Bhupinder Singh Vs PCIT (Punjab And Haryana High Court)
Punjab and Haryana High Court held that transfer of case from Chandigarh to Panaji under section 127 of the Income Tax Act to centralize the assessment of all connected or linked persons at one place is justifiable. Accordingly, the present petition is dismissed.
Facts- The present petition has been preferred by the petitioner. Vide the present petition, the petitioner challenges order dated 08.09.2025, passed under Section 127(2) of the Income Tax Act, 1961 by the Principal Commissioner of Income Tax Chandigarh-I transferring the jurisdiction of the petitioner to be assessed from DCIT Circle I (1), Chandigarh to ACIT/DCIT Central Circle, Panaji.
Conclusion- In the case in hand, which pertains to the transfer of the assessment jurisdiction of the petitioner from Chandigarh to Goa, no mala fides on the respondent’s part have even been alleged. It further remains undisputed that before transferring the petitioner’s assessment jurisdiction he was granted adequate opportunity to explain his position. The order impugned by the petitioner is also found to be a speaking order.
Held that if during the course of search/ survey, any incriminating material is found against an assessee who is being assessed by a different Assessing Officer then such material is to be forwarded to that Assessing Officer who would then deal with such information and on the basis thereof assess the assessee. However, that would be so only if the incriminating material so discovered has no link with any other related entity. If the discovered incriminating material is linked to another related entity or entities who are being assessed at a different place(s) and if the revenue bona fide believes that it would be administratively convenient and in public interest as also in furtherance with the objects of the 1961 Act, then, after following the procedure prescribed under Section 127 of the 1961 Act, centralize the assessment of all the connected or linked persons at one place. Thus, the present petition sans merit.
