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CAT Directs CBDT to Reform HR Transfer Policy for Non-Gazetted Staff

Case Law Details

TaxGuru Citation
2025 taxguru.in 1670
Case Name
Sumit & Ors Vs. Union of India (Central Administrative Tribunal, Delhi)
Date of Judgement/Order
Only available for paid members
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Sumit & Ors Vs Union of India (Central Administrative Tribunal, Delhi)

Central Administrative Tribunal (CAT), Principal Bench, New Delhi, has ruled on a case filed by Income Tax Department employees challenging the Loan Basis Transfer Policy of 2020. The applicants, comprising Inspectors, Stenographers, and Tax Assistants (Groups B & C), argued that the policy was discriminatory as it did not align with the IRS Transfer Policy, 2010, applicable to Group A officers. They sought equal treatment in inter-region transfers, especially for employees with spouses in government jobs. The applicants invoked constitutional provisions, including Article 14 (equality before the law), and referenced the Department of Personnel and Training (DoPT) guidelines on spouse postings.

The tribunal, recognizing the grievances, remanded the matter to the Central Board of Direct Taxes (CBDT) for reconsideration. It directed the CBDT to develop a fair and equitable transfer policy for Group B and C employees, ensuring consistency with Group A regulations. The tribunal emphasized the importance of a non-arbitrary and compassionate HR policy, stating that an improved system would enhance employee motivation and efficiency. The CBDT has been given six months to implement the revised policy. The case was disposed of with no order on costs.

Counsel for Applicants –  Rishabh Sancheti With Padmapriya

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