Kasana Foods Pvt.ltd. And Anr v. The Commissioner Of Income-Tax & Ors

IN THE HIGH COURT OF JUDICATURE AT BOMBAY CIVIL APPELLATE JURISDICTION Writ petition NO. 1516 of 2005 Kasana Foods Pvt.Ltd. and anr.. ... Petitioners vs. The Commissioner of Income-tax & ors. . ... Respondents Mr. Chetan Kapadia i/b. Shreeji & Lal for Petitioners Mr. A. K. Kotangale for Respondents. CORAM:S. RADHAKRISHNAN ANDA. S. AGUIAR J.J. P.C. Date: 13/6/2005 1. Heard learned counsel for the Petitioners and the Respondents. 2. By this petition the Petitioners are challenging the order dated 30[th]March 2005 passed by the Commissioner of Income-tax VIII,Mumbai, under section 127(2) of the Income Tax Act 1961. There isno dispute that the Petitioners were given a prior show cause noticeand thereafter the impugned order came to be passed. The showcause notice is dated 11[th] March 2005. The show cause noticeclearly indicates that the raid had taken place with regard to KasanaFoods (P) Ltd., and Haldiram Bhujiyawala Group, who wereinterconnected and during the search and seizure operation materials were seized and on verification of details the Income Taxauthorities found that it would be proper to centralize with ACIT,Central Circle 2(2), Nagpur for coordinate investigation. Accordinglyshow cause notice was issued to the Petitioners to file objection , ifany with regard to the proposed transfer / centralization of thecases. After hearing the Petitioners fully the CIT-VIII, Mumbai byan order dated 30.3.2005 found that the Petitioners also belonged toHaldiram Bhujiyawala Group and that search under section 132 ofthe I.T. Act has been conducted in the group of cases on 20.1.2005and to facilitate coordinated and detailed investigation in the group ofcases , centralization of the cases with the ACIT, Central Circle -2(2)was necessary. 3. Learned counsel for the Petitioners sought to rely on the judgmentof the Calcutta High Court, reported in 1997 TAX L.R. 328(Chotanagpur Industrial Gases (P) Ltd. Vs. Commissioner ofIncome Tax). In the said case no grounds or reasons for theproposed transfer of cases were indicated in the show cause notice,and in view thereof the Calcutta High Court had interfered. In thepresent case in view of the material disclosed during the search itwas felt that it was necessary to centralize the investigation atNagpur. The above reason has been disclosed in the show causenotice. Therefore , the aforesaid decision will be of no help to the Petitioners. Personal inconvenience of an assessee cannot over ridea public interest necessitating such transfer and as such theaforesaid centralization of investigation at Nagpur cannot be faultedwith. There is no dispute that the Petitioners are in fact havingmanufacturing activities as well as their office at Nagpur. Underthese circumstances we do not find any illegality or perversity in theaforesaid order. Hence the petition stands dismissed. S. RADHAKRISHNAN J. A. S. AGUIAR J. -x-