CHARAN PAL SINGH Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) This petition seeks quashing of the order dated June 8, 2006, annexure P-13, passed by the Commissioner of Income Tax, Bathinda, transferring the file of the petitioner-assessee from the file of the Assessing Authority, Ferozepur, to the file of Assessing Authority, Baroda under Section 127 of the Income Tax Act, 1961 (for short, "the Act").

(2.) The case of the petitioner is that he is the resident of Ferozepur and is living at Chandigarh. He is a director of M/s. Jay Bee Distributors (P.) Limited QBDPL) and is also a partner in M/s. Shubh Distributors, who are both engaged in the distribution of medicines. JBDPL is a C & F agent of M/s. Corned Chemicals Limited, Baroda (for short, "the Baroda company") and is looking after distribution of medicines in Punjab, Haryana, Himachal Pradesh and Chandigarh but there is no intermingling or interlacing of funds between the two companies.

(3.) On September 9, 2004, the business premises of the Baroda company was searched. The business premises of M/s. JBDPL and residence of the petitioner were surveyed from where nothing incriminating was found. The petitioner received a show-cause notice dated May 31, 2006, as to why his case be not tagged with the Baroda company to which the petitioner replied that he being merely a director of a company which was distributor of the Baroda company, there was no ground for transfer of his file to Baroda which is 1000 kms. away from his normal place of residence and when the petitioner had no business concern at Baroda. In spite of this, order of transfer has been passed relying on the Board's Instruction No. 5/2001, dated September 20, 2001, without a speaking order and in a mechanical manner.