The High Court allowed the writ petition, holding that the...

The High Court allowed the writ petition, holding that the transfer order issued u/s 127(2) of the Income Tax Act, 1961, was procedurally flawed. The Principal Commissioner of Income Tax, Kolkata-5, failed to adhere to the principles of natural justice by not providing an opportunity to be heard to the Petitioner and not disclosing the incriminating material despite objections raised. The impugned order lacked cogent reasons to justify the necessity of transfer, with vague and unsubstantiated reasons cited. The respondents failed to demonstrate compliance with the requirement of agreement between the jurisdictional Principal Commissioners. The purported need for coordinated investigation was not substantiated by specific or credible evidence linking the Petitioner's assessment to the alleged concealment of income by the partnership firm.

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