Valid intra-city transfer of assessment records under the Income-tax Act confirmed; prior notice not required and jurisdiction upheld.

Transfer of an income-tax case within the same city from one Assessing Officer to another was held valid under Section 127 of the Income-tax Act, 1961, because sub-section (3) dispenses with prior notice or hearing for transfers within the same city, locality or place. The transfer also did not require re-issue of notices already served, as Section 127(4) preserves proceedings already undertaken. As the reassessment continued on the basis of valid prior notices, the assessment order passed by the transferee officer was not without jurisdiction, and the writ petition failed.

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Issues: Whether the transfer of the assessee's case from one Assessing Officer to another within the same city, without prior notice or hearing, was valid under Section 127 of the Income-tax Act, 1961, and whether the assessment order passed by the transferee officer was without jurisdiction.

Analysis: Section 127 permits transfer of a case from one Assessing Officer to another and sub-section (3) dispenses with the requirement of prior opportunity of hearing where the transfer is between officers situated in the same city, locality or place. The transfers in question were made within the same city, and the assessment proceedings were continued after valid notices had already been issued. Section 127(4) also clarifies that transfer at any stage does not require re-issue of notices already issued or invalidate proceedings already undertaken.

Conclusion: The transfer orders were valid and in conformity with Section 127 of the Income-tax Act, 1961. The assessment order passed by the transferee officer was not without jurisdiction, and the writ petition failed.

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