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TMI Blog2017 (4) TMI 1416X X X X Extracts X X X X X X X X Extracts X X X X ..... and whenever an statute is considered, every word must be given its logical meaning and consequence unless there appears to be some inconsistency or conflict resulting in consequences to be disturbing or there are other compelling reasons showing that some part does not convey the same meaning as it ought to be or the same is redundant or is inconsistent with rest of the provisions. However that is not so particularly in this case and from judgment of Constitution Bench in Panna Lal Binjraj Vs. Union of India [1956 (12) TMI 1 - SUPREME COURT] also we find that requirement of opportunity has not been held mandatory. The mandate is available only for requirement of recording of 'reason'. Requirement of reason under Section 127 has a basic condition that before causing some inconvenience or prejudice to Assessee, Competent Authority passing order of transfer must show, from order of transfer, a conscious application of mind on its part that transfer order is not a mechanical exercise. Requirement of reasons does not mean that order must contain a detailed discussion on several grounds for justifying order of transfer, but requirement of statute stands satisfied if from a bare reading ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ern, their directors and family members etc. Consequent thereto, jurisdiction in cases of 21 persons was centralized and transferred to Deputy Commissioner of Income Tax/Assistant Commissioner Of Income Tax, Central Circle, Meerut. The said Assessing Officer issued notices under Section 153(A) calling aforesaid persons to file their returns for six Assessment Years (hereinafter referred to as "A.Y.") for being subjected to assessment as per provisions contained under Section 153(A), 153(B), 153(C ) and 153(D). The said notices were issued to petitioner on 4.2.2010 requiring to file returns for six A.Ys. i.e. 2003-04 to 2008-09. 7. Petitioner appeared before Income Tax Settlement Commission (herinafter referred to as 'ITSC') by filing an application under Section 245(C) on 26.11.2010 and matter was finally decided/settled under order dated 28.5.2012 passed by ITSC under Section 245(D)(4). 8. Petitioner then filed return for A.Y. 2011-12 with Deputy Commissioner of Income Tax/Assistant Commissioner of Income Tax, Central Circle, Meerut. The assessment was made by order dated 10.01.2012. Similarly for A.Y. 2012-13, 2013-14 and 2014-15 returns were filed with afores ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ll be recorded is applicable in all the cases irrespective of the fact whether order of transfer has been passed after giving opportunity of hearing or not. Statute is clear and in emphatic terms requires that 'reasons' shall be recorded by Competent Authority. Not only that, but, reasons must be communicated to Assessee, otherwise very purpose of recording reasons would be frustrated. When it is said that order shall be passed after recording reasons, in our view, reasons cannot be recorded and kept in file but the order itself must contain reasons for transfer and communicated to Assessee. 15. Respondents in this case have taken a defence that grant of opportunity was not found feasible, therefore, referring to the words "wherever it is possible to do so", used in Section 127(2)(a), submission is that present case is one where grant of opportunity to petitioner was not possible and hence it will not vitiate impugned order of transfer. 16. We find that in various authorities wherein validity of order of transfer under Section 127(2)(a) has been dealt with consensus view is that opportunity of hearing, if not afforded, or reasons not recorded, order of transfer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ransfer. Assessee shall have an opportunity to approach High Court under Article 226 of Constitution of India. Court thus said that "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 Assessee". Court specifically overruled an otherwise judgment of Delhi High Court in Sunanda Vs. Union of India, (1975) 99 ITR 391. Court said, when law requires reasons to be recorded in the order affecting prejudicially interests of any person, who can challenge such order in Court, it ceases to be a mere administrative order and the vice of violation of principles of natural justice on account of omission to communicate reasons is not expiated. 19. In another Division Bench judgment of this Court in Writ Tax Petition No. 16 of 2014, Smt. Chandra Prabha Kushwaha and others Vs. CIT and others decided on 9.1.2014, neither any opportunity was afforded to Assessee nor reasons were communicated. Revenue admitted this flaw and did not take defence that opportunity was not possible in that matter. Court ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the authority exercising power under the said Section to record 'reasons' for directing transfer of a case from one Income Tax Officer to another. It further requires that whenever power conferred by Section 127 is intended to be exercised, an opportunity should be given to Assessee, "whenever it is possible to do so" and reasons have to be recorded for making order of transfer. Court thus held that opportunity to Assessee shall be offered "whenever it is possible to do so" but order must contain reasons for transfer. Court held that "requirement that opportunity should be given, cannot be said to be obligatory, because it has been left to discretion of authority to consider whether it is possible to give such opportunity to Assessee. This is of course, true, in coming to the conclusion, that Authority must act reasonably and bona-fide; but if Authority comes to conclusion that it is not possible to give a reasonable opportunity to Assessee, same can be dispensed with. However, it is not so with regard to requirement that reasons must be recorded for making transfer. 24. So far as Section 127(1) is concerned, there is no dispute about this positio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at notice was not given to Assessee, will not vitiate order if the circumstances do justify such non affording of opportunity. 27. Thus, at the pain of repetition, we hold that careful reading of Section 127(2)(a) leads no manner of doubt that requirement of "reasonable opportunity" to Assessee is subjected and conditional i.e. "whenever it is possible to do so" department may proceed to pass an order of transfer without giving such opportunity. When a phrase has actually been used by Legislature in a statute, we cannot either ignore it or omit or render it redundant by reading that in every case an opportunity is must, else order of transfer would be rendered bad. The words used by legislature have to be read and given due meaning and effect and that is the basic principle of interpretation. Each and every word used by legislature has some meaning or consequence and whenever an statute is considered, every word must be given its logical meaning and consequence unless there appears to be some inconsistency or conflict resulting in consequences to be disturbing or there are other compelling reasons showing that some part does not convey the same meaning as it ou ..... X X X X Extracts X X X X X X X X Extracts X X X X
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