Transfer of case and assessment quashed

1 .The Commissioner of Income-tax, Nagpur on March 7, 2008 transfered the petitioner's case from Income-tax Officer, Wardha, to Nagpur, on the ground that the order was passed without giving an opportunity to the petitioner. The petitioner has also challenged the assessment order dated December 23, 2009.

2. The High Court held as under: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 v. CBDT reported in [1976], 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 is also quashed and set aside.