9911796707
TMI Blog2024 (12) TMI 509X X X X Extracts X X X X X X X X Extracts X X X X ..... ip firm/LLP, and other sources. The Petitioner has been regularly filing income tax returns in Kolkata under PAN No. AFJPK5331E as per the provisions of the Income Tax Act, 1961 (hereinafter referred to as "the Act"). 2. The Petitioner is a permanent resident of Kolkata and has been assessed under the jurisdiction of the Income Tax Officer, Ward 36(1), Kolkata, for several years. Notices, including one issued under Section 148A (b) of the Act, dated March 28, 2023, bearing DIN: ITBA/AST/F/148A(SCN)/2022-23/1051521182(1), evidence this assessment history. The Petitioner's PAN record address with the department is 12, Bonfield Lane, Burrabazar, Kolkata-700001, West Bengal, India. 3. The Petitioner is a minority partner in M/s. Saraidhel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ot receive any further response. 8. The respondent no. 3, did not provide an opportunity of being heard or supply the incriminating material, contrary to the principles of natural justice and the procedural requirements under Section 127 (2). 9. Subsequently, the case was transferred to the jurisdiction of the Assistant Commissioner of Income Tax, Central Circle, Dhanbad, without proper intimation to the Petitioner. 10. The Petitioner later received a notice under Section 148A (b), dated March 30, 2024, and notices under Section 142 (1) for various assessment years from the Dhanbad Assessing Officer, which were objected to by the Petitioner on jurisdictional grounds. 11. The Petitioner, having received no copy of the transfer order desp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the order. 15. The Petitioner contends that the notices subsequently issued by the Dhanbad Assessing Officer are without jurisdiction, as the purported transfer of records was executed invalidly and without adherence to statutory mandates. The failure of the Respondents to comply with legal provisions has caused grave prejudice to the Petitioner, necessitating intervention by this Hon'ble Court. 16. The Petitioner acknowledges that a coordinated and sustained investigation may, under appropriate circumstances, serve as a valid ground for transfer. However, such action requires the existence of cogent reasons and prima facie material justifying the necessity of the transfer. The issuance of a notice under Section 127 (2) is not a mere p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t part of a coordinated effort to centralize related cases. Other partners of M/s. Saraidhela Developers LLP, including one Mayank Kajaria, Usha Devi Kajaria, Neha Kajaria, Sri Gaurav Kajaria, Sri Pawan Kumar Kajaria and Shri Surajit Kajaria have also had their cases transferred to the Deputy Commissioner of Income Tax, Central Circle, Dhanbad. This was necessitated due to incriminating material discovered during searches conducted at the firm's offices in Kolkata and Dhanbad, which pointed to potential concealment of income. 20. The transfer was based on cogent material requiring coordinated investigation and meaningful assessment, as mandated by the Income Tax Act. It is emphasized that the order under Section 127 is primarily administra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er aligns with statutory provisions and administrative necessities. 24. Upon a thorough examination of the documents presented to the Court and taking into account the arguments put forth by the parties, this Court allows the writ petition on the grounds that the transfer order issued under Section 127 (2) of the Income Tax Act, 1961, is found to be procedurally flawed. The respondent no. 3 herein the Principal Commissioner of Income Tax, Kolkata-5, failed to adhere to the principles of natural justice. Despite the Petitioner's detailed objections to the proposed transfer and a request for the disclosure of incriminating material, no opportunity of being heard was provided and the requested material was not furnished. Such omissions violat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ize the importance of adhering to statutory provisions and principles of natural justice in such matters. The failure to comply with these requirements, as noted in Mulchand Maloo (supra) and Kamalnath (supra), warrants judicial interference. 29. The Hon'ble Supreme Court in Smt. Chandra Prabha Kushwaha & Ors. v. Commissioner of Income Tax and Anothers reported in (2014) 361 ITR 66 held that: "6. We are not inclined to express any opinion on the merits of the issue as to whether the cases are required to be centralised since that has to be determined after following the procedure prescribed under section 127 (2) of the Act. Moreover, the reasons have to be spelt out in the order which has been passed under section 127 (2) of the Act whic ..... X X X X Extracts X X X X X X X X Extracts X X X X
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