RAJ KUMAR SINGHANIA Vs. UNION OF INDIA

JUDGEMENT

(1.) IN this writ application under Article 227 of the Constitution of India the petitioner has prayed for quashing the order dated 9.3.2007 passed by Commissioner of Income Tax, Hazaribagh under Sec. 127 of the Income Tax Act, 1961 (shortly the Act) whereby and where under the case of the petitioner has been transferred from the Income Tax Officer Ward 1 (2), Hazaribagh to Assistant Commissioner of Income Tax CC 3 New Delhi.

(2.) PETITIONER 's case is that his main business is manufacturing and selling of cement under the name and style of 'Sheo Shakti Cement Industries' having its head office at Kolkata and factory at Demotand, Hazaribagh where the petitioner has to stay for looking after day to day business affairs. The petitioner is also the Managing Director of M/s. Orbit Industries Ltd. and M/s. Lido Commercial Company Ltd. having registered office at Kolkata and assets at Kolkata also. Petitioner's further case is that he has to look after his family business in Bengal, Bihar, and Jharkhand and maintaining family Income tax files in Kolkata and Hazaribagh. The group cases of the petitioner consist of the ten files which belong to the family of the petitioner. Out of the said ten files nine files are assessed at Kolkata and one in the individual name of the petitioner is at Hazaribagh. Petitioner's further case is that he went to Delhi on or about the middle of January 2006 for certain property dealing and a search and seizure was conducted at the premises of Mr. Praveen Jain, the property dealer on 22.6.2006. During the course of somesearch papers relating to sales/purchase of property were found from the premises of Shri Praveen Jain and consequently a seizure was conducted at the premises at 104, New Rajdhani Enclave, Delhi which belong to M/s. Orbit Industries Ltd. where the petitioner is Director. It is stated by the petitioner that for the purpose of buying peace he surrendered a sum of Rs. 3,23,50,000.00 as additional income for the assessment year 2006 -07 on the basis of paper in search and seizure in a search and seizure proceeding in Delhi. Accordingly the petitioner was served with a show cause notice dated 27.2.2007 issued by the Commissioner of Income Tax, Hazaribagh asking the petitioner to show -cause as to why his case be not transferred to the Assistant Commissioner of Income Tax New Delhi for centralized investigation in the group's cases in view of search conducted in New Delhi. The petitioner submitted his show cause and it was explained that all the files relating to the property of the petitioner are, at Kolkata except one which stands in the name of the petitioner at Hazaribagh and accordingly it was requested that centralized investigation can be done at Kolkata instead of New Delhi. After hearing the counsel for the petitioner, the impugned order was passed by the Commissioner, Commercial Taxes, Hazaribagh whereby the case of the petitioner has been transferred from Income Tax Officer, Hazaribagh to the Income Tax Office of Assistant Commissioner of Income Tax, New Delhi.

(3.) MR . K.K. Jhunjhunwala learned Counsel appearing on behalf of the Revenue drew our attention to the counter -affidavit and submitted that the Commissioner of Income Tax, New Delhi gave his concurrence for centralization of the above cases with Assistant Commissioner of Income Tax Central; Circle New Delhi and accordingly, requested the Commissioner of Income Tax, Hazaribagh to pass order under Sec. 127(2) of the Act. The Commissioner of Income Tax, New Delhi also concurred for centralization of the case with Assistant Commissioner of Income Tax, Central Circle, New Delhi. Learned Counsel further submitted that search and seizure was conducted in case of R. K. Singhania along with 12 others. All the cases are closely connected. Learned Counsel lastly submitted that the impugned order has been passed in full compliance of the provisions contained in Sec. 127 of the Act.