Law: Income Tax Act, 1961

Section: 127,127(2)(a)

Income-tax--Transfer of case---Jurisdiction to transfer case---Director-General, Chief Commissioner and Commissioner have jurisdiction to transfer cases---Indian Income Tax Act, 1961, S.127. (b) Income-tax--- ----Transfer of case ---Co-ordination of investigation is a good ground fog such transfer---Search operations revealing that close relatives of an ex-Minister who were partners in a firm in Madras were assessed in New Delhi and that there was no evidence of business activity of firm in Madras--- Transfer of case of firm from Madras to New Delhi to facilitate investigation---Transfer was valid---Indian Income Tax Act, 1961, S.127. Subsection (2)(a) of section 127 of the Income Tax Act, 1961, makes it clear that all the three authorities mentioned in it, namely, the Director`-General, the Chief Commissioner or the Commissioner are competent to order transfer of cases. The object of transfer of a case is to achieve the object of the Act. If co-ordinated investigation is necessary for the purpose of proper assessment, prevention of evasion of tax, collection of tax and other relevant matters, then proper and co-ordinated investigation is a good ground for transfer of the case. A search and seizure operation was conducted in the petitioner's premises as part of a larger operation conducted at the premises of K, an ex-­Minister, and his business associates. During the search and seizure, the documents seized were partnership deeds executed at Madras by the partners of the petitioner-firm including Smt. SP, mother-in-law of the ex-Minister, and one K the partnership deed between the ex-Minister's mother-in-law, his son, K and SK were also seized. The said partnership deed was executed to carry on the business of trade and export of goods under the name and style of General Exporters at Madras. The ex-Minister's son and mother-in-law were assessed in New Delhi. Taking into consideration the above facts, the CIT, New Delhi had apprised the CIT, Madras, of the necessity for the transfer of the case from Madras to New Delhi and the first respondent prima facie concurred with the proposal of the second respondent, and -issued the show-cause notice and thereafter…

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