2023 (1) TMI 1176

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....he transfer of jurisdiction of the Income Tax Circle of the Petitioner for the said AY from Kolkata to Balesore was without complying with Section 124 (4) of the IT Act. 2. The background facts are that the Petitioner initially carried out his business activities from Bhubaneswar, Odisha and he was filing returns there for the AYs 2006-07, 2007-08, 2008-09 and 2009- 2010, assessment orders under Section 143(3) of the IT Act passed by the AO, Bhubaneswar. Statutory appeals had also been filed against those assessment orders before the Commissioner of Income Tax (Appeals-I), Bhubaneswar [CIT (A)]. However, surprisingly pursuant to the said order passed by the CIT (A), Bhubaneswar, an order on 31st March, 2015 under Section 251 of the Income ....

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....ce of the same date, the second writ petition i.e. W.P.(C) No.7861 of 2016 was filed by the Petitioner in which an interim order was passed staying the said notice and consequential demand notice. 6. In the counter affidavit filed on behalf of the Department in W.P.(c) No.7861 of 2016, it sought to be contended in para 6 as under: "6. That as per the existing jurisdiction order U/s. 120 of the I.T. Act, 1961 was passed on 15.11.2014. It has been indicated that where a person is a director in a company or a partner in a firm, jurisdiction over him/her will lie with the officer where the company or the firm is assessed. In the instant case, M/s. Nabadurga Construction Pvt. Ltd., Rairangpur, Mayurbhanj bearing PAN AABCN-0853-A is accompany ....

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....ason to draw, in the matter of an opportunity, a distinction between an order of transfer made despite opposition of an assessee and an order not made despite his request, specially when section 124(3) has given him a right to call in question the jurisdiction of a particular Assessing Officer. The total scheme relating to jurisdiction and transfer (sections 120, 124 and 127) 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 provisions of section 124 are a combination of the provisions of sections 5(5) and 64 of the Indian Income-tax Act, 1922. Section 124 speaks of a vested right of an assessee to have his assessm....