1997 (9) TMI 64

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....orter of tea with headquarters at Chennai and it is an assessee to income-tax on the file of the Income-tax Office, City Ward-VIII(3), Chennai, under General Index No. 73368-G. The petitioner states that the assessment for the year 1995-96 has already been completed and it has filed its return for the assessment year 1996-97, that the first respondent issued a notice under section 127 of the Income-tax Act (hereinafter referred to as "the Act") dated May 26, 1997, that the petitioner filed detailed objections, and that without reference to the objections and without affording an opportunity, the objections have been overruled and by the impugned proceedings, the petitioner's file has been ordered to be transferred to New Delhi from Chenn....

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....m the Assessing Officer mentioned in column 4 to the Assessing Officer mentioned in column 5 thereof :---The contention raised in the assessee's letter dated June 3, 1997, are considered; the assessee's objection is overruled and notification issued : SCHEDULE --------------------------------------------------------------------------------------------------------------------------------------------------- Sl. G. I. No. P. Name and address of the Transferred No. A. No. assessee From To --------------------------------------------------------------------------------------------------------------------------------------------------- 1 2 3 4 5 ------------------------------------------------------------------------------....

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....-- (a) where the Directors-General or Chief Commissioners or Commissioners to whom such Assessing Officers are subordinate are in agreement, then the Director-General or Chief Commissioner or Commissioner 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." A reading of the above mentioned provision makes it abundantly clear that a notice should be given by the transferring authority. Such notice should contain reasons for the proposed transfer. The transferring authority should afford an opportunity of hearing and thereafter pass a speaking order consid....

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....dministrative order and the vice of violation of the principles of natural justice on account of omission to communicate the reasons is not expiated." The case reported in Ajantha Industries v. CBDT [1976] 102 ITR 281 (SC), relates to a case arising out of section 127(1) of the Act and in my view, it makes no difference, even in respect of a case which arises out of sub-section (2) of section 127. It applies on all fours. In Vijayasanthi Investments P. Ltd. v. Chief CIT [1991] 187 ITR 405, a Division Bench of the Andhra Pradesh High Court, while following the dicta laid down by the Supreme Court in Ajantha Industries v. CBDT [1976] 102 ITR 281 and V. K. Steel Industries Pvt. Limited. v. Asst. CIT [1991] 187 ITR 403 (AP), reiterated th....