Tax Jurisdiction Upheld Despite Quashed Warrant; Transfer Valid

The court held that the Assistant Commissioner of Income Tax, Gautam Budh Nagar had jurisdiction to issue notices under Section 148 and other proceedings for assessment years 1998-99, 1999-2000, and 2000-01, despite the search warrant being quashed. The transfer order from NOIDA to Meerut was deemed valid, and only the Income-Tax Authority of NOIDA could initiate assessment proceedings. As a result, the writ petitions seeking to quash the notices were dismissed, and no costs were awarded.

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Issues: Jurisdiction of the Assistant Commissioner of Income Tax, Central Circle, Meerut to issue notices under Section 148 and 274 read with 271 of the Income Tax Act.

In this judgment, the petitioners sought a writ of certiorari to quash notices issued by the Assistant Commissioner of Income Tax, Central Circle, Meerut for assessment years 1998-99, 1999-2000, and 2000-01 under Section 148 of the Income Tax Act. The petitioners argued that the Assistant Commissioner had no jurisdiction to issue the notices as their cases were transferred from NOIDA to Meerut for post-search investigation, and the search warrant had been quashed previously. The Standing Counsel contended that the transfer order from NOIDA to Meerut was still valid, and the authority in Meerut had the jurisdiction to initiate proceedings under the Act. The court noted that the transfer order had not been set aside and the post-search assessment had to take place despite the search being declared illegal. The court held that the order under Section 127 of the Act transferring the cases to Meerut was still valid, and only the Income-Tax Authority of NOIDA had jurisdiction to initiate the assessment proceedings. Therefore, the initiation of proceedings under Section 148 and any other proceeding by the Assistant Commissioner of Income Tax, Gautam Budh Nagar, was held to be within jurisdiction, and the writ petitions were dismissed with no order as to costs.

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