SUNANDA RANI JAIN Vs. UNION OF INDIA

JUDGEMENT

(1.) The facts leading to this petition, which has been filed under Articles 226 and 227 of the Constitution may be briefly stated. The petitioner is a partner of the firm known as M/s. Auto & Metal Engnieers having its factory on industrial plot No. 4 and parts of plots No. 3 and 5, NH 5, Faridabad and its office on a part of plot No.P/37-C, Faridabad. The firm is also registered under the Partnership Act. The two partners, namely, Smt. Sunanda Rani Jain and Smt. Karuna Jain are the wives of V. K.. Jain and S. K. Jain, respectively. On 24th April, 1971 three, raiding parties consisting of Income Tax authorities conducted raid on the residential- cum-ofiice premises of the petitioner, the factory premises of M;'s. Auto and Metal Engineers and the residential premises of Mr. and Mrs. S. K. Jain at Faridabad. In connection with the said raids three other Writ Petitions have been filed and heard along with this petition.

(2.) On 28th October, 1971, a notice was received by the petitioner from the Commissioner of Income Tax, Haryana & Himachal Pradesh, Delhi III, New Delhi informing her that it had been proposed to transfer this case from the Income Tax Officer, Faridabad to the Income Tax Officer, District III (9), New Delhi on account of administrative convenience and that if they had any objection it may be sent to reach on or before 8th November, 1971. A reply was sent objecting to the transfer; the assessee was further informed that the assessee should appear before the Commissioner on the 17th November 1971. Shri V.K.. Jain, General Manager of the petitioner's firm. appeared along with the counsel and reiterated the objections sent earlier. By order dated 24th November, 1971 the Commissioner transferred the petitioner's case from the Income Tax Officer, Faridabad, not to the Income Tax Officer, District III (9). New Delhi, as originally stated, but to the Income Tax Officer, District II (5), New Delhi in exercise of the powers conferred under section 127(1) of the Income Tax Act, 1961. The circumstances under which the transfer was effected are stated in the affidavit filed by Shri R. L. Malhotra, the then Commissioner of Income Tax. The case was not transferred to the Income Tax Officer, District lli(9), New Delhi because after the show cause notice was issued he had ceased to hold jurisdiction over District III (9) ; instead a new range was assigned to him which included several Income Tax Officers, including Income Tax Officer, District II (5). The transfer was made because it was his intention to transfer the case of the petitioner from the Income Tax Officer, Faridabad to any one of the other I. T. Os in his jurisdiction having his office located in Delhi itself.

(3.) The said transfer has been impugned on the following main grounds: