Delhi High Court
Avijai Charitable Trust vs Commissioner Of Income Tax ... on 6 December, 2021
$~S-3
* IN THE HIGH COURT OF DELHI AT NEW DELHI
+ W.P.(C) 12111/2021
AVIJAI CHARITABLE TRUST ..... Petitioner
Through Ms.Kavita Jha, Advocate.
versus
COMMISSIONER OF INCOME TAX (EXEMPTIONS) & ORS.
..... Respondents
Through Mr.Shailendra Singh, Advocate.
% Date of Decision: 06th December, 2021.
CORAM:
HON'BLE MR. JUSTICE MANMOHAN
HON'BLE MR. JUSTICE NAVIN CHAWLA
MANMOHAN, J: (Oral)
C.M.No.37828/2021
Exemption allowed, subject to all just exceptions.
Accordingly, the application stands disposed of.
W.P.(C) No.12111/2021 & C.M.No.37827/2021
1. Present writ petition has been filed challenging the order dated 05th
January, 2021 passed under Section 127 of the Income Tax Act, 1961
(hereinafter referred to as the 'Act') and all consequent actions initiated
pursuant to the said order. Petitioner also seeks directions to the
Respondents to judiciously consider the objections filed by the Petitioner
objecting to the transfer of jurisdiction under Section 127 of the Act.
Signature Not Verified
By:KRISHNA BHOJ
Signing Date:09.12.2021
10:39:31
2. Learned counsel for the Petitioner states that the impugned order is
illegal since neither Petitioner's reply was considered nor any opportunity of
hearing was given to the Petitioner before transferring the jurisdiction from
Respondent No.3 to Respondent No.4. She states that Petitioner's case was
transferred along with the PMC Group despite there being no linkage of the
Petitioner-Trust with the said Group. She emphasises that the Petitioner-
Trust has not received any donation from PMC Fincorp Group and/or has
never entered into any financial transaction with the said Group.
3. Today Mr.Shailendra Singh, learned counsel for the Respondents
fairly states that the Petitioner's reply was not considered before passing the
impugned order dated 05th January, 2021 as it was not reflecting on the
ITBA Portal. He, however, admits that the said reply had been filed prior to
passing of the impugned order dated 05th January, 2021.
4. This Court is of the view that recording justifiable and cogent reasons
for transferring a case from one city to another is a mandatory precondition
for effecting transfer under Section 127 of the Act and the same can be done
only after the Petitioner's reply has been considered and dealt with.
5. Since in the present case, the Petitioner's reply to the notice under
Section 127 of the Act had been filed within time and yet the same had not
been considered while passing the impugned order dated 05th January, 2021,
this Court is of the view that principle of natural justice have been violated.
6. Accordingly, the impugned order dated 05th January, 2021 and all
consequent actions initiated pursuant to the said order are set aside and the
matter is remanded back to the Commissioner of Income Tax (E) to re-
consider the Petitioner's objection/reply dated 03rd December, 2020 in
response to the show-cause dated 01st December, 2020. The Commissioner,
Signature Not Verified
By:KRISHNA BHOJ
Signing Date:09.12.2021
10:39:31
Income Tax (E) shall pass a fresh reasoned order under Section 127 of the
Act, after giving an opportunity of hearing to the Petitioner and after
considering the petitioner's reply.
7. In view of the aforesaid direction, the present writ petition along with
pending application stands disposed of.
MANMOHAN, J
NAVIN CHAWLA, J
DECEMBER 06, 2021
KA
Signature Not Verified
By:KRISHNA BHOJ
Signing Date:09.12.2021
10:39:31
