The court upheld the transfer of income tax assessment cases under Section 127 for coordinated investigation, affirming the necessity of administrative convenience and adherence to natural justice principles.

JUDGMENT :

S.S.SUNDAR, J.

All the above writ appeals arise against the similar orders passed by the learned single Judge dismissing the writ petitions filed by the appellants, challenging the proceedings under Section 127 of the Income Tax Act, 1961. The details of the impugned notification of the first respondent, writ petitions filed by the appellants, writ appeals and the date of orders passed by the writ court, are as follows:

2. Since the issues in all these appeals are common and the writ petitions are connected, all these appeals are disposed of by this common judgment.

3. The appellants in these appeals have filed writ petitions challenging the notifications issued by the first respondent in the respective writ petitions in exercise of his power conferred under Sub Sections 2 and 3 of Section 127 of the Income Tax Act, 1961 (in short, 'the Act'). By the order impugned in the writ petitions, the first respondent, had transferred the income tax assessment files pertaining to the appellants from the office of the second respondent to the office of the Deputy Commissioner of Income Tax, Circle-4(4), Kolkata (hereinafter referred to as 'Central Circle'), to centralise the case of the appellants for effective and co-ordinated investigation along with other cases.

4. The appellants in all these appeals are either private limited company or limited liability partnership or partnership concern or individuals, who are having business only in Tamil Nadu. It is admitted that there was a search and seizure action carried out in different premises of the appellants in relation to other entities located in West Bengal having business operations in Coimbatore too. Pursuant to the search operation, a show-cause notice was issued to the appellants as required under Section 127 of the Act, proposing to centralise the income tax files relating to the appellants to the Central Circle in Kolkata. The show-cause notice clearly indicates that some incriminating documents seized are interconnected and will affect the assessment of the appellants, the first respondent found it necessary to see the implications of the documents found at different places together. It is stated in the show-cause notice that since the incriminating documents seized at different places should be analysed at one place, all the cases should be considered together at one place so that there would be a meaningful and coordinated investigation.

5. In response to the show-cause notice, a reply was submitted by the appellants mainly on the ground that there is no finding involving the appellants and further stated that the Registered office of the appellants is located in Coimbatore or Chennai, as the case may be, the appellants contended that it is not possible for them to travel to Kolkata to present their case before the authorities at Kolkata. Further, it is also indicated that it would be expensive for the appellants to arrange or hire a local lawyer to conduct their cases. Since the authorities at Coimbatore or Chennai, as the case may be, is competent to undertake the assessment proceedings in the cases of the appellants, they hav