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TMI Blog2010 (11) TMI 1001X X X X Extracts X X X X X X X X Extracts X X X X ..... ndent No. 2 issued separate notices to the petitioners on 21.1.2010 requiring them to file objections, if any, against the transfer of assessment from Kanpur to Allahabad in pursuance of a search and seizure operation conducted by the Income Tax Department under Section 132 of the Income Tax Act, 1961 (hereinafter referred to as the Act') on 27.8.2009 at the business premises of Ml s. Bhola Food Product Pvt. Ltd., belonging to Kesarwani Group. According to the petitioners, the said notices did not contain any reason or any material on the basis of which such notices have been issued in order to enable them to file objections. The notice dated 21.1.2010 issued to the petitioner in Writ Petition No. 877 of 2010 reads as under: GOVERNMENT OF INDIA OFFICE OF THE COMMISSIONER OF INCOME TAX -1 Aayakar Bhawan, 16/69 Civil Lines, Kanpur - 208 001 Telephone: 2304066,2304495, Fax: 2306979 F. No.CIT-1/KNF/12-02/Centralisation/2009-10 Dated: 21.1.2010 To, Shri Sanjay Gupta, (PAN : AEHPG 0965 R) S/o Late Daulat Ram Gupta, 16/16, Gokul Apartment, Flat No. 404, Civil Lines, Kanpur. Sub : Transfer of cases under Secti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed 30th March, 2010 transferred the cases under Section 127 of the Act citing 'administrative convenience and coordinated investigation' as the reasons for transfer. Respondent No. 2 relied upon the comment given by CIT (Central), Kanpur, which reads as under: Action under Section. 153C of the I.T. Act, 1961 have been proposed in the case of Shri Sanjay Gupta, Kanpur. Shri Sanjay Gupta and Sri Naveen Kesarwani, M.D. of M/s. Bhola Food Products Private Limited have close business connection as well as family connection. Since Smt. Kiran Gupta is the wife of Shri Sanjay Gupta so centralization of case of Smt. Kiran Gupta is also required because without the centralization of the case of Smt. Kiran Gupta proper investigtation as well as assessment of Shri Sanjay Gupta cannot be made and Smt. Kiran Gupta will accommodate the concealed income of Shri Sanjay Gupta which will jeopardize the interest of revenue. Therefore, for co-ordinated investigation and consistency in assessments of search and seizure cases of the Kesarwani Group, it is paramount to centralize the cases of Shri Sanjay Gupta and Smt. Kiran Gupta with DCIT (Central Circle), Allahabad alongwith case of Kes ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sufficient, as the petitioners ought to have been intimated about the reasons in a comprehensive manner in order to enable them to make effective representation. It is further submitted that the objections furnished by the assessees, petitioners herein, were not dealt with and the orders of transfer have been passed in mechanical manner. It is, therefore, submitted that, for the aforesaid reasons also, the orders transferring the proceedings be quashed and set aside. On the other hand, on behalf of the revenue, the following submissions have been made. The petitioners were given opportunity of showing cause against the transfer of assessment proceedings and they filed their representations / objections and it is only after that, that action was taken to transfer the assessment proceedings from Kanpur to Allahabad. The search and seizure operations were carried out at the premises of M/s. Bhola Food Products Pvt. Ltd. There were various suppliers, who had supplied materials to M/s. Bhola Food Products Pvt. Ltd., but most of them have been discharged and proceedings for transfer of assessment have been taken against a few suppliers, like the petitioners, for proper assessment, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... roceedings have the effect on an assessee, as their proceedings are to be transferred from one assessment place to another. In our opinion, on this count alone, the impugned orders of transfer are liable to be set aside. 6. The next question before us is whether the reasons which have been annexed as Annexures-1 to the orders of transfer dated 30.3.2010 can be said to be germane or sufficient for the purposes of exercising the power under Section 127 (1) of the Act? THE only reason given on behalf of the respondents for exercising the powers is that a search and seizure operation was carried out in the premises of M/s. Bhola Food Products Pvt. Ltd. THEre is nothing on record to show that, from the search and seizure operations at the premises of M/s. Bhola Food Products Pvt. Ltd., which belongs to the Kesarwani Group, any material was seized, which would have any relations with the petitioners herein. Merely assuming that the petitioners in Writ Petition No. 877 of 2010 knew Shri Naveen Kesarwani and/or they had business connections and family connections, by itself cannot be a ground for such transfer. No material has been shown as to what are the family connections. In fact, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sued under Section 153-C of the Income Tax Act by respondent No. 3 and consequential assessment proceedings thereof (Annexure-7 to the writ petition). (ii) to issue a writ, order or direction, in the nature of certiorari, quashing the order dated 30.3.2010 passed under Section 127 of the Act by respondent No. 2 (Annexure-6 to the writ petition). (iii) to issue a writ, order or direction in the nature of mandamus, commanding the respondent not to proceed in pursuance of the impugned notice dated 16.4.2010 and impugned order dated 30.3.2010 and not to compel the petitioner to conduct the assessment proceeding at Allahabad. Rule made absolute in terms of prayer clauses 1,2 and 3 in Writ Petition No. 876 of 2010, which read as under: (i) to issue a writ, order or direction in the nature of certiorari, quashing the notice dated 16.4.2010 issued under Section 153-C of the Income Tax Act by respondent No. 3 and consequential assessment proceedings thereof (Annexure-5 to the writ petition). (ii) to issue a writ, order or direction, in the nature of certiorari, quashing the order dated 30.3.2010 passed under Section 127 of the Act by respondent No. 2 (An ..... X X X X Extracts X X X X X X X X Extracts X X X X
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