Taxpayer case transfer for coordinated investigation fails once the stated basis no longer survives.

A taxpayer case transfer based on co-ordinated investigation cannot be sustained once the assessment of the searched person for the relevant year has already been completed and the stated basis for transfer no longer survives. The Bombay HC held that administrative convenience alone did not justify the transfer on these facts, and quashed the impugned transfer order. The petitioner succeeded on this issue, while the Revenue was left free to proceed in accordance with law where permissible.

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Issues: Whether the order transferring the petitioner's case to the Nashik Commissionerate was justified after the assessment of the searched person had already been completed.

Analysis: The transfer order was based on administrative convenience and co-ordinated investigation in the case of the searched group. Since the assessment for the relevant assessment year in that case had already been completed, the basis for transferring the petitioner's case ceased to exist.

Conclusion: The transfer order was quashed, and the petitioner succeeded on this issue.

Final Conclusion: The petition was allowed and the impugned transfer order was set aside, while the Revenue was left at liberty to proceed in accordance with law where permissible.

Ratio Decidendi: A transfer of a taxpayer's case on the ground of co-ordinated investigation cannot be sustained when the stated basis for such transfer no longer survives.

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