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TMI Blog2015 (7) TMI 372X X X X Extracts X X X X X X X X Extracts X X X X ..... t proceedings has been changed from the Assessing Officer at Circle-III, Ferozepur to the Central Circle, Amritsar on the ground of a coordinated investigation of the concerned group of cases and in the interest of administrative convenience. The subsequent notices dated 11.12.2014 (Annexures P-14 and P-15) which have been issued in pursuance to the transfer of the case under Section 127 and asking for information by the Deputy Commissioner of Income Tax, Central Circle, Amritsar and to appear before the said officer are also subject matter of challenge. The pleaded case of the petitioner is that it is engaged in the business of rice shelling at village Sandhe Hasham, Zira Road, Ferozepur. The company has two directors and 11 share holders ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ere no common premises and neither their premises had been searched. There were no family members of the above said group who were share holders and neither there was an introduction of any capital loan from the group or vice versa. Reliance was also placed upon the judgment of this Court in Rajesh Mahajan and others vs. CIT and others, (2002) 257 (ITR) 577. Information was also sought from the respondents as to on what basis they had recorded a finding that the two groups were attached. Accordingly, the petitioner was supplied the 4 reasons on 22.05.2014 (Annexure P-7) due to which the centralization was sought to be done. That the petitioner thereafter replied on 24.07.2014 (Annexure P-10) that the reasons given were wrong and prayed for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... atkartar Solvex Pvt. Ltd. to M/s RSG Foods Pvt. Ltd. Thus it is clear that the stock of Paddy was not lying there due to landlordtenant relation but due to close business relations between these concerns. That, M/s RSG Foods Pvt. Ltd. is not related/connected even remotely with the said group Le. M/s Narula Foods Pvt. Ltd. And M/s Satkartar Solvex Pvt. Ltd and the lease agreement was not there because the storage was made for just a few days. Also, it is a normal business practise not to enter into as agreement for such a short period. It cannot lead to any business relation/connected-calling centralization of RSG Foods Pvt. Ltd alongwith M/s Satkartar Solvex Pvt Ltd. 3 Also the land from where the concern M/s. Satkartar Solvex Pvt. Ltd. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of RSG Foods Pvt. Ltd alongwith M/s Satkartar Solvex Pvt Ltd. That, the contention mentioned in the letter- "Two Concerns are closely interlinked" is totally wrong & without any basis in view of evidences on the following basis : i) We are an Independent Company having Regd. Office at Vill Sandhe Hasham, Zira Road, Ferozepur having PAN-AABCR3974Q since its incorporation ii) That, at the time of search no premises of our company has ever been searched/or any summons/search warrant has ever been made/issued against our Company iii) That, our Company is regularly assessed with the ACIT, Ferozepur & our list of share holders is on the official records of the Department, in which there is no family members/relatives of M/s Satkartar Solvex Pvt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... m Ferozepur to Amritsar is on the basis of some rationale which is sought to be justified merely on the ground that there was close nexus between the petitioner and the NGC. The reasons which have prevailed were that there were 31,589 bags of the petitioner firm lying in the premises of M/s. Sat Kartar Solvex and in the absence of any consideration and on account of no rent being charged, it is presumed that they are closely inter linked. The same land had been sold to M/s. Sat Kartar Solvex by the petitioner-assessee 3-4 years back and if there was shortage of land, why was it sold and since both entities were doing the similar business of manufacturing rice and its by-products and, therefore, the question of sale and purchase from each ot ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... red to Amritsar. No finding had been recorded that the Directors of the petitioner-company were also Directors in the NGC and that there were large number of transactions inter se vide which the tax had been evaded and that the petitioner was a key associate. 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 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 trans ..... X X X X Extracts X X X X X X X X Extracts X X X X
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