Andhra HC (Pre-Telangana)
V.K. Steel Industries Pvt. Ltd. vs Assistant Commissioner Of Income-Tax ... on 13 December, 1989
Equivalent citations: [1991]187ITR403(AP)
Author: B.P. Jeevan Reddy
Bench: B.P. Jeevan Reddy, S.S. Mohammed Quadri
JUDGMENT B.P. Jeevan Reddy, J.
1. This writ petition is directed against an order of transfer passed by the Chief Commissioner of Income-tax, A.P., Hyderabad, on July 28, 1988. Under the impugned order, the cases pertaining to the petitioner are transferred from Assistant Commissioner. Circle-4(3), Hyderabad, to the Assistant Commissioner, Investigation Circle-1, Visakhapatnam. The ground for transfer, stated in the order, is "to facilitate detailed and co-ordinated investigation". The order is preceded by a show-cause notice nor are they found in the order communicated to the petitioner. However, now before us, the respondents have produced a copy of the reasons behind the impugned order. The reasons for the order are stated to be :
"Reasons of the Chief Commissioner of Income-tax for transferring of the file.
Objection of V.K. Ferro Alloys Industries Limited are considered. The case is one of a group of cases requiring investigation in other cases of the group. Considering the location of the operations of the group which are largely confined to Visakhapatnam, it will be most desirable to have all the cases centralised for investigation with an Assessing Officer in Visakhapatnam.
It is not necessary to give any personal hearing as all the objections are put in writing and there is no indication that the assessee has some more objection which would be placed before me only in the oral hearing.
The case has, therefore, to be transferred."
2. It is evident that these reasons were not communicated to the petitioner. We do not see any justification for withholding the reasons and, communicating only the conclusion, indeed, the reasons for transfer must have also been stated in the show-cause notice so as to enable the persons concerned to make an effective representation. Since that has not been done. The order of transfer is liable to be quashed and it is accordingly quashed. The writ petition is allowed. No costs.
3. It is made clear that this order does not preclude the Chief Commissioner of Income-tax or any other competent authority from starting fresh proceedings for transfer in accordance with law.