KADER HAJI Vs. CIT

JUDGEMENT

(1.) The question that arises for consideration in this case is whether block assessment under Chap.14B of the Income Tax Act, 1961 would fall within the meaning of "case" in Explanation to S.127 of the Income Tax Act enabling the Chief Commissioner of Income Tax to transfer block assessment to a subordinate officer.

(2.) The assessee was borne on the rolls of the Income Tax Officer, Ward I , Mercara. Original assessee expired after the proceedings in the appeal and is now represented by his son, the legal heir. The original assessee was a timber merchant having business interests in Mattanur in Kerala State and Mercara in Karnataka State. Search was conducted by the Income Tax Department on 22.11.1995 in the residence and business premises of the assessee, his sons and other associates. Consequent to the search proceeding under S.132 of the Income Tax Act it was proposed to transfer the case to the Income tax (Inv.) Circle, Calicut to" facilitate effective and coordinate investigation. The Chief Commissioner of Income Tax, Bangalore, Karnataka in exercise of the powers under S.127(2) of the Income Tax Act transferred the case of the assessee to the jurisdiction of the Assistant Commissioner of Income Tax, Investigation Circle I, Calicut, Kerala, vide proceedings dated 28.2.1996. The assessing officer issued a notice under S.158BC to file a return setting forth the total income including undisclosed income for the block period.

(3.) The assessee filed a writ petition in the High Court of Karnataka challenging the order passed by the Chief Commissioner of Income Tax, Bangalore contending that the show cause notice issued by the Chief Commissioner did not contain the entire reasons which prompted him to pass the impugned order. The High Court rejected the plea of the assessee and dismissed the Writ Petition on 8.8.1996. Against that judgment, Writ Appeal Nos. 8551 and 8552 were filed and the appeals were dismissed on 10.10.1996.