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TMI Blog2004 (4) TMI 64X X X X Extracts X X X X X X X X Extracts X X X X ..... lock assessment under Chapter XIV-B of the Income-tax Act, 1961, would fall within the meaning of "case" in the Explanation to section 127 of the Income-tax Act, 1961, enabling the Chief Commissioner of Income-tax to transfer block assessment to a subordinate officer. The assessee was borne on the rolls of the Income-tax Officer, Ward-I, Mercara. The original assessee expired after the proceedings in the appeal and is now represented by his son, the legal heir. The original assessee was a timber merchant having business interests in Mattanur in Kerala State and Mercara in Karnataka State. Search was conducted by the Income-tax Department on November 22, 1995, in the residence and business premises of the assessee, his sons and other associates. Consequent to the search proceeding under section 132 of the Income-tax Act, it was proposed to transfer the case to the Income-tax (Inv.) Circle, Calicut, to facilitate effective and co-ordinate investigation. The Chief Commissioner of Income-tax, Bangalore, Karnataka, in exercise of the powers under section 127(2) of the Income-tax Act transferred the case of the assessee to the jurisdiction of the Assistant Commissioner of Income-tax, I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... so submitted that the Chief Commissioner of Income-tax could have transferred only a case in relation to any "proceedings under the Act in respect of any year". Counsel submitted that the assessment for the block period in accordance with the provisions contained in Chapter XIV-B is different from a regular assessment and also different from "proceedings" under the Act in respect of any year, as mentioned in the Explanation. Senior standing counsel for the Revenue, Sri P. K. Ravindranatha Menon, refuted the contentions and submitted that the Chief Commissioner of Income-tax had passed order under section 127(2) after hearing the assessee and the order was challenged before the High Court of Karnataka, but without any success. Counsel also submitted that the word "case" in relation to an assessee means all proceedings under the Act which were pending on the date of the order. Counsel submitted that the Income-tax Officer, Mercara, could not have taken action for the block assessment in view of the provisions of section 158BC of the Act and so the case had to be transferred to the Assistant Commissioner of Income-tax who has got power to effect such transfer. The Tribunal found no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ula but must be appreciated with reference to the context in which it has been used and the purpose to be achieved under the provision in question. Counsel submitted that the expression "case" was inserted using the word "in respect of" after the decision of the apex court in Bidi Supply Co. v. Union of India [1956] 29 ITR 717. Counsel also placed reliance on the description given by the Department before the Supreme Court in S. L. P. No. 1545/55 of 1998 (CIT v. Sasidharan), which, according to counsel, supports his reasoning. Senior counsel appearing for the Revenue submitted that block assessment could be handled only by an officer not below the rank of an Assistant Commissioner and the Chief Commissioner has rightly transferred the file to the Assistant Commissioner, Calicut. Counsel for the Revenue submitted that the expression "case" used in the Explanation has to be given a wider meaning and would take in block assessment as well, which includes a number of years. Placing reliance on section 127, counsel submitted that the word "any" has to be given a wider meaning which would take in assessment which would include block assessment as well. Counsel further submitted that in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng Officers (whether with or without concurrent jurisdiction) and the offices of all such officers are situated in the same city, locality or place. (4) The transfer of a case under sub-section (1) or sub-section (2) may be made at any stage of the proceedings, and shall not render necessary the re-issue of any notice already issued by the Assessing Officer or Assessing Officers from whom the case is transferred. Explanation. -In section 120 and this section, 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 pending on the date of such order or direction or which may have been completed on or before such date, and includes also all proceedings under this Act which may be commenced after the date of such order or direction in respect of any year." Section 127 confers powers on the Director or Chief Commissioner of Income-tax to transfer any case from one or more Assessing Officers subordinate to him to any other Assessing Officer, after giving the assessee a reasonable opportunity of being heard in the matter, wherever it is possible to do so, an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sufficient procedure to the assessee including an opportunity of being heard wherever it is possible. The Chief Commissioner, in exercise of the power conferred under section 127, has also to record reasons. Admittedly, statutory formalities have already been complied with in the instant case, but the question posed is whether block assessment would fall in the Explanation to section 127 and whether the Commissioner has got the power to transfer the case of the assessee. Section 127 has used the expression "any case". The Explanation contains the word "case" in relation to any person whose name is specified in any order or direction issued thereunder, and means all proceedings under the Income-tax Act in respect of any year. Therefore, the expression "any case" means all proceedings under the Act in respect of any year. The expressions "any year" and "any case" exclude limitation or qualification, which points in a distributive construction. The words "any case" and "any year" connote wider generality. The word "any" may have one of several meanings; according to the circumstances it may mean "all", "each", "every", "some", or one or more out of several. In Gangadhar Narasingdas A ..... X X X X Extracts X X X X X X X X Extracts X X X X
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