1997 (4) TMI 65

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....---Assistant Commissioner of Income-tax, Circle I, Rajahmundry, in purported exercise of the power under section 127(2) of the Income-tax Act, 1961, for short " the Act ". Mr. S. Ravi, learned counsel for the petitioner, has raised the question that section 127(1) and (2) of the Act contemplate issue of a notice to the assessee before an order transferring the file is passed, but that no notice has been issued to the petitioner before effecting the transfer. A counter-affidavit has been filed disclosing the stand that the petitioner's father's premises was raided which yielded some materials connecting also the petitioner to the suppressed income detected for which proceedings under Chapter XIV-B are initiated against her. Under the provi....

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....er than the person whose premises has been raided, yet has undisclosed income, there is no provision as to how the records from that Assessing Officer shall stand transferred to the Assistant Commissioner or any other officer higher to him, who is to carry on the assessment. It is to be noted that under section 158BG, it is not the Assistant Commissioner who is necessarily the Assessing Officer, but he is the officer of the lowest rank who can become the Assessing Officer under Chapter XIV-B. Hence it can be imagined that an order has to be passed as to who shall be the Assessing Officer under section 158BG in the case of a search. Such an order can be passed only by a higher officer who may be either the Commissioner or the Chief Commissio....

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....ance as records are to be compulsorily handed over to the officer under section 158BG. While in most of the cases the submission may be correct, yet it is conceivable that in some cases, reasonable opportunity being given as contemplated under section 127(1) or (2) of the Act, the person concerned may be able to convince the authority giving the notice that he is actually unrelated or unconnected to the proceeding started under Chapter XIV-B. If such conclusion is reached, the authority at that stage may disassociate the person concerned from the specific proceeding in Chapter XIV-B and may not transfer the papers to the other officer. As has been fairly pointed out by learned standing counsel himself, the provisions of section 127(1) apply....