PMC Fincorp Ltd. vs Principal Commissioner of Income Tax

Heard Sri R.R.Agrawal, learned Senior Counsel assisted by Sri Suyash Agrawal, learned Counsel for the petitioner and Sri Shubham Agrawal, learned Counsel for the department.

The present writ petition has been filed by the petitioner challenging an order dated 27.09.2016 passed by the respondent no.1 under Section 127 of the Income Tax Act, 1961 by which the authority has sought to transfer the case of the petitioner from the jurisdiction of the Deputy Commissioner Income Tax Circle-1, Moradabad, respondent no.2 to the jurisdiction of the Assistant Commissioner Income Tax/Deputy Commissioner Income Tax, Central Circle 28, New Delhi, respondent no.3.

Subsequently, another order has been passed, which has been brought on record by way of a supplementary affidavit, which shows that a further order has been passed by the respondent no.1, under the provisions of Section 127(1) of the Act by which the case of the petitioner has been transferred from the jurisdiction of the respondent no.4 to Assistant Commissioner Income Tax Central Circle-30, New Delhi.

The argument of the learned Counsel for the petitioner is that while passing an order under Section 127(2) of the Act, it is necessary firstly that an opportunity of hearing may be given before the passing of an order and secondly he argues that the order, which may be passed on an application under Section 127(2) of the Act must contain the reasons for passing such an order.

A bare perusal of the order impugned in this writ petition shows that the entire objections of the petitioner have been disposed of by a single word saying that the arguments of the petitioner as contained in the objections are not tenable. It is virtually a bald order. Even though, there may not be a requirement under the provisions of Section 127(2) of the Act to pass a speaking or reasoned order, nevertheless, the order must indicate some cogent reasons for passing an order of transfer. Since the order does not contain or record any specific reason for rejecting the objections of the petitioner, the matter is sent back to the authority concerned for reconsidering the objections of the petitioner. The authority concerned may pass fresh orders in accordance with law within the next two months after giving to the petitioner an opportunity of hearing as is indicated in the section itself. The impugned orders are hereby set aside.

A copy of this order may be given to Sri Shubham Agrawal, learned Counsel for the department, who has appeared in the matter within next 24 hours.

The Writ Petition is disposed of as above. No costs.