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TMI Blog2021 (9) TMI 1281X X X X Extracts X X X X X X X X Extracts X X X X ..... proposed to be made by one Commissioner to an Assessing Officer under another Commissioner and both AO are not subordinate to the same Commissioner. Reasonable opportunity would mean that the show cause notice or the intimation issued should contain such details that would enable the assessee to know the reasons for which the case is being transferred. In the intimation notice dated 20th June 2019, apart from stating you are connected to this group there are no other details as to how petitioner is connected to the Salagaocar Group. The word connected has varied and a wide meaning. Respondents ought to have mentioned in the show cause notice how petitioner was connected to Salagaocar Group of companies. The purpose of show cause n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nkani, Senior Advocate a/w. Mr. Prithwiraj Choudhary, Ms. Divya Shah, Mr. Kinnar Shah and Mr. Jimish Shah i/b. Divya Shah Associates for petitioner. Mr. P. C. Chhotaray for respondents-Revenue. ORAL JUDGMENT : (PER K.R. SHRIRAM, J.) 1. Since pleadings are completed, we decided to dispose this petition at the admission stage itself. Rule. Rule made returnable forthwith. Heard by consent of parties. 2. Petitioner is a non resident Indian since 2001 residing in Hong Kong. Petitioner has been conducting business through and in the name of various legal entities, of which petitioner was either the sole shareholder and/or one of the shareholders. These corporate entities were set up either in Hong Kong or in British Virgin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ubmission on or before 25.06.2019. This letter is an opportunity, prescribed u/s. 127(1) of the IT Act, 1961. As such, if nothing is heard from you till 01.07.2019, the matter would be decided on merits. 4. Petitioner filed a reply on 28th June 2019 stating that his only transaction with Salagaocar Group is purchase of iron ore by his companies based in BVI during the period before 2012, which iron ore were exported from India by the Salagaocar Group to these BVI companies and all payments were made by BVI companies through banking channels. He has also stated that he has stopped dealing with Salagaocar Group in or about June-July 2012 and his assessment has been completed until Assessment Year 2018-2019. Petitioner has also brough ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... yer of goods, who has no share holding in the seller organisation, can be stated to be connected to the seller and, that a personal hearing is required to be granted. The impugned order has been passed without granting a personal hearing though petitioner had requested for the same. Sub-Section 1 and 2 (a) of Section 127 which is relevant to the case at hand read as under : 127. Power to transfer cases : (1) The Principal Director General or Director General or Principal Chief Commissioner or Chief Commissioner or Principal Commissioner or Commissioner may, after giving the assessee a reasonable opportunity of being heard in the matter, wherever it is possible to do so, and after recording his reasons for doing so, transfer an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ame Commissioner to any other Assessing Officer also subordinate to the same Commissioner. In this case, the transfer was proposed to be made by one Commissioner to an Assessing Officer under another Commissioner and both Assessing Officers are not subordinate to the same Commissioner. Sub Section 2 (a) also requires that such an order can be passed after giving the assessee a reasonable opportunity of being heard in the matter and after recording his reasons for doing so. In our view, reasonable opportunity would mean that the show cause notice or the intimation issued should contain such details that would enable the assessee to know the reasons for which the case is being transferred. In the intimation notice dated 20th June 2019, apart ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... In our view, that also shows non application of mind by respondent no.1. Respondent no.1 also should have dealt with all the points raised by petitioner in his reply, which he has failed to do. Moreover, the show cause notice has been issued by one Income Tax Officer (HQ), International Taxation 3 and not by the Commissioner of Income Tax, who was exercising his power. On that ground also the show cause notice itself is defective. 7. Mr. Chhotaray states that petitioner had also been raided in connection with the investigation against Salagaocar Group of companies and therefore, he should be aware as to how he is connected to Salagaocar Group of companies. In our view, when the statute states a reasonable opportunity of being heard in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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