VISHAL KUMAR Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) This writ petition impugns an order under Section 127 of the Income Tax Act, 1961 ("the Act") passed by the CIT (XVI), New Delhi, as a result of which jurisdiction over the writ petitioner (i.e. the assessee) has been transferred from the DCIT, Circle 48(1), New Delhi to the ACIT, Central Circle, Noida.

(2.) On 9.10.2013, the CIT, New Delhi issued a show-cause notice to the petitioner under Section 127 of the Act proposing the transfer, in the following terms:

(3.) At this stage, it is important to note the background in which this show-cause notice was issued. The show cause notice pertains to the centralization of the petitioner's case with the CIT, Faridabad, along with the group of cases concerning the Eldeco Group of Companies. The petitioner is the Managing Director of Xander Advisors Pvt. Ltd. ("XAPL"), a company incorporated in India, with its registered offices in Delhi. XAPL are engaged as advisors by Xander Investment Management, Mauritius, which in turn renders advisory services to Xander Investment Holding Limited III ("XIH III") and Xander Investment Holding Limited IV ("XIH IV"), both incorporated in Mauritius. XIH III and XIH IV are foreign shareholders of Indian incorporated companies belonging to the Eldeco Group, including importantly Eldeco Jalandhar Properties Private Limited and Eldeco City Private Limited, which carry-out construction activities in Punjab and Lucknow respectively. The petitioner states categorically that these two companies "are special purpose vehicle companies promoted by Eldeco group." It is in this context of the inquiry into the income of the Eldeco Group of Companies, and the search and seizure operations conducted under Section 132 of the Act at the premises of Xanders Advisors and Xander Finance Private Limited, that the show-cause notice were issued.