section 127 l Transfer of authorities

787. Decentralisation of cases

In the Circular dated 9-6-1999, it is stated that there is a ban on transfer of jurisdiction from the Assessing Officer to another (except with the prior approval of the Board) introduced during the last year which will remain in force till 1-4-2000. But, this Government Circular has, subsequently, been modified by another Circular dated 27-7-1999, the portion of which runs as follows :

“It is being further clarified that where the process involves decentralisation of the  cases from Central charges to the jurisdictional CsIT charges, prior approval of the Board is not necessary provided permanent Account Nos. (PANs) have already been allotted to all such cases. To ensure this, Permanent Account Nos. of all such assessees should invariably be included in the order under section 127 effecting decentralisation. However, decentralisation of the cases should take place only after the search assessments have been completed and/or no investigations are pending in such cases.”

[See G. Mohandas v. CIT [2000] 110 Taxman 229 (Mad.).]

Circular : Dated 9-6-1999.

788. Instructions regarding transfer of cases from one income-tax authority to another during financial year 1998-99

1. The Income-tax Act, 1961, vests the power of transfer of cases from one Assessing Officer to another with certain income-tax authorities such as the Director General, Chief Commissioners of Income-tax and the Board. The relevant provisions are contained in section 127 of the Income-tax Act, 1961.

2. Transfer of cases from one Assessing Officer to another is made generally due to variation in the returned income as the jurisdiction among different levels of Assessing Officers is administratively fixed by allocating them different slabs of returned income. For the financial year 1998-99, the Board has issued administrative instructions vide Instruction No. 1950, dated 14-7-1998 directing that there should be no routine transfer of cases during the period 1st July, 1998 to 31st March, 1999. This was done in order to facilitate the process of computerization as such large-scale changes would have affected the same.

3. The aforesaid instructions are purely administrative in nature and are applicable only for the period 1-7-1998 to 31-3-1999. These administrative guidelines do not in any way curtail the statutory powers vested in the income-tax authorities by law. While no case would be transferred in a routine manner, the exceptional cases of sensitive nature or those requiring the centralization and decentralization on priority basis or where Court’s directions are to be complied with the orders for change of jurisdiction may be passed only after obtaining the prior approval of Board.

Circular : No. 770, dated 16-9-1998.