Usually when someone takes a cabal item and then it changes hands there is an echo for members of the cabal whose item was taken.Person1 and Person2 have figured out some way to pass the Cabalitem between them without it generating an echo. Snipped rest.
From a glance, assuming I'm looking at the right raid, Person1 had cabalitem and Person1 turned it in, no passing happened. I'd need more information (or info on which raid) to see anything else.