Transfer of assessment to Central Circle-II u/s127 where assessee's no-objection negates jurisdictional challenge; notice upheld

Whether the assessing authority's notice was invalid for want of jurisdiction following a transfer under s.127: SC held that the transfer order expressly recorded the assessee's no-objection to centralization to Central Circle-II, Chandigarh, and on that basis the jurisdictional objection to the notice failed; consequently the notice was valid and the High Court's refusal to interfere with the transfer was upheld.

---

---

Issues: (i) Whether the notice was bad for want of jurisdiction on account of centralization/transfer of the case. (ii) Whether interference with the High Court's order is justified.

Issue (i): Whether the notice was bad for want of jurisdiction because the case was centralized with Central Circle-II, Chandigarh.

Analysis: The transfer order dated 26.12.2016 records that the assessee gave no objection to centralization of the case with Central Circle-II, Chandigarh. On that factual foundation the challenge to the notice on jurisdictional grounds was examined and rejected.

Conclusion: Held against the assessee.

Issue (ii): Whether the High Court's order requires interference by this Court.

Analysis: Having regard to the finding on centralization and absence of a sustaining jurisdictional defect, no sufficient reason was found to disturb the High Court's decision; delay in filing was condoned.

Conclusion: Held in favour of the Revenue.

Final Conclusion: The Special Leave Petition is dismissed and the High Court's order is left undisturbed.

Ratio Decidendi: Where a transfer order records that the assessee consented to centralization of proceedings, an objection to notices on the ground of lack of jurisdiction arising from such centralization cannot be sustained.

---