9911796707
TMI Blog2015 (7) TMI 372X X X X Extracts X X X X X X X X Extracts X X X X ..... - PUNJAB AND HARYANA High Court ] has held that even if the transferee is one of the Directors, it was not a valid justification for the transfer of income tax proceedings. - Decided in favour of assessee. - CWP No. 26503 of 2014 - - - Dated:- 8-7-2015 - S. J. Vazifdar, Acting Chief Justice And G. S. Sandhawalia,JJ. For the Petitioner : Mr. Sandeep Goyal, Advocate For the Respondent : Mr. Suneel Ranga, Advocate, for Mr. G.S. Hooda, Advocate JUDGMENT G. S. Sandhawalia, J. Challenge in the present writ petition is to the order dated 08.10.2014 (Annexure P-13) passed by respondent no. 1 under Section 127 (2)(a) of the Income Tax Act, 1961 (in short 'the Act') whereby, the petitioner's jurisdiction for the purpose of assessment proceedings has been changed from the Assessing Officer at Circle-III, Ferozepur to the Central Circle, Amritsar on the ground of a coordinated investigation of the concerned group of cases and in the interest of administrative convenience. The subsequent notices dated 11.12.2014 (Annexures P-14 and P-15) which have been issued in pursuance to the transfer of the case under Section 127 and asking for information by the De ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e P-7) due to which the centralization was sought to be done. That the petitioner thereafter replied on 24.07.2014 (Annexure P-10) that the reasons given were wrong and prayed for an opportunity of being heard. The said reasons were again objected to on 04.09.2014 (Annexure P-12) which lead to the passing of the order transferring the jurisdiction from Ferozepur to Amritsar, as noticed above. The reasons and reply thereto read thus: Sr. No. Reasons Reply 1 The Stock of Paddy of 31,589 Bags of the concern of M/s. RSG Foods Pvt. Ltd. was found lying at the premises of M/s. Satkartar Solvex Pvt. Ltd., in Village Sandhe Hasham, Ferozepur That M/s. RSG Foods Pvt. Ltd. and M/s. Satkartar Solvex Pvt. Ltd. are dealing in the similar line of products doing regular business transactions and even the business premises of both the parties is opposite to each other. Hence, the bags of paddy relating to M/s. RSG Foods Pvt. Ltd. found in the premises of M/s. Satkartar Solvex Pvt. Ltd. was merely a normal business dealing made by them to store the stock in the godown of M/s. Satkartar Solvex Pvt. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d. are having business transactions relating to purchase and sale of Rice Bran with each other. The concern M/s. RSG Foods Pvt. Ltd. is selling Rice Bran to the concern M/s. Satkartar Solvex Pvt. Ltd. That, the parties doing business transactions with each other is in normal course of business as is done by numerous business entities with Satkartar Solvex Pvt. Ltd. But we are unable to comprehend how two parties doing normal business transactions can be termed as CLOSLY INTERLINKED . It cannot lead to any business relation/connection calling centralization of RSG Foods Pvt. Ltd alongwith M/s Satkartar Solvex Pvt Ltd. That, the contention mentioned in the letter- Two Concerns are closely interlinked is totally wrong without any basis in view of evidences on the following basis : i) We are an Independent Company having Regd. Office at Vill Sandhe Hasham, Zira Road, Ferozepur having PAN-AABCR3974Q since its incorporation ii) That, at the time of search no premises of our company has ever been searched/or any summons/search warrant has ever been made/issued against our Company iii) That, our Company is regularly assessed with the ACIT, Ferozepur our list of shar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... other did not arise. The said reasoning, as noticed, cannot be merely on the basis of the fact that a coordinated investigation is required for looking into the transactions of NGC, who apart from being a purchaser of the adjoining land, is having normal business dealings without coming to any valid conclusion that the parties are inter se deeply connected as such and that the petitioner itself was also a party to evasion of tax alongwith the NGC. Only if the authorities came to a valid conclusion such as on the basis of some substantiated material, either in the form of material documents or in the form of statements, the authorities would have a valid justification to transfer the cases under Section 127 of the Act. Merely because some stock of paddy was lying on the adjoining premises which is not disputed and there was no rent agreement as such inter se the parties would not be a ground to link the parties in such a manner as has been sought to be done by respondent no. 1. The fact that the land had earlier belonged to the petitioner and had been sold could not as such be questioned in the manner in which it has been done that if there was shortage of space, why the land was ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
