TaxTMI 
TaxTMI 
2010 (9) TMI 714
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....tay implementation and operation of the order at Annex. 'A', and of the notice at Annex. 'B' of this petition and stay further proceeding for the transfer of the petitioner's case from Ahmedabad to Bhopal; (c) any other and further relief deemed just and proper be granted in the interest of justice; (d) to provide for the cost of this petition." 3. The facts stated briefly are that vide notice dated 29-7-2009 issued by the Dy. CIT, Circle-7, Ahmedabad, the petitioner was informed that the Dy. Director of Investigation, Bhopal, had made a proposal for centralization of her case in connection with the search and seizure action carried out in case of Shri Avtarsingh Khurana and Others. It was further stated in the notice that the petitioner was being given an opportunity of being heard with regard to the said subject and was requested to attend the office of the Dy. CIT or furnish a reply in writing before the date specified in the notice, if she wanted to represent her views in the matter. In response to the said notice, the petitioner filed a reply dated 6-8-2009 addressed to the Dy. CIT objecting to the proposal of centralization and transfer of the petit....
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....he same Director General, or Chief CIT or CIT, two basic requirements are required to be satisfied before making an order transferring the case under section 127(2) of the Act, viz., the concerned Director General, Chief CIT or CIT from whose jurisdiction the case is to be transferred is required to give the assessee a reasonable opportunity of being heard; and the concerned authority is required to record reasons for doing so. It was submitted in the present case the impugned order dated 11-11-2009 has been passed without affording any opportunity of hearing to the petitioner and no reasons have been recorded for transferring the case of the petitioner to the Assessing Officer at Bhopal, and as such the impugned order being in breach of the statutory provisions is illegal and invalid and as such the entire proceedings initiated pursuant thereto, including the impugned notice under section 153C of the Act would stand vitiated. In support of his submissions, the learned counsel placed reliance upon the decision of the Apex Court in the case of Ajantha Industries v. CBDT [1976] 102 ITR 281. Various other contentions have also been advanced on the merits of the case, however, consider....
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.... whom such Assessing Officers are subordinate are in agreement, then the Director General or Chief CIT or CIT from whose jurisdiction the case is to be transferred 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, pass the order; (b) where the Director Generals or Chief CITs or CITs aforesaid are not in agreement, the order transferring the case may, similarly, be passed by the Board or any such Director General or Chief CIT or CIT as the Board may, by notification in the Official Gazette, authorise in this behalf." 8. In the present case, the case of the petitioner has been transferred from an Assessing Officer to an Assessing Officer who is not subordinate to the same CIT, hence the provisions of sub-section (2) of section 127 of the Act would be applicable. On a plain reading of the provisions of sub-section (2) of section 127 of the Act it is apparent that the same contemplates giving a reasonable opportunity of hearing to the assessee by the Director General, or Chief CIT or CIT (in the present case the CIT) from whose jurisdiction the case is to be....
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....ctions to the proposed centralization. vide this office letter of even No. dated 23rd Nov., 2009 (copy enclosed for ready reference) the Director of IT (Inv.), Bhopal has been requested to forward detailed reasons for proposed centralization. In the case of Smt. Madhu Khurana the CIT, Ahmedabad-III, Ahmedabad vide letter No. CIT-III/R.7/Khurana/2009-10, dated 17th Aug., 2009 (copy enclosed for ready reference) has anticipated that the assessee may challenge the order of centralization and therefore, requested to supply detailed reasons on the basis of which a speaking order justifying the transfer of cases to Bhopal may be passed. The said letter of the CIT-III Ahmedabad has been forwarded to Director of IT (Inv.), Bhopal vide this office letter dt. 25th Aug., 2009 (copy enclosed for ready reference). Similarly, CIT, Ahmedabad-VII, Ahmedabad, in the case of Shri Avtar Singh Khurana has also submitted that due to health problem the assessee has shown his inability to travel frequently from Ahmedabad to Bhopal. In this background a letter dt. 23rd Nov., 2009 (copy enclosed for ready reference) has been issued by this office to Director of IT (Inv.), Bhopal requesting for supply of de....