Sindhu Shree Charles Vs PCIT (Madras High Court)
In a significant procedural ruling, the Madras High Court has set aside an order issued by the Income Tax Department that sought to transfer a taxpayer’s assessment from Chennai to Kolkata. The Court determined that the assessee, Sindhu Shree Charles, was not afforded a “reasonable opportunity of being heard,” a fundamental requirement under Section 127 of the Income Tax Act, 1961. The judgment emphasizes the judiciary’s commitment to upholding due process even in tax administration.
Background of the Transfer Order
The case originated from a notice dated December 14, 2023, sent to Ms. Sindhu Shree Charles. This notice indicated that incriminating documents had been seized during a search and seizure operation conducted under Section 132 of the Income Tax Act. These documents were alleged to be interconnected and relevant to the petitioner’s assessment. Consequently, the Income Tax Department proposed to centralize the assessment relating to these transactions with the Deputy Commissioner of Income Tax (DCIT), Central Circle-4(4), Kolkata, thus transferring her case from the Income Tax Officer (ITO), Non Corporate Ward-10(1), Chennai.
The petitioner was granted a mere three days to respond to this transfer proposal. On December 15, 2023, Ms. Charles submitted her objections, primarily stating that she had previously resided in Chennai and had since relocated to Coimbatore after marriage. Despite her objections and the short response window, the impugned transfer order was subsequently issued on February 8, 2024, directing the change of her assessing officer to Kolkata.
