AI Structured Summary
Not yet generated for this judgment
Judgment
The Court : An order under Section 127 of the Income Tax Act, 1961 dated October, 4, 2018 is under challenge in the present writ petition.
Learned senior advocate appearing for the petitioner submits that, three assessess were dealt with by the impugned order. The petitioner is concerned with only one assessee which is the petitioner herein. He submits that, the authorities did not give any reasons for the transfer of the jurisdiction from Kolkata to Aurangabad either in the show cause notice or with the impugned order. In the interregnum, there was another show cause notice which did not contain any reason as to why the jurisdiction was proposed to be transferred. He contends that, the petitioner is entitled to know the reasons why the jurisdiction is sought to be transferred.
Learned advocate appearing for the department submits that, the petitioner is one of the shell companies indulging in paper transactions to defraud the revenue. Such fact surfaced in Aurangabad and therefore, the presence of the petitioner in Aurangabad for assessment of the relevant years is imperative. He submits that, the petitioner is unlikely to suffer any prejudice if the jurisdictional assessment is transferred in terms of the impugned order for the limited period.
Having considered the rival contentions of the parties, it appears that, neither the impugned show cause notice nor the order dated October 4, 2018 passed under Section 127 of the Income Tax Act, 1961 contains any reason for transfer of jurisdiction from Kolkata to Aurangabad. The contention of the department made at this stage is not supported by any material made available on record.
An assessee is entitled to know the reasons why the assessment jurisdiction is transferred under Section 127 of the Act of 1961. The impugned order is non-speaking. A non-speaking order is a nullity.
In such circumstances, the impugned order dated October 4, 2018 is quashed.
This order will not prevent the department in concluding the proceeding with the show cause notice dated January 15, 2018 or initiating fresh proceeding against the petitioner on the same assessment years. Needless to say that, the department will comply with the principles of natural justice while arriving at the decision in the proceeding under Section 127 of the Act of 1961 and pass a reasoned order.
W.P. No. 603 of 2018 is disposed of. No order as to costs.