Section 127 of the Income Tax Act, 1961- Transfer of case - Transfer valid as assessee did not challenge the order of transfer till the issuance of notices under section 153A and there is no explanation for the delay in challenge,hence, the assessee is barred from challenging the same in exercise of jurisdiction by a new authority and this Court need not exercise the extraordinary jurisdiction under Article 226 of the Constitution

Facts: The petitioner, which is a partnership firm, has laid challenge to the order passed by the first respondent in transferring the cases to the Deputy Commissioner of Income Tax (DCIT), Central Circle-2, Madurai, as violative of the principles of natural justice.

Held, that requirement of recording reasons under section 127(1) is a mandatory direction under the law and non-communication thereof is not saved by showing that the reasons exist in the file although not communicated to the assessee.
When law requires reasons to be recorded in a particular order affecting prejudicially the interests of any person, who can challenge the order in court, it ceases to be a mere administrative order and the vice of violation of the principles of natural justice on account of omission to communicate the reasons is not expiated. In the case on hand, the impugned order came to be passed on 19-2-2019 and till the issuance of the assessment notices dated 15-7-2019 under section 153A, the petitioner did not challenge the order of transfer and there is no explanation for the delay in challenge. Hence, the petitioner is barred from challenging the same in exercise of jurisdiction by a new authority and this Court need not exercise the extraordinary jurisdiction under Article 226 of the Constitution to interfere with the impugned order. Though the other grounds raised by the petitioner have also no merit-acceptance, without delving further into those grounds, this Court is of the view that this writ petition is liable to be dismissed on these grounds. In the result, this writ petition is dismissed as devoid of merits. - V.V. MINERALS V/s PR. CIT - [2020] 22 ITCD Online 021 (MAD)