Rajib Mukhopadhyay Vs PCIT (Bombay High Court)
The Bombay High Court has set aside the Principal Commissioner of Income Tax’s (PCIT) order to transfer the case of Rajib Mukhopadhyay, the former Chief Financial Officer (CFO) of Indofil Industries Limited, from Mumbai to Delhi under Section 127(2) of the Income Tax Act. The petitioner was subjected to centralisation following a search under Section 132 on Samir Modi and Shivani Modi, during which cash and jewellery were seized. The sole reason cited in the show cause notice for transferring the petitioner’s case was that he was the CFO of Indofil Industries Limited, and the transfer was required for “coordinated investigations and meaningful assessment” alongside the company’s centralised case. However, during the court proceedings, the Revenue confirmed that the assessment of Indofil Industries Limited had already been completed. Relying on the principle established in Pegasus Assets Reconstruction Private Limited v/s. PCIT, the High Court ruled that since the very basis for the transfer he need for coordinated investigation with the main company’s ongoing assessment longer existed, the transfer orders dated January 10 and 23, 2024, were rendered unjustifiable. Consequently, the High Court quashed and set aside the transfer orders, disposing of the petition.
