INCOME TAX OFFICER Vs. S S AHLUWALIA

JUDGEMENT

(1.) This Writ Appeal is directed against the judgment and order dated 9.5.94 passed by the learned Single Judge of this Court in Civil Rule No. 92 (K)/91, thereby allowing the Writ petition filed by the Writ petitioner-respondent who was at the material time Chief Secretary to the GOvt. of Nagaland, directing the respondent-appellant herein to refund an amount of Rs. 8,41,142.86 Paise with interest at the rate of 18% per annum within one month from the date of receipt of the order Aggrieved by the same the Income Taa Officer, Dimapur has come in appeal.

(2.) Few basic facts may now be noted The Writ petitioner respondent was a Member of the Indian Administrative Service, Nagaland Cadre, mostly posted in Nagaland except for a short period from July, 1978 to March, 1984 when he was on deputation to the Ministry of Home Affaris, Govt. of India, New Delhi. He retired as Chief Secretary to the Govt. of Nagaland. The petitioner used to submit his Income-Tax Return with the I.T.O., Dimapur right from 1970-71 to 1978-79 but for the period 1979-80 to 1983-84 while he was posted at Delhi he submitted his return to the I.T.O., New Delhi. Again for the subsequent years 1984-85 onwards the Returns were filed with the I.T.O., Dimapur. Till the assessment years 1990-91 when he was informed by the I.T.O. that the Income-Tax record was required to be transferred to New Delhi, his permanent place of posting, the Writ petitioner did raise an objection to the proposed transfer. A notice u/s 127 of the Income Tax Act was issued to the writ petitioner stating, inter alia, that the Returns filed by him were required to be transferred to the Commissioner, Investigation Circle, New Delhi which being the permanent place of appointment of the Writ petitioner, who objected to the same on the ground that the transfer of jurisdiction for the purposes of administrative convenience was wholly unjustified and untenable in law. Overrulling the objection the record was transferred to New Delhi vide order dated 15.3.90 to the Assistant Commissioner of Income Tax, Investigation Circle 8(1), New Delhi, who made an assessment u/s 127(1) of the Income Tax Act. It was against this assessment order that the writ petitioner filed a writ petition being Civil Rule No. 7(K)/91 in the Kohima Bench of this Court. By an interim order passed by the Kohima Bench, the assessment for the year 1975-76, 1976-77, 1980-81 were stayed.

(3.) The Writ petition registered as Civil Rule No. 92(K)/91 was filed by the writ petitioner-respondent challenging the proceeding initiated by the Assistant Commissioner, Income Tax, Investigation Circle, 8(1) New Delhi and had completed assessment in respect of the assessment years 1985-86, 1986-87 and 1987-88. It may be noted that in respect of these assessment years the writ petitioner had filed returns at Dimapur. The Writ petitioner preferred an appeal before the Commissioner of Income Tax (Appeals), New Delhi against the notice dated 23.3.88 issued by the Assistant Income Tax Commissioner for initiating the assessmant proceedings. The writ petitioner also averned that a notice under Rule 83 of the Income Tax Rule in respect of the alleged arrears outstanding demand amounting to Rs. 1,40,77,276/- in respect of assessment years 1985-86 to 1987-88 was also served upon him, he therefore prayed for stay of recovery proceedings which was rejected. It was his pleaded case that the immovable properties included in the assessment year for the above years 1985-86 to 1987-88 in fact belongs to other relations of the petitioner.