1996 (12) TMI 34 - HC - Income Tax

Summary

Issues:
1. Validity of the order transferring the case relating to assessment proceedings from Ranchi to New Delhi under section 127 of the Income-tax Act.
2. Allegation of violation of natural justice and inadequate reasons for transfer.
3. Requirement of consent from concerned officers before transferring the assessment proceeding.
4. Alleged inconvenience to the petitioners due to the transfer.

Analysis:

1. The petitioners challenged the order transferring the assessment proceedings from Ranchi to New Delhi under section 127 of the Income-tax Act. The petitioners contended that the transfer order lacked sufficient opportunity and violated the principle of natural justice. They argued that the reasons provided for the transfer were inadequate and that convenience of the assessing authorities should not be a valid reason for transfer.

2. The respondents, on the other hand, argued that the notice to show cause was issued to the petitioners, and their objections were duly considered before passing the transfer order. The respondents highlighted that reasons for transfer included coordinated and efficient investigation and assessment, which were deemed valid under section 127 of the Income-tax Act. The court found that the objections raised by the petitioners were considered and overruled with reasons provided in the impugned order.

3. The petitioners further contended that consent from both the officers involved in the assessment proceeding transfer was necessary before passing the order. However, the respondents clarified that consent had indeed been obtained from the concerned assessment authorities, and the petitioners were not in a position to challenge the validity of this consent.

4. Regarding the alleged inconvenience to the petitioners due to the transfer, the court noted that the petitioners, being sitting and former Members of Parliament with accounts and residences in Delhi, would not face significant inconvenience in participating in the assessment proceedings in Delhi. The court, therefore, dismissed the petition at the admission stage, citing reasons such as the transfer being in the public interest, for efficient assessment, and revenue collection.

In conclusion, the court upheld the transfer order, finding no grounds for admission of the writ petitions based on the contentions raised by the petitioners. The court emphasized the importance of efficient assessment, revenue collection, and public interest in justifying the transfer of the assessment proceedings from Ranchi to New Delhi.