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2013 (10) TMI 289 - BOMBAY HIGH COURTTransfer of case - Reasonableness of order passed by Commissioner u/s 127 of the Income Tax Act – Held that:- While exercising its power of transferring proceedings under Section 127(2) of the Act, the Commissioner of Income Tax has exercised the discretionary power vested in him to transfer the case from one Assessment Officer to another - Section 127 of the Act itself does not circumscribe/limit the power of a Commissioner of Income Tax to transfer Assessment Proceedings from one Assessing Officer to another but has left it to the judgment of the Commissioner of Income Tax to exercise his discretion in a reasonable manner. To ensure that the Commissioner of Income Tax exercises his discretion in a just and reasonable manner he has to record reasons for doing so. If the reasons are arbitrary, the Court will set aside the order of transfer. In the present case, Commissioner of Income Tax has so recorded reasons while exercising his powers and these reasons are that the substantial transactions of petitioner with related parties i.e. entities belongs to Sahara Group of Companies. Therefore, so long as reasons indicated in the order are neither arbitrary and/or unreasonable, Court would not be justified in setting aside the impugned order passed by the Commissioner of Income Tax under Section 127(2) of the Act. Therefore, reason/purpose for coordinated investigations and assessments viz: the substantial financial transactions of the petitioner with the various entities within the Sahara Group of Companies is not perverse or arbitrary – Decided against the Assessee.
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