I.P. Mukerji, J. - (1.) Regrettably the order under Sec. 127(2A) and Sec. 127(3) of the Income Tax Act, 1961 suffers from many infirmities. The assessment of the writ petitioners has been transferred from ACIT, Circle 45, Kolkata to DCIT/ACIT, Central Circle -I, Kanpur. The reasons advanced by the Income Tax department are these.
(2.) A search and seizure operation under Sec. 132 of the said Act was conducted against M/s. Frost International Group of Kanpur. The writ petitioners are having "substantial involvement in terms of financial transactions" with Frost. Secondly, "coordinated investigation" is required of Frost as well as of the writ petitioners. Thirdly, the case of the writ petitioners is required to be centralised with the assessing officer of Frost.
(3.) Mr. Khaitan, learned Senior Advocate for the petitioners, submits that the case of the petitioners, as contained in their reply to the show cause notice, was not considered at all. According to him, the writ petitioners were only buyers of items from Frost and there was no other relationship.;