VODAFONE INDIA SERVICES PRIVATE LIMITED vs. DEPUTY COMMISSIONER OF INCOME-TAX

Facts

Vodafone India Services Private Limited (VISPL), the assessee, filed a writ-application under Article 226 of the Constitution of India before the Gujarat High Court. The assessee sought a writ of mandamus directing the Deputy Commissioner of Income Tax, Ahmedabad (Respondent No.1) to expeditiously dispose of its application dated May 18, 2017. This application was filed under Section 127(2) of the Income Tax Act, 1961, for migration of its PAN jurisdiction from Ahmedabad, Gujarat, to Mumbai, Maharashtra, following the shifting of its registered office. The assessee had previously notified the department of this shift and had made prior requests for re-transfer of jurisdiction. Despite multiple reminders filed on September 1, 2017, February 8, 2018, and May 17, 2019, and an intimation on July 11, 2019, directing the assessee to approach the Principal Commissioner of Income Tax, Ahmedabad, no decision had been made on the application. The writ-application highlighted the delay of nearly two years in the disposal of the subject application.

Held

The Gujarat High Court held that the subject application, filed by Vodafone India Services Private Limited (VISPL) on May 18, 2017, under Section 127(2) of the Income Tax Act, 1961, for the transfer of its tax assessment jurisdiction from Ahmedabad to Mumbai, had been pending for an inordinate period of nearly two years. The Court noted the multiple reminders filed by the assessee. Consequently, the Court directed the Principal Commissioner of Income Tax – 4, Ahmedabad (Respondent No.2), to immediately consider the said application and pass an appropriate speaking order in accordance with the law, after providing a hearing to the writ-applicant. This exercise was to be completed within a period of four weeks from the date of receipt of the order. The writ-application was disposed of with this direction.

Key Issues

1. Whether the High Court, in its writ jurisdiction under Article 226, should direct the tax authorities to expeditiously dispose of an application filed under Section 127(2) of the Income Tax Act, 1961, when it has been pending for an extended period. Assessee's Contentions: - The assessee argued that its registered office had shifted from Ahmedabad to Mumbai, and it had complied with all statutory procedures under the Companies Act, 2013, for this change, culminating in a Certificate of Registration dated May 17, 2017. - It contended that it had been assessed in Mumbai since inception and had filed an application for transfer of jurisdiction under Section 127(2) on May 18, 2017. - The assessee highlighted that despite filing multiple reminders over nearly two years, its application remained undecided, necessitating the writ petition. Revenue's Contentions: - The judgment does not record any specific contentions made by the revenue.