Relief for CM as HC quashes I-T order on shifting of case : The Tribune India

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Relief for CM as HC quashes I-T order on shifting of case

SHIMLA: In a major relief to Chief Minister Virbhadra Singh, HP High Court today quashed and set aside the order of the Income Tax Commissioner, Shimla, whereby he had ordered the transfer of investigation into the income tax returns of Virbhadra Singh and his family members from Shimla to Chandigarh.

Relief for CM as HC quashes I-T order on shifting of case


Vijay Arora

Legal Correspondent

Shimla, December 18

In a major relief to Chief Minister Virbhadra Singh, HP High Court today quashed and set aside the order of the Income Tax Commissioner, Shimla, whereby he had ordered the transfer of investigation into the income tax returns of Virbhadra Singh and his family members from Shimla to Chandigarh.

While quashing the order, a division bench comprising Chief Justice Mansoor Ahmad Mir and Justice Tarlok Singh Chauhan observed that the “statutory authority must exercise its jurisdiction within the four corners of the law. We have no hesitation in holding that the show cause notices issued to the petitioners were only an empty formality as the basis and foundation of the transfer of the cases is not the one for which the petitioners in fact had been asked to show-cause. The impugned order has been passed after taking into consideration the extraneous material which had never been brought to the notice of the petitioners prior to passing of the impugned order. Therefore, the action of the respondents is violative of principles of natural justice and fair play and therefore not sustainable in the eyes of law.”

However, the bench clarified in its order that it will be open for the Income Tax Commissioner to commence the proceedings afresh which, needless to say, shall be strictly in accordance with the law.

The court further clarified that “since we have not made any observation on the relative merits of the cases, in the event of fresh show-cause notice(s) being issued, it shall be open to the petitioner(s) to raise all questions of fact and law, including those raised before this court.”

The bench passed this judgment on the petitions filed by Virbhadra Singh and his family members challenging the order of the Income Tax Commissioner to transfer their cases to Chandigarh on the ground that this order is illegal and a coordinated and joint investigation of all cases can be done in Shimla also.

Apart from Virbhadra Singh, his wife Pratibha Singh, son Vikramaditya Singh, daughter Aparajita Kumari and one Anand Chauhan (caretaker of Virbhadra Singh’s orchards), Chunni Lal Chauhan (Proprietor of M/s Universal Apples) had challenged the orders of the Income Tax Commissioner before the court.

The Income Tax Department contended that the July, 14, 2014 order had been passed in order to ensure coordinated investigation and assessment of a number of assesses, including 11 other persons who had been assessed at Delhi, whose financial dealings are interlinked with the petitioners.

The Income Tax Commissioner, in his orders, passed on July, 14, 2014, had said that the agriculture income had shown a dramatic increase in the revised return, which is an apparent attempt to justify the investments made in the purchase of insurance policies and the assesses had close relations and business dealings amongst themselves and Vakamulla Chandrashekhar and M/s Tarini Infrastructure Limited, which require coordinated and joint investigations in all cases.

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