Requirement of recording reasons in making order of transfer.

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....tral Board of Direct taxes & Others(Civil Appeal no. 724 of 1975 dated 5th December (102 ITR 281). 2. In this judgment arising out of an appeal filed by the assessee against the judgment of the Andhra Pradesh High Court in a writ filed by it against the transfer of cases from Nellore to Hyderabad u/s 127(1) of the Income-tax Act, 1961, the Supreme Court have referred to their judgment in Pannal....

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....he case file of an assessee to another area, the requirement of recording reasons in making the order of transfer. It is manifest that once an order is passed transferring the case file of an assessee to another area, the order has to be communicated. Communication of the order is an absolutely essential requirement since the assessee is then immediately made aware of the reasons which impelled th....

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....there-of is not saved by showing that the reasons exist in the file although not communicated to the assessee." 3. In view of the categorical finding of their Lordships, reproduced above as to what constitutes compliance with requirements u/s 127(1) for the transfer of a case from one area to another, it would now be necessary that in all cases where transfer is proposed from one area to anothe....