Mohammad Abdul Najeeb Vs DCIT (ITAT Bangalore)
Non-Communication of Reasons in Transfer Order Vitiates Assessment – Transfer Orders u/s 127 Held Invalid- Search Assessments Struck Down – ITAT Bangalore
Both appeals arose out of search action u/s 132 on 06.09.2017. Consequent notices u/s 153A were issued by DCIT, Central, Belagavi, based on transfer orders of jurisdiction u/s 127. Assessees challenged the validity of transfer orders- particularly the one dated 03.07.2018, by CIT Kalaburagi transferring jurisdiction from Kalaburagi to Belagavi, & the subsequent order dated 22.10.2019 transferring from Belagavi to Bellary.
Assessees argued that no notice or opportunity of hearing was granted before passing the transfer orders, reasons were not communicated & the orders were never served. Hence, the entire assessment proceedings initiated pursuant to such transfer orders were without jurisdiction. Revenue contended that proper orders were passed & produced copies.
Tribunal referred to its own earlier ruling in ITA No.1175/Bang/2024 (order dated 29.08.2025) & relied on the Supreme Court judgment in Ajantha Industries Vs CBDT (102 ITR 281) which held that recording & communication of reasons in transfer orders u/s 127 is mandatory. Non-communication makes the order invalid. Reliance was also placed on Allahabad HC ruling in Vinay Kumar Jaiswal Vs CIT (221 ITR 568).
