TMI Blog2009 (5) TMI 38X X X X Extracts X X X X X X X X Extracts X X X X ..... eir cases from Delhi to Meerut in terms of the impugned Order dated 1.4.2009 passed by the Commissioner of Income-Tax, Delhi-I, New Delhi under Section 127(2) of the Income Tax Act, 1961 (Act for short), Section 11 of the Wealth Tax Act, 1957 and Section 7 of the Gift Tax Act, 1958. The relevant details stand clarified in the Table below:- Sl. No. Name of the assessee From To (1) (2) (3) (4) 1 M/s Alstonia Township (P) Ltd. PAN AAECA4455A ITO Ward 1(3), New Delhi ACIT,Central Circle, Meerut 2 Shri Ashwani Talwar PAN AAAPT0920E DCIT, Circle 2(1), New Delhi ACIT, Central Circle, Meerut 3 Shri Anil Kumar Saha PAN AMYPS1829D DCIT, Circle 2(1), New Delhi ACIT, Central Circle, Meerut 4 Shri Geetambar Anand PAN ACHPA0868K DCIT, Circle 2(1), New Delhi ACIT, Central Circle, Meerut 5 M/s ATS Infrastructure Ltd. PAN AADCA0809D DCIT, Circle 2(1), New Delhi ACIT, Central Circle, Meerut 6 M/s ATS Promoters Builders (P) Ltd. PAN AABCA4298C ITO Ward 2(2), New Delhi ACIT, Central Circle, Meer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 25.3.2009 the Income Tax Officer (Hqrs.I), New Delhi informed the Chartered Accountants of the Petitioners that these cases had been fixed for hearing on 30.3.2009 in the Chambers of the CIT, Delhi-I, New Delhi. The Chartered Accountants, in their letter dated 30.3.2009, raised several Objections which included, inter alia, the points- (a) that the proposed action created inconvenience as well as additional administrative costs to the entire ATS Group. This was predicated on the decision in Ajantha Industries vs. CBDT(SC), 102 ITR 281(SC); (b) the Head Office and Registered Office of the Company is in Delhi and the entire Group is being assessed in Delhi since its inception; (c) the Respondent's Directors reside either in Delhi or Noida only. No establishment/operations of the Group of whatsoever nature exist in Meerut and (d) that the higher Departmental Authorities are located in Ghaziabad, Kanpur and Lucknow, apart from Delhi. 5. We have already reproduced the copy of the Show Cause Notice dated 30.9.2008, stating the reasons for the proposed transfer of cases to Meerut, which referred to the intimate connection between the Group necessitating that the cases be centrali ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d the contents of its show cause notice, which ratio was applied in CIT vs. Contimeters Electricals (P) Ltd., [2009] 178 Taxman 422(Del). Generally speaking, if an order is passed on issues and grounds not spelt out in the show cause notice, that, in itself, may be sufficient justification for striking down the order. The reason is firmly entrenched on the principles of natural justice and on the audi alteram partem rule in particular [see J.T. ( India ) Exports vs. UOI, [2003] 262 ITR 269 (FB)] was a member. It is not possible for a party to respond or clarify issues which have not been articulated, and which remain only in the mind of the decision making Authority. However, there are exceptions to this dogma of natural justice which is in effect but an obverse facet thereof. The exception is that if it is palpably clear that points which had not been initially penned down in the Notice were subsequently conveyed by the concerned authority, who was given adequate opportunity and facility to respond thereto, the dictates of natural justice would have been adequately complied with. This is what we find has happened in the case in hand, as is evident from the gamut of O ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... environs of Noida, where some of the Directors even resided. This was pointed out to elucidate that in actual effect no real inconvenience would be caused to the Petitioners by the transfer of the cases out of Delhi. Mr. Aggarwal, however, submits that the Group has several offices spread across the country and it is necessary for it to maintain camp offices close to wherever any of their activities are on going. The fact remains that the ATS Group also has offices in Uttar Pradesh - Noida; one of its sister companies, Prateek Resorts and Builders Pvt. Ltd., has its principal office in Dehradun, Uttaranchal. It is not disputed that the ATS Group has no office or operations in Meerut. Mr. Aggarwal has also contended that if the assessments are to be transferred out of New Delhi the Petitioners would have no objection if the said cases of the Group are transferred to Ghaziabad since that would cause least insignifcant inconvenience to them. The point which has become central, therefore, is whether the Petitioners' convenience is a preeminent consideration or whether the Revenue is free, without any restraints, on the choice of where the transfer of cases after consolidation proceedi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... damental right in an assessee to be assessed in a particular area or locality. Even considered in the context of Section 64(1) and (2) of the Act this right which is conferred upon the assessee to be assessed in a particular area or locality is not an absolute right but a subject to the exigencies of tax collection." 10. The Division Bench of this Court in Sameer Leasing Co. Ltd. Vs. Chairman, CBDT, [1990] 185 ITR 129 gave its imprimatur to assessment previously being carried out at Delhi, being transferred to Meerut, keeping in view the fact that the business activities of the assessee were located in Muzaffarnagar and also keeping in perspective the fact that other cases of assessee pertaining to the same group were also transferred to Meerut. Another Division Bench of this Court in K.K. Loomba vs. CIT, [2000] 241 ITR 152 applied Bidi Supply Co. vs. UOI, [1956] 29 ITR 717(SC) and Pannalal Binjraj to reject the challenge to the transfer of cases from Amritsar to Delhi. In K.P. Mohammed Salim vs. CIT, [2008] 300 ITR 302 their Lordships have clarified that the "power of transfer in effect provides for a machinery provision. It must be given full effect. It must ..... X X X X Extracts X X X X X X X X Extracts X X X X
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