SHIVABHAI KHODABHAI PATEL Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) BY filing this petition the petitioner has prayed this Court to quash and set aside the notice, dt. 29th July,1998, issued under s. 127(1) of the IT Act, 1961, (hereinafter referred to as "the Act"), and order, dt. 9th Dec., 1998, passed under s. 127(2) of the Act being illegal, arbitrary and violative of Art. 14 of the Constitution of India and further prayed that the proceedings initiated against the petitioner subsequent to the order of transfer be quashed and set aside being without jurisdiction.

(2.) INITIALLY the learned counsel appearing for the petitioner submitted that the petitioner is engaged in the business of diamond cutting the polishing and when the premises was searched only a mere sum of Rs. 310 was found by the raiding party. The learned counsel contended that the poor assessee was subjected to process of transfer of the case.

(3.) RELYING on the judgment of the Supreme Court in the case of Ajantha Industries and Ors. vs. CBDT & Ors. 1976 CTR (SC) 79 : (1976) 102 ITR 281 (SC) : TC 69R.638 the learned counsel Mr. Patel appearing for the assessee submitted that when case is transferred it is mandatory not only to record the reasons but to serve the order passed under s. 127(1) of the Act to the assessee. In the said case the Supreme Court pointed out as under :