TaxTMI 
TaxTMI 
2021 (9) TMI 1281
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.... Rule made returnable forthwith. Heard by consent of parties. 2. Petitioner is a non resident Indian since 2001 residing in Hong Kong. Petitioner has been conducting business through and in the name of various legal entities, of which petitioner was either the sole shareholder and/or one of the shareholders. These corporate entities were set up either in Hong Kong or in British Virgin Islands (BVI). It is stated in the petition that since 2013-2014 petitioner's only source of income is out of investments in India and outside India. Petitioner has been filing income tax returns as NRI since 2001. According to petitioner, all assessments are completed including in respect of the returns filed for Assessment Year 2018-2019. 3. Petitioner rec....
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....g the period before 2012, which iron ore were exported from India by the Salagaocar Group to these BVI companies and all payments were made by BVI companies through banking channels. He has also stated that he has stopped dealing with Salagaocar Group in or about June-July 2012 and his assessment has been completed until Assessment Year 2018-2019. Petitioner has also brought to the notice of the show cause notice issuing authority that he was at a loss to effectively defend his case in the absence of any reasons or grounds disclosed in the show cause notice as to how he was connected with the Salagaocar Group as alleged. Petitioner also has reserved his rights to file a further and detailed reply, if so advised, after reasons or grounds sho....
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....: 127. Power to transfer cases : (1) The Principal Director General or Director General or Principal Chief Commissioner or Chief Commissioner or Principal Commissioner or Commissioner may, after giving the assessee a reasonable opportunity of being heard in the matter, wherever it is possible to do so, and after recording his reasons for doing so, transfer any case from one or more Assessing Officers subordinate to him (whether with or without concurrent jurisdiction) to any other Assessing Officer or Assessing Officers (whether with or without concurrent jurisdiction) also subordinate to him. (2) Where the Assessing Officer or Assessing Officers from whom the case is to be transferred and the Assessing Officer or Assessing Officers t....
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....ortunity of being heard in the matter and after recording his reasons for doing so. In our view, reasonable opportunity would mean that the show cause notice or the intimation issued should contain such details that would enable the assessee to know the reasons for which the case is being transferred. In the intimation notice dated 20th June 2019, apart from stating "you are connected to this group" there are no other details as to how petitioner is connected to the Salagaocar Group. The word "connected" has varied and a wide meaning. Respondents ought to have mentioned in the show cause notice how petitioner was connected to Salagaocar Group of companies. The purpose of show cause notice is to enable a party to effectively deal with the ca....
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....how cause notice itself is defective. 7. Mr. Chhotaray states that petitioner had also been raided in connection with the investigation against Salagaocar Group of companies and therefore, he should be aware as to how he is connected to Salagaocar Group of companies. In our view, when the statute states a reasonable opportunity of being heard in the matter, the show cause notice should spell out all details to enable the recipient of the show cause notice to effectively respond to the show cause notice. We cannot accept that petitioner should be aware in view of the past events as to what respondents mean by "connected with the Salagaocar Group". In any event, petitioner had sought a personal hearing, which has not been granted. 8. Theref....