TMI Blog2010 (9) TMI 383X X X X Extracts X X X X X X X X Extracts X X X X ..... shed and search was declared illegal the order passed by the Commissioner of Income-Tax, Ghaziabad dated 3.9.2002 under Section 127 of the Act cannot be deemed to have been vacated - It still validly exists and under the transfer order only the Income-Tax Authority of NOIDA has a jurisdiction to initiate the assessment proceeding - 640 of 2005,700 of 2006,1687 of 2004 - - - Dated:- 9-9-2010 - Rajes Kumar, Bharati Sapru, JJ By means of the present writ petitions, the petitioners are seeking a writ of certiorari quashing the notice dated 28.3.2005 issued by respondent no. 3 for the assessment years 1998-99 and 2000-01 under Section 148 of the Income Tax Act (hereinafter referred to as the "Act"); notice dated 3.3.2006 issued by respon ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... been observed that "it is not necessary for us in the circumstances to decide the additional point raised by the petitioners challenging the transfer of the case from NOIDA to Meerut". Therefore, it is apparent that the issue relating to transfer of case has neither been adjudicated nor the order passed under Section 127 of the Act by the Commissioner of Income Tax, Ghaziabad has been set aside. Now Assessment Commissioner of Income Tax, Central Circle, Meerut has issued notices under Section 148 of the Act for the assessment years 1998-99, 1999-2000 and 2000-01 and notices under Section 274 read with Section 271 of the Act which are being challenged. Heard Sri Dhruv Agrawal, learned Senior Advocate, assisted by Sri Nikhil Agrawal, lea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... had been transferred to centralize them for coordinated post search investigation and meaningful assessment in view of the Board's instructions. He submitted that even though the search has been declared illegal and the block assessment could not be made but the material found at the time of search can be used for the purposes of assessment. He submitted that unless the order under Section 127 of the Act passed by the Commissioner is being set aside by any of the competent authorities, the order stands valid and the authority to whom the cases had been transferred under the transfer order dated 3.9.2002 under Section 127 of the Act is the only competent authority to initiate the proceeding and NOIDA authority ceases to have jurisdiction to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gation and meaningful assessment has to take place. It may be that on account of search being declared illegal, the block assessment under Section 158BC of the Act cannot be made but the regular assessment or the reassessment contemplated under the Act can be made. In view of the above, we are of the considered opinion that merely because the warrant of authorization had been quashed and search was declared illegal the order passed by the Commissioner of Income-Tax, Ghaziabad dated 3.9.2002 under Section 127 of the Act cannot be deemed to have been vacated. It still validly exists and under the transfer order only the Income-Tax Authority of NOIDA has a jurisdiction to initiate the assessment proceeding. Therefore, the initiation of pro ..... X X X X Extracts X X X X X X X X Extracts X X X X
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