2002 (7) TMI 46

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....ny owns the hotel building which is leased out to the firm for carrying on the hotel business. Both the company and firm are income-tax assessees before the Deputy Commissioner of Income-tax, Circle I, Kottayam, and the Income-tax Officer, Ward-I, Thiruvalla, respectively. The company as well as the firm in these two original petitions challenge exhibit P-11 which is the common order produced in O.P. No. 14372 of 2001, issued by the Chief Commissioner of Income-tax, Cochin, transferring the files to the Deputy Commissioner of Income-tax, Central Circle, Calicut. The petitioners are questioning the transfer on the ground that Calicut is far away from Kottayam as well as from Thiruvalla, and so much so, the petitioners are put to serious trou....

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....oper investigation and assessment of all the assessees. I have gone through section 127(1) of the Income-tax Act, under which exhibit P-11 order and the earlier transfer order were issued by the Chief Commissioner of Income-tax. I find that section 127(1) of the Income-tax Act gives power to the Chief Commissioner to transfer the file from one Assessing Officer to another within his jurisdiction. However, sub-section (2) contemplates consent between the Chief Commissioners if the file is transferred from the area of one Chief Commissioner to that of another. Section 127 only provides for an administrative arrangement authorising Chief Commissioners to transfer the files from one officer to another for better and more efficient handling o....

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....counsel for the Income-tax Department, that the Central Circle office is functioning at Kottayam. Standing counsel has pointed out that the purpose of constituting the Central Circle is to periodically scrutinise certain files, making assessments for a number of years and return the files to the officers who are previously handling the files. The contention of counsel for the petitioners is that since the Central Circle office is at Kottayam, the files can be transferred to Kottayam. I do not know how this would help the petitioners who are putting forward the case of inconvenience on account of transfer of files when the partners/directors are residing as stated in paragraph 3 of the counter affidavit, in and around Calicut. Apparently, th....