Aparna Infra Housing Private Limited V. Union of India

WP/34619/2022

AI Insights

The case involves Aparna Infra Housing Private Limited, which filed a writ petition under Article 226 of the Constitution of India against the Union of India and other income tax authorities. The petitioner challenged an order passed under Section 148A(d) of the Income Tax Act, 1961, and a subsequent notice under Section 148 of the Act, both dated 30-07-2022. The petitioner argued that these were void, illegal, arbitrary, and violative of Article 14 of the Constitution and the principles of natural justice. The court examined the submissions and found that the income of the petitioner for the assessment year 2016-17 had escaped assessment, warranting the issuance of notice under Section 148 of the Act.

• Counselvise Citation: [2022] 140 COUNSELVISE.COM (IT) 740619 (HC-TELANGANA)
• Appeal Type: Others
• Pronouncement Date: 05-09-2022
• Assessment Year: misc
• Other Referred Cases: Union of India v. Ashish Agarwal, GKN Drivshafts (India) Ltd vs Income Tax Officer
• Laws Referred To: Income Tax Act, 1961, Constitution of India
• Result in Favour of: Revenue
• Court: HIGH COURT
• Department Lawyers: B MUKHERJEE; AJAY KULKARNI
• Assessee Lawyers: S RAVI
• Keywords: Assessment Year; Income Tax; Natural Justice; Writ of Mandamus; Round-tripping transactions
• Section: 148; 148A(d); 226

Judgement Text

"t 32es I HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD (Special Original Jurisdiction) MONDAY, THE FIFTH DAY OF SEPTEMBER TWO THOUSAND AND TWENTY TWO PRESENT THE HONOURABLE THE CHIEF JUSTICE UJJAL BHUYAN AND THE HONOURABLE SRI JUSTICE C. V. BHASKAR REDDY Between: Aparna lnfra Housing Private Limited, 6-3-35212 and 3 Astral Heights, Road No. 1, Banjara Hills, Hyderabad, Telangana- 500034. Represented by its Director C. Venkateswara Reddy, S/o. Late Sri C. V. Krishna Reddy Aged about Years' Rl/o Hyderabad ...pETrroNER AND 1. Union of lndia, Represented by its Secretary, Department of Revenue, Ministry of Finance, North Block, New Delhi- '1 '10001. 2. Deputy Commissioner of lncome Tax, Circle 1('1 ), Hyderabad- 3. Assistant Commissioner of lncome Tax, Circle 1('1 ), Hyderabal.*arro*o=*r, 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, direction or order more particularly in the nature of a writ of mandamus declaring the Order under S. 14BA(d) of the Act bearing DIN No. ITF,A/COM/F/1712022-2311044338183(1) dated 30-07-2022 passed by Respondent No. 2, and the subsequent Notice issued under S. 148 of the Act bearing DIN No.lTP A/AST/l r/148 112022-23/1044340664(I) dated 3O-O7 -2022 passed by Respondent No. 3 as being void, illegal, arbitrary, without authority of law, violative of Article 14 of the Constitution of lndia and violative of principles of natural justice and violative of provisions of lncome Tax Act, 1961 and consequently set aside the same lA NO: 'l OF 2022 Petition under Section 151 CPC praying that in the circumstances stated in the affidavit filed in support of the petition, the High Court may be pleased to stay all further proceedings with respect to the Order under S. 14BA(d) of the Act WRIT PETITION NO: 34619 OF 2022 bearing DN No. I passed by Respond the Act boaring Dll 07-202:2 prssed by Counsel for the Pel BAICOI A|F|17|2O22-2311O443381 83 (1' daled 30-07-2022 :nt No. 2, and the subsequent Notice rs:ued under S. 148 of No. ITBA/ASTll141148 1 12022-231101'r :i,10634('t ) dated 30- iespondent No. 3 tioner: SRI R. S. ASSOCIATES Counsel f,;r the Re: pondents: B KAVITHA YADAV (CENTR / l- cOVT couNSEr.) The Court made thr following: ORDER THE HON'BLE TFIE CHIEF IT]STICE UIIAI BHLryAN AND HO ,BLE S ITI UST CE C. I.B ILAR RE D W.P.No. 34619 of 2022 Order, (lter tbe Hon'b/e the Lhiel Jnri,'e I 7t/ Bl,tt,ut) Flcard Mr. S.Ravr, lcarned Senior Counscl For the pcriuoncr; Mr. B.Mukherjee, lcarncd cr>unscl rcprcsentin!r the learned Assistant Solicitor Clcneral oi India ti.,r respondcnt No.1 and l ,tr. Aj^y I(umar I{ulkarni, Iearncd counscl rcprcscnting Mr. B.Narsimha Sarma, lcarned Srandint Counscl lor thc Incomc 1'ax Department appearing ftrr rcspondcnts I . o.2 arrd 3 2. By {liing this petition undcr r rticlc 226 rnc'['ax undcr Section 148 of the Act. 2 3. Rcsiro rclent No.2 issued norice datcd (t' l'1 2021 under Secion 148 il the Act frrr the asscssmcnt velr ]f l(r.17 statrnq that he rad rca.sc,rs to beltcr.c that incomc of tht pctrtr-,ner chargeable to rax ftrr tl- : sard asscssment vear had escaperl .1 ii{rssrnent vithifl rhc n-rcanin5 of Section 147 o[ the Acr. Therclc r.. proposine to ,rss:ss/rc as css the income o[ thc petitic,ncr for the said ISSCSStTtC'It ,'car, respondent No.2 called upon r .' p cridorrcr to ;ulrmit inco rc tax return [or the said asscssrne ni i r:ar ',r.ithin thirn cla,s. Noti:c u,.as issuecl after obtaining n(]cessar sa jslacdon of tht highcr a rthoriry -i. In th ,- rneanwhile, fur of the bankers of M/s. Aparna Urban Inlrastructure Pvt. Ltcl., rvhich is a sister concern, in conncction with funded and unfunded ctedit facilities whose closing balance as at 31-03-2016 stands at Rs.159 crores and it had purchascd thc stakc o[ M/s. Pond Holdings Inc., N'lauritius during F,Y. 2015-16. Thus, effectively the original sharc holders and thc parent company which holds 5004 stake have uscd M/s. Pond Holdings Inc. as their Benamr and routed their funds through the FII. 5. Pctitioner submitted replv dated 11.06.2022 to the said notlce. Howevcr, respondcnt No.2 passcd thc impugned order dated 30.07.2022 under Section 148A(d) of the Act declining tcr accept the reply of the petitioner. 6. In the order dated 30.01 .2022, rcspondent No.2 hcld 4s lollows: \"The reply filed b1, thc assessec has been examined and found not acceptable lor foll pirta .[acic sxisfacaon oF rcspr,,rdcnt No.2 that in<:orne of thc pctitior-rer chargcable to tax firr ,.hc rele-,'ant rrsricssnlcnt vc lr hacl e scepccl asscssmcnt, which r, thc .rine q//d ttltx [e 'n statutorilv incorporated in the Act. Lniriatcd ur,ier Scction 148A oI the Act on 1 ro ensure that 13. , t th s stxgc, wc are o[ tl-rc view that it rv: r.rld not at all be 2 12001)259 IIR i,(sc) lu:.trficd tc intcrdict thc rcspondents lrom l): oca.,11rrt further pL rsuant t( [hc noticc dated 30.07.2022 issueJ rrrder Secaon 148 c,f thc , ct 1t.. I'l,xr, 'ver, peritioncr woulcl bc at libcrrv t _ sulrmit rcplv to thc aforcs rid notice urging all legally perrnir r,rtrlc c()ntcnuons rvhcrcaltlcr re spondcnts No.2 and 3 shall take ap 1:r'opriate decision il accot.lar cc wrth law ::ll:: 15. Wc makc it clcar thar rve havc not cxprcssed any opinion on merit and all contendons are ke;lt open' t6. Sub ject to tl-Ie above , the writ pcridon is dismissed' Nc> COSTS As a sequel, rnisccllaneous periuons, pending if anv' stand dismissed. SDi.B.SATYAVATHI DEPUTY,-BEGISTRAR L1I) SECTION OFFICER To, //TRUE COPYii 1. One CC to SRl. R.S. ASSOCIATES Advocate IOPUC] 2. One CC to Sri B.Mukherjiee, Advocate IOPUCI 3. One CC to Sri B.Narasimha Sarma,SC for income Tax [OPUC] 4. Two CD Copies 5. Two Spare Copies tvlBC PS P t'( (r I lt HIGH COURT DATED:05/09/2022 r',L } ,,,r Ir ; l {' *{.. {3 / -a/ r.'' l. - a\" ORDER v'/P.1,1o.3,46'l I of 2022 D|SMlSSll'l:, rHt: WRIT PETITION ryITHOUT COSTS (s( , *\" "