2019 (7) TMI 1038

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.... of Income Tax (Central, Jaipur). Heard and considered. A glance of the impugned order dated 27th September, 2018, would reflect that the authority while adjudicating upon the matter did not apply its mind to either the reasons detailed out by the petitioner or the reasons resisting the prayer, furnished by Principal-CIT (Central, Jaipur). In the case of Ajantha Industries & Ors. Vs. Central Board of Direct Taxes & Ors: (1976) 102 ITR 0281, a Larger Bench of the Apex Court of the land, while dealing with the issues of transfer under Section 127 of Income Tax Act, 1961, held thus: "5. Unlike Section 5(7A) Section 127(1) requires to be recorded prior to the passing of an order of transfer. The impugned order does not state any reasons wh....

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....ax Officer to another within the State of from an Income-tax officer except of course where the very object of the transfer would be frustrated if notice was given to the party affected. If the reasons for making the, order reduced however briefly to writing it, will also help the assessee in appreciating the circumstances which make it necessary or desirable for the Commissioner of Income tax or the Central Board of Revenue, as the case may be, to transfer his case under Section 5(7A) of the Act and it will also help the court in determining the bona fides of the order as passed if and when the same is challenged in court as mala fide or discriminatory. It is to be hoped that the Income-tax authorities will observe the above procedure wher....

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....ts writ jurisdiction under Article 226 of the Constitution to even this Court under Article 136 of the Constitution in an appropriate case for challenging the order, inter alia, either on the ground that it is malafide or arbitrary or that it is based on irrelevant and extraneous considerations. Whether such a writ or special leave application ultimately fails is not relevant for a decision of the question. 7. We are clearly of opinion that the requirement of recording reasons under Section 127(1) is a mandatory direction under the law and non-communication thereof is not saved by showing that the reasons exist in the file although not communicated to the assessee. Mr. Sharma drew our attention to a decision of Delhi High Court in Sunan....