2025 (6) TMI 500 - SCH - Income Tax

Supreme Judicial Review Halts Income Tax Assessment Transfers Under Section 127(2), Preserves Procedural Fairness and Prevents Premature Implementation

SC addressed transfer of Income Tax Assessment proceedings under Section 127(2) of Income Tax Act. Court directed that while transfers can proceed, final ... Centralisation of assessment in the case of various group entities - Income Tax Assessment proceedings sought to be transferred from other places to Kolkata u/s 127(2) - HELD THAT:- Respondent / Ld'ASG pointed out that transferred took place way back in July, 2024 and various notices are being issued. If the transfer has already taken place and if the authority concerned wants to pass an order, it may proceed to do but it may not give a final effect to the order till we hear this matter on merits. This matter otherwise is coming up on 14th May, 2025, on that day we shall hear both the sides and take the final call in the matter. Petitioner submitted that he was not aware that the transfer has already been given effect to way back in July, 2024. Summary:The Supreme Court, through Hon'ble Justices J. B. Pardiwala and R. Mahadevan, addressed the issue of transfer of Income Tax Assessment proceedings under Section 127(2) of the Income Tax Act, 1961. An order dated 01 May 2025 had directed that such transfers 'shall not be transferred till the next date of hearing so far as the present cases are concerned,' with notice issued and dasti service permitted. At a subsequent mention, the learned ASG informed the Court that the transfer had already taken effect in July 2024 and notices were being issued. The Court clarified that while the authority may proceed with passing orders, it 'may not give a final effect to the order till we hear this matter on merits.' The matter is scheduled for final hearing on 14 May 2025, where both sides will be heard before a final decision. The petitioner's counsel was unaware that the transfer had already been effected.