KASHIRAM AGARWALA vs UNION OF INDIA AND OTHERS

The Supreme Court held that the recording of reasons for transferring income-tax proceedings under Section 127(1) of the Income Tax Act, 1961 is not mandatory when the transfer is between officers in the same locality, as it is an administrative order based on departmental convenience. The Court clarified that while a hearing is necessary for transfers between different localities, it is not required in the same locality, thus validating the impugned orders. The decision referenced Pannalal Binjraj v. Union of India, emphasizing the distinction in procedural requirements based on locality.