TaxTMI 
TaxTMI 
2009 (8) TMI 779
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....f Income-tax, Central 7, New Delhi. 2. The brief facts of the case are that the petitioners are wine contractors and have a joint venture of business. The business of wine/liquor is not static and keeps on changing depending on the wine contracts, which they are able to secure in the open auction in the State of Punjab. The petitioners have following PAN numbers namely :- Deep Malhotra-AIGPM 919/C. Gautam Malhotra-AAACO 1525A. 3. The petitioners have residential house at old Cantt. Road, Faridkot and they have also two shops one in Nehru Shopping Centre and the other in the Municipal Market, near Jubilee Cinema at Faridkot. 4. Petitioner No. 3 namely M/s. Oasis Resorts (P.) Ltd. has its head....
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....rder is vitiated. 6. In the written statement filed by the respondents the stand taken is that the Commissioner-respondent No. 5 is holding administrative jurisdiction over the functioning of Income-tax Officers of Ward Nos. III(3) and (4), Faridkot. It is further asserted that while passing an order under section 127 of the Act, the interest of administration has been duly taken into account. It has been alleged that the petitioners have been running hotels at Delhi and Mussoorie (Uttaranchal). They are residing at Delhi and they occasionally visit their residence at Faridkot. It is also pleaded that reasons have been duly recorded in the order dated August 13, 2008 (R.1) and therefore, the impugned order does not suffer from any....
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.... It would be necessary to read the aforesaid section which is as under : "127. Power to transfer cases.-(1) The Director-General or Chief Commissioner or Commissioner may, after giving the assessee a reasonable opportunity of being heard in the matter, wherever it is possible to do so, and after recording his reasons for doing so, transfer any case from one or more Assessing Officers subordinate to him (whether with or without concurrent jurisdiction) to any other Assessing Officer or Assessing Officers (whether with or without concurrent jurisdiction) also subordinate to him. (2) Where the Assessing Officer or Assessing Officers from whom the case is to be transferred and the Assessing Officer or Assessing Officers to w....
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....issue of any notice already issued by the Assessing Officer or Assessing Officers from whom the case is transferred." 10. A perusal of the aforesaid provision shows that the Director-General or Chief Commissioner or Commissioner could transfer any case at any stage of the proceedings from one Assessing Officer subordinate to him to another one subordinate to him. However, under sub-section (2) of section 127 when the cases are to be transferred to an Assessing Officer, who is not subordinate to the same Director-General or Chief Commissioner or Commissioner then both of them have to be in agreement and hearing has to be granted by the Chief Commissioner/Commissioner from whose jurisdiction the cases are proposed to be transferred. The Le....
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.... exist in the file although not communicated to the assessee." 12. Similar view has been taken by a Division Bench of this court in the case of Lt. Col. Paramjit Singh [1996] 220 ITR 446 and a single Bench in the case of Rajesh Mahajan [2002] 257 ITR 577 (P&H). 13. The provision of sub-section (2) of section 127 of the Act in substance provides for hearing beside requiring agreement between the Chief Commissioner or Commissioner of transferring place and the place where the cases are to be transferred. There is, thus, no reason why the view of the hon'ble the Supreme Court in Ajantha Industries' case [1976] 102 ITR 281 along with the judgments of this court would not apply for interpreting section 127(2) of the Act. We a....