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TMI Blog2024 (10) TMI 1481X X X X Extracts X X X X X X X X Extracts X X X X ..... er in the business operation of Lottery in the state of West Bengal in different capacities such as Sub-distributors, Stockist, Printing press, etc. Since all the materials have been collected in Kolkata Central Circle, the 1st respondents, taking into consideration of the reply filed by the petitioner, decided to transfer the petitioner's case to the Central Circle, Kolkata. It is pertinent to note that apart from the petitioner case, there were eight other cases, which were found indulging similar activities as that of the petitioner in conducting the business operations of lottery, the 1st respondent ordered transfer of all cases to the Central Circle of Kolkata for the purpose of coordinated investigation in Lottery Group. No substance in the contentions raised by petitioner that the respondents failed either to provide an opportunity or lack of sufficient materials to transfer the case from ITO, Corporate Ward 2(3), Chennai to DCIT, Central Circle 4(4), Kolkata. Accordingly, the Issue Nos. 1 and 2 are answered. Whether the respondents have provided an opportunity for filing a reply and personal hearing before passing the impugned Notification? - The paramount consideration ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rred 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 27.12.2023, 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 to the Central Circle at Kolkata and thereby, called upon the petitioner to file the objections in writing if any, within 5 days. Subsequent to the said show cause notice, the petitioner had filed their reply on the same day i.e., on 27.12.2023. 4. Challenging the impugned Notification, the learned counsel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ppearing 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 ITO, Corporate Ward 2(3), Chennai to DCIT, Kolkata. He pointed out that before passing the impugned Notification, a show cause notice, dated 27.12.2023 was issued to the petitioner, wherein, the respondents have clearly narrated the circumstances by which, they intended to transfer the petitioner's case to DCIT, Central Circle 4(4), Kolkata (Central Circle). Further, he would submit that in the show ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d directly affect the 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 27.12.2023, which read as follows:- A Search and Seizure action was carried out u/s.132 of the Income-Tx Act, 1961, in your case on 12.10.2023 by Investigation Wing Authorities at Kolkata. In this regard, a proposal to centralise your Income-tax file has been received in this office. Your proceedings under the Income-tax Act, 1961 is proposed to be centralised in any of Central Circle in Kolkata for the following reason: 1.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. A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is no finding in our case warranting centralisation of our file (PAN: AAACI9480R). The search was conducted by the TDS Wing of the Income Tax Department, Kolkata. We have not violated any provisions of TDS and further Section 194B of the Income Tax Act, 1961 is not applicable to us since we are not paying Prize Money to any person. Even if there is any finding warranting centralisation of our file, we object to the proposal of centralisation from Corporate Ward-2(3), Chennai to Central Circle, Kolkata. If there is a necessity to centralize our case, we request you to centralise it in Central Circle, Chennai. 13. A perusal of the above reply filed by the petitioner reveals that the petitioner expressed their personal difficulties citing the age factor, costs of litigation as well as they are having their registered office at Chennai, the availability of documents at Chennai, etc. Therefore, the petitioner raised objections for transferring the case to DCIT, Central Circle, Kolkata. 14. Though the learned counsel for the petitioner contended that the petitioner is having their registered office at Chennai and no business activities were carried out at Kolkata, but upon search and se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s 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 transfer the petitioner's case to DCIT, Central Circle, Kolkata since the Income Tax authorities have traced out and seized number of incriminating documents which reveal the involvement of the petitioner in conducting the business operations of lottery and deciding the issue of evasion of taxes is within their jurisdiction. Therefore, the 1st respondent has rightly transferred the cases from Chennai jurisdiction to Kolkata jurisdiction. Hence, I do not find any reasons to interfere with the impugned Notification dated 15.05.2024. 19. In fact, Section 127 does not contain the grounds on whi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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