Wp/102087/2022 Of Quest Global Engineering Services Private Limited v. Assistant Commissioner Of Income Tax

Digitally signed byTHEJASKUMAR NLocation: HIGHCOURT OFKARNATAKA IN THE HIGH COURT OF KARNATAKA, DHARWAD BENCH DATED THIS THE 12 DAY OF SEPTEMBER, 2024 BEFORE THE HON'BLE MS. JUSTICE JYOTI MULIMANI -WRIT PETITION NO. 102087 OF 2022 (TIT) BETWEEN: QUEST GLOBAL ENGINEERING SERVICES PRIVATE LIMITED (FOR THE MERGED ENTITY M/S. QUEST ENGINEERING AND SOFTWARE TECHNOLOGIES PRIVATE LIMITED), NO.437/A, PLOT NO.2, AEQUS SPECIAL ECONOMIC ZONE, HATTARAGI VILLAGE, HUKKERI TALUKA, BELAGAVI, KARNATAKA-591 245, REPRESENTED BY ITS DIRECTOR, MR. RAMAN SUBRAMANIAN, AGE: 59 YEARS. …PETITIONER (BY SRI. K.R.PRADEEP AND SMT. GIRIJA.G.P., ADVOCATES) AND: 1. ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE 1, BELAGAVI, FEROZ KHIMJIBHAI COMPLEX, OPP. CIVIL HOSPITAL, DR. AMBEDKAR ROAD, BELAGAVI-590 001. 2. PRINCIPAL COMMISSIONER OF INCOME TAX, HUBBALLI, C.R. BUILDING, NAVANAGAR, HUBBALLI-580 025. …RESPONDENTS (BY SRI. M.THIRUMALESH., ADVOCATE) THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA, SEEKING CERTAIN RELIEFS. THIS WRIT PETITION IS LISTED FOR PRELIMINARY HEARING IN ‘B’ GROUP, THIS DAY, AN ORDER IS MADE AS UNDER: ORAL ORDER Sri.K.R.Pradeep., counsel for the petitioner and Sri.M.Thirumalesh., counsel for the respondents have appeared in person. 2. The short facts are these: On 17.10.2017, the National Company Law Tribunal, Bangalore Bench in C.P (CAA) No.42/BB/2017 approved the scheme of amalgamation between (1) Quality Engineering and Software Technologies Private Limited and (2) Quest Global Engineering Private Limited with (3) Quest Global Engineering Services Private Limited with appointed date of 01.04.2016. An intimation of the merger was given to the Assessing Officer. The petitioner filed a return of income for the Assessment Year 2018-19 including the transactions of the amalgamating companies. The case of the petitioner was selected for complete scrutiny and a notice under Section 143(2) of the Income Tax Act, 1961 was issued, since the case pertained to the amalgamation of companies, the case was transferred to the office of the first respondent. On 30.09.2021, the first respondent passed a draft order under Section 143(3) R/w Section 144C (1) of the Act in the case of the petitioner for the Assessment Year 2018-19. On 15.03.2022, a notice under clause (b) of Section 148A of the Act was issued by the first respondent seeking compliance on or before 25.03.2022. In response to the notice, the petitioner replied inter-aliaintimating the merger status. The reply filed by the petitioner about financial statements for specific items as mentioned in the notice. On 05.04.2022, the first respondent passed an order under Section 148A(d) of the Act along with an issue of notice under Section 148 of the Act. Hence, the petitioner has filed the captioned Writ Petition under Articles 226 and 227 of the Constitution of India on several grounds as set out in the Memorandum of Writ Petition. 3. Heard the arguments and perused the Writ papers and the statement of objections with care. - 4 - 3. Heard the arguments and perused the Writ papers and the statement of objections with care. - 4 - 4. A perusal of the entire writ papers reveals that a notice under Section 148A(b) of the Act was issued to Quest Global Engineering Services Private Limited showing the defunct PAN Number of erstwhile company i.e., Quality Engineering and Software Technologies Private Limited. However, 148A(d) order is passed against Quality Engineering and Software Technologies Private Limited and 148 Notice is issued to Quest Global Engineering Services Private Limited by showing the defunct PAN Number of Quality Engineering and Software Technologies Private Limited. It is pivotal to note that Quality Engineering and Software Technologies Private Limited was non-existent since the amalgamation had already taken place. Therefore, the entire proceedings i.e., issuance of notice under Section 148A(b), Order passed under Section 148A(d) and the notice issued under Section 148 of the Act are irregular and liable to be set aside and so, they are set aside. 5. The Writ of Certiorari is ordered. The Order dated 05.04.2022 passed by the first respondent under Section 148A(d) of the Income Tax Act, 1961 in DIN & NOTICE No.ITBA/AST/F/148A/2022-23/1042524088(1) for the NC: 2024:KHC-D:13068WP No. 102087 of 2022 Assessment Year 2018-19 vide Annexure-B and the notice dated 05.04.2022 issued by the first respondent under Section 148 of the Income Tax Act, 1961 in DIN & NOTICE No.ITBA/AST/S/148_1/2022-23/1042527588(1) for the Assessment Year 2018-19 vide Annexure-A is quashed. 6. Resultantly, the Writ Petition is allowed. TKN LIST NO.: 2 SL NO.: 30.1 Sd/- (JYOTI MULIMANI) JUDGE