Hey, it's ambiguous what you mean by the word ' TRANSFER'  here. If you mean that you plan to study in an NIT, and after a year you want to get transfer for another NIT for remaining three years, sry it's not possible. However you can change your college and have a first start again.

Yes, you can write it in your resume as drop. But mention your graduation, expected year of passing and the name of the institution.