Transfer of jurisdiction requires communicated reasons; undisclosed reasons on file do not validate an assessee's transfer order.

An order transferring an assessee's case under Section 127(1) of the Income-tax Act is invalid if the recorded reasons are not communicated to the assessee. The requirement to record reasons is mandatory, and keeping those reasons only on the file does not cure the defect. Where jurisdiction is transferred administratively, the affected assessee must be informed of the reasons supporting the decision; failure to do so renders the transfer order illegal and liable to be quashed. The document states that the writ petition succeeded and the impugned transfer order was set aside with costs.

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Issues: Whether an order transferring an assessee's case under Section 127(1) of the Income-tax Act, 1961 was valid when the recorded reasons were not communicated to the assessee.

Analysis: The requirement to record reasons for transferring a case under Section 127(1) is mandatory. Non-communication of those reasons to the assessee vitiates the transfer order, and the existence of reasons merely on the file does not cure the defect.

Conclusion: The transfer order was invalid and liable to be quashed.

Final Conclusion: The writ petition succeeded and the impugned transfer order was set aside with costs.

Ratio Decidendi: Where a statute requires reasons to be recorded for an administrative transfer of jurisdiction, those reasons must also be communicated to the affected assessee, and failure to do so renders the order illegal.

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