Shreeji Foods Private Limited Vs Union of India (Telangana High Court)
The Telangana High Court disposed of two writ petitions through a common order, as both involved the same issue concerning the transfer of income tax assessment proceedings from Hyderabad to Delhi under Section 127 of the Income Tax Act, 1961. The petitions challenged the order dated 27.01.2025 transferring the cases of a company and its directors from Hyderabad to the Deputy Commissioner of Income Tax, Central Circle-20, New Delhi.
The petitioners assailed the transfer order primarily on three grounds. First, they alleged denial of a fair opportunity of hearing as contemplated under Section 127 of the Act. Second, they contended that the transfer process was procedurally defective because the proposal for transfer originated from an officer of the rank of Chief Commissioner while the acceptance came from an officer of the rank of Principal Commissioner, allegedly violating Section 127(2)(a). Third, they argued that sufficient reasons for the transfer had not been disclosed to them.
The Revenue defended the transfer order by asserting that it strictly complied with Section 127 and satisfied all statutory requirements. It was further submitted that the transfer order had already been acted upon, proceedings had commenced in Delhi, and for one assessment year an assessment order had been passed on 27.03.2025. The Revenue argued that interference at such a stage would not be appropriate.
