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[2008] 307 ITR 132 (PUNJ. & HAR.) HIGH COURT OF PUNJAB AND HARYANA Charan Pal Singh v. Commissioner of Income-tax ADARSH KUMAR GOEL AND RAJESH BINDAL, JJ. NOVEMBER 30, 2006. Section 127 of the Income-tax Act, 1961 - Income tax authorities - Power to Transfer cases Where assessee was a director in a company which was agent of a company at Baroda, and following search at premises of Baroda company assessee's case was transferred from Ferozepur to Baroda for effective and co-ordinated investigation, order of transfer could not be faulted [In favour of revenue] Charan Pal Singh v. CIT [2008] 307 ITR 132 (Punj. & Har.) The order of transfer of assessment file of an assessee to a far off place puts the assessee to a great inconvenience and ought not to be ordered unless necessary in public interest to safeguard revenue by centralization of cases for co-ordinated investigation. Such an order cannot be passed arbitrarily and can be justified only if there are valid reasons. The principles of natural justice as well as the statutory provisions require that the reasons must be recorded in writing in the order itself and disclosed to the assessee to enable the assessee to take its remedies against such an order. At the same time, the power conferred for transfer cannot be interfered with having regard to the object for which such power is conferred. The petitioner was a resident of Ferozepur and was living at Chandigarh. He was a director of JBDPL and was also a partner in SD, who were both engaged in the distribution of medicines. JBDPL was a C & F agent of CCL, a Baroda company, and was looking after distribution of medicines in Punjab, Haryana, Himachal Pradesh and Chandigarh but there was no intermingling or interlacing of funds between the two companies. The business premises of the Baroda Company was searched. The business premises of JBDPL and residence of the petitioner were surveyed from where nothing incriminating was found. The petitioner received a show-cause notice to show cause as to why his case be not tagged with the Baroda company to which the petitioner replied that he being merely a director of a company which was distributor of the Baroda…

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