Alta Vista Info Solutions Private Limited & Anr Vs PCIT (Supreme Court of India)
The petitions before the Supreme Court of India arose from identical orders dated 07.11.2022 passed under Section 127(2) of the Income Tax Act, 1961, by which the assessments of the petitioners were centralised with the DCIT/ACIT (Central), Circle-01, Faridabad. The petitioners challenged these transfer orders primarily on the grounds that their registered office was situated in New Delhi and, therefore, jurisdiction could not be shifted to an authority outside Delhi, and that the impugned orders did not disclose adequate reasons for such centralisation. It was also contended that the transfer would cause inconvenience as the petitioners had no establishment or connection with Faridabad. Further, it was argued that the transfer was linked to a search and seizure operation dated 29.06.2022 conducted in the case of one individual, with whom, according to the petitioners, they had no relationship.
The Court examined the undisputed facts on record. It noted that the individual in question was a director on the board of the petitioner companies, had signed the return of income of one of the petitioners for the relevant assessment year, had also signed the board resolution authorising the filing of the petition, and had affirmed the supporting affidavit. In view of these facts, the Court held that the contention that the petitioners had no connection with the said individual was insubstantial. The Court also noted that the petitioners’ manufacturing unit was located at Sonipat, Haryana, thereby establishing their presence in the State of Haryana.
