ITO Vs Bhagyaarna Gems & Jewellery Pvt. Ltd. (ITAT Raipur)
ITAT Raipur held that transfer order is statutorily required to be passed by the prescribed authority u/s.127 of the Act, and an A.O cannot on his own transfer an income tax file to another officer. Accordingly, order passed without proper transfer order is liable to be quashed.
Facts- The assessee company has filed an application under Rule 27 of the Income Tax Appellate Tribunal, Rules, 1963 raising the preliminary objection that assessment made u/s 143(3) dt. 31-3-15 by ITO-4(1), Raipur is invalid in absence of order u/s 127 by the competent authority (i.e., CIT, Kolkata); when notice u/s 143(2) issued on 12-8-13 from ITO-4(1), Kolkata; assessment made u/s 143(3) dt. 31-3-15 would be invalid, bad in law and is liable to be quashed.
Conclusion- Hon’ble High Court of Delhi in the case of Louis Dreyfus Company Asia PTE. Ltd. Vs. CIT (International Taxation)-2 & Ors., W.P (C) 9713/2019 & C.M. 40084/2019, dated 13.05.2022, had observed that as no transfer order was passed u/s. 127 of the Act, therefore, the impugned notice issued u/s. 148 of the Act, dated 30.03.2019 by the DCIT, Circle-3(1)(2) (IT), Mumbai being without jurisdiction was liable to be quashed.
