Transferring case to facilitate authorities to do an effective & co-ordinate investigation & assessment is valid: HC

  • Blog|News|Income Tax|
  • 2 Min Read
  • By Taxmann
  • |
  • Last Updated on 25 January, 2022

Income-tax Act 1961; Income-tax authorities; Power to transfer cases (Illustration)

Case Details: Varun Raj Pillai v. PCIT - [2022] 134 86 (Gauhati)

Judiciary and Counsel Details

    • Sudhanshu Dhulia, CJ. and Kakheto Sema, J.
    • Dr. A. Todi and Ms. P.S. Chakraborty, Advs. for the Appellant. 
    • S. Sarma, Standing Counsel, I.T Deptt. for the Respondent.

Facts of the Case

The assessee had a business interest in Kollam, Kerala, and Dimapur, Nagaland, but most of the time, he resided in Dimapur, Nagaland. He was the promoter of S Group. A search under section 132 was conducted at various business and residential premises of assessee.
To have better control and centralise the assessment process, revenue transferred the case of the assessee from Dimapur, Nagaland to Kollam, Kerala.

The assessee filed a writ petition before the Gauhati High Court alleging that this had been done without proper notice and without assigning any reasons why such transfer was being made and was thus in violation of section 127.

High Court Held

The High Court held that the reasons for transferring the case from Nagaland to Kerala were given in the notice, which assigned credible reasons. The very purpose of the powers, which have been given to the authorities under section 127, is to be exercised in the public interest, and it has a larger purpose.

The purpose of transferring the case was to facilitate the revenue authorities in doing an effective and co-ordinate investigation and assessment. There is absolutely no doubt that the authorities assigned the reasons as required under section 127.

The assessee had been directing the transfer of huge sums of money from several bank accounts in Nagaland to his family’s businesses and his family members based in Kerala. The purpose of transferring the case was to facilitate revenue authorities in doing an effective and co-ordinate investigation and assessment. Cogent reasons had been assigned by revenue for transferring the case from Nagaland to Kerala.

Accordingly, the order passed by revenue to transfer the case could not have been interfered with. Writ appeal was devoid of merit, and the same was accordingly dismissed.

Case Review

    • Order dated 25-9-2019 passed in WP(C) 33(K)/2019, WP(C) 34(K)/2019, WP(C) 35(K)/2019, WP(C) 36(K)/2019, WP(C) 37(K)/2019, WP(C) 38(K)/2019 and WP(C) 39(K)/2019 (para 11) affirmed.

List of Cases Referred to

Disclaimer: The content/information published on the website is only for general information of the user and shall not be construed as legal advice. While the Taxmann has exercised reasonable efforts to ensure the veracity of information/content published, Taxmann shall be under no liability in any manner whatsoever for incorrect information, if any.

Leave a Reply

Your email address will not be published. Required fields are marked *

Everything on Tax and Corporate Laws of India

To subscribe to our weekly newsletter please log in/register on

Author: Taxmann

Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.

The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:

  • The statutory material is obtained only from the authorized and reliable sources
  • All the latest developments in the judicial and legislative fields are covered
  • Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
  • Every content published by Taxmann is complete, accurate and lucid
  • All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
  • The golden rules of grammar, style and consistency are thoroughly followed
  • Font and size that's easy to read and remain consistent across all imprint and digital publications are applied