RATHI AND COMPANY Vs. UNION OF INDIA

JUDGEMENT

(1.) In both the writ petitions, the petitioners have assailed the legality and validity of the order dated 6.11.2003 passed by the Commissioner of Income Tax Guwahati-II, Guwahati transferring the Income Tax and Wealth Tax cases of the petitioners as mentioned in the schedule to the order from the assessing officers of Guwahati to the assessing officer in Kolkata Since the common questions of fact and law are involved in both the writ petitions pertaining to the same order of challenge on the same very grounds and as agreed to by the learned counsel for the parties, both the writ petitions have been heard together for decision and disposal. The learned counsel for the parties also agreed for disposal of the writ petitions at the motion stage itself after advancing their elaborate arguments and on production of the records by the learned Standing Counsel, Income Tax Department.

(2.) Adverting to the facts of the case, the petitioners are individual partnership firms carrying on the business of supply of and trading in food grains. Their respective registered offices are situated in Guwahati. They are Income Tax assesses. There are four partners each relating to their respective firms. According to the averments made in the writ petition the partners of the petitioners partnership firms have their separate business interest/ventures in the form of sole proprietorship/partnership which are totally unconnected with the affairs and the business of the petitioners.

(3.) On 12.3.2003, the Income Tax Department conducted a survey under Section 133 A of the Income Tax Act, 1961 in the business premises and godowns of the petitioners. Various books of account and documents were impounded during the said survey alongwith stock of food grains which were duly inventorised and copies of such inventories were duly furnished to the petitioners. The Income Tax Department also conducted search and seizure operations in the residential premises of the partners at Siliguri, Mirik and Ningalia in the State of West Bengal and at Kanpur in the State of U.P. and in Guwahati. Several documents and books of accounts were seized from the business/residential premises of the partners of the petitioners which according to them are totally unconnected with the business and affairs of the petitioners and that such search and seizure operations relating to the said partners are solely in connection with the individual business of the said partners totally unconnected with the business of the petitioners.