M.M.Dutt, J. - (1.) In these appeals, the appellants, who are tea companies, have challenged the propriety of a direction given by the learned single judge while making the rules nisi obtained by the appellants on their applications under Article 226 of the Constitution absolute.
(2.) The appellants are all assessees under the I.T. Act, 1961. They were being assessed by the ITO, A-Ward, Karimgunj, Assam. The Central Board of Direct Taxes, in exercise of its power under Section 127 of the I.T. Act, 1961, by its order dated June 30, 1973, transferred the cases of the appellants from the ITO, A-Ward, Karimgunj, to the ITO, Central Circle XXXIII, Calcutta. The appellants being aggrieved by the said order of transfer moved this court under Article 226 of the Constitution and obtained the rules nisi out of which these appeals arise. They also obtained an interim order under which all further proceedings were stayed. On December 19, 1973, the interim order was varied by P.K. Banerjee J. at the instance of the revenue as follows : " The interim order is varied to the extent that the proceedings may continue and the final order be passed but it will not be given effect to or communicated pending the disposal of the Rules. The final order or any assessment order will be subject to the result of the Rules."
(3.) At the final hearing of the Rules, it was conceded by the learned advocate appearing on behalf of the revenue that in view of the observations of the Supreme Court in Ajantha Industries v. CBDT [1976] 102 ITR 281, the impugned order of transfer under Section 127 of the I.T. Act, 1961, could not be sustained as the same did not state any reasons for the transfer of the cases of the appellants from the ITO, A-Ward, Karimgunj, to the ITO, Central Circle XXXIII, Calcutta. It was, however, prayed on behalf of the revenue that the court should give a direction for assessment in consequence of and in order to give effect to the finding that the order of transfer was invalid. The said prayer was opposed on behalf of the appellants.;