L. HAZARI MAL KUTHIALA vs THE INCOME-TAX OFFICER, SPECIAL CIRCLE, AMBALA CANTT.

The Supreme Court held that the Commissioner of Income-tax acted beyond his jurisdiction by transferring the assessment of the appellant firm from the Income-tax Officer, B-Ward, Patiala, to the Income-tax Officer, Special Circle, Ambala, under Section 5(5) of the Patiala Income-tax Act of Samvat 2001 and Section 64(1) of the Indian Income-tax Act, 1922. The Court ruled that such transfer was ultra vires as it did not comply with the mandatory requirement to consult the Central Board of Revenue as stipulated in the Indian Finance Act, 1950, Section 13. Consequently, the appeal was allowed, and the High Court's dismissal of the writ petition was set aside.