Gloster Limited v. Deputy Commissioner Of Income Tax , Kolkata And Ors

ORDER SHEETWPO/2607/2022IN THE HIGH COURT AT CALCUTTACONSTITUTIONAL WRIT JURISDICTIONORIGINAL SIDE GLOSTER LIMITED VSDEPUTY COMMISSIONER OF INCOME TAX , KOLKATA AND ORS BEFORE: The Hon’ble JUSTICE SHEKHAR B. SARAF Date: 24[th] November, 2022. Appearance:Mr. J.P. Khaitan, Sr. Adv.Mr. Somak Basu, Adv.. . .for the petitioner.Mr. Tilak Mitra, Adv.. . .for the respondent. The Court: Heard counsel appearing on behalf of the parties.This is an application under Article 226 of the Constitution of Indiawherein the petitioner company has challenged the impugned notices underSection 148A(b) dated 31[st] May, 2022 and the impugned order under Section148A(d) and consequent notice issued under Section 148 dated 28[th] July,2022 for the assessment year 2015-16. It is submitted by Mr. J.P. Khaitan, senior advocate appearing onbehalf of the petitioner that the department wishes to assess as tax which isactually taxable under the amalgamating company Gloster Ltd. bearing PANNo. AAACG9800B. Mr. J.P. Khaitan submits that the amalgamation of GlosterLtd. bearing the above PAN number was approved with effect from 1[st] January, 2015 with Kettlewell Bullen & Co. Ltd. that has since been renamed as GlosterLtd. He further submits that by a letter dated 6[th] July, 2021 the entireposition with regard to the taxability of the amount received from theInsurance Company is taxable at the hands of the amalgamating company andnot in the hands of the amalgamated company. He accordingly submits thatby the letter dated 6[th] July, 2021 this position is made clear and theamalgamating company offered taxability of the sum of the insurance claimreceived on 19-09-2014 in the Assessment Year 2015-16 by the amalgamatingcompany. In light of the same, the show cause notices issued upon theamalgamated company dated 19[th] April, 2021 and 31[st] May, 2022 be treatedas notices issued upon the amalgamating company bearing PAN No. . The assessee has specifically consented in Court that they shall nottake up the point of limitation before the Assessing Officer. Furthermore, the impugned order under Section 148A(d) andconsequent notices issued under Section 148 dated 28[th] July, 2022 arequashed and set aside. With the above directions WPO/2607/2022 is disposed of. Since no affidavits are exchanged the allegations are deemed to havebeen denied. (SHEKHAR B. SARAF, J.)