Section 127(1)

Section 127(1) — the law in short

What the courts have decided on section 127(1), in one screen. Read this first; open an entry when you need the facts, the reasoning and the source.

• Ajantha Industries v CBDT Supreme CourtHelps taxpayer
  My file has been moved to another city under section 127. The order says only that it was for facility of investigation, and nobody has given me the reasons. Is that enough?
  No. Section 127(1) requires the authority to record reasons before it transfers your case, and the Supreme Court held that recording them is not enough on its own — they have to reach you. Reasons sitting in the departmental file that were never communicated do not save the order: the Andhra Pradesh High Court's judgment upholding this transfer was set aside and the transfer orders quashed. The point of communicating them is to let you challenge the transfer under Constitution Art. 226, or under Constitution Art. 136, on the ground that it rests on irrelevant and extraneous material.

Listed strongest first: Supreme Court, then High Court, then Tribunal, then CBDT. Nothing here has yet been read in full by a chartered accountant — open an entry to see where it came from.