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TMI Blog2024 (9) TMI 966X X X X Extracts X X X X X X X X Extracts X X X X ..... of Income Tax, Non Corporate Circle-10(1), Chennai has been transferred to the Office of the Deputy Commissioner of Income Tax, Circle-4(4), Kolkatta (herein referred to 'Central Circle'). This transfer order has been passed to centralize the case of the petitioner for effective and co-ordinated investigation along with other cases. 3. The learned counsel for the Petitioner submits that the Petitioner is the resident of Chennai, having a registered office at Chennai. A show cause notice was issued by the 1st respondent on 14.12.2023, stating that a Search and Seizure action was carried out under Section 132 of the Act in the petitioner's case on 12.10.2023 by Authorized Officer under the control of the Principal Director of Income Tax (Investigation), Kolkata, where, they have seized number of incriminating documents, which are inter-connection and affect the assessment of the petitioner. Therefore, in order to centralize the petitioner's case for effective and co-ordinated investigation they intended to transfer the case case to the Central Circle at Kolkata and thereby, called upon the petitioner to file the objections in writing if any, within 3 days. Subsequen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ounsel appearing for the respondents would submit that in similar writ petitions in W.P.Nos.15500, 15524 and 15526 of 2024 dated 19.08.2024, Mr.B.Ramasamy, learned Senior Standing Counsel has already advanced arguments on legal aspects and he also adopted the same arguments and on facts, he would submit that in the present case, the petitioner has been carrying on business within the jurisdiction of Kolkata Zone, particularly, the petitioner involved in the Lottery Business in Kolkata and also in several States of India and the authorities, on a search and seizure action carried out under Section 132 of the Act, number of incriminating materials were seized, which were inter-connected and affect the petitioner's assessment and in such circumstances, the case has been transferred from DCIT, Coimbatore to DCIT, Kolkata. He pointed out that before passing the impugned Notification, a show cause notice, dated 14.12.2023 was to the petitioner, wherein, the respondents have clearly narrated the circumstances by which, they intended to transfer the petitioner's case to DCIT Circle, Kolkata (Central Circle). Further, he would submit that in the show cause notice, the petitioner was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e assessment of the petitioner and under these circumstances, as rightly mentioned by the respondents in the show cause notice that since the documents have been seized at different places, it is necessary that all the cases should be considered together at one place so that harmonious and co-ordinated investigation be undertaken to arrive at just assessment. It is relevant to extract the contents of the show cause notice, dated 14.12.2023, which read as follows:- "A search and Seizure action was carried out u/s 132 of the Income Tax Act, 1961, in your case on 12.10.2023 by Authorized Office under the control of the Principal Director of Income Tax (Investigation), Kolkata. In this regard, a proposal to centralize your Income Tax file has been received. 2. It is requested that, as a result of the said search action a number of incriminating documents were seized. The documents are inter-connected and affect your assessment. It is necessary to see their effect together on the assessments. It can only be done after analyzing and investigating the documents found at different places together. As documents have been seized at different places, it is necessary that all the cases sho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... petitioner file reply/objections for passing the order under Section 127 of the Act. 12. The reply filed by the petitioner to the show cause notice, reads as follows:- Date : 21.12.2023 To The Principal Commissioner of Income Tax (Central), Chennai-2, Room No.410, Main Building-IV Floor, Investigation Building No.121, Mahatma GandhiRoad Nungambakkam, Chennai-600034. Respected Sir, Ref: PAN: AACF5261H/ Our Own case. Sub: Your Notice u/s. 127 with DIN & Notice No.ITBA/COM/F/17/2023-24/1058748853(1) dt.14.12.2023 received on 20.12.2023-Reply filed. ***** With reference to your above notice received on 20.12.2023, we wish to know the finding in our case in connection with the search in the case of Lottery Group. We are of the view that there is no finding in our case warranting centralisation of our file (PAN: AAACF5261H). Further, our registered office is located in Coimbatore, it is not possible for us to travel to Kolkata to present our case before the authorities there. It will also be very expensive for us to travel or hire a local lawyer to defend our case. The authorities in Coimbatore are well competent enough to undertake the assessment proceedings ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... opinion that although the registered office of the petitioner is situated at Chennai and they had not carried out any business activities at Kolkata, it will be appropriate to make the assessment through the Circle, where the incriminating materials have been seized based on the place of business of the Assessee, irrespective of situation of the registered office. This is what had taken place in the present case. 18. The issue of jurisdiction and change in jurisdiction under Section 127 of the Income Tax Act, 1961 is a pivotal aspect of tax administration and litigation. This Section provides a legal frame work for the transfer of cases from one Assessing Officer (AO) to another and is crucial in ensuring the smooth functioning of the tax administration system. If the contentions raised by the petitioner are accepted and allowed, the Chennai jurisdictional Assessing Officer has to finalize the assessment of the petitioner and in such event, certainly, it will be difficult for him to complete the assessment in the absence of material documents, which were seized upon search by the Income Tax (Investigation) authorities of Kolkata Central Circle. Hence, it would be appropriate to t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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