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Issues involved:
Validity of transfer order u/s 126 of the Income-tax Act based on lack of disclosure of material for coordinated investigation. Summary: The petitioner, a private limited company, challenged the transfer order issued under section 127 of the Income-tax Act to move the case to New Delhi for detailed investigation. The petitioner contended that the order was in violation of section 126 as it did not disclose the material necessitating coordinated investigation. The petitioner relied on legal precedents such as Nasir Ahmed v. Assistant-Custodian General, Evacuee Property, and Mahabir Prasad Santosh Kumar v. State of U. P. However, the court found these decisions irrelevant as they were not specific to income tax matters but rather general principles of natural justice. The court distinguished previous cases like Sagarmal Spinning and Weaving Mills Ltd. v. CBD T and Maheshwari Lime Works v. CIT, emphasizing that the notice issued for coordinated investigation sufficed if adequate reasons were provided by the authority passing the order. The court rejected the petitioner's reliance on North Bihar Agency v. State of Bihar and Dhakeswari Cotton Mills Ltd. v. CIT, stating that these cases did not support the petitioner's claim of lack of reasonable opportunity. Ultimately, the court dismissed the petition, ruling that the transfer order under section 126 of the Income-tax Act was valid as it was not issued without affording opportunity or giving reasons, in compliance with the law and established precedents.
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