M/S. Girdhar Fiscal Services Pvt. Ltd v. The Principal Commissioner Of Income Tax(Central), Kolkata-2 & Ors

Form No. J.(2)Item Nos. 2 & 3 IN THE HIGH COURT OF JUDICATURE AT CALCUTTACIVIL APPELLATE JURISDICTIONAPPELLATE SIDEHEARD ON: 27.02.2024 DELIVERED ON: 27.02.2024 CORAM:THE HON’BLE MR. CHIEF JUSTICE T.S. SIVAGNANAMAND THE HON’BLE MR. JUSTICE HIRANMAY BHATTACHARYYA M.A.T. 1939 of 2023 WithIA No. CAN 1 of 2023WITH IA No. CAN 1 of 2023 M/S. Girdhar Fiscal Services Pvt. Ltd. Vs. The Principal Commissioner of Income Tax(Central), Kolkata-2 & Ors. with M.A.T. 1941 of 2023 With IA No. CAN 1 of 2023WITH IA No. CAN 1 of 2023 M/S. Golden Goenka Commerce Pvt. Ltd. Vs.The Principal Commissioner of Income TaxKolkata-1 & Ors. Appearance:- Mr. Avra MazumdarMs. Alisha DasMr. Suman BhowmikMr. Samrat Das Mr. Prithu Dudhoria ………for the appellant ………for the respondents in MAT 1939 of 2023 Ms. Smita Das De ……….for the respondents in MAT 1941 of 2023 JUDGMENT (Judgment of the Court was delivered by T.S. SIVAGNANAM, C.J.) In Re: I.A. No. CAN 1 of 2023 in M.A.T. 1939 of 2023& I.A. No. CAN 1 of 2023 in M.A.T. 1941 of 2023 1.We have heard Mr. Avra Mazumdar, learned advocate appearing for theappellant and Mr. Prithu Dudhoria and Ms. Smita Das De, learnedGovernment counsel appearing for the respondents. 2.There is delay of 35 days in filing the appeals. We have perused theaffidavits filed in support of the petition and we find that sufficient causehas been shown for not being able to prefer the appeals within the period oflimitation. 3.I.A. No. CAN 1 of 2023 in M.A.T. 1939 of 2023 and I.A. No. C.A.N. 1 of 2023in M.A.T. 1941 of 2023 are allowed and the delay in filing the appeals iscondoned. In Re: M.A.T. 1939 of 2023& M.A.T. 1941 of 2023. 4.Since the subject matter involved in these appeals are identical, both theappeals are taken up for hearing together and are being decided by thiscommon order, which will govern the fate of either of the two. 5.These intra-Court appeals have been filed against an order passed by thelearned Single Bench refusing to entertain a challenge to an order passedunder section 127 of the Income Tax Act, 1961.learned Single Bench refusing to entertain a challenge to an order passedunder section 127 of the Income Tax Act, 1961. 6.The appellants had approached the Court earlier and filed writ petitions,which were disposed of by directing the authority to afford an opportunityof hearing to the assessees and pass fresh orders. This opportunity wasafforded and certain reasons have been assigned by the Department forCentralising the Assessments at Lucknow. 7. We find that the reasons cannot be stated to be either arbitrary orunreasonable at this juncture as the facts have to be examined during thecourse of the assessment proceedings. Furthermore, the allegation is thatthe appellants being Girdhar Fiscal Services Group entity is alleged to havebeen providing accommodation entry/bogus unsecured loans to variousentities by routing the unaccounted income through their bank accountsand also engaged in routing the unaccounted income. We also find that theauthority, while passing orders under section 127 of the Income Tax Act,1961 in M.A.T. 1941 of 2023 has dealt with as to why the copies of theseized documents cannot be supplied to the assessee at this juncture. Wefind the said reason to be fully justified. 8. Thus, the department is of the considered view that due to the complexnature of mutual transactions, the case has to be centralised for thepurpose of clarity and coordinated inquiries. 9. Hence, the learned writ Court was fully justified in not granting any interimorder and we find no ground to interfere with the said order andaccordingly, the appeals fail and dismissed along with the connectedapplications. 10.No costs. 8. Thus, the department is of the considered view that due to the complexnature of mutual transactions, the case has to be centralised for thepurpose of clarity and coordinated inquiries. 9. Hence, the learned writ Court was fully justified in not granting any interimorder and we find no ground to interfere with the said order andaccordingly, the appeals fail and dismissed along with the connectedapplications. 10.No costs. 11.Urgent photostat certified copy of this order, if applied for, be furnished tothe parties expeditiously upon compliance of all legal formalities. the parties expeditiously upon compliance of all legal formalities. (T.S. SIVAGNANAM) CHIEF JUSTICEI agree. (HIRANMAY BHATTACHARYYA, J.) Pallab/KS AR(Ct.)