Following a search and survey operation on entities in Jaipur and the Assessee and its companies in Mumbai, an order was passed transferring the assessment jurisdiction from Mumbai to Jaipur. The Assessee challenged this transfer on the grounds that no incriminating material was found during the survey operation, neither in the case of the Assessee nor in the case of the company in Jaipur.

The Court noted that the affidavit in reply did not contain specific averments about any incriminating material discovered during the search. Additionally, neither the show cause notice nor the transfer order addressed the Assessee’s contention that no incriminating material connecting the two entities in Mumbai and Jaipur was found. The Court observed that all the proceedings were initiated based on speculation that the seized documents and data might be related to the Assessee and other entities. When centralizing proceedings, it is crucial to establish the relationship between the two entities. However, the Revenue failed to provide any reasons except speculation for centralizing the case. Accordingly the transfer held to be invalid. (AY. 2021-22)