Reasoned speaking order required for transfer of tax jurisdiction after objection; non-speaking transfer order was quashed.

A transfer of assessment jurisdiction under section 127 of the Income-tax Act was held unsustainable where the assessee had objected to the proposed transfer and the authority failed to deal with the objection by a reasoned speaking order. The High Court noted that, after a show-cause notice and objection, the matter had to be considered on merits with a personal hearing before any transfer could be made. Because the impugned order merely effected transfer without such adjudication, it was quashed and the matter was remitted for fresh decision in accordance with law after granting hearing and passing a speaking order.

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Issues: Whether the order transferring the assessee's case under section 127 of the Income-tax Act, 1961, could stand when the assessee had objected to the proposed transfer and the authority had not passed a reasoned speaking order after considering the objection.

Analysis: The transfer order was preceded by a show-cause notice and an objection by the assessee. In such circumstances, the matter required consideration on merits, affording an opportunity of personal hearing, and disposal by a reasoned speaking order. An order merely effecting transfer of an assessee's case, without such adjudication, was not adequate where objections had been raised.

Conclusion: The transfer order, insofar as it concerned the petitioner, was quashed and set aside, and the Commissioner was directed to reconsider the matter afresh in accordance with law after granting personal hearing and to pass a reasoned speaking order.

Final Conclusion: The petitioner succeeded in having the impugned transfer order annulled, with the matter sent back for fresh decision-making after compliance with the procedural safeguards.

Ratio Decidendi: Where a transfer of assessment jurisdiction under section 127 is challenged on objection after show-cause notice, the authority must decide the matter by a reasoned speaking order after affording hearing; a non-speaking administrative transfer order is unsustainable.

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