Case Law Details
Nouvelle Advisory Services Private Limited Vs ACIT (Calcutta High Court)
Calcutta High Court held that order of transfer passed invoking power under section 127 of the Income Tax Act without opportunity of being heard is unsustainable in law.
Facts- This intra-Court appeal is directed against the order dated 24th November, 2022 passed by the learned Single Bench in W.P.A. No.25453 of 2022. The learned Single Bench had entertain the writ petition, directed the respondents to file affidavit-in-opposition after noting the submissions made by the learned Advocate for the appellant.
The appellant is aggrieved by that portion of the order where the learned Single Bench had observed that the pendency of the writ petition will not be a bar for the authority concerned to proceed with the assessment proceedings in the matter.
Conclusion- Section 127 of the Act of 1961 gives power to transfer cases. The language of Section 127 is clear that the assessee should be given a reasonable opportunity of being heard in the matter before the power under Section 127 of the Act is invoked. The statute is also clear that such opportunity of being heard is to be given wherever it is possible to do so. If the authority proposes to dispense with the opportunity of hearing, the statute states that reasons have to be recorded for not providing such an opportunity. On perusal of the order impugned in the writ petition dated 29th June, 2021, we find that no such reasons have been recorded by the authority for dispensing with the opportunity of personal hearing as no show cause notice was issued to the assessee prior to order of transfer.
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