Delhi High Court affirms Tribunal decision on jurisdiction transfer under Income-tax Act

The High Court of Delhi upheld the decision of the Income-tax Appellate Tribunal regarding the transfer of jurisdiction of an assessee from Bombay to Delhi under section 127 of the Income-tax Act, 1961 for the block period 1-4-1987 to 10-2-1998. The Tribunal's ruling was based on the absence of a transfer order produced by the revenue, leading to the quashing of the assessment order by the Assessing Officer in Delhi. The Court rejected the revenue's arguments and affirmed the Tribunal's decision, emphasizing the lack of valid jurisdiction due to the missing transfer order.

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Issues involved: Validity of jurisdiction transfer u/s 127 of the Income-tax Act, 1961 from Bombay to Delhi for assessment during the block period 1-4-1987 to 10-2-1998.

Summary:
The High Court of Delhi heard an appeal by the revenue against an order of the Income-tax Appellate Tribunal related to the transfer of jurisdiction of an assessee from Bombay to Delhi u/s 127 of the Income-tax Act, 1961 for the block period 1-4-1987 to 10-2-1998. The Tribunal found that despite multiple opportunities, the revenue failed to produce the alleged transfer order u/s 127 of the Act. Consequently, the Tribunal concluded that since no transfer order existed, the Assessing Officer in Delhi lacked jurisdiction, leading to the quashing of the assessment order.

During the High Court proceedings, the revenue's counsel sought an adjournment to produce the order u/s 127 of the Act, but failed to obtain it. The revenue contended that the assessee did not challenge the transfer order before any departmental authorities, which was rejected by the Court as the case revolved around the existence of the order itself. The Court upheld the Tribunal's decision, emphasizing the absence of the transfer order and the lack of valid jurisdiction for the Assessing Officer in Delhi. No substantial question of law was found to arise for consideration.

In conclusion, the High Court affirmed the Tribunal's decision, highlighting the crucial absence of the transfer order u/s 127 of the Income-tax Act, 1961, which rendered the assessment by the Delhi Assessing Officer invalid for the block period in question.

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