Section 127 and 129 of Income Tax Act 1961: Power to Transfer Cases and Change of Incumbent of an Office

Section 127 - Power to Transfer Cases

Section 127 empowers the specified income-tax authorities to transfer any case from one Assessing Officer to another Assessing Officer after following the prescribed procedure.

Before transferring a case, the assessee should generally be provided a reasonable opportunity of being heard wherever possible, and reasons for transfer are required to be recorded.

Procedure for Transfer of Cases

• The competent authority records reasons for transfer.
• The assessee is given an opportunity of being heard wherever required.
• The transfer may be made between Assessing Officers having concurrent or separate jurisdiction as provided under the Act.

Transfer of Cases Between Different Jurisdictions

Where Assessing Officers are not subordinate to the same higher authority, the transfer order is made by the competent authority specified under Section 127 after complying with statutory requirements.

Section 129 - Change of Incumbent of an Office

Section 129 provides that when an income-tax authority ceases to exercise jurisdiction and another authority succeeds and exercises jurisdiction, the succeeding authority may continue the proceedings from the stage where the previous authority left them.

The assessee may request reopening of previous proceedings or a rehearing before an assessment order is passed, subject to the conditions provided in the section.

Difference Between Section 127 and Section 129