Bhupinder Singh v. Principal Commissioner of Income Tax Chandigarh

DEEPAK SIBAL, J.

¶1Through the instant petition, the petitioner challenges order dated 08.09.2025, passed under Section 127(2) of the Income Tax Act, 1961 (for short – the 1961 Act) by the Principal Commissioner of Income authenticity of this document

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Tax Chandigarh-I (for short - the PCIT,oChandigarh-I) transferring the jurisdiction of the petitioner to be assessed from DCIT Circle I (1), Chandigarh to ACIT/DCIT Central Circle, Panaji. o RELEVANToFACTSo

2.o o Ono08.01.2025oandootherosubsequentodates,osearchoandosurveyo proceedingsounderoSectionso132oando133Aoofotheo1961oActowereoconductedo byo theo Incomeo Taxo authoritieso ato variouso premiseso ofo M/so Blueo Oceano BeveragesoPrivateoLimited,oPanaji,oGoao(foroshorto–oM/soBlueoOcean).ooSinceo M/soAarohaoAlcobevoDistributionoPrivateoLimited,oNewoDelhio(foroshorto–o M/soAaroha)owasofoundotoobeooneoofotheomainodistributorsoofoM/soBlueoOcean,o theo searcho ando surveyo proceedingso ofo M/so Blueo Oceano ledo too surveyo proceedingsounderoSectiono133Aoofotheo1961oActoatotheopremisesoofoM/so Aaroha.oOnotheobasisoofoevidenceofoundoagainstotheopetitioneroduringotheoaforeo searchoandosurveyoproceedings,otheopetitionerowasoissuedosummonsodatedo

26.03.2025obyoDCIT/ADITo(Investigation),oPanajiounderoSectiono131(1A)oofo theo1961oActoasoperowhichotheopetitionerowasorequiredotooattendotheoofficeoofo theoDDIT/ADIT(Investigation),oPanajioono31.03.2025oato2.30oPMotooproduceo eithero personallyo oro througho ano authorizedo representativeo hiso bookso ofo accountsoandootherodocumentsospecifiedoinosuchonotice.ooInopursuanceotootheo saidosummonsotheopetitioneroappearedobeforeotheoconcernedoRevenueoOfficero atoPanaji.ooThereafter,othroughonoticeodatedo08.07.2025,oissuedounderoSectiono 127(2)o ofo theo 1961o Act,o byo theo PCIT,o Chandigarh-I,o theo petitionero waso grantedoanoopportunityotooshowocauseoasotoowhyohisocaseoforoassessmentobeo notocentralizedoinoPanaji.ooThroughothisonoticeotheopetitionerowasoinformedo thatosearchoandosurveyoproceedingsoconductedounderoSectiono132oando133Ao

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ofotheo1961oActoatotheobusinessoandoresidentialopremisesoofoM/soBlueoOceano andoitsoentireogroupohadoledotoosurveyoproceedingsoatotheopremisesoofooM/so Aarohaowhereinoincriminatingoevidenceohadobeenofoundoquaotheopetitioneroofo havingo receivedo undisclosedo casho amounto ofo Rs.10o croreso fromo Gauravo SharmaoinoconnectionowithotheosaleoofoM/soQueenoDistillersoandoBottlerso PrivateoLimited,oChandigarho(foroshort-oM/soQueenoDistillers).oSinceotheo inquiryointooorganized/osystematicoaccounts/ofraudobyoM/soBlueoOceanowaso beingoconductedoatoPanajioandothatoevidenceoagainstotheopetitionerohadoalsoo beenofoundoduringotheocourseooforelatedosurveyoproceedingsowhichowereoallo interlinked,oanoopportunityowasograntedotootheopetitionerotooshowocauseoasotoo whyohisocaseobeonotocentralizedotoobeoconsideredoalongwithootherorelatedocaseso atoPanaji,oGoa.ooThroughohisoreplyodatedo09.07.2025otheopetitioneroobjectedo tootheotransferoofohisocaseofromoChandigarhotooGoa.ooHeorequestedoforobeingo providedoallodocuments/omaterialowhichoformedotheobasisoforotransferoofohiso caseoandoalsoosoughtopersonalohearing.ooThroughonoticeodatedo18.08.2025,o issuedobyoPCIT,oChandigarh-I,otheopetitionerowasothenograntedoanoopportunityo too attendo theo officeo ofo theo saido officero eithero personallyo oro througho ano authorizedorepresentativeoono26.08.2025oato3.30oPMotooshowocauseoasotoowhyo hisocaseobeonototransferredotoobeoassessedoatoPanaji,oGoa.oOno26.08.2025,otheo petitioner,o througho hiso Charteredo Accountant,o filedo ao detailedo responseo objectingotootheotransferoofohisocaseofromoChandigarhotooGoa.ooHisoobjectionso includedolackoofoevidenceowithoregardotoohimohavingoreceivedocashofromo GauravoSharmaoandoabsenceoofoanyolinkobetweenotheotransactionoofosaleobyo himoofoM/soQueenoDistillersotooGauravoSharmaoandotheoproceedingsoagainsto

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M/soBlueoOcean.oItowasofurtherohisocaseothatotheoproposedotransferowouldo resultoinoavoidableohardshipoandoinconvenienceotoohim.oo

3.o o Afteroconsideringotheopetitioner'soobjections,ofiledobyohimotootheo proposedo transfero ofo jurisdictiono too assesso himo ato Panaji,o theo PCIT,o Chandigarh-I,othroughoorderodatedo08.09.2025,opassedounderoSectiono127(2)o ofotheo1961oAct,owasoofotheoviewothatothereowasooenoughoincriminatingo evidenceofoundowithoregardotoohugeoamountsoofoundisclosedocashoreceivedobyo theopetitioneroinotheosaleoofoM/soQueenoDistillersotooGauravoSharmaowhicho wasointerlinkedowithotheoinquiryobeingoconductedoagainstoM/soBlueoOceano andoitsogroupocompaniesowithoregardotoomanipulationoofoaccounts/ofraudoetc.oo Therefore,oitowasoinopublicointerestothatoallotheomatters,oincludingothatoofotheo petitioner,obeocentralizedoatoPanaji,oGoaoespeciallyowhenobothotheorevenueo authoritiesoatoGoaoandoChandigarhohadoalsoonooobjectionotootheosame.ooOnotheo issueoofoinconvenienceoandohardshipoitowasoobservedothatoinotheseodaysoofo technologicaloadvancementotheophysicalopresenceoofotheopetitionerowouldonoto beonormallyorequiredoasotheseoproceedingsowereomostlyoinodigitaloform.ooTheo orderodatedo08.09.2025,opassedobyotheoPCIT,oChandigarh-I,oisotheosubjecto matteroofochallengeothroughotheoinstantopetitionoatotheopetitioner'sobehest.o SUBMISSIONSo

4.o o Learnedoseniorocounseloappearingoforotheopetitionerosubmittedo thatotheosearchoandoseizureooperationsoatotheopremisesoofooM/soBlueoOceanoato GoaohadoledotootheosurveyooperationsoatoM/soAarohaoatoNewoDelhiowhichohado furthero ledotootheo allegedo discoveryoofo evidence,othrougho Lokesho Saran,o Managingo Directoro ofo M/so Aaroha,o witho regardo too certaino allegedo casho transactionobetweenotheopetitioneroandooneooGauravoSharmaoinotheosaleoofoM/so

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QueenoDistillersoatoChandigarhobyotheopetitioner;oevenoifoitoisoassumedothatoino theoaforesaidosaleotransactionotheopetitioneroreceivedoundisclosedocash,osucho transactionodoesonotoestablishoanyonexusobetweenotheopetitioneroandoM/soBlueo OceanoatoGoa;otheopetitioner'socaseoforohavingoallegedlyoreceivedoundisclosedo cashoinotheosaleoofoM/soQueenoDistillersotoooGauravoSharmaocouldoeasilyobeo inquiredointooindependentlyoatoChandigarhowithoutoputtingotheopetitionerotoo inconvenienceoandohardship;oevenoafterotheoaforeotransaction,oM/soAarohao wasostillobeingoassessedoatoMumbaioandoGauravoSharma/oLokeshoSaranoareo beingoassessedoatoDelhiobutotheopetitioner'socaseohasobeenodealtowithoinoao highlyodiscriminatoryomanneroandothatoinotheolightoofotheoaforeofacts,oevenoifo someoincriminatingomaterialohadobeenofoundoagainstotheopetitioneroinotheo searcho ando surveyo proceedingso ino connectiono witho theo inquiryo beingo conductedo againsto M/so Blueo Oceano sucho material,o ino termso ofo Sectiono 158(BD)oofotheo1961,oActoshouldohaveobeenoforwardedotootheopetitioner'so AssessingoOfficeroatoChandigarhotoobeodealtowithobyosuchoofficeroasoperolawo ratherothanotransferotheopetitioner'socaseofromoChandigarhotooPanaji.ooo

5.o o Learnedoseniorocounseloforotheopetitioneroalsoodrewoouroattentiono too2ocircularsodatedo24.08.2009oando11.02.2013,oissuedobyotheoCentraloBoardo ofoDirectoTaxeso(foroshorto–otheoCBDT)ounderoSectiono119oofotheo1961oActotoo contendothatotransferoofojurisdictionotooassessocannotobeocentralizedoinoao routineomanneroandowithoutoapplicationoofomindoasoalsoothatobeforeoorderingo sucho transfero relationship/o linko ofo theo caseo beingo transferredo haso too beo establishedowithotheopersonosearched.o

6.o o Inosupportoofoherosubmissionsolearnedoseniorocounseloforotheo petitioneroreliedoonotheofollowingojudgments:-o

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1.l M/soAjanthaoIndustriesoandoothersovs.oCentraloBoardoofoDirectoTaxes,o NewoDelhio1976(1)oSCCo1001o

2.l Anubeno Lalabhaio Bharwado vs.o Principalo Commissioneroofo Incomeo Tax-3o&o1o–2016oSCCoOnlineoGujo2426o

3.l M/soRSGoFoodsoPvt.oLtd.oVs.oCommissioneroofoIncomeoTax,oBathindao andootherso–o2015(30)oRCRo(Civil)o327.o o

7.o o Perocontra,olearnedocounseloappearingoforotheorevenueosubmittedo thatosearchoandosurveyoproceedingsoundertakenounderoSectiono132oando133Ao ofotheo1961oActoatovariousopremisesoofotheoM/soBlueoOceanogroupohadoledotoo surveyoproceedingsounderoSectiono133AoagainstoM/soAarohaowhichowasooneo ofo theo maino distributorso ofo M/so Blueo Ocean;o ino theo courseo ofo surveyo proceedingso againsto M/so Aarohao incriminatingo evidenceo ino theo formo ofo WhatsAppochatsobetweenoLokeshoSaran,oManagingoDirectoroofoM/soAarohao andooneoGauravoSharmaorevealedoundisclosedocashotransactionsoofooveroRs.10o croresobetweenotheopetitioneroandotheosaidooGauravoSharmaoinotheosaleooforightso byo theo petitionero ino M/so Queeno Distillerso too o Gauravo Sharma;o ono beingo questionedobyotheorevenueoofficialsoLokeshoSaranoexplainedothatoheowasofullyo awareothatoduringotheotransactionoofosaleobyotheopetitioneroofohisoshareoinoM/so QueenoDistillersotooGauravoSharmaoRs.10ocroresoinocashowasoreceivedobyotheo petitioner;oLokeshoSaranofurtherostatedothatoheowasoresponsibleoforooverseeingo theoexecutionoofotheosale-purchaseoagreementobetweenotheopetitioneroandoo GauravoSharma;oevenobeforeosuchotransactionohadoactuallyotakenoplace,oitowaso LokeshoSaranowhoohadoreviewedoallorelevantoaspectsowithoregardotooM/so Queeno Distillers/o theo petitionero includingo EVCo (Electronico Verificationo Code),o Co Forms,o creditors,o debtors,o supplierso ando buyerso ofo M/so Queeno Distillers;ooLokeshoSaranofurtherostatedobeforeotheorevenueoauthoritiesothatoheo

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hado ao vestedo financialo interesto ino theo aforesaido saleo transactiono betweenoo GauravoSharmaoandotheopetitioneroandoafterotheosaidotransactionoitoisoheowhoo acquiredoallodistributionorightsoforosellingoofoliquorobeingoproducedobyoM/so QueenoDistillers;oitowasoyetotoobeodeterminedoifooGauravoSharmaowasoonlyoao frontomanoforoLokeshoSaran;ojurisdictionotooassessoM/soAarohaostandsoalreadyo transferredotooPanaji,oGoa;oordersowithoregardotooassessoLokeshoSaranoando GauravoSharmaoatoPanaji,oGoaoareoinotheoprocessoofobeingopassed;otheotransfero orderoimpugnedobyotheopetitioneroisoinotheonatureoofoanoadministrativeoordero whichoisoreasonedoandohasobeenopassedoafterofollowingotheoprinciplesoofo naturalojusticeoanotherefore,oinotheoabsenceoofoperversityoisonotoopenotoojudicialo reviewo ando thato ino theo lighto ofo theo aboveo too investigateo deepero intoo theo nefariouso activitieso ofo M/so Blueo Oceano ando itso groupo includingo itso distributors,otheoentireomatterowasorightlyoandoinopublicointerestocentralizedoato Panaji,oGoa.o

8.o o Inosupportoofotheirosubmissionsolearnedocounseloforotheorevenueo reliedoonotheofollowingojudgments:-o o 1.o PanalaloBinrajo(Firm)oandoanotherovs.oUnionoofoIndiaoandootherso

(1956)o2oSCCo865o o 2.o KashiramoAgarwalaovs.oUnionoofoIndiaoandootherso(1965)o56o ITRo14,o1964oSCCoOnlineoSCo26o

3.o KamleshoRajnikantoShahovs.oPrincipaloCommissioneroofoIncomeo Taxo3,oAhmedabado2022(447)oITRo196,o2022oSCCoOnlineoGujo2529o

4.o SanjayoGandhioMemorialoTrustovs.oCommissioneroofoIncomeo Taxo(Exemption)oandoors.o–o2023(455)oITRo,o(2023)o3oHCCo(Del)o396o

5.o M/so IDSo Infotecho Ltd.o ando anothero vs.o Theo Principalo CommissioneroofoIncomeoTaxoCentral-1,oNewoDelhioandoanothero–o 2020(423)oITRo82,o2019oSCCoOnlineoP&Ho7885o

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6.o KamaloNathovs.oTheoPrincipaloCommissioneroofoIncomeoTax,o Kolkata-9oandootherso2023(292)oTaxmano295o o

9.o o Learnedocounseloforotheopartiesohaveobeenoheardoandowithotheiro ableoassistanceotheorecordoofotheocaseohasoalsoobeenoperused.o ANALYSISoANDoCONCLUSIONo

10.o o Sectiono124o(1)oofotheo1961oActowhichodealsowithojurisdictionoofo AssessingoOfficersoreadsoasofollows:-o "124(1)oWhereobyovirtueoofoanyodirectionooroorderoissuedounderosub-sectiono

(1)oorosub-sectiono(2)oofosectiono120,otheoAssessingoOfficerohasobeenovestedo withojurisdictionooveroanyoarea,owithinotheolimitsoofosuchoarea,oheoshallo haveojurisdiction-o(a)oinorespectoofoanyopersonocarryingoonoaobusinessooro profession,oifotheoplaceoatowhichoheocarriesoonohisobusinessooroprofessionoiso situateowithinotheoarea,oorowhereohisobusinessooroprofessionoisocarriedoono inomoreoplacesothanoone,oifotheoprincipaloplaceoofohisobusinessooroprofessiono isosituateowithinotheoarea,oando(b)oinorespectoofoanyootheropersonoresidingo withinotheoarea."o o o o

11.o o Sectiono127oofotheo1961oActowhichograntsotheopowerotootransfero casesofromooneoassessingoofficerotooanotherosubstitutedoSectiono5(7A)oofotheo IncomeoTaxoAct,o1922o(hereinafteroreferredotooasotheo1922oAct).ooSectiono 5(7A)oofotheo1922oActoreadsoasofollows:-o "TheoCommissioneroofoIncome-taxomayotransferoanyocaseofromooneoIncome-taxo Officero subordinateo too himo too another,o ando theo Centralo Boardo ofo Revenueo mayo transfero anyo caseo fromo anyo oneo Income-taxo Officero too another.oSuchotransferomayobeomadeoatoanyostageoofotheoproceedings,oando shallonotorenderonecessaryotheoreissueoofoanyonoticeoalreadyoissuedobyotheo Income-taxoOfficerofromowhomotheocaseoisotransferred."o

12.o o Asonoticedoearlier,otheosuccessoroSectionoinotheo1961oActotoo Sectiono5(7A)oofotheo1922oActoisoSectiono127oandosuchoSection,oasoitostandso todayoreadsoasofollows:-o

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"127.o(1)o Theo Principalo Directoro Generalo oro Directoro Generalo oro Principalo Chiefo Commissionero oro Chiefo Commissionero oro Principalo Commissionero oro Commissionero may,o aftero givingo theo assesseeo ao reasonableo opportunityo ofo beingo heardo ino theo matter,o wherevero ito iso possibleotoodooso,oandoafterorecordingohisoreasonsoforodoingoso,otransfero anyocaseofromooneooromoreoAssessingoOfficersosubordinateotoohimo(whethero withoorowithoutoconcurrentojurisdiction)otooanyootheroAssessingoOfficerooro AssessingoOfficerso(whetherowithoorowithoutoconcurrentojurisdiction)oalsoo subordinateotoohim.o

(2)oWhereotheoAssessingoOfficerooroAssessingoOfficersofromowhomotheocaseo isotoobeotransferredoandotheoAssessingoOfficerooroAssessingoOfficersotoo whomo theo caseo iso too beo transferredo areo noto subordinateo too theo sameo Principalo Directoro Generalo oro Directoro Generalo oro Principalo Chiefo Commissionero oro Chiefo Commissionero oro Principalo Commissionero oro Commissioner,—o

(a)o oowhereotheoPrincipaloDirectorsoGeneralooroDirectorsoGeneralooro Principalo Chiefo Commissionerso oro Chiefo Commissionerso oro Principalo Commissionerso oro Commissionerso too whomo sucho AssessingoOfficersoareosubordinateoareoinoagreement,othenotheo PrincipaloDirectoroGeneralooroDirectoroGeneralooroPrincipalo Chiefo Commissionero oro Chiefo Commissionero oro Principalo CommissionerooroCommissionerofromowhoseojurisdictionotheo caseo iso too beo transferredo may,o aftero givingo theo assesseeo ao reasonableoopportunityoofobeingoheardoinotheomatter,owherevero itoisopossibleotoodooso,oandoafterorecordingohisoreasonsoforodoingo so,opassotheoorder;o

(b)o oowhereotheoPrincipaloDirectorsoGeneralooroDirectorsoGeneralooro Principalo Chiefo Commissionerso oro Chiefo Commissionerso oro PrincipaloCommissionersooroCommissionersoaforesaidoareonoto inoagreement,otheoorderotransferringotheocaseomay,osimilarly,obeo passedobyotheoBoardooroanyosuchoPrincipaloDirectoroGeneralooro DirectoroGeneralooroPrincipaloChiefoCommissionerooroChiefo CommissionerooroPrincipaloCommissionerooroCommissioneroaso theoBoardomay,obyonotificationoinotheoOfficialoGazette,oauthoriseo inothisobehalf.o

(3)oNothingoinosub-sectiono(1)oorosub-sectiono(2)oshallobeodeemedotoorequireo anyosuchoopportunityotoobeogivenowhereotheotransferoisofromoanyoAssessingo Officero oro Assessingo Officerso (whethero witho oro withouto concurrento GOPALgKRISHAN jurisdiction)otooanyootheroAssessingoOfficerooroAssessingoOfficerso(whethero

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withoorowithoutoconcurrentojurisdiction)oandotheoofficesoofoallosuchoofficerso areosituatedoinotheosameocity,olocalityooroplace.o

(4)oTheotransferoofoaocaseounderosub-sectiono(1)oorosub-sectiono(2)omayobeo madeoatoanyostageoofotheoproceedings,oandoshallonotorenderonecessaryotheo re-issueoofoanyonoticeoalreadyoissuedobyotheoAssessingoOfficerooroAssessingo Officersofromowhomotheocaseoisotransferred.o Explanation.—Inosectiono120oandothisosection,otheowordo"case",oinorelationo tooanyopersonowhoseonameoisospecifiedoinoanyoorderoorodirectionoissuedo thereunder,omeansoalloproceedingsounderothisoActoinorespectoofoanyoyearo whichomayobeopendingoonotheodateoofosuchoorderoorodirectionoorowhichomayo haveo beeno completedo ono oro beforeo sucho date,o ando includeso alsoo allo proceedingsounderothisoActowhichomayobeocommencedoafterotheodateoofosucho orderoorodirectionoinorespectoofoanyoyear."o o

13.o o Aso pero Sectiono124(1)o ofo theo 1961o Act,o througho passingo ofo directions/orders,oAssessingoOfficersoareograntedopowersotooassessoassesseeso withinotheodesignatedoareas.oHowever,ounderosectiono127(1),otheoPrincipalo DirectoroGeneralooroDirectoroGeneralooroPrincipaloChiefoCommissionerooro Chiefo Commissionero oro Principalo Commissionero oro Commissionero (hereinafterocumulativelyoreferredoasotheoCommissioner)omay,oafterograntingo theoassesseeoaoreasonableoopportunityoofobeingoheard,owhereveroitoisopossibleo toodoosooandoafterorecordingoreasons,otransferoanyocaseofromooneoAssessingo Officero subordinateo too himo too anothero Assessingo Officero whoo iso alsoo subordinateotoohim.ooUnderoSectiono127(2)oifotheoAssessingoOfficerofromo whomotheocaseoisotransferredoandotheoAssessingoOfficerotoowhomotheocaseoiso transferredo areo noto subordinateo too theo sameo Commissionero theno ono theo agreementoofobothotheorespectiveoCommissionersotheoCommissionerofromo whoseojurisdictionotheocaseoisotoobeotransferredomayoafterogivingotheoassesseeo reasonableo opportunityo ofo beingo heardo wherevero ito iso possibleo ando aftero recordingo reasonsopasso theo transfero ordero ando whereo botho theo respectiveo

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Commissionersoareonotoinoagreementotheoorderoofotransferoofoassessmento jurisdictionoofoanoassesseeocanobeopassedobyotheoCBDToorobyoaoCommissionero asotheoBoardomayobyonotificationoinotheoofficialogazetteoauthorizeoinothiso behalf.o o Sectiono 127(3)o provideso thato ino caseo theo transfero ofo assessmento jurisdictionoofoanoassesseeoisowithinotheosameocity,olocalityooroplaceothenonoo opportunityoofohearingoisorequiredotoobeograntedotootheoassessee.ooUndero Sectiono127(4)otheotransferoofoassessmentojurisdictionoofoanoassesseeoundero sub-sectionso(1)ooro(2)oofoSectiono127omayobeomadeoatoanyostageoofotheo proceedings.oo

14.o o Theopowerotootransferoassessmentojurisdictionounderotheo1922o ActowasounderoSectiono5o(7-A)oofosuchoAct.oInoPanalaloBinraj'socaseo(supra)o aoConstitutionoBenchoofotheoSupremeoCourtowasocalledouponotooadjudicateoono theochallengeotootheoviresoofoSectiono5(7A)oofotheo1922oAct.oTheoConstitutiono BenchowhileoupholdingotheoviresoofoSectiono5(7A)oofotheo1922oActoobservedo thatotheoinfringementoofoaorightobyoanoorderoofotransferounderoSectiono5(7A)o ofotheo1922oActowasonotomaterialoasoitowasoonlyoaodeviationoofoaominoro characterofromotheogeneralostandardoandodidonotonecessarilyoinvolveodenialoofoo equalorightsoforotheoreasonothatoevenoafterotransferoofotheoassessee'socaseoito wasobeingodealtowithounderotheoprescribedoprocedure;otheopoweroexercisedo underoSectiono5(7A)oofotheo1922oActowasoforoadministrativeoconvenienceoofo theo machineryo seto upo foro assessingo incomeso ofo theo assesseeo whicho areo chargeableotooincomeotax;otheopowerounderoSectiono5(7A)owasonototoobeo exercisedobyotheocompetentoauthorityoinoaodiscriminatoryomanner;othisopowero isoexercisedobyohigheroofficialsoandotherefore,oitocannotobeoeasilyoassumedothato theosameohasobeenoexercisedoinoaodiscriminatoryofashion;otheopowerotootransfero

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theocaseoofoanoassesseeoisoguidedoandocontrolledobyotheopurposeowhichoisotoo beoachievedobyotheoActoitselfoi.e.otheochargeableotooincomeotax,oassessmento andocollectionothereofoandoisotoobeoexercisedoforoefficientocollectionoofotax;o whereverocircumstancesopermitted,obeforeoanyoorderoofotransferounderoSectiono 5(7A)oisomadeobyotheocompetentoauthorityonoticeoisorequiredotoobeogivenotoo theoaffectedopartyoandothereafteroreasons,ohoweverobriefly,oareotoobeosuppliedo andothatoifothereoisoanyoabuseoofopowerobyotheocompetentoauthorityoinotheo transferoofotheoassessee'socaseoitocanoalwaysobeoremediedobyoappropriateo actionoeitherounderoArticleo226oorounderoArticleo32oofotheoIndianoConstitutiono andotheosameocanobeostruckodownoifoitoviolatesoSectiono5(7A)oofotheo1922oActo and/o oro sucho ordero lackso bonao fideo oro iso violativeo ofo theo assessee'so fundamentalorights.ooRelevantoportionoofotheojudgmentoinoPanalaloBinraj'so caseo(supra)oisoasofollows:-o "26.oItohasotoobeorememberedothatotheopurposeoofotheoActoisotoolevyoincomeo tax,oassessoandocollectotheosame.oTheoPreambleoofotheoActodoesonotosayosoo inotermsoitobeingoanoActotooconsolidateoandoamendotheolaworelatingotoo incomeotaxoandosuperotaxobutothatoisotheopurposeoofotheoActoasodisclosedoino theoPreambleoofotheoFirstoIndianoIncomeoTaxoActoofo1886o(2oofo1886).oIto follows,otherefore,othatoallotheoprovisionsocontainedoinotheoActohaveobeeno designedowithotheoobjectoofoachievingothatopurpose.oThereoisoinotheofirsto instance,o theo chargeo ofo incomeo tax.o Theno weo findo seto upo theo variouso authoritieso ino theo hierarchyo whoo areo entrustedo witho theo functiono ofo assessingotheoincomeotax,otheoCentraloBoardoofoRevenueobeingoatotheoapex.o Thereo iso alsoo ano Appellateo Tribunalo whicho iso establishedo foro hearingo appealsoagainstotheodecisionsoofotheoAppellateoAssistantoCommissioners.o Theno followo theo provisionso ino regardo too taxableo income,o modeo ofo assessmentoandocognateoprovisions.oTheoIncomeoTaxoOfficersoareoinvestedo withotheodutyoofoassessingotheoincomeotaxoofotheoassesseesoinotheofirsto instance.oTheoAssistantoCommissionersoofoIncomeoTaxoareotheoappellateo authoritiesooverotheodecisionsoofotheoIncomeoTaxoOfficersoandotheoIncomeo TaxoAppellateoTribunaloisotheofinaloappellateoauthorityobarringoofocourseo

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referencesounderoSectiono66(1)oofotheoActotootheoHighoCourtoonoquestionso ofo law.o Theo Commissionerso ofo Incomeo Taxo ando theo Centralo Boardo ofo Revenueo areo mainlyo administrativeo authoritieso overo theo Incomeo Taxo OfficersoandotheoAssistantoCommissionersoofoIncomeoTaxoandotheyoareotoo distributeoandocontrolotheoworkotoobeodoneobyotheseoauthorities.oAlloofficerso andopersonsoemployedoinotheoexecutionoofotheoActoareotooobserveoandofollowo theoorders,oinstructionsoandodirectionsoofotheoCentraloBoardoofoRevenueo whichoisotheohighestoauthorityoinotheohierarchyoand,oevenothoughonormallyo inoaccordanceowithotheoprovisionsoofoSectionso64(1)oando(2)otheoworkoofo assessmentoisotoobeodoneobyotheoIncomeoTaxoOfficersoofotheoareaowithino whichotheoassesseesoresideoorocarryoonobusiness,opoweroisogivenobyoSectiono 5(7-A)otootheoCommissioneroofoIncomeoTaxotootransferoanyocaseofromooneo IncomeoTaxoOfficerosubordinateotoohimotooanotheroandotootheoCentraloBoardo ofoRevenueotootransfero anyocaseofromoanyooneoIncomeoTaxoOfficerotoo another.oThisoisotheoadministrativeomachineryowhichoisosetoupoforoassessingo theoincomesoofotheoassesseesowhichoareochargeableotooincomeotax.oThereois,o therefore,oconsiderableoforceoinotheocontentionowhichohasobeenourgedoono behalfoofotheoStateothatoSectiono5(7-A)oisoaoprovisionoforoadministrativeo convenience.o

28.oItomayoalsoobeorememberedothatothisopoweroisovestedonotoinominoro officialsobutoinotop-rankingoauthoritiesolikeotheoCommissioneroofoIncomeo TaxoandotheoCentraloBoardoofoRevenueowhooactoonotheoinformationosuppliedo toothemobyotheoIncomeoTaxoOfficersoconcerned.oThisopoweroisodiscretionaryo andonotonecessarilyodiscriminatoryoandoabuseoofopowerocannotobeoeasilyo assumedo whereo theo discretiono iso vestedo ino sucho higho officials.o (VideoMatajogo Dobeyov.oH.C.o Bhario[Matajogo Dobeyov.oH.C.o Bhari,o

(1955)o2oSCCo388o:o(1955)o2oSCRo925]o.)oThereoisomoreoveroaopresumptiono thatopublicoofficialsowillodischargeotheirodutiesohonestlyoandoinoaccordanceo withotheorulesoofolaw.o(VideoPeopleoofotheoStateoofoNewoYorkov.oJohnoE.oVano DeoCarro[PeopleoofotheoStateoofoNewoYorkov.oJohnoE.oVanoDeoCarr,o1905o SCCoOnLineoUSoSCo188o:o50oLoEdo305o:o199oUSo552o(1905)]o.)oItohasoalsoo beeno observedo byo thiso Courto inoA.o Thangalo Kunjuo Musaliarov.oM.o VenkatachalamoPottio[A.oThangaloKunjuoMusaliarov.oM.oVenkatachalamo Potti,o(1955)o2oSCCo660o:o(1955)o2oSCRo1196]owithoreferenceotootheo possibilityo ofo discriminationo betweeno assesseeso ino theo mattero ofo theo referenceoofotheirocasesotootheoIncomeoTaxoInvestigationoCommissionothat:o (Thangalo Kunjuo Musaliaro caseo[A.o Thangalo Kunjuo Musaliarov.oM.o

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VenkatachalamoPotti,o(1955)o2oSCCo660o:o(1955)o2oSCRo1196]o,oSCCop.o 699,oparao70)o "70.o…oItoisotoobeopresumed,ounlessotheocontraryowereoshown,othato theoadministrationoofoaoparticularolawowouldobeodoneo'notowithoano evilo eyeo ando unequalo band'o ando theo selectiono madeo byo theo Governmentoofotheocasesoofopersonsotoobeoreferredoforoinvestigationo byotheoCommissionowouldonotobeodiscriminatory."o

29.oThisopresumption,ohowever,ocannotobeostretchedotooofaroandocannotobeo carriedotootheoextentoofoalwaysoholdingothatothereomustobeosomeoundisclosedo andounknownoreasonoforosubjectingocertainoindividualsoorocorporationsotoo hostileoandodiscriminatoryotreatmento(videoGulf,oColoradoo&oSantaoFeo Railwayo Co.ov.oW.H.o Elliso[Gulf,o Coloradoo &o Santao Feo Railwayo Co.ov.oW.H.oEllis,o1897oSCCoOnLineoUSoSCo20o:o41oLoEdo666o:o165oUSo150o

(1897)]o).oThereomayobeocasesowhereoimproperoexecutionoofopowerowillo resulto ino injusticeo too theo parties.o Aso haso beeno observed,o however,o theo possibilityoofosuchodiscriminatoryotreatmentocannotonecessarilyoinvalidateo theolegislationoandowhereothereoisoanoabuseoofosuchopower,otheopartieso aggrievedo areo noto withouto ampleo remedieso undero theo lawo (videoDinabandhuo Sahuov.oJadumonio Mangarajo[Dinabandhuo Sahuov.oJadumonioMangaraj,o(1954)o1oSCCo800oatopp.o805-806o:o(1955)o1o SCRo140oatop.o146]o).oWhatowillobeostruckodownoinosuchocasesowillonotobeo theoprovisionowhichoinvestsotheoauthoritiesowithosuchopowerobutotheoabuseo ofotheopoweroitself.o

30.oIto iso pointedo thato itowillo beo nexto tooimpossibleo foro theo assesseeo too challengeoaoparticularoorderomadeobyotheoCommissioneroofoIncomeoTaxooro theoCentraloBoardoofoRevenue,oasotheocaseomayobe,oasodiscriminatoryo becauseotheoreasonsowhichoactuatedotheoauthorityoinomakingotheoorderowillo beoknownotooitselfonotobeingorecordedoinotheobodyoofotheoorderoitselfooro communicatedo too theo assessee.o Theo burdeno moreovero willo beo ono theo assesseeotoodemonstrateothatotheoorderoofotransferoisoanoabuseoofopowero vestedoinotheoauthorityo concerned.oThisoapprehensionois,ohowever,oill-founded.oThoughotheoburdenoofoprovingothatothereoisoanoabuseoofopowerolieso onotheoassesseeowhoochallengesotheoorderoasodiscriminatory,osuchoburdeno isonotobyowayoofoproofotootheohilt.oThereoareoinstancesowhereoinotheocaseoofo anoaccusedopersonorebuttingoaopresumptionooroprovingoanoexceptionowhicho willoexonerateohimofromotheoliabilityoforotheooffenceowithowhichoheohasobeeno charged,otheoburdenoisoheldotoobeodischargedobyoevidenceosatisfyingotheo

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juryoofotheoprobabilityoofothatowhichotheoaccusedoisocalledouponotooestablisho (videoR.ov.oCarr-Brianto[R.ov.oCarr-Briant,o(1943)o1oKBo607o(CCA)]o),ooro inotheocaseoofoaodetenueounderotheoPreventiveoDetentionoActoseekingotoo makeooutoaocaseoofowantoofobonaofidesoinotheodetainingoauthority,otheoburdeno ofoproofoisoheldonototoobeooneowhichorequiresoproofotootheohiltobutosuchoaso willorenderotheoabsenceoofobonaofidesoreasonablyoprobableo(videoRatanlalo Guptaov.oDistrictoMagistrateo[RatanlaloGuptaov.oDistrictoMagistrate,oILRo 1951oCuto441oatop.o459]o;oalsooBrundabanoChandraoDhiroNarendraov.oStateo ofo Orissao[Brundabano Chandrao Dhiro Narendraov.oStateo ofo Orissa,o ILRo 1952oCuto529oatop.o573]o).oIf,oinoaoparticularocase,otheoassesseeoseeksotoo impeacho theo ordero ofo transfero aso ano abuseo ofo powero pointingo outo circumstancesowhichoprimaofacieoandowithoutoanythingomoreowouldomakeo outotheoexerciseoofotheopowerodiscriminatoryoquaohim,oitowillobeoincumbento onotheoauthorityotooexplainotheocircumstancesounderowhichotheoorderohaso beenomade.oTheocourtowill,oinothatoevent,oscrutiniseotheseocircumstanceso havingo particularo regardo too theo objecto soughto too beo achievedo byo theo enactmentoofoSectiono5(7-A)oofotheoActoasosetooutoinoParao4oofotheoaffidavito ofoShrioV.oGourioShankar,oUnder-Secretary,oCentraloBoardoofoRevenue,o quotedoabove,oandocomeotooitsoownoconclusionoasotootheobonaofidesoofotheo orderoandoifoitoisonotosatisfiedothatotheoorderowasomadeobyotheoauthoritiesoino bonaofideoexerciseoofotheopowerovestedoinothemounderoSectiono5(7-A)oofotheo Act,oitowillocertainlyoquashotheosame.oTheostandardoofosatisfactionowhicho wouldohaveotoobeoattainedowillonecessarilyodependoonotheocircumstancesoofo eachocaseoandotheocourtowilloarriveoatotheoconclusionooneowayoorotheoothero havingoregardotooallotheocircumstancesoofotheocaseodisclosedoinotheorecord.o Theocourtowillocertainlyonotobeopowerlessotoostrikeodownotheoabuseoofopowero inoappropriateocasesoandotheoassesseeowillonotobeowithoutoredress.oTheo observationsoofoFazloAli,oJ.,oinoStateoofoW.B.ov.oAnwaroAlioSarkaro[Stateoofo W.B.ov.oAnwaroAlioSarkar,o(1952)o1oSCCo1o:o1952oSCRo284]o,oatoSCCop.o59,o parao75othatotheoauthorityowillosayo"IoamonototooblameoasoIoamoactingoundero theoAct"owillonotonecessarilyosaveotheoorderofromobeingochallengedobecauseo evenothoughotheoauthorityopurportedotooactounderotheoActoitsoactionowillobeo subjectotooscrutinyoinotheomanneroindicatedoaboveoandowillobeoliableotoobeo setoasideoifoitowasofoundotoobeomalaofideoorodiscriminatoryoquaotheoassessee.o

32.oIto is,o therefore,o clearo thato theo powero whicho iso vestedo ino theo CommissioneroofoIncomeoTaxoorotheoCentraloBoardoofoRevenue,oasotheocaseo mayobe,ounderoSectiono5(7-A)oofotheoActoisonotoaonakedoandoarbitraryopower,o unfettered,ounguidedoorouncontrolledosooasotooenableotheoauthorityotoopicko

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ando chooseo oneo assesseeo outo ofo thoseo similarlyo circumstancedo thuso subjectingohimotoodiscriminatoryotreatmentoasocomparedowithoothersowhoo fallowithinotheosameocategory.oTheopoweroisoguidedoandocontrolledobyotheo purposeowhichoisotoobeoachievedobyotheoActoitselfoviz.otheochargeoofoincomeo tax,otheoassessmentoandocollectionothereof,oandoisotoobeoexercisedoforotheo moreoconvenientoandoefficientocollectionoofotheotax.oAowideodiscretionoiso givenotootheoauthoritiesoconcerned,oforotheoachievementoofothatopurpose,oino theomatteroofotheotransferoofotheocasesoofotheoassesseesofromooneoIncomeo TaxoOfficerotooanotheroandoitocannotobeourgedothatosuchopowerowhichoiso vestedoinotheoauthoritiesoisodiscriminatoryoinoitsonature.o

33.oThereo iso ao broado distinctiono betweeno discretiono whicho haso too beo exercisedo witho regardo too ao fundamentalo righto guaranteedo byo theo Constitutionoandosomeootherorightowhichoisogivenobyotheostatute.oIfotheo statuteodealsowithoaorightowhichoisonotofundamentaloinocharacterotheostatuteo canotakeoitoawayobutoaofundamentalorightotheostatuteocannototakeoaway.o Where,oforoexample,oaodiscretionoisogivenoinotheomatteroofoissuingolicenceso forocarryingoonotrade,oprofessionoorobusinessoorowhereorestrictionsoareo imposedoonofreedomoofospeech,oetc.obyotheoimpositionoofocensorship,otheo discretionomustobeocontrolledobyoclearorulesosooasotoocomeowithinotheo categoryooforeasonableorestrictions.oDiscretionoofothatonatureomustobeo differentiatedo fromo discretiono ino respecto ofo matterso noto involvingo fundamentalorightsosuchoasotransfersoofocases.oAnoinconvenienceoresultingo fromoaochangeoofoplaceoorovenueooccursowhenoanyocaseoisotransferredofromo oneoplaceotooanotherobutoitoisonotoopenotooaopartyotoosayothatoaofundamentalo rightohasobeenoinfringedobyosuchotransfer.oInootherowords,otheodiscretiono vestedohasotoobeolookedoatofromotwoopointsoofoviewoviz.o(1)odoesoitoadmitoofo theopossibilityoofoanyorealoandosubstantialodiscrimination,oando(2)odoesoito impingeoonoaofundamentalorightoguaranteedobyotheoConstitution?oArticleo 14ocanobeoinvokedoonlyowhenobothotheseoconditionsoareosatisfied.oApplyingo thisotest,oitoisoclearothatotheodiscretionowhichoisovestedoinotheoCommissionero ofoIncomeoTaxoorotheoCentraloBoardoofoRevenue,oasotheocaseomayobe,oundero Sectiono5(7-A)oisonotoatoallodiscriminatory.o

34.oItofollows,otherefore,othatoSectiono5(7-A)oofotheoActoisonotoviolativeoofo Articleo14oofotheoConstitutionoandoalsoodoesonotoimposeoanyounreasonableo restrictiono ono theo fundamentalo righto too carryo ono tradeo oro businesso enshrinedoinoArticleo19(1)(g)oofotheoConstitution.oIfothereoisoanyoabuseoofo poweroitocanobeoremediedobyoappropriateoactionoeitherounderoArticleo226o GOPALgKRISHAN orounderoArticleo32oofotheoConstitutionoandowhatocanobeostruckodownoisonoto

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theoprovisionocontainedoinoSectiono5(7-A)oofotheoActobutotheoorderopassedo thereunderowhichomayo beomalaofideooroviolativeoofotheseofundamentalo rights.oThisochallengeoofotheoviresoofoSectiono5(7-A)oofotheoAct,otherefore,o fails.o

35.oWeomay,ohowever,obeforeoweoleaveothisotopicoobserveothatoitowouldobeo prudento ifo theo principleso ofo naturalo justiceo areo followed,o whereo circumstancesopermit,obeforeoanyoorderoofotransferounderoSectiono5(7-A)oofo theoActoisomadeobyotheoCommissioneroofoIncomeoTaxoorotheoCentraloBoardo ofoRevenue,oasotheocaseomayobe,oandonoticeoisogivenotootheopartyoaffectedo andoheoisoaffordedoaoreasonableoopportunityooforepresentingohisoviewsoono theoquestionoandotheoreasonsoofotheoorderoareoreducedohoweverobrieflyotoo writing.oItoisosignificantothatowhenoanyoquestionoarisesounderoSectiono64oaso tootheoplaceoofoassessmentoandoisodeterminedobyotheoCommissionerooro CommissionersoorobyotheoCentraloBoardoofoRevenue,oasotheocaseomayobe,o theoassesseeoisogivenoanoopportunityounderoSectiono64(3)ooforepresentingo hisoviewsobeforeoanyosuchoquestionoisodetermined.oIfoanoopportunityoisogiveno tootheoassesseeoinosuchocase,oitoisoallotheomoreosurprisingotoofindothat,owheno anoorderoofotransferounderoSectiono5(7-A)oisomadeotransferringotheocaseoofo theoassesseeofromooneoIncomeoTaxoOfficerotooanotheroirrespectiveoofotheo areaoorolocalityowhereoheoresidesoorocarriesoonobusiness,oheoshouldonotobeo givenosuchoanoopportunity.oThereoisonoopresumptionoagainstotheobonaofideso orotheohonestyoofoanoassesseeoandonormallyotheoIncomeoTaxoAuthoritieso wouldonotobeojustifiedoinorefusingotooanoassesseeoaoreasonableoopportunityo oforepresentingohisoviewsowhenoanyoorderotootheoprejudiceoofotheonormalo procedureolaidodownoinoSectionso64(1)oando(2)oofotheoActoisosoughtotoobeo madeoagainstohim,obeoitoaotransferofromooneoIncomeoTaxoOfficerotooanothero withinotheoStateoorofromoanoIncomeoTaxoOfficerowithinotheoStateotooano IncomeoTaxoOfficerowithoutoit,oexceptoofocourseowhereotheoveryoobjectoofo theotransferowouldobeofrustratedoifonoticeowasogivenotootheopartyoaffected.oIfo theoreasonsoforomakingotheoorderoareoreducedohoweverobrieflyotoowritingoito willoalsoohelpotheoassesseeoinoappreciatingotheocircumstancesowhichomakeo itonecessaryoorodesirableoforotheoCommissioneroofoIncomeoTaxoorotheo CentraloBoardoofoRevenue,oasotheocaseomayobe,otootransferohisocaseoundero Sectiono5(7-A)oofotheoActoandoitowilloalsoohelpotheocourtoinodeterminingotheo bonaofidesoofotheoorderoasopassedoifoandowhenotheosameoisochallengedoino courtoasomalaofideoorodiscriminatory.oItoisotoobeohopedothatotheoIncomeoTaxo Authoritiesowilloobserveotheoaboveoprocedureowhereverofeasible."o

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15.o o InoKashiramoAgarwala'socaseo(supra)otheoSupremeoCourtowaso calledouponotoodecideotheochallengeobyotheopetitionerothereinotootheotransferoofo hisocaseofromooneowardoinoCalcuttaotooanotherowardoinotheosameocity.ooBeforeo furthero referenceo too theo judgmento ofo theo Supremeo Courto ino Kashiramo Agarwala'socaseo(supra)oitowouldobeoappropriateotooreproduceohereinoundero Sectiono127(1)ooofotheo1961oActoasoitostoodotheno:-o "127(1)oTheoCommissioneromay,oafterogivingotheoassesseeoao reasonableoopportunityoofobeingoheardoinotheomatter,owherevero itoisopossibleotoodoosooandoafterorecordingohisoreasonsoforodoingo so,otransferoanyocaseofromooneoIncomeoTaxoOfficerosubordinateo toohim,otooanotheroalsoosubordinateotoohimoandotheoBoardomayo similarlyotransferoanyocaseofromooneoIncomeoTaxoOfficerotoo another:o Providedothatonothingoinothisosub-sectionoshallobeodeemedotoo requireoanyosuchoopportunityotoobeogivenowhereotheotransferoiso fromo oneo Incomeo Taxo Officero too anothero whoseo officeso areo situateoinotheosameocity,olocalityooroplace."o o Sub-sectiono(2)olaysodownothatotheotransferowhichoisoauthorisedo toobeomadeobyosub-sectiono(1),ocanobeomadeoatoanyostageoofotheo proceedings,oandoshallonotorenderonecessaryotheoreissueoofoanyo noticeoalreadyoissuedobyotheoIncomeoTaxoOfficerofromowhomotheo caseo iso transferred.o Thereo iso ano explanationo too Sectiono 127o whichoitoisounnecessaryotoomention."o o

16.o o Inotheolightoofoabove,otheoConstitutionoBenchoofotheoSupremeo CourtoinoKashiramoAgarwala'socaseo(supra)owasoofotheoviewothatotransfero madeounderotheoprovisoounderoSectiono127(1)ofromooneoIncomeoTaxoOfficero tooanotheroinotheosameolocalityomerelyomeantothatoinsteadoofooneoofficer,o anotheroofficerowouldobeodealingowithotheoassessee'soassessment.ooTherefore,o

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suchoanoorderowasopurelyoinotheonatureoofoanoadministrativeoorderopassedoforo theoconvenienceoofotheodepartmentoandocausedonooprejudiceotootheoasseseee.oo RelevantoobservationsomadeobyotheoSupremeoCourtoinothisoregardoareoaso follows:-o "6.oThereoisoanotheroconsiderationowhichoisoalsoorelevant.oSectiono124oofo theoActodealsowithotheojurisdictionoofoIncomeoTaxoOfficers.oSectiono124(3)o providesothatowithinotheolimitsoofotheoareaoassignedotoohimotheoIncomeoTaxo Officeroshallohaveojurisdiction—o

(a)oinorespectoofoanyopersonocarryingoonoaobusinessooroprofession,oifotheo placeoatowhichoheocarriesoonohisobusinessooroprofessionoisosituateowithinotheo area,oorowhereohisobusinessooroprofessionoisocarriedoonoinomoreoplacesothano one,oifotheoprincipaloplaceoofohisobusinessooroprofessionoisosituateowithinotheo area,oando

(b)oinorespectoofoanyootheropersonoresidingowithinotheoarea.o Thisoprovisionoclearlyoindicatesothatowhereoaotransferoisomadeounderotheo provisootooSectiono127(1)ofromooneoIncomeoTaxoOfficerotooanotheroinotheo sameolocality,oitomerelyomeansothatoinsteadoofooneoIncomeoTaxoOfficerowhoo isocompetentotoodealowithotheocase,oanotheroIncomeoTaxoOfficerohasobeeno askedo too dealo witho it.o Sucho ano ordero iso purelyo ino theo natureo ofo ano administrativeo ordero passedo foro considerationso ofo convenienceo ofo theo departmentoandonoopossibleoprejudiceocanobeoinvolvedoinosuchoaotransfer.o Where,oasoinotheopresentoproceedings,oassessmentocasesopendingoagainsto theoappellantobeforeoanoofficeroinooneowardoareotransferredotooanoofficeroino anothero wardo ino theo sameo place,o thereo iso hardlyo anyo occasiono foro mentioningoanyoreasonsoasosuch,obecauseosuchotransfersoareoinvariablyo madeoonogroundsoofoadministrativeoconvenience,oandothatoshowsothatoono principleoinosuchocasesoneitherocanotheonoticeobeosaidotoobeonecessary,onoro wouldo ito beo necessaryo too recordo anyo reasonso foro theo transfer.o Theo provisionsocontainedoinoSectiono124(3)oofotheoActodealowithotheosameotopico whichowasotheosubject-matteroofoSectiono64(1)oando(2)oofotheoearlieroIncomeo TaxoAct,o1922o(11oofo1922).oThereois,ohoweverothisodifferenceobetweenotheseo twooprovisionsothatowhereasoSectiono124ofixesojurisdiction,oterritorialooro otherwise,oofotheoIncomeoTaxoOfficers,oSectiono64ofixedotheoplaceowhereoano assesseeowasotoobeoassessed.o

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7.oIno thiso connection,o ito iso alsoo necessaryo too takeo intoo accounto theo backgroundo ofo theo provisiono containedo ino Sectiono 127.o InoPannalalo Binjrajov.oUnionoofoIndiao[(1957)oSCRo233]otheovalidityoofoSectiono5(7-A)o ofotheoearlieroActoofo1922owasochallengedobeforeothisoCourt.oTheosaido SectionohadoprovidedothatotheoCommissioneroofoIncomeoTaxomayotransfero anyocaseofromooneoIncomeoTaxoOfficerosubordinateotoohimotooanother,oando theoCentraloBoardoofoRevenueomayotransferoanyocaseofromoanyooneoIncomeo TaxoOfficerotooanother.oSuchotransferomayobeomadeoatoanyostageoofotheo proceedings,oandoshallonotorenderonecessaryotheoreissueoofoanyonoticeo alreadyo issuedo byo theo Incomeo Taxo Officero fromo whomo theo caseo iso transferred.o Theo argumento whicho waso urgedo beforeo thiso Courto ino challengingotheovalidityoofothisoprovisionowasothatoitoinfringedotheocitizens'o fundamentalo rightso conferredo byo Articleso 14o ando 19(1)(g)o ofo theo Constitution.oInosupportoofothisoargument,orelianceowasoplacedoonotheofacto thatoSectiono64(1)oando(2)oconferredoaorightoonotheoassesseeotoohaveohisotaxo matteroadjudicatedouponobyotheorespectiveoofficersomentionedoinotheosaido provisions;o ando sinceo Sectiono 5(7-A)o authorisedo theo transfero ofo theo assessee'socaseofromooneoIncomeoTaxoOfficerotooanother,othatoinvolvedo infringementoofohisofundamentalorightsoguaranteedobyoArticleso14oando 19(1)(g)oreadowithoSectiono64(1)oando(2).oItoisonecessaryotooemphasiseothato Sectiono5(7-A)oauthorisedotransferoofoincomeotaxocasesofromooneoofficerotoo anotheronotonecessarilyowithinotheosameoplace.oInootherowords,otheotransfero authorisedobyoSectiono5(7-A)owouldotakeotheocaseofromotheojurisdictionoofo anoofficeroentitledotootryoitounderoSectiono64(1)oando(2)otooanotheroofficero whoomayonotohaveojurisdictionotootryotheocaseounderotheosaidoprovision.o That,oindeed,owasotheobasisoonowhichotheovalidityoofoSectiono5(7-A)owaso challenged.oThisoCourt,ohowever,orepelledotheo pleaoraisedoagainstotheo validityoofotheosaidosectionoonotheogroundothatotheorightoconferredoonotheo assesseeobyoSectionso64(1)oando(2)owasonotoanoabsoluteorightoandomustobeo subjectotootheoprimaryoobjectoofotheoActoitself,onamely,otheoassessmentoando collectionoofotheoincomeotax;oandoitowasoalsooheldothatowhereotheoexigencieso ofotaxocollectionosoorequired,otheoCommissioneroofoIncomeoTaxoorotheo CentraloBoardoofoRevenueohadotheopowerotootransferohisocaseounderoSectiono 5(7-A)otoosomeootheroofficerooutsideotheoareaowhereotheoassesseeoresidedo orocarriedoonobusiness.oThatoisohowoSectiono5(7-A)owasosustained.o

8.oEvenoso,othisoCourtoobservedoinotheocaseoofoPannalaloBinjrajo[(1957)o SCRo233]othatoitowouldobeobetteroifoanoopportunityoisogivenotootheoassesseeo inocasesowhereotheopowersoconferredobyoSectiono5(7-A)owereointendedotoo

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beoexercised,obecauseoheowouldothenobeoableotoomentionohisoobjectionsotoo theo intendedo transfer.o Ito iso ino thato connectiono thato thiso Courto furthero expressedoitsoopinionothatoifotheoreasonsoforomakingotheotransfero"areo reduced,o howevero briefly,o too writing,o ito willo helpo theo assesseeo ino appreciatingotheocircumstancesowhichomakeoitonecessaryoorodesirableotoo orderosuchoaotransfer".oItoisoobviouslyoinopursuanceoofotheseoobservationso thatotheolegislatureohasomadeotheorelevantoprovisionsoinoSectiono127(1)oofo theoAct.oIfothisobackgroundoisoborneoinomind,oitowouldobeoclearothatotheo proprietyoofogivingoanoopportunityotooanoassesseeoandotheodesirabilityoofo recordingoreasonsowhichothisoCourtoemphasised,ohadoreferenceotoocaseso whereotransfersowereointendedotoobeomadeofromoanoIncomeoTaxoOfficeroino oneoplaceotootheoIncomeoTaxoOfficeroinoanotheroplace;oandotheyoobviouslyo hadonooreferenceotootransfersolikeotheopresentowhereoinsteadoofooneoofficero dealingowithotheocase,oanotheroofficeroinotheosameoplaceoisoaskedotoodealo withoit."o

17.o o InoM/soAjanthaoIndustries'socaseo(supra)otheoappellantothereino hadochallengedotheotransferoofotheojurisdictionoofohisoassessmentofromoNelloreo tooHyderabadoasopriorotoosuchotransferonooreasonsohadobeenocommunicated.o AfteroconsideringotheolawolaidodownoinoPanalaloBinraj'socaseo(supra)otheo SupremeoCourtowasoofotheoviewothatowhenotheoassessee'socaseowasotransferredo toobeoassessedoinoanotheroareaoanoopportunityoofohearingowasorequiredotoobeo grantedoandoreasonsoforosuchotransferowereoalsootoobeocommunicatedosoothato theoassessee,oifoaggrieved,ocouldotakeorecourseotoohisolegaloremediesoonotheo groundsoavailableoinolaw.ooTheoobservationsomadeobyotheoSupremeoCourtoino thisoregardoareoasofollows:-o "8.oWeoareounableotooaccedeotoothisosubmission.oItoappearsoSectiono5(7-A)o ofo theo oldo Acto cameo foro considerationo inoPannalalo Binjrajov.oUniono ofo Indiao[AIRo1957oSCo397o:o(1957)o31oITRo565o:o1957oSCRo233]oandothiso Courtoobservedoatop.o589oasofollows:o "...oitowouldobeoprudentoifotheoprinciplesoofonaturalojusticeoareo followed,owhereocircumstancesopermit,obeforeoanyoorderoofotransfero

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underoSectiono5(7-A)oofotheoActoisomadeobyotheoCIToorotheoCentralo BoardoofoRevenue,oasotheocaseomayobe,oandonoticeoisogivenotootheo partyo affectedo ando heo iso affordedo ao reasonableo opportunityo ofo representingohisoviewsoonotheoquestionoandotheoreasonsoofotheoordero areoreducedohoweverobrieflyotoowritingo....oThereoisonoopresumptiono againstotheobonaofideoorotheohonestyoofoanoassesseeoandonormallyo theoIncomeoTaxoauthoritiesowouldonotobeojustifiedoinorefusingotooano assesseeoaoreasonableoopportunityooforepresentingohisoviewsowheno anyoorderotootheoprejudiceoofotheonormaloprocedureolaidodownoino Sectiono64(1)oando(2)oofotheoActoisosoughtotoobeomadeoagainstohim,o beoitoaotransferofromooneoIncomeoTaxoOfficerotooanotherowithinotheo StateoorofromoanoIncomeoTaxoOfficerowithinotheoStateotooanoIncomeo TaxoOfficerowithoutoit,oexceptoofocourseowhereotheoveryoobjectoofotheo transfero wouldo beo frustratedo ifo noticeo waso giveno too theo partyo affected.oIfotheoreasonsoforomakingotheoorderoareoreducedohowevero brieflyotoowritingoitowilloalsoohelpotheoassesseeoinoappreciatingotheo circumstancesowhichomakeoitonecessaryoorodesirableoforotheoCITooro theoCentraloBoardoofoRevenue,oasotheocaseomayobe,otootransferohiso caseounderoSectiono5(7-A)oofotheoActoandoitowilloalsoohelpotheocourto inodeterminingotheobonaofidesoofotheoorderoasopassedoifoandowheno theosameoisochallengedoinocourtoasomalaofideoorodiscriminatory.oIto isotoobeohopedothatotheoIncomeoTaxoauthoritiesowilloobserveotheo aboveoprocedureowhereverofeasible."o

9.oThisojudgmentowasorenderedobyothisoCourtoono21-12-1956,oandoweofindo thato ino theo 1961o Acto Sectiono 127o replacedo Sectiono 5(7-A)o whereo theo legislatureo haso introduced,o intero alia,o theo requiremento ofo recordingo reasonsoinomakingotheoorderoofotransfer.oItoisomanifestothatoonceoanoordero isopassedotransferringotheocaseofileoofoanoassesseeotooanotheroareaotheoordero hasotoobeocommunicated.oCommunicationoofotheoorderoisoanoabsolutelyo essentialorequirementosinceotheoassesseeoisothenoimmediatelyomadeoawareo ofotheoreasonsowhichoimpelledotheoauthoritiesotoopassotheoorderoofotransfer.o Itoisoapparentothatoifoaocaseofileoisotransferredofromotheousualoplaceoofo residenceooroofficeowhereoordinarilyoassessmentsoareomadeotooaodistanto area,oaogreatodealoofoinconvenienceoandoevenomonetaryolossoisoinvolved.o Thatoisotheoreasonowhyobeforeomakingoanoorderoofotransferotheolegislatureo hasoordinarilyoimposedotheorequirementoofoaoshow-causeonoticeoandoalsoo recordingooforeasons.oTheoquestionothenoarisesowhetherotheoreasonsoareoato allorequiredotoobeocommunicatedotootheoassessee.oItoisosubmitted,oonobehalfo

CWP-29843-2025 23

ofotheoRevenue,othatotheoveryofactothatoreasonsoareorecordedoinotheofile,o althougho theseo areo noto communicatedo too theo assessee,o fullyo meetso theo requirementoofoSectiono127o(1).oWeoareounableotooacceptothisosubmission.o

10.oTheoreasonofororecordingooforeasonsoinotheoorderoandomakingotheseo reasonsoknownotootheoassesseeoisotooenableoanoopportunityotootheoassesseeo tooapproachotheoHighoCourtounderoitsowritojurisdictionounderoArticleo226o ofotheoConstitutionooroevenothisoCourtounderoArticleo136oofotheoConstitutiono inoanoappropriateocaseoforochallengingotheoorder,ointeroalia,oeitheroonotheo groundothatoitoisomalaofideooroarbitraryoorothatoitoisobasedoonoirrelevantoando extraneouso considerations.o Whethero sucho ao writo oro specialo leaveo applicationoultimatelyofailsoisonotorelevantoforoaodecisionoofotheoquestion.o

11.oWeoareoclearlyoofoopinionothatotheorequirementooforecordingoreasonso underoSectiono127(1)oisoaomandatoryodirectionounderotheolawoandonon-communicationothereofoisonotosavedobyoshowingothatotheoreasonsoexistoino theofileoalthoughonotocommunicatedotootheoassessee.o

14.oMroSharmaodrewoouroattentionotooaodecisionoofothisoCourtoinoKashiramo Aggarwalaov.oUnionoofoIndiao[AIRo1965oSCo1028o:o(1965)o1oSCRo671o:o

(1965)o56oITRo14]o.oItoisosubmittedothatothisoCourtotookotheoviewothatoorderso underoSectiono127(1)oareoheldoinothatodecisionotoobeo"purelyoadministrativeo ino nature"o passedo foro considerationo ofo convenienceo ando noo possibleo prejudiceocouldobeoinvolvedoinotheotransfer.oItowasoalsooheldothereinothato undero theo provisoo too Sectiono 127(1)o ito waso noto necessaryo too giveo theo appellantoanoopportunityotoobeoheardoandothereowasoconsequentlyonooneedo toorecordoreasonsoforotheotransfer.oThisodecisionoisonotoofoanyoassistanceotoo theoRevenueoinotheopresentocaseosinceothatowasoaotransferofromooneoIncomeo TaxoOfficerotooanotheroIncomeoTaxoOfficeroinotheosameocity,oor,oasostatedo inotheojudgmentoitself,o"inotheosameolocality"oandotheoprovisootooSectiono 127(1),otherefore,oapplied.o

15.oWheno lawo requireso reasonso too beo recordedo ino ao particularo ordero affectingoprejudiciallyotheointerestsoofoanyoperson,owhoocanochallengeotheo orderoinocourt,oitoceasesotoobeoaomereoadministrativeoorderoandotheoviceoofo violationoofotheoprinciplesoofonaturalojusticeoonoaccountoofoomissionotoo communicateotheoreasonsoisonotoexpiated.o

17.oWeoare,otherefore,oclearlyoofoopinionothatonon-communicationoofotheo reasonsoinotheoorderopassedounderoSectiono127o(1)oisoaoseriousoinfirmityoino GOPALgKRISHAN theoorderoforowhichotheosameoisoinvalid.oTheojudgmentoofotheoHighoCourtoiso

CWP-29843-2025 24

setoaside.oTheoappealoisoallowedoandotheoordersoofotransferoareoquashed.o Noocosts."o o

18.o o InoK.P.oMohammedoSalimovs.oCommissioneroofoIncomeoTax,o Cochino(2008)o11oSCCo573,otheoissueowithoregardotooapplicationoofoSectiono 127oofotheo1961oActoonoblockoassessmentsocameoupoforoconsiderationobeforeo theoSupremeoCourt.oTheoSupremeoCourtoobservedothatopoweroofotransfero underoSectiono127owasoaomachineryoprovisionoandowasorequiredotoobeogiveno fulloeffectoasoalsoothatoitomustobeoconstruedoinoaomannerosooasotoomakeoito workableotooeffectuateotheochargingosectionosooasotooallowotheoauthoritieso concernedotoodooinoaomannerowhereforotheostatuteowasoenacted.ooParagrapho15o ofotheosaidojudgmentoisoreproducedobelowofororeadyoreference:-o "15.oTheopoweroofotransferoinoeffectoprovidesoforoaomachineryoprovision.oIto mustobeogivenoitsofulloeffect.oItomustobeoconstruedoinoaomannerosooasotoomakeo itoworkable.oEvenoSectiono127oofotheoActoisoaomachineryoprovision.oItoshouldo beoconstruedotooeffectuateoaochargingosectionosooasotooallowotheoauthoritieso concernedotoodoosooinoaomannerowhereforotheostatuteowasoenacted."o

19.o o FromoaoharmoniousoreadingoofoSectiono127oofotheo1961oActoando theoaforeoreferredojudgmentsoofotheoSupremeoCourtoitocanosafelyobeoculledoouto thatotheopoweroofotransferoofojurisdictionotooassessoanoassesseeounderosub-sectionso(1)oando(2)oofoSectiono127oofotheo1961oActoisoaomachineryoprovisiono whichoisoexercisedobyotheorevenueoforoitsoadministrativeoconvenience.ooSucho powero isotoo beo guidedoonlyobyo publicointeresto andotoo facilitateo effectiveo investigationoandocoordinatedoassessmentoforoefficientocollectionoofoincomeo tax.ooPriorotootheoexerciseothereof,ocircumstancesopermitting,oaoreasonableo opportunityoisorequiredotoobeograntedotootheoaffectedoparty.ooReasonsoareoalsoo

CWP-29843-2025 25

requiredotoobeostatedoforotransferringotheoassessee'socaseotooanotheroassessingo officer.ooSinceothisopowerounderosub-sectionso(1)oando(2)oofoSectiono127oiso vestedoinoSenioroOfficers/oCentraloBoardoofoDirectoTaxes,oitoisonototoobeoeasilyo assumedothatoit'soexerciseolacksobonaofideobutoatotheosameotime,owheneverotheo assesseeo challengeso theo transfero ofohiso assessmento jurisdictiono throughoao petitionofiledounderoArticleo226ooroArticleo32oofotheoIndianoConstitutionoono theogroundothatosuchotransferoisobeyondotheoprovisionsoofosub-sectionso(1)oando

(2)oofoSectiono127oofotheo1961oActooroisomalaofideooroviolatesohisofundamentalo rights,otheoRevenueocouldobeocalledouponotoojustifyoitsoactionoandoifosucho actionoisofoundotoobeomalaofideooroviolatingotheoassessee'sofundamentalorightso orobeyondotheoprovisionounderowhichosuchopowerohasobeenoexercised,otheo sameowouldobeostruckodown.o

20.o o Theopositionowouldobeodifferentoifotheoassessmentojurisdictionoofo anoassesseeoisotransferredobyotheorevenueoauthoritiesoinotheoexerciseoofopowerso underoSectiono127(3)oofotheo1961oActowithinotheosameocity,olocalityooroplace.oo Inosuchoaosituation,oinotermsoofotheolawolaidodownobyotheoConstitutionoBencho ofotheoSupremeoCourtoinoKashiramoAgarwala'socaseo(supra) suchoorderoofo transferowouldobeoonlyoforoconvenienceoofotheodepartmentowithonoopossibleo prejudiceotootheoassessee.ooTherefore,oinosuchosituation,oneitheroanyoprioro noticeotootheoassesseeowouldobeonecessaryonorotheorequirementotoorecordo reasonsoforosuchotransfer.

21.o o Ino theo caseo ino hand,o whicho pertainso too theo transfero ofo theo assessmentojurisdictionoofotheopetitionerofromoChandigarhotooGoa,onoomalao fidesoonotheorespondent'sopartohaveoevenobeenoalleged.ooItofurtheroremainso undisputedothatobeforeotransferringotheopetitioner'soassessmentojurisdictionoheo

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waso grantedo adequateo opportunityo too explaino hiso position.o o Theo ordero impugnedobyotheopetitioneroisoalsoofoundotoobeoaospeakingoorder.o

22.o o Aocarefuloscrutinyoofotheorecordofurtheroshowsothatosearchoando seizureoproceedingsobyotheorevenueoauthoritiesoatotheopremisesoofoM/soBlueo Ocean,oGoaoandoitsogroupocompaniesorevealedothatooneoofoitsomainodistributorso wasoM/soAaroha,oNewoDelhi.oThisoledotoosurveyoproceedingsoatotheopremiseso ofoM/soAarohaoduringotheocourseoofowhichoevidenceowasofoundothrougho WhatsAppochatsobetweenooLokeshoSaran-ManagingoDirectoroofoM/soAarohao andooneoGauravoSharmaowithoregardotootheosaidoGauravoSharmaohavingo purchasedo M/so Queeno Distillerso ato Chandigarho fromo theo petitioner.oo Incriminatingoevidenceowasofurtherofoundothatoduringotheocourseoofotheoaforeo transaction,ooGauravoSharmaohadopaidotootheopetitioneroanoundisclosedoamounto ofoaboutoRs.10ocroresoinocash.ooOnobeingoquestionedobyotheorevenueoofficials,oo LokeshoSaranostatedothatoitowasoheowhoowasooverseeingotheoentireotransactiono betweenoGauravoSharmaoandotheopetitioneroandothatoheohadoaovestedointeresto inosuchotransactionoasoalsoothatobeforeotheotransactionoitoisoheowhoohadodoneo dueodiligenceoinotheoformoofoverificationoofoEVCo(ElectronicoVerificationo Code),o Co Forms,o creditors,o debtors,o supplierso ando buyerso ofo M/so Queeno Distillers.ooLokeshoSaranohadostillofurtherostatedobeforeotheorevenueoauthoritieso thatoafterotheoaforesaidotransactionohasobeenocompleted,oitowasoM/soAarohao whicho waso theo soleo distributoro ofo liquoro manufacturedo byo M/so Queeno DistillersoatoChandigarh.o

23.o o JurisdictionotooassessoM/soAarohaostandsoalreadyotransferredotoo Goao ando learnedo counselo appearingo foro theo revenueo categoricallyo statedo

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beforeousothatotheocasesoofooLokeshoSaranoandoGauravoSharmaoareoinotheo processoofobeingocentralizedoatoPanaji,oGoa.o

24.o o Thus,oitoneedsotoobeoinvestigatedoifoGauravoSharmaowasoactingo aso ao frontomano foroM/so Aarohao and/ooro Lokesho Saran.o Thereo iso enougho evidenceoonorecordolinkingoM/soAaroha/LokeshoSaranowithoM/soBlueoOcean,o Goa.oTherefore,oitocannotobeosaidothatothereoisonoolinkobetweenotheotransactiono ofosaleobyotheopetitionerowithootherorelatedoentitiesowhoseoassessmentohaso been/oisobeingocentralizedoatoGoa.ooo

25.o o Inotheolightoofotheoaboveofacts,oweoareoofotheoviewothatoinotheo absenceoofoallegationsoofomalaofideoonotheorespondent'sopartotheotransferoofo theopetitioner'soassessmentojurisdictionofromoChandigarhotooGoaohasobeeno exercisedobyotheorevenueoforoitsoadministrativeoconvenience;otoofacilitateo effectiveoinvestigationoandocoordinatedoassessment;oforoefficientocollectionoofo taxoandoinopublicointerest.oPriorothereto,oprinciplesoofonaturalojusticeowereodulyo followedoandothatotheotransferoorderoalsoocontainsoadequateoandoacceptableo reasons.ooTherefore,oinotheoexerciseoofoourodiscretionaryojurisdictionoundero Articleo226oofotheoIndianoConstitution,oweoareonotoinclinedotoointerfereowitho theoimpugnedoorderoespeciallyoatotheopetitioner'sobehestowhooisosuspectedotoo beoinvolvedoinodubiousotransactionsoandomoreosoowhenoitoisotheounrebuttedo caseo ofo theo respondento revenueo thato ino theo presento erao ofo technologicalo advancement,o whereo theo proceedingso againsto theo petitionero ato Goao areo normallyogoingotootakeoplaceodigitally,oheoshalloalsoonotobeoputotoomucho inconvenienceoandohardship.ooInoanyocase,otheopetitioner'sointerestowouldobeo subservientotoopublicointerest.o

CWP-29843-2025 28

26.o o Beforeoweopartowithotheojudgment,oitowouldobeoonlyobeofairotoo dealowithotheotwoocircularsoofotheoCBDTodatedo24.08.2009oandoo11.02.2013o asoalsootheojudgmentsocitedoonotheopetitioner'sobehalf.o

27.o o AsoperotheotwoocitedocircularsoofotheoCBDTodatedo24.08.2009o ando11.02.2013otransferoofojurisdictionoofoassessmentocannototakeoplaceoinoao routineomanneroandowithoutoapplicationoofomindoasoalsoowithoutoestablishingo aolinkobetweenotheopersonosearched.ooInotheolightoofotheoaforeodiscussion,oitoiso clearothatocentralizationoofotheoassessmentoofotheopetitioneroatoPanaji,oGoaoiso inotermsoofobothotheosaidocirculars.o

28.o o InoAnubenoLalabhaioBharwad'socaseo(supra),oaoDivisionoBencho ofotheoGujaratoHighoCourtosetoasideotheotransferoofoassessmentojurisdictionoofo theopetitionerothereinofromoAhmedabadotooSuratoasoitofoundonoospecificooro independento materialo ono recordo whicho wouldo haveo linkedo theo petitionero thereinowithoM/soHVKoInternationaloGroupoatoSuratooandoinoM/soRSGoFoodso Pvt.oLtd.'socaseo(supra)oaoDivisionoBenchoofothisoCourt,oonofacts,ofoundothato theo transfero ofo assessmento jurisdictiono ofo theo petitionero thereino fromo FerozepurotooAmritsarowasonotobasedoonoanyoestablishedolinkobetweenotheo petitionero thereino too eventso ato Amritsar.o o However,o ino theo lighto ofo theo discussion,o aso above,o ito cannoto beo saido thato thereo iso noo linko establishedo betweenotheoundisclosedocashotransactionoenteredointoobyotheopetitionerowitho GauravoSharmaoandotheorelatedoentitiesowhoseoassessmentohasobeen/oisobeingo centralizedo ato Goa.o o Thus,o ono facts,o Anubeno Lalabhaio Bharwad'so caseo (supra)oandoM/soRSGoFoodsoPvt.oLtd.'socaseo(supra)oareodistinguishableofromo theopetitioner'socase.o

CWP-29843-2025 29

29.oo o Thereoisoalsoonoolegaloweightoinotheoargumentoraisedoonobehal"o o"otheopetitionerothatoi"oduringotheocourseoo"osurve!oproceedingsoconductedoato theopremisesoo"o23so/arohaoato%ewo9elhi$oevenoi"oan!oincriminatingomaterialo witho regardo too an!o evasiono o"o (ncomeo Ta1o hado beeno "oundo againsto theo petitioner$osuchoincriminatingomaterialoshouldohaveobeeno"orwarded$oinotermso o"o.ectiono15,49oo"otheo1901o/ctotoo'handigarhoandoitoisothereothatotheo in-uir!3oinvestigationocouldoandoshouldohaveota;enoplaceowithoregardotooan!o illegalit!3oirregularit!oonotheopetitioner?sopartoratherothanoresortotootrans"eroo"o theopetitioner?socaseo"romo'handigarhotoo&anaji$o6oa.oo

30.oo o .ectiono15,49oo"otheo/ctoreadsoaso"ollowsA)o "158BD. Where the Assessing Officer is satisfied that any undisclosed income belongs to or pertains to or relates to any person (herein referred to as the "other person"), other than the person (herein referred to as the "specified person" for the purposes of this section) with respect to whom search was initiated under section 132 or requisition was made under section 132A, then any money, bullion, jewellery, virtual digital asset or other valuable article or thing or any books of account or other documents seized or requisitioned or any other material or information relating to the aforesaid undisclosed income shall be handed over to the Assessing Officer having jurisdiction over such other person and that Assessing Officer shall proceed under section 158BC against such other person and the provisions of this Chapter shall apply accordingly: Provided that,—

(a) where there is one specified person relevant to such other person, the block period for such other person shall be the same as that for the specified person; and

(b) where there is more than one specified persons relevant to such other person, the block period for such other persons shall be the same as that for the specified person in whose case the block period ends on a later date: Provided further that in case of such other person, for the purposes of abatement under sub-sections (2) and (3) of section 158BA, the GOPAL KRISHAN authenticity of this document

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reference to the date of initiation of the search under section 132 or making of requisition under section 132A shall be construed as reference to the date on which such money, bullion, jewellery, virtual digital asset or other valuable article or thing or any books of account or other documents seized or requisitioned or any other material or information relating to the aforesaid undisclosed income were received by the Assessing Officer having jurisdiction over such other person."

31.o o Asoperotheoaforeoquotedoprovision,oifoduringotheocourseoofosearch/o survey,oanyoincriminatingomaterialoisofoundoagainstoanoassesseeowhooisobeingo assessedo byo ao differento Assessingo Officero theno sucho materialo iso too beo forwardedo too thato Assessingo Officero whoo wouldo theno dealo witho sucho informationoandoonotheobasisothereofoassessotheoassessee.oHowever,othatowouldo beosooonlyoifotheoincriminatingomaterialosoodiscoveredohasonoolinkowithoanyo otherorelatedoentity.oIfotheodiscoveredoincriminatingomaterialoisolinkedotoo anotherorelatedoentityooroentitiesowhooareobeingoassessedoatoaodifferentoplace(s)o ando ifo theo revenueo bonao fideo believeso thato ito wouldo beo administrativelyo convenientoandoinopublicointerestoasoalsooinofurtheranceowithotheoobjectsoofotheo 1961oAct,othen,oafterofollowingotheoprocedureoprescribedounderoSectiono127o ofotheo1961oAct,ocentralizeotheoassessmentoofoallotheoconnectedoorolinkedo personsoatooneoplace.o

32.o o Inotheolightoofotheoaboveodiscussion,otheopresentopetitionosanso merit.o

33.o o Dismissed.o o o o o o o o (DEEPAKoSIBAL)o o o o o o o o o JUDGEo o o

17.12.2025o o o o oo oooooooo(LAPITAoBANERJI)o gko o o o o o o ooooooooJUDGEo o Whetherospeaking/reasoned:oooo Yes/Noo oo o Whetheroreportable:oooo oYes/Noo

IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH CWP-29843-2025 Bhupinder Singh ….Petitioner versus Principal Commissioner of Income Tax Chandigarh and others …Respondents 1.o Theodateowhenotheojudgmentoisoreservedo 01.12.2025o 2.o Theodateowhenotheojudgmentoisopronouncedo 17.12.2025o 3.o Theodateowhenotheojudgmentoisouploadedoonotheo 19.12.2025o websiteo 4.o hetheroonl!ooperativeopartoo"otheojudgmentoiso #ullo pronouncedoorowhetherotheo"ullojudgmentoiso pronouncedo 5.o Theodela!$oi"oan!$oo"otheopronouncementoo"o"ullo %oto judgment$oandoreasonsothereo"o applicableoo CORAM: HON'BLE MR. JUSTICE DEEPAK SIBAL HON'BLE MS. JUSTICE LAPITA BANERJI Present: Ms. Radhika Suri, Senior Advocate with Mr. Abhinav Narang, Advocate and Ms. Parnika Singla, Advocate, for the petitioner. Ms. Urvashi Dhugga, Senior Standing Counsel, Mr. Vidul Kapoor, Junior Standing Counsel and Ms. Kavita, Advocate, for the Income Tax Department. Ms. Ameera Abdul Razak, Standing Counsel, for respondent No.2 (through Video Conferencing)