Wp/6636/2023 Of Virtusa Consulting Services Private Limited v. Deputy Commissioner Of Income Tax

IN THE HIGH COURT FOR THE STATE OF TELANGANAAT HYDERABAD(Special Original Jurisdiction) TUESDAY, THE FIFTH DAY OF DECEMBERTWO THOUSAND AND TWENTY THREETWO THOUSAND AND TWENTY THREE PRESENT THE HONOURABLE SRI JUSTICE P. SAM KOSHYANDTHE HONOURABLE SRI JUSTICE N. TUKARAMJIWRIT PETITION NO: 6636 OF 2023 Between: Virtusa Consulting Services Private Limited, Sy. No. 115lPan, Plot No. 10,Nanakramguda Village, Serilingampally Mandal, Hyderabad, Telangana,500008 Rep. by its Authorized Re-presentative Vasu Pendyala, S/o. PanduPendyala, Aged about 53 years, No.31-124, Ramakrishna Puram, Near RlyStation, R K Puram, Ir/alkajgiri, Hyderabad, Telangana [- ]500047 ...PETITIONER AND 1Deputy Commissioner of lncome Tax, Circle B('1 ), Signature Towers, Sy. No.6(P) of Kondapur, Sy. 37(P) of Kothaguda, Opp. Botanical Gardens,Serlingampally, R.R. District, Hyderabad, Telangana 5000846(P) of Kondapur, Sy. 37(P) of Kothaguda, Opp. Botanical Gardens,Serlingampally, R.R. District, Hyderabad, Telangana 500084 2Pr. Commissioner of lncome Tax- 2, Signature Towers, Sy. No. 6(P) [of]Kondapur, Sy. 37(P) of Kothaguda, Opp. Botanical Gardens, Serlingampally,R.R. District, Hyderabad, Telangana 500084Kondapur, Sy. 37(P) of Kothaguda, Opp. Botanical Gardens, Serlingampally,R.R. District, Hyderabad, Telangana 500084 Centralized Processing Centre, lncome{ax Department, [Bengaluru,]Karnataka 560500Karnataka 560500 3 4DGIT (Systems), ARA Centre, Ground Floor, Jhandewalan [Extension, New]Delhi-1 1000 1Delhi-1 1000 1 ...RESPONDENTS Petition under Article 226 of the Constitution of [lndia ][praying ][that in ][the]circumstances stated in the affidavit filed therewith, the [High Court may ][be]pleased to issue a writ, order or direction, more particularly in the nature of [Writ]of Mandamus declaring and directing the [Respondents ][to. ][i. ][Declaring ][the ][in-]actions of the Respondents in not disposing [off the rectification ][application dated]14.04.2021 and not [granting ]the refunds, as [illegal, unjust, ][and ][against ][the]provision of the Income Tax Act, 1961 , and ii. Directing the Respondents [to ][grant]credit of all pre-paid taxes of merged [entities in ][the ][hands ][of ][the ][Petitioner, ][and]iii. Directing the Respondents to [expeditiously ][dispose ][off ][the ][reclification]application dated 14.O4.2021 [and ][grant/issue refund ][of ][Rs. ][79,19,61,051|(Rs.]64,12,64,0091- [principal ]amount [with ][Rs. ][15,06,97,0421- ][interest amount) ][along] with up to date interest within a reasonable/specified time frame byelectronic/manual/paper mode and ensure that refund is not withheld due to anytechnical difficulties/reasons. iv. For such further and other reliefs, includingcosts of this Petition, as this Honble Court may deem fit and proper in the natureand circumstances of the case, v- Award the costs of this Writ Petition in favourof the Petitioner and against Respondents. Counsel for the Petitioner: Ms. ANANYA KAPOOR REPRESENTING FORSRI CHALLA GUNARANJAN Counsel for the Respondents: Ms. SUNDARI R. PISUPATI (sR.sc FoR rNcoME TAX DEPARTMENT) The Court made the following: ORDER THE HONOURABLE SRI JUSTICE P.SAM KOSHYANDTHE HONOURABLE SRI JUSTICE N.TUKARAMJIUTRIT PETITION No.6636 oF 2023 ORDER (per flon'ble Sn Jusrrce P.SAM KOSlHfl) Heard Ms. Ananya Kapoor, learned counsel for the petitioner and Ms. Sundari R. pisupati, learned SeniorStanding Counsel for Income Tax Department for therespondentsStanding Counsel for Income Tax Department for therespondents Counsel for the Petitioner: Ms. ANANYA KAPOOR REPRESENTING FORSRI CHALLA GUNARANJAN Counsel for the Respondents: Ms. SUNDARI R. PISUPATI (sR.sc FoR rNcoME TAX DEPARTMENT) The Court made the following: ORDER THE HONOURABLE SRI JUSTICE P.SAM KOSHYANDTHE HONOURABLE SRI JUSTICE N.TUKARAMJIUTRIT PETITION No.6636 oF 2023 ORDER (per flon'ble Sn Jusrrce P.SAM KOSlHfl) Heard Ms. Ananya Kapoor, learned counsel for the petitioner and Ms. Sundari R. pisupati, learned SeniorStanding Counsel for Income Tax Department for therespondentsStanding Counsel for Income Tax Department for therespondents 2. The instant writ petition has been filed seeking toinstant writ petition has been filed seeking towrit petition has been filed seeking topetition has been filed seeking tohas been filed seeking tobeen filed seeking tofiled seeking toseeking totodeclare the in-actions of the respondents in not disposingoff the rectification application dated 14.04.2O2 I and so faras not granting refund amounts, as illegal and unjust. Itwas also the prayer of the petitioner to direct therespondents to grant credit of all pre_paid taxes of mergedentities in the hands of the petitioner. The instant writ petition has been filed seeking toinstant writ petition has been filed seeking towrit petition has been filed seeking topetition has been filed seeking tohas been filed seeking tobeen filed seeking tofiled seeking toseeking toto 3. During the course of hearing, learned counsel for thepetitioner produced before this Court a copy ofW.P.No.6638 of 2023 filed of similar nature by the samepetitioner. In the said writ petition, there was merger ofPolaris Consulting & Services Limited (hereinafter referredto as, 'Polaris) to the petitioner,s establishment i.e, Virtusa PSK,J & NTR,JW,P.No.6636 of 2023 Consulting Services private Limited (hereinafter referred toas, l/irtusa'). The merger of polaris with Virtusa was on thebasis of the order passed by the National Company LawTribunal dated 03.O4.2018 with effect from Ot.O4.2OlZ.Consequent to the said merger, the learned SeniorStanding Counsel for the Department in W.p.No.663g of2023 submits on instructions that the challan from polaristo Virtusa had been successfully migrated and on the saidstatement made by the learned counsel for theDepartment, the said writ petition stood disposed of videorder dated Og .06.2023. In the instant case also, themerger has been on the basis of the order of the NationalCompany Law Tribunal. Thereafter, the writ petition hasnow been filed for a similar relief. 4. Subsequent to the filing of the present writ petition,the respondents have since passed the rectilication orderon 04.07.2023 which was also brought to the notice of thelearned counsel for the Department as would be evidentfrom the docket order in the present writ petition dated08.O8.2023 to seek appropriate instructions. yet it appearsthat the instructions and the response of the respondents PSK,J & NTR,JW.P.No.6636 oJ 2023till date have not received, nonetheless, in the light of thedisposal of W.P.No.6638 of 2023, the present writ petitionalso deserves to be and accordingly stands disposed of witha specific direction to respondent No.l to ensure that therectification application initiated by the petitioner is dealtwith and finalized at the earliest, within an outer limit ofeight (8) weeks, as was granted in the earlier writ petition.Subject to the migration being done successfully, thepetitioner would be entitled for claiming whatever refundthat they are entitled for in accordance with law. Therefund application if any also shall be processed inaccordance with la'*, and finalized as expeditiously aspossible. No order as to costs. Consequently, miscellaneous petitions [pending, ]if any, shall stand closed. SD/. K. VENKAIAHASSISTANT REGISTRARSECTION OFFICER //TRUE COPY// HIGH COURT DATED:0 511212023 eSTTE1f,ts0t[?$i1.t-)oi,/,,/*ORDERnr WP.No.6636 of 2023 DISPOSING OF THE WRIT PETITIONWITHOUT COSTS