Gauriputra Estate Holders Private Limited V. Union of India

SCA/17039/2021

AI Insights

In this case, Gauriputra Estate Holders Private Limited challenged notices issued under Section 148 of the Income Tax Act, 1961, for the assessment years 2013-14 and 2014-15. The notices were purportedly issued to Shivganga Property Holders Private Limited, a company that had merged with Gauriputra Estate Holders Private Limited prior to the issuance of the notices. The primary legal contention was that the notices were issued to a non-existent entity, which rendered them invalid and without jurisdiction. The court, upon reviewing the merger documents and the relevant legal provisions, found in favor of the applicant, leading to the quashing of the notices and termination of all related proceedings.

• Counselvise Citation: [2022] 140 COUNSELVISE.COM (IT) 820399 (HC-GUJARAT)
• Appeal Type: Others
• Pronouncement Date: 15-02-2022
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961, Finance Act, 2021, Companies Act, 2013
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: M R BHATT; KARAN SANGHANI; MAITHILI MEHTA
• Assessee Lawyers: NUPUR SHAH
• Keywords: Amalgamation; Assessment Year; Jurisdiction; Merger; Notice Quashing; Writ of Mandamus
• Section: 147; 148; 149; 151; 150; 226

Judgement Text

"C/SCA/17039/2021 ORDER DATED: 15/02/2022 IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/SPECIAL CIVIL APPLICATION NO. 17039 of 2021 ========================================================== GAURIPUTRA ESTATE HOLDERS PRIVATE LIMITED Versus UNION OF INDIA ========================================================== Appearance: MS NUPUR D SHAH(10233) for the Petitioner(s) No. 1 MR MR BHATT SENIOR COUNSEL WITH MR KARAN SANGHANI, ADVOCATE for the Respondents Nos1,2 MS MAITHILI D MEHTA(3206) for the Respondent(s) No. 2 NOTICE SERVED BY DS for the Respondent(s) No. 1 ========================================================== CORAM: HONOURABLE MR. JUSTICE J.B.PARDIWALA and HONOURABLE MS. JUSTICE NISHA M. THAKORE Date : 15/02/2022 ORAL ORDER (PER : HONOURABLE MR. JUSTICE J.B.PARDIWALA) 1 B y t h i s w r i t a p p l i c a t i o n u n d e r A r t i c l e 2 2 6 o f t h e C o n s t i t u t i o n o f I n d i a , t h e w r i t a p p l i c a n t h a s p r a y e d f o r t h e f o l l o w i n g r e l i e f s : “ a ) T h e H o n ’ b l e C o u r t b e p l e a s e d t o i s s u e a w r i t o f m a n d a m u s o r a n y o t h e r a p p r o p r i a t e w r i t , o r d e r , d i r e c t i o n o r c o m m a n d i n t h e n a t u r e o f w r i t o f m a n d a m u s h o l d i n g a n d d e c l a r i n g t h a t t h e i m p u g n e d n o t i c e s i s s u e d i n t h e n a m e o f n o n - e x i s t e n t e n t i t y n a m e l y S h i v g a n g a P r o p e r t y H o l d e r s P r i v a t e L i m i t e d a r e p r i m a f a c i e i l l e g a l a n d b a d i n l a w . b ) T h e H o n ’ b l e C o u r t b e p l e a s e d t o i s s u e a w r i t o f m a n d a m u s o r a n y o t h e r a p p r o p r i a t e w r i t , o r d e r , d i r e c t i o n o r c o m m a n d i n t h e n a t u r e o f w r i t o f m a n d a m u s h o l d i n g a n d d e c l a r i n g t h a t t h e N o t i f i c a t i o n N o . 2 0 / 2 0 2 1 d a t e d 3 1 . 0 3 . 2 0 2 1 a n d N o t i f i c a t i o n N o . 3 8 / 2 0 2 1 d a t e d 2 7 . 0 4 . 2 0 2 1 a r e u l t r a v i r e s t h e I n c o m e T a x A c t , 1 9 6 1 a n d t h e F i n a n c e A c t , 2 0 2 1 a n d t h a t t h e r e s u l t a n t S e c t i o n s 1 4 7 , 1 4 8 , 1 4 9 , 1 5 0 a n d 1 5 1 a r e e x - f a c i e i l l e g a l a s t w o p a r a l l e l p r o v i s i o n s c a n n o t b e a p p l i c a b l e s i m u l t a n e o u s l y u n d e r t h e s a m e s t a t u t e w h e n t h e F i n a n c e A c t h a s s p e c i f i c a l l y a m e n d e d t h e p r o v i s i o n s o f S e c t i o n 1 4 8 a n d m a d e i t a p p l i c a b l e f r o m 0 1 . 0 4 . 2 0 2 1 . Page 1 of 4 C/SCA/17039/2021 ORDER DATED: 15/02/2022 c ) T h a t t h e H o n ’ b l e C o u r t b e p l e a s e d t o i s s u e a w r i t o f m a n d a m u s o r a w r i t i n t h e n a t u r e o f m a n d a m u s o r a n y o t h e r a p p r o p r i a t e w r i t , o r d e r o r d i r e c t i o n q u a s h i n g a n d s e t t i n g a s i d e t h e i m p u g n e d n o t i c e s b o t h d a t e d 2 0 . 0 4 . 2 0 2 1 i s s u e d u / s . 1 4 8 o f t h e I n c o m e T a x A c t f o r A . Y . 2 0 1 3 - 1 4 a n d A . Y . 2 0 1 4 - 1 5 b y t h e r e s p o n d e n t N o . 2 ( A n n e x u r e - D ) . d ) T h a t p e n d i n g t h e h e a r i n g a n d f i n a l d i s p o s a l o f t h e p e t i t i o n , t h e H o n ’ b l e C o u r t b e p l e a s e d t o s t a y t h e i m p u g n e d n o t i c e s d a t e d 2 0 . 0 4 . 2 0 2 1 i s s u e d u / s . 1 4 8 o f t h e I n c o m e T a x A c t f o r A . Y . 2 0 1 3 - 1 4 a n d A . Y . 2 0 1 4 - 1 5 b y t h e r e s p o n d e n t N o . 2 ( A n n e x u r e - D ) a n d t o r e s t r a i n t h e r e s p o n d e n t N o . 2 f r o m a c t i n g i n f u r t h e r a n c e t h e r e o f ; e ) f o r a d i n t e r i m r e l i e f i n t e r m s o f p a r a 8 ( a ) , ( b ) , ( c ) a n d ( d ) h e r e i n a b o v e ; f ) A w a r d t h e c o s t o f t h i s p e t i t i o n . g ) G r a n t s u c h o t h e r a n d f u r t h e r r e l i e f s a s t h i s H o n ’ b l e C o u r t d e e m s f i t . ” 2 We n e e d n o t d e l v e m u c h i n t o t h e f a c t s g i v i n g r i s e t o t h i s l i t i g a t i o n a s t h i s w r i t a p p l i c a t i o n c a n b e a l l o w e d o n a s h o r t l e g a l g r o u n d . 3 T h e s u b j e c t m a t t e r o f c h a l l e n g e i n t h e p r e s e n t w r i t a p p l i c a t i o n i s t o t h e n o t i c e i s s u e d u n d e r S e c t i o n 1 4 8 o f t h e I n c o m e T a x A c t , 1 9 6 1 d a t e d 2 0 t h A p r i l 2 0 2 1 f o r t h e a s s e s s m e n t y e a r 2 0 1 3 - 1 4 c a l l i n g u p o n t h e n o t i c e e n a m e l y S h i v g a n g a P r o p e r t y H o l d e r s P r i v a t e L i m i t e d t o s h o w c a u s e a s t o w h y t h e a s s e s s m e n t f o r t h e y e a r 2 0 1 3 - 1 4 s h o u l d n o t b e r e o p e n e d u n d e r S e c t i o n 1 4 7 o f t h e A c t . O n e a n o t h e r n o t i c e h a s a l s o b e e n i s s u e d d a t e d 2 0 t h A p r i l 2 0 2 1 f o r t h e a s s e s s m e n t y e a r 2 0 1 4 - 1 5 . 4 T h e p r i n c i p a l a r g u m e n t o f Ms . N u p u r S h a h , t h e l e a r n e d c o u n s e l a p p e a r i n g f o r t h e w r i t a p p l i c a n t i s t h a t b o t h t h e i m p u g n e d n o t i c e s r e f e r r e d t o a b o v e c o u l d b e s a i d t o b e w i t h o u t j u r i s d i c t i o n a s t h o s e h a v e b e e n i s s u e d i n a w r o n g n a m e o r r a t h e r t o a n a s s e s s e e w h i c h w a s n o t i n e x i s t e n c e o n t h e d a t e o f t h e i s s u e o f t h e n o t i c e s . Ms . S h a h i n v i t e d t h e a t t e n t i o n o f t h i s C o u r t t o p a g e : 5 7 o f t h e p a p e r b o o k . P a g e : 5 7 i s a l e t t e r d a t e d 1 7 t h J a n u a r y 2 0 1 9 a d d r e s s e d b y t h e S h i v g a n g a P r o p e r t y Page 2 of 4 C/SCA/17039/2021 ORDER DATED: 15/02/2022 H o l d e r s P r i v a t e L i m i t e d t o t h e j u r i s d i c t i o n a l A s s e s s i n g O f f i c e r i n f o r m i n g a b o u t t h e m e r g e r / a m a l g a m a t i o n o f S h i v g a n g a P r o p e r t y H o l d e r s P r i v a t e L i m i t e d w i t h t h e M/ s . G a u r i p u t r a E s t a t e H o l d e r s P r i v a t e L i m i t e d i . e . t h e w r i t a p p l i c a n t . T h e l e t t e r r e a d s t h u s : “ D a t e d : 1 7 / 0 1 / 2 0 1 9 T o , T h e I n c o m e T a x O f f i c e r , Wa r d N o . 4 ( 1 ) ( 3 ) A h m e d a b a d R e f : S H I V G A N G A P R O P E R T Y H O L D E R S P R I V A T E L I MI T E D P A N : A A I C S 4 4 0 5 0 T A N : A H MS 1 1 9 7 7 A C I N : U 4 5 2 0 0 G J 2 0 0 5 P T C 0 4 7 1 3 9 S u b : I N T I MA T I O N F O R T H E ME R G E R / A MA L G A MA T I O N O F T H E C O MP A N Y I N T E R MS O F S E C T I O N 2 3 3 O F T H E C O MP A N I E S A C T , 2 0 1 3 A N D R E Q U E S T F O R S U R R E N D E R O F P A N A N D T A N O F T H E C O MP A N Y D e a r S i r , K i n d l y n o t e t h a t p u r s u a n t t o S e c t i o n 2 3 3 o f t h e C o m p a n i e s A c t , 2 0 1 3 , o u r C o m p a n y t o g e t h e r w i t h o t h e r T r a n s f e r o r C o m p a n i e s a s p e r l i s t a t t a c h e d h e r e w i t h i n A n n e x u r e 1 h a s b e e n a m a l g a m a t e d w i t h M/ s . G a u r i p u t r a E s t a t e H o l d e r s P r i v a t e L i m i t e d ( \" t h e T r a n s f e r e e C o m p a n y \" ) w . e f 0 1 A p r i l , 2 0 1 8 b e i n g t h e a p p o i n t e d d a t e a s m e n t i o n e d i n t h e S c h e m e a n d t h e c o n f i r m a t i o n o r d e r R e f : R D ( N WR ) / 2 3 3 / ( 1 5 ) / 2 0 1 8 / 2 8 6 8 d a t e d 1 1 . 0 9 . 2 0 1 8 o f t h e H o n ' b l e R e g i o n a l D i r e c t o r , N o r t h We s t e r n R e g i o n a l , A h m e d a b a d , G u j a r a t . I n t e r m s o f t h e s a i d o r d e r a n d f i n a l a p p r o v e d s c h e m e o u r C o m p a n y b e i n g o n e o f t h e T r a n s f e r o r C o m p a n y m e r g e d w i t h t h e T r a n s f e r e e C o m p a n y w . e . f 0 1 s t A p r i l , 2 0 1 8 a n d a l s o s h a l l b e s t a n d d i s s o l v e d w i t h o u t a n y f u r t h e r a c t s o r d e e d s . Wi t h r e s p e c t t o a b o v e , p l e a s e f i n d a t t a c h e d h e r e w i t h a s u n d e r : 1 ) C o p y o f O r d e r f o r A m a l g a m a t i o n . 2 ) C o p y o f d u l y a p p r o v e d S c h e m e o f A m a l g a m a t i o n . A c c o r d i n g l y , k i n d l y n o t e t h a t w e w i l l b e a l s o m a k i n g n e c e s s a r y a p p l i c a t i o n s f o r s u r r e n d e r o f P e r m a n e n t A c c o u n t N u m b e r ( P A N ) a n d Page 3 of 4 C/SCA/17039/2021 ORDER DATED: 15/02/2022 T a x D e d u c t i o n N u m b e r ( T A N ) o f t h e C o m p a n y . Y o u a r e r e q u e s t e d t o k i n d l y t a k e o n y o u r r e c o r d s a b o v e d e v e l o p m e n t a n d t r a n s f e r y o u r r e c o r d s i n f a v o u r o f M/ s . G a u r i p u t r a E s t a t e H o l d e r s P r i v a t e L i m i t e d h a v i n g P A N : A A C C G 4 8 0 0 H a n d j u r i s d i c t i o n w i t h t h e I n c o m e T a x D e p a r t m e n t i s Wa r d N o . 2 ( 1 ) ( 1 ) A h m e d a b a d . K i n d l y a c k n o w l e d g e t h e c o p y o f t h i s l e t t e r a n d r e q u e s t t o d o t h e n e e d f u l . ” 5 Ms . S h a h f u r t h e r i n v i t e d t h e a t t e n t i o n o f t h i s C o u r t t o t h e t w o l e t t e r s o f e v e n d a t e 2 3 r d J u l y 2 0 2 1 a d d r e s s e d t o t h e j u r i s d i c t i o n a l A s s e s s i n g O f f i c e r b y t h e D i r e c t o r o f t h e e r s t w h i l e S h i v g a n g a P r o p e r t y H o l d e r s P r i v a t e L i m i t e d b r i n g i n g i t t o h i s n o t i c e t h a t t h e i m p u g n e d n o t i c e c o u l d n o t h a v e b e e n i s s u e d . 6 Mr . M. R . B h a t t , t h e l e a r n e d S e n i o r C o u n s e l a s s i s t e d b y Mr . K a r a n S a n g h a n i , t h e l e a r n e d a d v o c a t e a p p e a r i n g f o r t h e R e v e n u e , w i t h h i s u s u a l f a i r n e s s , s u b m i t t e d t h a t i n v i e w o f t h e i n t i m a t i o n a s r e g a r d s t h e m e r g e r / a m a l g a m a t i o n w a y b a c k o n 1 7 t h J a n u a r y 2 0 1 9 , t h e t w o i m p u g n e d n o t i c e s c o u l d n o t h a v e b e e n i s s u e d . 7 I n v i e w o f t h e a f o r e s a i d , t h i s w r i t a p p l i c a t i o n s u c c e e d s a n d i s h e r e b y a l l o w e d . B o t h t h e i m p u g n e d n o t i c e s f o r t h e r e l e v a n t a s s e s s m e n t y e a r s i s s u e d u n d e r S e c t i o n 1 4 8 o f t h e A c t a r e h e r e b y o r d e r e d t o b e q u a s h e d . A l l c o n s e q u e n t i a l p r o c e e d i n g s p u r s u a n t t o t h e s a i d n o t i c e s a l s o s t a n d t e r m i n a t e d . A l l o t h e r r e l i e f s p r a y e d f o r w o u l d p a l e i n t o i n s i g n i f i c a n c e . (J. B. PARDIWALA, J) (NISHA M. THAKORE,J) CHANDRESH Page 4 of 4 "