Trustcap Private Limited Vs ITO (Bombay High Court)
Bombay High Court held that applying principle of forum convenience, since orders/notices are issued by ITO in Kolkata and a substantial portion of cause of action has accrued at Kolkata, it would be appropriate if the petitioner was relegated to availing of the remedies at Kolkata.
Facts- This petition challenges, inter alia, the order dated 27 August 2024 made under Section 148A(d) and notice dated 27 August 2024 issued under Section 148 of the Income Tax Act, 1961 by the Income Tax Officer, Kolkata, and the Chief Commissioner of Income Tax, Kolkata.
The petitioner submits that that it has its registered office in Mumbai and this address is updated in the PAN database of the IT Department. She submitted that the petitioner had already applied for the surrender of PAN in 2007, and only because no decision had been taken were impugned notices issued by the Kolkata officials. In such circumstances, she submits that a substantial portion of the cause of action has accrued in Mumbai; therefore, this court has territorial jurisdiction to entertain this petition.
Conclusion- Held that the impugned order/notices were issued by the Income-tax officials in Kolkata. The case papers and other materials based on which the notices are issued are at Kolkata. The Petitioner’s assessing authorities are based at Kolkata. Thus, a substantial portion of the cause of action has accrued at Kolkata. Applying the principle of forum convenience, it would be appropriate if the petitioner was relegated to availing of the remedies at Kolkata. Thus, we have considered the rival contentions, but we are satisfied that it would be appropriate if the petitioner is relegated to avail of its remedies at Kolkata.
