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2015 (7) TMI 372 - HC - Income TaxChange in jurisdiction for the purpose of assessment - Held that:- Merely because the parties were doing business in the normal course inter se, would not be a ground as such to transfer the assessment in the absence of any major financial nexus, as such, a ground would result in transferring other assessments of assessees who were doing business with the Narula Group of Companies (NCG). The reasoning, thus, which has been resorted to by respondent no. 1 cannot be held to be justified in any manner as the serious rights of the petitioner are involved as assessment is to be transferred for all purposes to a far off place to its detriment. In the absence of any independent finding recorded by the authorities below that the parties were as such linked in such a manner where there was major flow of finances from one side to the other, respondent no. 1 was not justified in transferring the proceedings and the said action cannot be held to be justified. In similar circumstances, a Single Bench of this Court in Rajesh Mahajan's case [2002 (7) TMI 94 - 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.
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