M/S KUANTUM PAPERS LIMITED V. UNION OF INDIA AND ORS.

CWP/14461/2013

AI Insights

In the case of M/S Kuantum Papers Limited vs. Union of India and others, the petitioner challenged the transfer of assessment proceedings to Ghaziabad by respondent No.4, originally transferred to Patiala. The petitioner argued that the order for re-transfer lacked any reasoning, which is a legal requirement. The respondents contended that the terms 'Coordination' and 'Administrative Convenience' used in the order implied the reasons for the transfer. The court found the order deficient as it did not specify the reasons for the transfer or re-transfer, leading to the decision to set aside the order and mandate a new one with reasons.

• Counselvise Citation: [2013] 140 COUNSELVISE.COM (IT) 737554 (HC-CHANDIGARH)
• Appeal Type: Others
• Pronouncement Date: 20-09-2013
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: RAJESH KATOCH
• Assessee Lawyers: MUNISHA GANDHI; VAIBHAV SHARMA
• Keywords: Administrative convenience; Assessment proceedings; Coordinated investigation; Writ of Certiorari
• Section: 127(2)

Judgement Text

"HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH. **** CM No. 12173 OF 2013 and CWP No. 14461 of 2013 (O&M) Date of decision: 20.9.2013. *** M/S Kuantum Papers Limited Vs. Union of India and others. *** CORAM: HON'BLE MR. JUSTICE RAJIVE BHALLA HON'BLE MR. JUSTICE DR. BHARAT BHUSHAN PARSOON Present: Ms. Munisha Gandhi, Advocate, and Shri Vaibhav Sharma, Advocate, for the applicant-petitioner. Shri Rajesh Katoch, Advocate, for the respondents. RAJIVE BHALLA, J (ORAL) CM No. 12173 of 2013 Counsel for the parties agree that the petition may be taken up for hearing and decided on the merits of the case. CM stands disposed of accordingly CWP No. 14461 of 2013 The petitioner prays for issuance of a writ of certiorari setting aside order dated 26.6.2013, whereby respondent No.4 has transferred assessment proceedings to Ghaziabad. Counsel for petitioner submits that apart from the fact that the impugned order is devoid of any reason much less reasons as required by law, the assessment was originally transferred to Patiala but for reasons that have not been disclosed has once again been re- transferred to Ghaziabad. The impugned order does not contain any reasons whether for transfer or for re-transfer of assessment proceedings from Patiala to Ghaziabad. Counsel for the respondent states that the use of the words Subhash Malik 2013.10.03 15:34 I attest to the accuracy and integrity of this document Chandigarh -2- CWP No. 14461 of 2013 “Coordination” and “Administrative Convenience” are sufficient to infer reasons that compelled transfer of assessment proceedings. Even otherwise the respondents are not required to pass a judicial much less a quasi-judicial order. An order under Section 127(2) of the Income Tax Act, 1961 (hereinafter to be referred to as the “Act, 1961”) is administrative in nature, dependent upon “administrative convenience” and the need for “coordinated investigation”. As the matter in dispute involves a large number of assessees residing at different places including Ghaziabad, the revenue deems it appropriate to assess the parties at Ghaziabad. We have heard counsel for the parties, perused the impugned order and are satisfied that it does not meet the parameters of an order required to be passed under Section 127(2) of the Act. Apart from use of the words “Coordinated Investigation” and “Administrative Convenience”, the order does not record the nature of “Coordinated Investigation” and “Administrative Convenience”, that necessitated transfer. This apart as assessment proceedings were transferred from Delhi to Patiala in (CWP No. 14461 of 2013 and in CWP No. 8768 of 2013) no reason has been assigned for their re- transfer to Ghaziabad. The mere use of the words “Coordinated” and “Administrative Convenience ” does not absolve the department of its obligation to assign reasons, howsoever brief and in CWP Nos. 14461 and 8768 of 2013, reasons that compelled the revenue to order transfer from Delhi to Patiala and then from Patiala to Ghaziabad. The words “Coordinated Investigation” and “administrative coordination” are not a magic wand that the revenue can waive without intimating the reasons underlying the need for transfer. The question is not whether an order is quasi judicial or administrative but whether rights of a party Subhash Malik 2013.10.03 15:34 I attest to the accuracy and integrity of this document Chandigarh -3- CWP No. 14461 of 2013 can be adversely effected, without assigning any reason? The answer to this question is obviously that reasons, howsoever brief must be assigned before passing such an order. It would be appropriate to point out that nine assessees reside in Punjab. In this view of the matter, we allow the writ petition, set aside the impugned order and direct the Commissioner of Income Tax, Ludhiana to pass a fresh order and while doing so to assign reasons, howsoever brief, including reason for retransfer from Patiala to Ghaziabad. While dealing with the matter, the officer may consider whether he has power to re-transfer an assessment already transferred to a particular jurisdiction. The needful be done within one month of receipt of a certified copy of this order. The observations recorded hereinabove shall not be construed as an expression of opinion on merits whether in favour of or against the petitioner or the revenue. (RAJIVE BHALLA) JUDGE 20.9. 2013 (DR. BHARAT BHUSHAN PARSOON) MALIK JUDGE Subhash Malik 2013.10.03 15:34 I attest to the accuracy and integrity of this document Chandigarh "