Transfer order under income-tax law set aside for ignoring objections; matter remitted for fresh decision after personal hearing.

A transfer order under section 127 of the Income-tax Act was set aside because the assessee's objections, filed in response to notice, were not considered before the order was passed. The court held that the proper course was to annul the transfer order and remit the matter for fresh consideration in accordance with law after granting a personal hearing to the assessee's authorised representative. The matter was therefore sent back for reconsideration following notice and hearing.

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Issues: Whether the transfer order passed under Section 127 of the Income-tax Act, 1961 was liable to be set aside for non-consideration of the petitioner's objections, and whether the matter should be remitted for a fresh decision after granting a personal hearing.

Analysis: The petitioner had been issued notice before the transfer order and had filed objections in reply thereto. The record indicated that those objections were not taken into account when the transfer order was passed. In these circumstances, the proper course was to annul the impugned order and require the Assessing Officer to reconsider the matter in accordance with law after affording a personal hearing to the authorised representative of the petitioner.

Conclusion: The transfer order was set aside and the matter was remitted for fresh consideration after notice and personal hearing, in favour of the assessee.

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