AI Drafter 
TaxTMI 
TaxTMI 
2014 (10) TMI 543
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....to amend the prayer in the writ petition for issuance of a Writ of Certiorarified Mandamus to quash the order dated 18.02.2014, and for a consequential direction to the second respondent to transfer the Income Tax files of Late Mr.Y.Victor from the jurisdiction of the first respondent to the respondents 3 and 4. 3. Mrs.Chitra Sampath, learned Senior counsel appearing for the petitioners submitted that the first petitioner was residing with her husband at Tanjore till 2008, after which they moved to Chennai. That the petitioner's husband as well as the petitioner are the income tax assessees and the petitioner's husband died on 29.03.2013, leaving behind the petitioners herein and another son and daughter as his legal heirs. The first petitioner would state that she is now staying with her elder son at Chennai. It is further submitted that the first respondent issued notices to the first petitioner and her two sons under Section 148 of the Income Tax Act on 29.07.2013, calling upon them to produce the accounts and documents pertaining to the estate of Late Mr.Y.Victor from the assessment years 2009-10 till 2012 and a notice under Section 142(1) of the In....
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.... the assessment year 2008-09 and therefore, the conclusion of the second respondent is totally baseless and the rejection of the request is solely on the ground that the petitioner had approached this Court for necessary relief. In support of the above contentions, reliance was placed on the decision of the Hon'ble Division Bench of High Court of Bombay in the case of Devidas vs. Union of India, reported in [1993] 200 ITR 697 (Bombay) and the decision of the High Court of Kerala in the case of Benz Corporation vs. Income Tax Officer, reported in [1998] 232 ITR 804 (Kerala). 5. Mr.T.Pramod Kumar Chopda, learned Standing counsel appearing of the respondents sought to sustain the impugned proceedings by contending that Late Mr.Y.Victor sold the immovable property at Tanjore for a total consideration of Rs. 5,11,20,000/- on 07.04.2011, but no return of income was filed by Late Mr.Y.Victor for capital gains arising out of the transfer of property assets. Further, it is submitted that during the course of enquiry done with the brother of the second petitioner, it came to the notice of the department that Late Mr.Y.Victor and the first petitioner sold the numerous plots....
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....njore District and the petitioner's husband's residence is about 500 meters away from the Income Tax office, Tanjore and the properties sold are at Tanjore and the second son of the first petitioner is also residing at Tanjore and all the details could be collected from the office of the Sub-Registrar and Banks at Tanjore. Further, it is stated that there are other properties which are unsold, which are also situated in Tanjore. In the light of the above facts, it is submitted that the order passed by the second respondent rejecting the petitioner's request for transfer of the Income Tax files, is perfectly justified and the power under Section 127 of the Income Tax Act to transfer cases vest the Director General or Chief Commissioner or Commissioner after giving the assessee a reasonable opportunity of hearing in the matter, wherever it is possible to do so and after recording reasons for doing so the transfer any case from one or more Assessing Officers subordinate to him to any other Assessing Officer or Assessing Officers also subordinate to him. Therefore, it is submitted that the petitioner cannot compel the department to transfer the files from ....
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....her with or without concurrent jurisdiction) and the offices of all such officers are situated in the same city, locality or place. (4) The transfer of a case under sub- section (1) or sub- section (2) may be made at any stage of the proceedings, and shall not render necessary the re- issue of any notice already issued by the Assessing Officer or Assessing Officers from whom the case is transferred. Explanation.- In section 120 and this section, the word" case", in relation to any person whose name is specified in any order or direction issued thereunder, means all proceedings under this Act in respect of any year which may be pending on the date of such order or direction or which may have been completed on or before such date, and includes also all proceedings under this Act which may be commenced after the date of such order or direction in respect of any year.] 9. On a reading of the above provision, it is seen that the object for which such provision was enacted is for the purpose of administrative convenience. The said provision does not empower the Assessing Officer to transfer a case from his jurisdiction to that of nature and even when the Director General o....
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....oner was requested to co-operate with the Income Tax Officer in the expeditious completion of assessment and in case of any difficulty, he could contact the Inspecting Assistant Commissioner Range-IV, Hyderabad. Challenging the said order, the petitioners filed the Writ Petition before the Andhra Pradesh High Court contending that the Commissioner did not deal with the petitioner's application for transfer and it is the Income Tax Officer that communicated the order and the power under Section 127 of the Income Tax Act was not exercised. However, this was found to be a wrong submission, since the files disclosed by the Commissioner exercised power under Section 127 of the Income Tax Act. It was next contended that the petitioners were not given an opportunity to make their representation before the impugned order was passed. The Court after taking note of Section 127 of the Income Tax Act as amended in 1967 pointed out that sub-section (1) of Section 127 provides for giving the assessee has a reasonable opportunity of being heard in the matter, wherever, it is possible to do so, and reasons should be recorded for transfer of the case from any....
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....greement with a view taken by the Hon'ble Division Bench of the High Court of Andhra Pradesh in the aforesaid decision. 12. The learned Senior counsel appearing for the petitioners placed reliance on the decision of the Hon'ble High Court of Bombay in the case of Devidas vs. Union of India, referred supra, and submitted that the total scheme relating to jurisdiction and transfer under Sections 120, 124 and 127 of the Income Tax Act is a proportionate mix of consideration for convenience of an assessee and interest of the Revenue and it aims at striking a balance between the private and public interest. The question which fell for consideration, in the said case was whether an assessee under the Income Tax Act was entitled to a reasonable opportunity of hearing and a reasoned order when his application calling in question the jurisdiction of an Assessing Officer and for transfer of a case to the other Assessing Officer is rejected. The Revenue in defence of the impugned order stated that a statute can, in appropriate cases, exclude the principle of natural justice; since the assessee has no legal right of being assessed by any particular Assessing Officer; that ....
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....iled his objections and without reference to the objections, a notification was issued for transfer. Therefore, the Court interfered with the said order and remanded the matter to the Chief Commissioner to take a decision afresh. 14. In the case on hand, it is the petitioner, who sought for transfer by representation dated 12.02.2014 submitted through the assessee's representative in person on the date of hearing. The second respondent considered the representation, called for a report from the Assessing Officer and the contentions raised by the representative of the assessee was considered and reasoned order has been passed. It is to be noted that as the first petitioner/assessee stating that she has permanently shifted her residence at Chennai, on the sole ground of her convenience, she seeks for transfer of the files. It is to be noted that the assessee in default was not only the first respondent, but also her husband, Late Mr.Y.Victor as well. No returns were filed from the assessment year 2007-08 onwards and during the relevant period, there were several sale transactions in respect of properties situated at Tanjore which would fall within....