not will be a matter for interpretation by the court and not by the authority itself. Similarly, the other aspect relating to the recording of reasons would clearly indicate that it has to be an order in the sense of a quasi-judicial nature and it cannot be an arbitrary order where no reasons need be disclosed. From this point of view, we have no doubt that an or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ment must always record its reasons and communicate those reasons to the parties affected thereby. We may observe that the following of that procedure would be absolutely necessary where the statute casts a duty on the authority to act in a quasi-judicial manner and any violation of the statutory provision or of the principles of natural justice cannot be permitted, especially in view of the specific requirements of section 127 of the Income-tax Act, 1961. However, the learned counsel for the respondents invited our attention to the pronouncement of a Division Bench of the Allahabad High Court in Firozabad Glass and Chemical Industries Ltd. v. Income-tax Officer, Agra. In that case the main grievance of the petitioner was that the order o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted by us, on a plain reading of section 127 of the Income-tax Act, 1961, two things are absolutely necessary, namely, a reasonable opportunity of being heard in the matter wherever it is possible to do so and, secondly, the recording of reasons for transfering a case, In the absence of these two requirements being fulfilled, it is not possible to support an order of transfer and especially with such a vague observation that the transfer is proposed for facility of investigation. We might observe that facility of investigation would not connote anything. But, if some particulars are given, an assessee might be able to give a proper reply as to why a case should not be transferred. Moreover, the requirement is that the reason should be given ..... X X X X Extracts X X X X X X X X Extracts X X X X
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