FUTUREINDTECH HOTELS & RESORTS (INDIA) PVT LTD V. UNION OF INDIA

WP/1915/2016

AI Insights

The case involves Futureindtech Hotels & Resorts (India) Pvt. Ltd., which filed a writ petition under Articles 226 and 227 of the Constitution of India, seeking to transfer its income tax files from Kolkata to Bengaluru following the relocation of its registered office. The petitioner argued that the transfer was necessary to avoid future legal complications and to ensure proper jurisdictional oversight by the local tax authorities in Bengaluru. The respondents, including various income tax commissioners and officers, acknowledged the petitioner's concerns and agreed to expedite the consideration of the request.

• Counselvise Citation: [2016] 140 COUNSELVISE.COM (IT) 722735 (HC-KARNATAKA)
• Appeal Type: Others
• Pronouncement Date: 22-01-2016
• Assessment Year: misc
• Laws Referred To: Companies Act, 1956, Companies Act, 2013, Constitution of India
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: JEEVAN NEERALGI
• Assessee Lawyers: M V SESHACHALA
• Keywords: Income Tax jurisdiction transfer; Registered Office Change; Permanent Account Number Change
• Section: 13; 12; 226; 227

Judgement Text

"IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 22nd DAY OF JANUARY, 2016 BEFORE THE HON’BLE MR. JUSTICE ANAND BYRAREDDY WRIT PETITION NO.1915 OF 2016 (T-IT) Between: Futureindtech Hotels & Resorts (India) Pvt. Ltd., A Company registered under the Companies Act, 1956 Having its registered office at No.14, Kasturba Road, Bengaluru – 560 001 Represented by its Director Mr.Raju Kumar. …Petitioner (By Shri.M.V.Seshachala. Adv.) And: 1. Union of India, Represented by The Secretary, Department of Finance, Delhi – 110 001. 2. The Commissioner of Income Tax – III, Aayakar Bhavan, P-7, Chawringe Square, Kolkata – 700 069. 2 3. The Commissioner of Income Tax – I, Central Revenue Buildings, Queens Road, Bengaluru – 560 001. 4. The Income Tax Officer Ward – 7(4), Aayakar Bhavan, P-7, Chawringe Square, Kolkata – 700 069. 5. The Income Tax Officer, Ward – 3(1) (1), C.R. Building, No.1, Queens Road, Bengaluru – 560 001. 6. The Principle Commissioner of Income Tax, Aayakar Bhavan, P-7, Chawringe Square, Kolkata – 700 069. 7. The Principle Commissioner of Income Tax, Central Revenue Buildings, Queens Road, Bengaluru – 560 001. 8. The Principle Chief Commissioner of Income Tax, Aayakar Bhavan, P-7, Chawringe Square, Kolkata – 700 069. 9. The Principle Chief Commissioner of Income Tax, Central Revenue Buildings, 3 Queens Road, Bengaluru – 560 001. 10. The Assessing Officer, Income Tax Department, 80 Feet Road, BMTC Bus Stand, Koramangala, Bangalore – 560 034. … Respondents (By Shri. Jeevan Neeralgi, Adv.) --- This Writ Petition is filed under Articles 226 and 227 of the Constitution of India praying to direct the respondents to consider the representation filed by the petitioner company dated.31.08.2015 [Annexure – F] to take necessary steps to transfer the Income Tax files of the petitioner company from Kolkata Income Tax Jurisdiction to Bengaluru Income Tax Jurisdiction. This Petition coming on for Preliminary Hearing this day, the Court made the following:- O R D E R Shri Jeevan Neeralgi, learned counsel is directed to take notice for the respondents. 2. Heard the learned Senior Advocate, Shri M V Sheshachala, appearing for the learned counsel for the 4 petitioner and the learned counsel Shri Jeevan Neeralgi appearing for the respondents. 3. The petitioner is said to be a company incorporated under the provisions of the Companies Act, 1956. It was originally incorporated in the State of West Bengal and the registered office of the petitioner was situated at No.29A, Western Street, Room No.C-5, Kolkata – 700 012. Pursuant to the change of its registered office from the State of West Bengal to the State of Karnataka, the petitioner’s company presently has its registered office at the address shown in the cause title. The petitioner is engaged in the business of establishment and operation of hotels and resorts in India. The petitioner company was assessed to income tax and was under the jurisdiction of the 4th respondent, who in turn came within the jurisdiction of the 2nd respondent. Presently, the 5th respondent is the jurisdictional income tax officer who is under the jurisdiction of the 3rd respondent. 5 4. The petitioner vide its Extra Ordinary General Meeting dated 06.06.2015 resolved to shift the registered office of the petitioner company from the State of West Bengal to the State of Karnataka and by a resolution dated 24.08.2015, resolved to shift the Head Office/Corporate Office from Kolkata to Bangalore and it was further resolved that a request be made to the Income Tax Department to transfer all the income tax records of the petitioner company to the jurisdictional income tax authority in the Sate of Karnataka and also for a change of Permanent Account Number (PAN). 5. In compliance with Section 13 of the Companies Act, 2013, necessary application was filed before the Regional Director, Eastern Region Bench, Kolkata seeking alteration of the Memorandum of Association of the Company and in compliance with the procedure mentioned therein and in compliance with Section 12 of the Act it placed all the necessary documents before the Registrar of 6 Companies. In view of compliance with these requirements under law the petitioner had by letter dated 28.08.2015requested the 2nd respondent for transfer of its income tax assessment records from 4th respondent to 5th respondent in view of it shifting its registered office as already stated. Though the Regional Director, Ministry of Corporate Affairs, Kolkata, has addressed a letter approving the change of place of registered office of the petitioner’s company from West Bengal to Karnataka and the registered office has in fact been transferred to the address shown in the cause title and the petitioner company already having intimated the second respondent and third respondent of the change of registered office address of the petitioner, no further action has been taken on the petitioner’s representation nor have the respondents rejected the same. It is in this background that the petitioner is before this court. 7 6. The learned Senior Advocate would submit that the request of the petitioner is a legitimate one and is bound to be considered in order to avoid inconvenience and hardship in the near future, if the income tax authorities did not acknowledge the fact that the petitioner has changed its registered office and would be operating its business now from Bengaluru and therefore there is urgency in the respondents’ considering the case of the petitioners and approving the same for otherwise it would lead to unnecessary legal complications for the petitioner and hence the present petition. 7. The learned counsel for the respondents would submit that the petitioner appears to be proceeding with undue haste in seeking that there has been no action on the part of the respondents. If there is any such request pending before the authorities they would consider it in due course. In any event he undertakes to convey the concern of the petitioner as sought to be made out in this petition 8 and would have no objection if the petition is allowed directing the respondents to consider the petitioner’s representation as per Annexures E and F1 dated 28.08.2015 and 31.08.2015 respectively, to the petition. 8. Accordingly, the petition is allowed. The respondents are directed to consider the representation filed by the petitioner company dated 31.08.2015 and to take necessary steps to transfer the income tax files of the petitioner company from Kolkata income tax jurisdiction to Bengaluru Income Tax jurisdiction if the law so permits, and this shall be done with expedition, in any event the consideration by the respondents shall be within a period of four weeks from the date of receipt of this order, if not earlier. Sd/- JUDGE ykl "