Transfer of income-tax cases upheld for centralisation, but limited to the brokerage period after business cessation.

Transfer of an assessee's income-tax cases under section 127 was found valid because the notice gave an opportunity of hearing and disclosed the reason for centralisation of stock broker cases, satisfying the requirements of hearing and reasons. However, as the assessee had stopped brokerage business, the transfer was confined to the period during which that business was carried on. The later assessment period was left assessable at Mathura, so the transfer did not extend beyond the brokerage period.

---

---

Issues: Whether the transfer of the assessee's income-tax cases under section 127 of the Income-tax Act, 1961 was invalid for want of hearing or reasons, and whether the transfer should operate only for the period during which the assessee carried on brokerage business.

Analysis: The notice issued to the assessee afforded an opportunity of hearing and disclosed the reason for the proposed transfer, namely, centralisation of the cases of stock brokers. The Court held that this constituted sufficient compliance with the requirement of hearing and disclosure of reasons. At the same time, since it was stated that the assessee had stopped brokerage business, the Court limited the transfer to the period during which the brokerage business had been carried on and directed that the later period would remain assessable at Mathura.

Conclusion: The transfer order was upheld in principle, but its operation was confined to the brokerage period, and assessment for the period after cessation of brokerage business was left at Mathura.

---