Jurisdiction couldn’t be transferred for co-ordinated investigation if assessee wasn’t given a chance to speak

Section 127 of the Income-tax Act, 1961 - Income-tax authorities - Power to transfer cases (Opportunity of hearing) - Assessee had been filing his returns in Mumbai and jurisdiction qua assessee was that of Deputy. Commissioner, Mumbai - A search and seizure operation was conducted on 'S' group of companies located in Hyderabad - Since assessee's case was related to searched group, assessee was asked to furnish return of income in respect of earlier assessment years - As searched group was being assessed by Commissioner (Central), Hyderabad, assessee's case was proposed to be transferred to Hyderabad for purpose of co-ordinated investigation and administrative convenience - Assessee by a letter forwarded his objections to proposed transfer of jurisdiction - Assessee also requested concerned authority to provide material and documents seized during search from possession of 'S' group of companies - Revenue authority, however, without giving any response to said letter, passed impugned order transferring jurisdiction of assessee's case - Whether on facts, impugned order was clearly in breach of principles of natural justice and, thus, same deserved to be set aside - Held, yes [Para 11] [In favour of assessee]

Refer:[2014] 45 taxmann.com 222 (Bombay)

HIGH COURT OF BOMBAY
Sachin Joshi
v.
Commissioner of Income-tax