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2024 (5) TMI 456 - DELHI HIGH COURTTransfer / Centralization order u/s 127 - cases of the assessees are centralized to the board of Deputy Commissioner of Income Tax [‘DCIT’], Central Circle, Karnal, Haryana - link between the assessee and the searched party - HELD THAT:- Order passed under Section 127 of the Act should duly reflect the application of mind while disposing of the objections filed by the assessee - convenience of parties shall be considered by the Revenue while exercising the powers u/s 127 of the Act, however, in view of the administrative nature of such an order, the administrative convenience of the Revenue and the need for ‘coordinated investigation‘ would take precedence over the logistical difficulties faced by the assessee. It is also fundamental to point out that despite being a machinery provision, the reasons recorded in the order of transfer should not be capricious or mala fide and such order shall not run contrary to the bona fide objectives of the Act. As it is evident from an ex facie reading of the impugned order that an opportunity of hearing was given to the assessee and the Revenue has considered the objections raised by the assessee before passing the impugned order, and moreover, the case of the assessee was centralized on the grounds of ‘coordinated enquiries, investigations and administrative convenience’, therefore, the contention of the assessee that the impugned order reflects no application of mind and the Revenue had not considered the objections raised by the assessee holds no merit. Also the notice points out that due to the search conducted in the cases of Mr. Anil Chaudhary, Mr. Jitender Singh (alias Rakesh), Mr. Bharti Sehgal and Mr. Dheeraj Bakshi on 11 April 2023, the assessee was called upon to furnish the details - contention of the assessee that he was nowhere related to the abovementioned individuals and thus there was no need to centralize the cases of the assessee is not justified in that contention as the details furnished by the assessee in response to the notice dated 26 April 2023 would indicate that certain transactions pertaining to the unsecured loans exist between the assessee and the searched persons. Revenue before passing the impugned order has provided the opportunity of hearing to the assessee [Mark Gulati] and considered the assessee‘s [Mark Gulati] objections, thus, the order would reflect that the Revenue had duly applied its mind and powers under Section 127 was invoked on the grounds of administrative convenience and meaningful assessment. Powers of Section 127 of the Act can be invoked for public interest and administrative convenience. Furthermore, the ground of ‘coordinated investigation‘ is a good ground of transfer as upheld by various decisions quoted above. Thus we are hereby not inclined to interfere with the orders passed under Section 127 of the Act.
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