2010 (1) TMI 20 - HC - Income Tax

Transfer order under Income Tax Act set aside for failure to consider petitioner's reply. Order annulled, case remanded for fresh decision.

M/s Key Men Laminators Pvt. Ltd. Versus Commissioner Of Income Tax-Ii, Kanpur And Others

M/s Key Men Laminators Pvt. Ltd. Versus Commissioner Of Income Tax-Ii, Kanpur And Others - tmi Issues involved:Challenge to transfer order under Section 127(2) of the Income Tax Act without considering petitioner's reply and providing reasons.Analysis:The petitioner challenged the transfer order dated 20.11.2009 passed by the Commissioner of Income Tax-II, Kanpur, which transferred the petitioner's case from Deputy Commissioner of Income Tax-VI, Kanpur to Assistant Commissioner of Income Tax, Central Circle-I, Lucknow. The petitioner contended that despite filing a reply dated 11.08.2009 in response to the notice under Section 127(2) of the Income Tax Act, the explanation was not considered, and no reasons were provided for the transfer in the order.Upon examination of the impugned order under Section 127(2) of the Income Tax Act, the court observed that the petitioner's explanation had not been taken into account, and no rationale was presented for the transfer from Deputy Commissioner of Income Tax-VI, Kanpur to Assistant Commissioner of Income Tax, Central Circle-I, Lucknow. Consequently, the court found the order unsustainable and set it aside.As a result, the writ petition was allowed, and the order dated 20.11.2009 was set aside. The matter was remanded back to the Commissioner of Income Tax for issuing a fresh reasoned order after duly considering the petitioner's reply in accordance with the law. The judgment was delivered on 13.1.2010.