Court Orders Consideration of LTU Scheme Exit Request & Pending Assessment Transfer

The court directed the first respondent to consider the petitioner's request to exit the LTU Scheme and transfer pending assessments to a new jurisdiction in line with communications provided under the Right to Information Act and relevant tax laws within three weeks. The court acknowledged the acceptance of the petitioner's application subject to the writ petition's outcome, highlighting the disparity in treatment compared to other companies opting out of the LTU Scheme.

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Issues:
Petitioner's request to exit LTU Scheme and transfer pending proceedings under various tax acts to new jurisdiction.

Analysis:
The petitioner, engaged in computer hardware installation and software development, sought to exit the LTU Scheme from April 1, 2013, and transfer pending proceedings under tax acts to a new jurisdiction. Despite the petitioner's consent to LTU scheme and subsequent request to opt out, the authorities kept the request in abeyance citing incomplete assessment for 2009-2010. The petitioner approached the court seeking direction for the transfer of pending assessments. The authorities transferred proceedings of other companies opting out of LTU, but not for the petitioner due to the pending assessment issue.

The petitioner's counsel argued that similar cases saw the transfer of pending assessments upon opting out of LTU, highlighting the disparity in treatment. The respondents contended that the pending assessment for 2009-2010 justified their decision not to transfer the proceedings. They emphasized the need for a case-by-case examination before transferring proceedings.

The court considered the submissions and noted that other companies had their pending assessments transferred upon opting out of LTU, as evidenced by communications provided under the Right to Information Act. The court directed the first respondent to consider the petitioner's request in line with the communications provided and relevant tax laws within three weeks, acknowledging the acceptance of the petitioner's application subject to the writ petition's outcome.

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