Wp/11319/2023 Of Vertex Projects Llp v. Income Tax Officer

HIGH COURT FOR THE STATE OF TELANGANAAT HYDERABAD(Special Original Jurisdiction) IVIONDAY ,THE TWENTY FOURTH DAY OF APRILTWO THOUSAND AND TWENTY THREE PRESENT THE HONOURABLE THE CHIEF JUSTICE UJJAL BHUYANANDTHE HONOURABLE SRI JUSTICE N.TUKARAMJI WRIT PETITION NO:'11319 OF 2023 Between: Vertex Projects LLP (Formerly Vertex Projects Lrmited), 156-159, PaigahHouse, S.P. Road. Secunderabad, Telangana-500003. Represented by itsAuthorized Srqnatory T Ravi Prakash. S/o T Prem Kumar. House, S.P. Road. Secunderabad, Telangana-500003. Represented by itsAuthorized Srqnatory T Ravi Prakash. S/o T Prem Kumar. ...'ET'T.ONER AND lncome Tax Officer Ward-17(1 ), Hyderabad Signature Towers, KondapurHvderabad-500084 ...RES,.NDENT' Petitron under Artrcle 226 of the Constitution of lndia praying that in thecircumstances stated rn the affidavrt filed therewith, the High Court may bepleased to rssue a wflt of certroran or wnt rn the nature of certiorari, or any otherappropriate wnt order or drrectron calling for the records of the case, after goingthrough the correctness thereof be pleased to quash and set aside theimpugned notice No ITBA/A S T/F/ l48A(SCN)12022-2311050371869(1)d1.0310312023 issued by the Respondent under Section 148A(b) of the lncomeTax Act, 1961. and the impugned order No.ITBfuAST/F 1148412022-2311051654343(1 ) dt 30 03 2023 under Sectron 148A (d) of the lncome Tax Act,1961 issued by the Respondent and the lmpugned Notice No. ITBA/AS T/S/148112022-2311051654 644 (1 ) dt 30/03/2023 issued by the Respondent undersection 148 of the lncome Tax Act. 1961lA NO: 2 OF 2023 Petition under Sectron 15'l CPC praying that in the circumstances statedin the affidavrt frled rn support of lhe [petrtron, ]the High Court may be [pleased ]tostay the Order No ITBA/AST/F/148At2022-231 1051654343(1) dated 30/03i2023 1 96' f )r tle [Assessment]passed under [S( ct ][on ]['148A(d) ][of the lncome Tax ][Ac:]1l 2o:'.,2 [23,105165464 ][4(1)]Yea( 2016'17 [z ][ncl ][tne ][Notice ][No ITBA/AST/S/148]a [( ]Art [1961 ][for ][the]dated [30.03.2(12 ][i ][issued under ][Sectron 148 ][of ][the ][ln(lonle]Assessment [Yea ][2016-17] Counsel [for ][the ]'etitioner: counselforthelespondents:SRI.J.v.PRASAD(sCFoRINcoMETAx)The Court [made the ][following: ] THE HON'BLE THE CHIEF JUSTICE UJJAL BHTryANAND THE HON'BLE SRI JUSTICE N.TUKIIRAMJI Writ Petition No. 11319 of 2023 ORDER: Per thc Ilon ble the [('tre| ]Justte LJ at Bttula4 Heard Mr.Challa Gunaranjan, learned counsel for thepetitioner. 2. This petition undcr Article 226 of the Constitutionof India has assailed lcgalitl' and validit_y of the order dated3O.O3.2O23 passed b_v thc Income Tax Officer, Ward17(l), Hyderabad (briefi_r' '[ncome Ta-x Officer', hereinafter)under Section 148A(d) of the lncome Tax Act, 196 1 (brieflythe Act' hereinafter) Ibr the assessment year 20 16- 17 aswell as consequential notice issued lrnder Section 148 ofthe Act. 3. From a perusirl of the impugned order, it is seenthat the assessee herd not fited its re[urn of income for theassessment year undcr consideration. In thecircumstances, lncomc Taux Officer took the view from thelnforrnation receivcd, that income to the extent ofRs.513,35,58,763.OO has escapcd zisscssment. Heard Mr.Challa Gunaranjan, learned counsel for thepetitioner. 2. This petition undcr Article 226 of the Constitutionof India has assailed lcgalitl' and validit_y of the order dated3O.O3.2O23 passed b_v thc Income Tax Officer, Ward17(l), Hyderabad (briefi_r' '[ncome Ta-x Officer', hereinafter)under Section 148A(d) of the lncome Tax Act, 196 1 (brieflythe Act' hereinafter) Ibr the assessment year 20 16- 17 aswell as consequential notice issued lrnder Section 148 ofthe Act. 3. From a perusirl of the impugned order, it is seenthat the assessee herd not fited its re[urn of income for theassessment year undcr consideration. In thecircumstances, lncomc Taux Officer took the view from thelnforrnation receivcd, that income to the extent ofRs.513,35,58,763.OO has escapcd zisscssment. +Follon'ing the same, [notice ][urtclt ]'' [Se:'liorl ][14BA(b)]ol- ,h : Act [r.t ]as issued [to ][Verte>i ][I)t ][cle't:ts ][Limite ][d ][otl]A3.O3 2023 to shor;t' cause [as ][to ][v ][hv t r ][a ][llovc ][elmount]shor-rl, I not be treated as [income ][clr:rt gc ][rl ][lc ][to ][tarx ][in ][the]hanrls of assessee which has [escapcci ][ast,es;mctlt ][rvithin]tlre n eraning of Section [747 ][of ][t ][htr ][.\ ][t ][( or ] [hc ][saicl]asse ss ment [year]ol- ,h : Act [r.t ]as issued [to ][Verte>i ][I)t ][cle't:ts ][Limite ][d ][otl]A3.O3 2023 to shor;t' cause [as ][to ][v ][hv t r ][a ][llovc ][elmount]shor-rl, I not be treated as [income ][clr:rt gc ][rl ][lc ][to ][tarx ][in ][the]hanrls of assessee which has [escapcci ][ast,es;mctlt ][rvithin]tlre n eraning of Section [747 ][of ][t ][htr ][.\ ][t ][( or ] [hc ][saicl]asse ss ment [year] After service of noticc, [lls;scss ][ce]sourgl-rt foracljour rrrnent and finally submittcd [rr ][pl' ][otr ][20.O:J ][2023]Conrer rtion of the assessee [was ][th:tt Veltcr ][)1-()lecls ][Lllnited]h;rs lre i]n now converted into [a ][Limitt ][d ]-iirlrrlitr [P:trtrle ][rship]i.r:.. V'rtex Project LLP w.e.l [1cl.0ij.2() ][I]'l l'rc r-e lorc. ttoincotrtr ta-x return r.r,as liled b\' [\''c ][tc\ ]'r o.jclt [[-1,[) ][ft-otr.t]O I .0'1. lO 15 to 18.08.2015. Thc [fetcttrtn ][of sut'lr ][cotrversiott]\\rils in ormed to the Income Tax [Dc'Pirrt;tterrt] 6. lncome Tax Officer aftcr tilr'ro-t3 [ex,Ltnin:rtiotl ][of]all :rsp et:ts of tl-re matter cortcIudcrl [tllnl ][illr:ollle ][to ][lhe]exlerrt of Rs.363,51,49,698.OO hits [e ][r;c:11:<l ][erss<'sstnetrt]ancl th, rt:fore upon receipt of prior ilplll,)\'i [i ][cl ][thc ][[rrincipal]Cbntrl [jssioner ]of Income Tax has clt',:irlt'cl tc 1 [I-occt:<l ][ri'ith] the reassessment. Following the same, [consequential]notice under Section 148 of the Act has been issued. 7 . Leatned counsel for the petitioner submits thatVertex Projects Limited is non no longer in existence. Therecan be no assessment or reassessment against a non-existent assessee. 8. On a query by the Court, learned counsel submitsthat Directors' of Vertex Projects Limited are [the ][Partners]of Vertex Projects LLP. We are therefore unable to [accept]the contention of learned counsel for the [petitioner that]Vertex Projects Limited is no longe r zrn existing entity [and]therefore would be exempt lrom [atr-,']lncomc ur-r liability.That apart, present challenge is onl,t' to an order [passed]under Section 148A(d) of the Act. [tvhich ]is at a [stage ][prior]to issuance of notice under [Scction ][148] 9. At this stage all that is recluired to be [seen ][ts]whether principles of natrtral [justice ]has been [complied]with and the reply filed b,r' the assessee to notice underSection i48A(b) has been cotrsidered or not. On [both] groLln(ls \\:) firld thzrt It-tcome Tax Officer tra.s Ic1los'ccl thcduc p roccc ur-e 9. At this stage all that is recluired to be [seen ][ts]whether principles of natrtral [justice ]has been [complied]with and the reply filed b,r' the assessee to notice underSection i48A(b) has been cotrsidered or not. On [both] groLln(ls \\:) firld thzrt It-tcome Tax Officer tra.s Ic1los'ccl thcduc p roccc ur-e 10. I r lhese circumstalces, we ar-e nc1 inr lincd toonlcrt;rin lhr: u,rit petitron more so be<:ause rssrranct: oInotice' urLcl, r Section 148 of the Act cannot lre' .rrid o c:iusc(.III\plc' [jrrcl ]cc to the petitioner at this stirg€ a-r t r. ill havt:rrll tl-rc opp rrtunities to present its case rrelorc th<' [ncornt''['a.r O 'f iccr at the stage of the proceedings u rr er Sect ion147 or e vcr ti-rercafter if it continues to rern.lill .rtlgr L\('d I l I. rr all the aforesaid reasonri, \\'e clcr'linu to( ' r'r t ( ' | - t i r r r r tl':: s'rit petition which is accordrng.h' r llsnr rsst,ci NIi:;r't'l [aneous petitions pending, if ar,r', s rirl] stanrl c'Lrsccl Ilov cver, there shall be no order as lo [(():;ts] SD/-N.CHANDftA [:iEKHAR ] ASSISiTAN'' REGISTRAR//TRUE COPY//1]SIiCI Idi$if,FFI'ER To, 1 Or]eCCt,r ;Rl(IHALLA GUNARANJAN, Advocate [()Pl,(. ]2 One CC t-.sRlJ V PRASAD, [(SC FOR INCOME ][TAXr ]Ii. [J]]3 Iir.ro CD [(])oI resB lr4rls [Pr\ ][6.,]2 One CC t-.sRlJ V PRASAD, [(SC FOR INCOME ][TAXr ]Ii. [J]]3 Iir.ro CD [(])oI resB lr4rls [Pr\ ][6.,] HIGH COURT DATED:24'0412023 : : -,iORDER/WP.No.1 1i 19 of 2023l,,i 1 ,;i,i?[?3 ,lt'\; DISMISSING THE WRIT PETITIONWITHOUT COSTS fflrc",*\qY-'t