IDS Infotech Ltd. v. PCIT (2020)423 ITR 82/ 275 Taxman 358 (P&H) (HC)

S. 127 : Power to transfer cases – Survey – Purpose of transfer for co-ordinated investigation of connected cases — Possibility Of Involvement Of Scam having international ramifications —Transfer order is held to be valid. [S.133A Art .226 ]

Dismissing the petition, that when the survey was conducted a detailed questionnaire was put to the chairman-cum-managing director of the assessee, and the replies he had given to the questions indicated that he was aware of the reasons for which the assessments were transferred. The pleadings and the documents shown to the court in a sealed cover revealed that the assessees had full and complete knowledge of the reasons which had weighed with the competent authority while passing the order for centralization of the cases. The assessees in the replication had also not denied any of the averments made by the Department in the preliminary objections of their written statement. Vague and evasive replies had been given in the written statement and there was no categoric denial to the averment that the assessees were connected in some manner to the AW scam and to the case of the GK group of companies. Because of the possibility of the involvement of the assessee in a scam having international ramifications it might not have been possible for the Department to have expressed or given more reasons than were given in the order in question and, on the facts, it would be in the larger public interest, particularly when the reasons were well known to the assessees.