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2008] 306 ITR 162 [2007] 163 TAXMAN 412 (ALL.) HIGH COURT OF ALLAHABAD Bansal Sharevest Services Ltd. * v. Commissioner of Income-tax, Kanpur A.K. YOG AND DILIP GUPTA, JJ. C.M.W.P. NO. 221 OF 2006 FEBRUARY 21, 2006 Section 127 of the Income-tax Act, 1961 - Income-tax authorities - Power to transfer cases - Commissioner observed that documents seized during search conducted at premises of assessees' group revealed that assessees had been indulging in accommodation entries for financing share applications/gifts and statement of account obtained from banks at Mumbai during course of investigation revealed deposits of huge cash in bank accounts of various assessees belonging to group - Commissioner, accordingly proposed to transfer cases of assessees in question from Assessing Officer, Kanpur to Assessing Officer, Mumbai - Assessees raised main objection that transfer would cause inconvenience to them - Commissioner, rejected said objection on ground that director and key person of assessees' group had residence-cum-business premises at Mumbai - Whether, on facts, it could be said that order of Commissioner was either arbitrary or based on irrelevant or extraneous consideration or there was manifest error apparent on face of record - Held, no - Whether, therefore, instant case was not a fit case for interference under article 226 of Constitution - Held, yes FACTS The Commissioner observed that in the search conducted on 26-7-2003, at the premises of assessees group material had been found indicating large scale transactions in shares outside the Stock Exchanges; from the papers seized during the search, it transpired that the assessees had been indulg-ing in accommodation entries for financing share applications/gifts and in fact cash had been deposited in a number of bank branches and cheques were issued immediately afterwards of share applications/gifts and prima facie it was found that those were accommodation entires and not bona fide gifts. The Commissioner also found that at Mumbai, the SEBI team perused the Sauda Sheets at the office of 'R' one of the group member and found certain transactions which were not matching with the NSE trade details and the…

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