2014 (3) TMI 473

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....e Commissioner of Income Tax exercising the power under Section 127 of the Income Tax Act, 1961 (hereinafter called the "Act, 1961") transferred the case of the petitioner from Additional CIT Range-2 Kanpur to ACIT Central Circle Meerut. Brief facts necessary to be noted for deciding the writ petition are:A search and seizure operation took place under Section 132(1) of the Act on 27/10/2005 against Dr. G.P. Elhence, Smt. Radhey Elhence and Dr. Anil Elhence. The petitioner, being daughter in law of Dr. G.P. Elhence, Smt. Radhey Elhence at the relevant time was residing at the premises A-130 Shastri Nagar, Meerut and an amount of Rs.45,000/- was found from the room of the petitioner out of which Rs. 40,5000/- was seized. A notice under Sect....

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.... Meerut. The Commissioner of Income Tax in his order dated 27/4/2007 has referred to the reply submitted by the petitioner and after noticing the contention of the petitioner passed an order for transfer of the said case which is under challenge in the present writ petition. Learned counsel for the petitioner challenging the order impugned contended that the order does not contain any valid and germane reason in exercising the power under Section 127(2) of the Act. He submits that recording of reason and reasons being relevant and germane are condition precedent in exercising the power under Section 127(2) of the Act. He has placed reliance on a Division Bench judgment of this Court in Sahara Airlines Ltd. & Ors Vs. Director General of Inc....

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....or such evidence, as may be available, but if reasons are absurd or non-existent, mere recording of statement of reasons would not be sufficient to hold the order as valid for the compliance of the requirement of recording reasons. But the sufficiency or adequacy of material for recording such reasons, may not be a factor to raise a plea of quantitative insufficiency of material, so as to make the reasons recorded as arbitrary or bad." In Vijay Kumar Gauri Shanker's case (supra) following was laid down in paragraph 12. "12.It is therefore imperative upon the concerned authority while exercising power to transfer proceedings which may cause inconvenience and prejudice to the assessee to show conscious application of mind at the appropr....

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....se No.A-130, Shastri Nagar, Meerut which was covered under the search and seizure operation. This house property belongs to her father-in-law Dr G.P. Elhence. Not only this, during the course of search operation, cash of Rs 45,000/- was found from her room in the house no A-130 Shastri Nagar, Meerut out of which Rs 40,500/- was seized. This fact was brought to the notice of the assessee vide letter dated 13-03-2007 reproduced above. In view of these facts, the case of the assessee is clearly connected with the case of Dr G.P. Elhence, Dr. Anil Elhence and Smt. Radhey Elhence in whose names, warrant was issued and search and seizure operation was conducted. Further, the facts of the case of the assessee are distinguishable from that of the c....