Summary
- The Calcutta High Court has quashed an order transferring Loknath Prasad Gupta's income-tax case from Kolkata to Delhi, citing a lack of sufficient grounds under Section 127 of the Income Tax Act, 1961.
- Gupta, managing director of Raja Udyog Private Limited, argued that his isolated business advance of Rs. 2.82 crore to GMZ Commodities India Pvt. Ltd. did not establish a group nexus warranting the transfer.
- The Court found that the Revenue failed to demonstrate interconnection with the searched NML Group and noted that the transfer would cause significant operational hardship to Gupta.
- This ruling reinforces the need for clear justification in jurisdiction transfers, ensuring taxpayer rights are protected amid investigations.
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