ABHISHEK CAPLEASE PVT. LTD. V. INCOME TAX OFFICER

SCA/6340/2022

AI Insights

The case involves Abhishek Caplease Pvt. Ltd., which was amalgamated with Akash Residency and Hospitality Pvt. Ltd. on April 1, 2015, as per an order from the Company Court dated October 30, 2015. Despite this amalgamation, notices under Section 148 of the Income Tax Act were issued to the petitioner company on March 27, 2021, for the assessment year 2014-15, which led to the filing of this Special Civil Application. The court examined the legality of these notices in light of the company's amalgamation and the prior notifications sent to the Income Tax Officer regarding the same.

• Counselvise Citation: [2022] 140 COUNSELVISE.COM (IT) 747182 (HC-GUJARAT)
• Appeal Type: Others
• Pronouncement Date: 17-08-2022
• Assessment Year: misc
• Other Referred Cases: Special Civil Application No.17039 of 2021
• Laws Referred To: Income Tax Act
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: M R BHATT CO
• Assessee Lawyers: DARSHAN PATEL
• Keywords: Amalgamation; Escapement of income; Notice under section 148; Quashed
• Section: 147; 148

Judgement Text

"C/SCA/6340/2022 ORDER DATED: 17/08/2022 IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/SPECIAL CIVIL APPLICATION NO. 6340 of 2022 ========================================================== ABHISHEK CAPLEASE PVT. LTD. Versus INCOME TAX OFFICER ========================================================== Appearance: DARSHAN R PATEL(8486) for the Petitioner(s) No. 1 M R BHATT & CO.(5953) for the Respondent(s) No. 1 ========================================================== CORAM:HONOURABLE THE CHIEF JUSTICE MR. JUSTICE ARAVIND KUMAR and HONOURABLE MR. JUSTICE ASHUTOSH J. SHASTRI Date : 17/08/2022 ORAL ORDER (PER : HONOURABLE THE CHIEF JUSTICE MR. JUSTICE ARAVIND KUMAR) 1. Learned counsel appearing for the respondent, with leave of the Court, has filed affidavit-in-reply. Same is placed on record. 2. Learned standing counsel in his usual fairness submits that in view of the order passed by the Coordinate Bench, which has been brought to the notice of this Court by the learned counsel appearing for the petitioner, namely order dated 15.2.2022 passed in Special Civil Application No.17039 of 2021, similar orders may be passed in this application also. He places on record the assessment order dated 31.3.2022. Page 1 of 4 C/SCA/6340/2022 ORDER DATED: 17/08/2022 3. Having heard learned counsel appearing for the parties, we notice that in this Special Civil Application, proceedings under Section 147 came to be initiated by issuance of notice under Section 148 on the purported escapement of income for AY 2014-15 against the petitioner company, which came to be amalgamated by an order of the Company Court dated 30.10.2015 in Company Petition No.330 of 2015 with effect from 1.4.2015. Undisputedly, notice under Section 148 came to be issued on 27.3.2021. In fact, petitioner company on being amalgamated with Akash Residency and Hospitality Pvt. Ltd. had intimated the jurisdictional AO, namely Income Tax Officer, Ward-1, Gandhinagar by communications dated 23.11.2015 and 27.1.2016 of such amalgamation having taken place, which was duly acknowledged by the said office. Yet, impugned notice on 27.3.2021 has been issued to a company which was not in existence or had ceased to be in existence as on the date of notice. The Coordinate Bench in Special Civil Application No.17039 of 2021, disposed of on 15.2.2022, has held thereunder as follows:- 5. Ms. Shah further invited the attention of this Court to the two letters of even date 23rd July 2021 addressed to Page 2 of 4 C/SCA/6340/2022 ORDER DATED: 17/08/2022 the jurisdictional Assessing Officer by the Director of the erstwhile Shivganga Property Holders Private Limited bringing it to his notice that the impugned notice could not have been issued. 6. Mr. M. R. Bhatt, the learned Senior Counsel assisted by Mr. Karan Sanghani, the learned advocate appearing for the Revenue, with his usual fairness, submitted that in view of the intimation as regards the merger / amalgamation way back on 17th January 2019, the two impugned notices could not have been issued. 4. In the light of the afore-stated opinion expressed by the Coordinate Bench, of which we are in complete agreement and the facts obtained in the present case clearly disclosing that petitioner company even as on date of issuance of impugned notice dated 27.3.2021 was not in existence by virtue of same having been amalgamated with Akash Residency and Hospitality Pvt. Ltd. with effect from 1.4.2015 itself or in other words, it had ceased to be in existence from the said date and this fact was also being within the knowledge of the jurisdictional ITO by virtue of communications dated 23.11.2015 and 27.1.2016 forwarded by the petitioner to the said authorities impugned notice cannot be sustained. 5. Hence, we proceed to pass following: Page 3 of 4 C/SCA/6340/2022 ORDER DATED: 17/08/2022 ORDER (1) Special Civil Application is ALLOWED. (2) Notice dated 27.3.2021 and show cause notice dated 21.3.2022 as well as consequential order which has since been passed on 31.3.2022 stand quashed. Sd/- (ARAVIND KUMAR,CJ) Sd/- (ASHUTOSH J. SHASTRI, J) OMKAR Page 4 of 4 "