The power of transfer under Section 127 of the Income Tax Act, 1961 is not in any manner trammelled upon or negated by the two Notifications each dated 12th September, 2019 and 13th August, 2020.

JUDGMENT

Manmohan, J.:

TABLE OF CONTENTS

THE ISSUE

1. The primary issue that arises for consideration in the present batch of writ petitions is whether the assessments of the petitioners could be transferred to the Central Circle by way of the impugned orders passed under Section 127 of the Income Tax Act, 1961 (hereinafter be referred to as `the Act') without sanction of the Central Board of Direct Taxes (`CBDT').

RELEVANT FACTS

2. It is pertinent to mention that the present batch of writ petitions has been preferred by five Charitable trusts viz. Sanjay Gandhi Memorial Trust, Jawahar Bhawan Trust, Rajiv Gandhi Foundation, Rajiv Gandhi Charitable Trust, Young India as well as three individuals viz. Mrs. Sonia Gandhi, Mr. Rahul Gandhi, Mrs. Priyanka Gandhi Vadra and a political party -Aam Aadmi Party (AAP).

3. In the present batch of writ petitions, the petitioners have challenged the transfer orders passed under Section 127 of the Act, whereby the jurisdiction of the petitioners have been transferred from Exemption Circle (in cases of Trusts) and ACIT Circle 52(1) (in cases of individuals) to DCIT Central Circle-27 and in the case of Aam Aadmi Party from Exemption Circle to DCIT, Central Circle -03. All the Income Tax Officers i.e. both transferor and transferee are located within the same city, namely, Delhi.

4. Since a common question of law arises in the present batch of writ petitions, the facts of Writ Petition (C) 3535 of 2021 (which was treated as the lead writ petition with the consent of parties) are reproduced hereinbelow.

4.1. The Petitioner (Sanjay Gandhi Trust) was established with the intent of providing health services, education and employment to the people of rural Uttar Pradesh. The Trust manages rural medical centre, the Sanjay Gandhi Hospital, educational institutes such as Indira Gandhi School and College of Nursing, Indira Gandhi Institute of Paramedical Sciences, Indira Gandhi Technical Institute and Rajiv Gandhi Computer Shiksha Kendra.

4.2. The petitioner is registered as a charitable institution under Section 12A of the Act and assessments have been completed under Section 143(3)/143(1) of the Act till the Assessment Year 2017-18. Charitable purpose of the petitioner has never been doubted by the revenue till the said Assessment Year.

4.3. By way of Finance Act, 2018, the concept of E-assessment was introduced in the Act by insertion of sub-Sections (3A), (3B) and (3C) to Section 143 of the Act and the Central Government was delegated with the power to make and notify a Scheme for conducting of E-assessments. Sub- Sections (3A), (3B) and (3C) to Section 143 of the Act are reproduced hereinbelow:

"Assessment 143...

(3A) The Central Government may make a scheme, by notification in the Official Gazette