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TMI Blog2025 (1) TMI 461X X X X Extracts X X X X X X X X Extracts X X X X ..... 3. Mr. Shah, learned counsel for the petitioner, urges two contentions supporting this petition. Firstly, he submitted that the impugned order is bereft of reasons. He pointed out that the requirement to give reason, apart from one of the essential facets of principles of natural justice, is a statutory requirement under Section 127 (2) (a) of the Income Tax Act, 1961. In the absence of reasons, he submitted, the impugned order calls for interference. 4. Secondly, Mr. Gandhi submitted that there was no agreement between the Principal Commissioners of Mumbai and Delhi for the proposal of such a transfer. Again, he submitted that such agreement is a sine qua non for exercising powers under Section 127 (2) of the Income Tax Act and in the abs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce of reference:- "127. Power To Transfer Cases - (1) ........... (2) Where the Assessing Officer or Assessing Officers from whom the case is to be transferred and the Assessing Officer or Assessing Officers to whom the case is transferred are not subordinate to the same [Principal Director General or) Director General] or [Principal Chief Commissioner or] Chief Commissioner or [Principal Commissioner or] Commissioner,- (a) where the [Principal Directors General or] Directors General or [Principal Chief Commissioners or] Chief Commissioners or [Principal Commissioners or] Commissioners to whom such Assessing Officers are subordinate are in agreement, then the [Principal Director General or] Director General or [Principal Chief Co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... clarifications were found to be necessary at one stage, they were sought from the Commissioner at Delhi. Upon due consideration of the petitioner's objections and the clarifications received from the Commissioner at Delhi, the impugned order has been made, giving reasons for the transfer. 11. The impugned order notes that the cases are centralised with Central Circle for coordinated investigation in group cases to protect the interest of revenue. The convenience of the assessee is adverted to, but the impugned order observes that this aspect is secondary and may have to yield to the more significant interest of centralised and coordinated investigation. The order also records that the centralisation is for a limited period, and once the as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the respondents, we now find that a proposal was made by the Chief Commissioner of Income Tax (Central), New Delhi, on 13 September 2022 to the Principal Commissioner of Income Tax (Central)-2, New Delhi regards the proposed transfer. Based upon the same, the Principal Commissioner of Income Tax-4 wrote to the Chief Commissioner of Income Tax-2, Mumbai, on 2 December 2022, seeking approval. The Chief Commissioner of Income Tax-2 granted such approval vide communication dated 8 December 2022. This communication dated 8 December 2022 grants specific consent in this regard, as is evident from the perusal of the communication. Thus, it is apparent that there was complete agreement between the two Commissioners on transferring the proceeding ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ext of the fair hearings offered to the petitioner. Based on these communications, we cannot sustain any argument regarding the alleged absence of agreement between the two Commissioners. 20. The decision in Noorul Islam Educational Trust (supra) turns on its own facts where no consent or documents evidencing any agreement between the two Commissioners was produced on record. The only contention raised in the counter affidavit was that there was no disagreement between the two Commissioners. In this context, the Hon'ble Supreme Court observed that Section 127 (2) (a) of the Income Tax Act contemplates a positive state of mind of the two jurisdictional Commissioners of Income Tax, which was conspicuously absent. As noted earlier, in the pre ..... X X X X Extracts X X X X X X X X Extracts X X X X
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