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of <h1>Invalidation of Income Tax Case Transfer Order Due to Procedural Violation</h1> The High Court of Rajasthan invalidated a transfer order of an income tax case involving M/s. R. S. Metal Industries due to lack of providing a reasonable ... Transfer Of Case Issues:1. Validity of transfer order under section 127(1) of the Income Tax Act.2. Requirement of giving a reasonable opportunity of being heard before transferring a case.3. Jurisdiction of the transferee-ITO after the transfer of the case.4. Compliance with legal procedures in transferring income tax cases.Analysis:The High Court of Rajasthan heard a petition under Article 226 of the Constitution regarding the transfer of an income tax case involving a firm, M/s. R. S. Metal Industries. The Central Board of Direct Taxes had transferred the case from one Income Tax Officer (ITO) to another without providing a reasonable opportunity for the assessee to be heard, as required by section 127(1) of the Income Tax Act, 1961. The petitioner contended that the transfer order was illegal and void due to lack of notice and reasons for transfer. The respondent argued that since the assessment was completed and an appeal was pending, notice for transfer was not necessary. However, the court held that the failure to provide a reasonable opportunity of being heard before transferring the case was a violation of the law, causing prejudice to the petitioner.The court emphasized that the transfer of the case allowed the transferee-ITO to reopen the case, potentially affecting the petitioner's interests. Therefore, the court concluded that the transfer order, issued without complying with the requirements of section 127(1) of the Income Tax Act, should be set aside. The court allowed the petition, invalidated the transfer order, and directed the Board to issue a fresh order for transfer, if deemed necessary, following proper legal procedures. The judgment highlighted the importance of adhering to legal requirements and providing a fair opportunity for affected parties to be heard in matters of transferring income tax cases to ensure justice and prevent prejudice.
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