2023 (5) TMI 420

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....e assessment year 2021-22. 3. A notice dated 24 June 2022 came to be issued by the Principal Commissioner of Income Tax-19 informing the Petitioner regarding the proposed transfer of assessment jurisdiction from the Deputy Commissioner of Income Tax-19(3) to the Deputy Commissioner of Income Tax Central Circle-3, Jaipur, with a view to enable a proper and co-ordinated assessment along with the assessment in the case of Veto Group, Jaipur on whom search proceedings were conducted under Section 132 of the Act. The show cause notice stated that the Principal Commissioner of Income Tax (Central), Rajasthan vide a communication dated 16 February 2022 had proposed for centralization of the case of the Petitioner with Vito Group at Jaipur and, therefore, the Petitioner was asked to file his submissions in that regard. 4. Section 127 of the Act authorizes inter alia the Principal Chief Commissioner to transfer any case from one or more assessing officers subordinate to him to any other assessing officers also subordinate to him, after recording reasons and after giving to the assessee a reasonable opportunity of being heard in the matter, wherever it is possible to do so. Section 127....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....hwhile to mention here that Shri Kamal Galani is one of the Director of M/s Landmark Hospitality Pvt. Ltd. (which is also proposed to be centralized with this office) and key person of the Veto Group. In the above mentioned case along with other entities of the group, survey action was also carried on 22.12.2021 in the case of M/s Landmark Hospitality Pvt. Ltd. During the course of search/survey at various entities of the Group, incriminating documents and data were found and seized/impounded which may relate to the assessee as well other assessees of this group. Further, it is submitted that out of 79 assessees related to the Veto group, 69 assessees have already been centralized with this office. In view of the above facts, case of the assessee is required to be centralized with this office under the change of the Principal Commissioner of Income tax (Central), Jaipur for coordinated, comprehensive and logical enquiry and investigation in respect of "VETO GROUP" entities." 7. Learned Counsel for the Petitioner, Mr. Madhur Agrawal, vehemently urged that there was absolutely no basis or material with the Deputy Commissioner of Income Tax-19(3), Mumbai to Order the trans....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ctor, or during the search proceedings conducted on the Vito Group, which would connect either M/s Landmark Hospitality Pvt. Ltd. or the Petitioner to the Vito Group of Jaipur. The survey report and records prepared in regard to the survey proceedings on M/s Landmark Hospitality Pvt. Ltd. does reflect that there was no inventory prepared during the survey proceeding, suggesting that there was nothing incriminating found. 10. As regards the search and seizure action conducted on Vito Group, neither the show cause notice issued on 24 June 2022, nor the reply submitted by the Respondent-revenue reflects or rebuts the contention of the Petitioner that there was no incriminating material found against the Petitioner during the said search proceedings. If there had at all been any material found, the same would have been relied upon by the Respondent-revenue. On the other hand, from the reply filed by the Respondent-revenue the authorities only seem to be speculating that the incriminating documents and data found and seized/impounded 'may relate to the assessee as well as other assesses of this group.' The Principal Commissioner of Income Tax, therefore, did not appear to be in po....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....Central Circle-3, Jaipur. Needless to say that transfer of assessment jurisdiction from Mumbai to Jaipur would certainly cause inconvenience and hardship to the petitioner both in terms of money, time and resources, and therefore, the order impugned in the absence of the requisite material/reasons as the basis would be nothing but an arbitrary exercise of power and therefore liable to be set aside. 12. From a reading of the Order impugned passed under Section 127(2) of the Act, it can be seen that the same does not at all reflect as to why it was necessary to transfer the jurisdiction from DCIT- 19(3), Mumbai to DCIT Central Circle-3, Jaipur. None of the issues raised by the Petitioner have been dealt with either in the Order dated 21 November 2022 disposing of the objections raised by the Petitioner much less have the same been reflected in the Order impugned under Section 127(2) of the Act. The assessing officer appears to have acted very mechanically treating the request from DCIT Central Circle-3, Jaipur, as if it was binding upon him. In our opinion, the said request was not at all binding inasmuch as if it was so, then the agreement envisaged under Section 127(1)(a) wou....