Chaitanya vs Commissioner of Income Tax and Others

J.P. Devadhar, J.—Rule. Rule returnable forthwith. By consent of the parties the petition is taken up for final hearing.

This petition is filed to challenge the order passed by the Commissioner of Income Tax, Nagpur on March 7, 2008 transferring the case of the Petitioner from Income Tax Officer, Wardha, to Respondent No. 3 at Nagpur. The Petitioner has also challenged the assessment order dated December 23, 2009, passed by Respondent No. 2.

The grievance of the Petitioner is that the impugned order dated March 7, 2008 has been passed without giving an opportunity to the Petitioner. It is not in dispute that no notice of the proceedings of transfer was given to the Petitioner. Further, a perusal of the order dated March 7, 2008 shows that no reasons are given as to why the case of the Petitioner is sought to , be transferred from Income Tax Officer, Wardha to Income Tax Officer, Nagpur. In the circumstances, the order passed on March 7, 2008 without any notice to the Petitioner and without giving any reasons for transferring the case from Income Tax Officer, Wardha to Income Tax Officer, Nagpur cannot be sustained.

The hon''ble apex court in the case of Ajantha Industries and Others Vs. Central Board of Direct Taxes, New Delhi and Others, , held that it was mandatory to record reasons for transferring the case from Income Tax Officer, Nellore, to Income Tax Officer, Special Circle II, Hyderabad. In this view of the matter, the impugned order dated March 7, 2008 is quashed and set aside. Consequently, the assessment order passed on December 23, 2009 (annexure-11) is also quashed and set aside. Rule is made absolute in the above terms. No order as to costs.

Pursis filed by the Petitioner duly signed by the learned Counsel for the Petitioner is marked "X" for identification and taken on record.