A. Uthayakumar Vs PCIT (Madras High Court)
Madras High Court has dismissed a writ petition challenging the transfer of an income tax assessment case from the Income Tax Officer, Theni, to the Deputy Commissioner of Income Tax, Central Circle, Kochi. The court found sufficient justification for the transfer based on a search operation where funds were seized and mandatory guidelines from the Central Board of Direct Taxes (CBDT) concerning post-search assessments.
A. Uthayakumar, the petitioner, had approached the High Court under Article 226 of the Constitution, challenging an order dated February 5, 2025, issued by the Principal Commissioner of Income Tax under Section 127 of the Income Tax Act, 1961. The petitioner argued that the transfer order was arbitrary and violated principles of natural justice because it was issued without providing any specific reasons for shifting the assessment jurisdiction from Theni to Kochi. The petitioner’s counsel also contended that given the current “faceless” nature of the assessment process, there was no necessity for a physical transfer, and the case could well be handled at Theni.
Appearing for the income tax department, the counsel opposed the petition, submitting key facts that necessitated the transfer. It was informed to the court that a search operation had been conducted at the petitioner’s property located in Kerala State. During this search, Rs. 50 lakhs in cash were seized from the petitioner and subsequently handed over to the income tax authorities.
