Transfer orders under income-tax law must address assessee objections and reflect real application of mind before transfer.

An order transferring income-tax cases under section 127(2) must show real application of mind to the assessee's objections and the relevant factors relied on for transfer. A bare statement that objections were considered, coupled with references to administrative convenience and coordinated investigation, is insufficient if the order does not disclose how the specific objections were answered. The transfer order was therefore held invalid for non-application of mind and was set aside, with liberty to pass a fresh order after hearing the assessees and dealing with their objections.

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Issues: Whether an order transferring income-tax cases under section 127(2) was vitiated for failure to deal with the assessee's objections and for want of proper application of mind.

Analysis: The transfer order stated only that the objections had been considered and that the transfer was for administrative convenience and coordinated investigation, but it did not disclose how the specific objections raised by the assessee were answered. An order under section 127(2) must reflect due consideration of the objections filed in response to the show-cause notice and must show a real application of mind to the relevant factors. A bare recital that objections were considered is insufficient where the order gives no indication of the basis on which the transfer was ordered.

Conclusion: The transfer order was invalid for non-application of mind to the objections and was set aside, with liberty to the Commissioner to pass a fresh order after hearing the petitioners and dealing with their objections.

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