HARMAN CONNECTED SERVICES V. ASSISTANT/DEPUTY COMMISSIONER OF INCOME TAX

WP/18395/2024

AI Insights

The case involves Harman Connected Services Corporation India Pvt. Ltd., which filed a writ petition against the Assistant/Deputy Commissioner of Income Tax and other respondents, challenging the initiation of assessment proceedings for the assessment year 2018-19 under incorrect PAN details. The petitioner argued that the PAN number used in the notices and orders issued by the respondents pertained to a merged entity, Harman Technologies, and not to the petitioner company itself. The court examined the merger details and the subsequent tax filings by the petitioner, leading to the conclusion that the proceedings based on the old PAN were erroneous.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 752332 (HC-KARNATAKA)
• Appeal Type: Others
• Pronouncement Date: 11-09-2024
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: THIRUMALA M
• Assessee Lawyers: T SURYANARAYANA; TANMAYEE RAJKUMAR
• Keywords: Assessment proceedings; Income Tax; Merger; PAN Number; Quash order
• Section: 148; 143(3); 148A(d)

Judgement Text

" - 1 - NC: 2024:KHC:37198 WP No. 18395 of 2024 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 11TH DAY OF SEPTEMBER, 2024 BEFORE THE HON'BLE MR JUSTICE S.R.KRISHNA KUMAR WRIT PETITION NO. 18395 OF 2024 (T-IT) BETWEEN: HARMAN CONNECTED SERVICES CORPORATION INDIA PVT. LTD., A COMPANY INCORPORATED UNDER THE COMPANIES ACT 1956 HAVING ITS REGISTERED OFFICE AT NO 3 AND 3A, EOIZ INDUSTRIAL AREA, SURVEY NOS 85 AND 86, SADARAMANGALA VILLAGE, KRISHNARAJAPURAM HOBLI, BENGALURU 560 066. REPRESENTED HEREIN BY ITS DIREDTOR MR VIVEK KHEMKA. …PETITIONER (BY SRI. T SURYANARAYANA., SENIOR COUNSEL FOR SRI. TANMAYEE RAJKUMAR.,ADVOCATE) AND: 1. ASSISTANT/DEPUTY COMMISSIONER OF INCOME TAX CIRCLE 3(1)(1), BMTC BUILDING, 6TH BLOCK, 80 FEET ROAD, KORAMANGALA, BANGALORE 560 095. 2. INCOME TAX OFFICER WARD INTL TAXATION 1(1) BLR BMTC BUILDING, 6TH BLOCK, 80 FEET ROAD, KORAMANGALA, BANGALORE 560 095. 3. CHIEF COMMISSIONER OF INCOME TAX 1 BMTC BUILDING, 6TH BLOCK, 80 FEET ROAD, KORAMANGALA, BANGALORE 560 095. …RESPONDENTS (BY SRI.THIRUMALA M.,ADVOCATE) Digitally signed by LEELAVATHI S R Location: HIGH COURT OF KARNATAKA - 2 - NC: 2024:KHC:37198 WP No. 18395 of 2024 THIS WRIT PETITION IS FILED UNDER ARTICLE 226 OF THE CONSTITUTION OF INDIA, PRAYING TO A) QUASH THE ORDER DATED 31/03/2024 BEARING NO. ITBA/AST/F/148A/2023- 24/1063772974(1) (ANNEXURE-P) PASSED BY THE R1 UNDER SECTION 148A(d) OF THE ACT, REJECTING THE PETITIONERS OBJECTIONS AS TO THE INITIATION OF THE ASSESSMENT PROCEEDINGS FOR THE ASSESSMENT YEAR 2018-19 AND B) QUASH THE NOTICE DATED 31/03/2024 BEARING ITBA/AST/S/148.1/2023-24/1063779395(1) (ANNEXURE-Q) ISSUED BY THE R1 UNDER SECTION 148 OF THE ACT FOR THE ASSESSMENT YEAR 2018-19. THIS WRIT PETITION, COMING ON FOR ORDERS THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR JUSTICE S.R.KRISHNA KUMAR ORAL ORDER In this Petition, Petitioner seeks the following reliefs: a) Quashing the order dated 31/03/2024 bearing No. ITBA/AST/F/148A/2023-24/1063772974(1) (Annexure-P) passed by the 1st Respondent under Section 148A(d) of the Act, rejecting the Petitioner’s objections as to the initiation of the assessment proceedings for the assessment year 2018-19; b) Quashing the notice dated 31/03/2024 bearing ITBA/AST/S/148.1/2023-24/1063779395(1) (Annexure-Q) issued by the 1st Respondent under Section 148 of the Act for the assessment year 2018-19; and c) Pass such other or further orders as this Hon’ble Court may deem fit in the facts and circumstances of the case, in the interests of justice and equity.”. - 3 - NC: 2024:KHC:37198 WP No. 18395 of 2024 2. A perusal of the material on record will indicate that the merger of M/s. Harman Connected services Technologies (Harman Technologies) with the Petitioner - Company i.e., M/s. Harman Connected Services Corporation India Pvt. Ltd., was approved by the Regional Director, Ministry or Corporate Affairs vide order dated 13.11.2013 and the jurisdictional Assessing Officer of Harman Technologies was intimated of the said merger on 06.12.2018. In pursuance of the same, the Petitioner filed consolidated Income Tax Returns for the Assessment Year 2018- 19 where all the transactions of the erstwhile M/s. Harman Technologies were also reflected. The said Returns filed by the Petitioner including the transactions of the erstwhile Harman Technologies was selected for complete scrutiny assessment under Section 143(3) of the Income Tax Act, 1961 vide Assessment Order dated 29.10.2021. Subsequently, the Respondents issued a Notice under section 148A(b) of the Income Tax Act, 1961 dated 14.03.2022 to the erstwhile Harman Technologies, to which the Petitioner submitted a response on 22.03.2022. In the reply, the Petitioner – Company stated that the erstwhile Harman Technologies had got merged with the Petitioner Company and the PAN Number indicated on Harman Technologies - 4 - NC: 2024:KHC:37198 WP No. 18395 of 2024 was not applicable to the Petitioner Company. Thereafter, the Respondent issued one more Section 148A(b) Notice addressed to the Petitioner Company on 05.02.2024 wherein, the earlier Pan Number of the erstwhile Harman Technologies was shown while issuing the same. The Petitioner submitted its detailed responses on 13.02.2024, 28.02.2024 & 06.03.2024 subsequently contending that the PAN Number shown in the Sectio148A(b) Notice was in relation to the erstwhile Harman Technologies and not the PAN Number of the Petitioner-Company and contended that all further proceedings deserved to be dropped. 3. It is the grievance of the Petitioner that despite the aforesaid facts and circumstances, the first Respondent proceeded to pass the impugned order under section 148A(d) dated 31.03.2024 followed by a Notice dated 31.03.2024 under Section 148 A of Income Tax Act, aggrieved by which, the Petitioner is before this Court by way of the present petition. 4. Today, a Memo dated 11.09.2024 is filed along with the following documents: i) “Copy of the notice dated 08.08.2024 issued by the 1st Respondent under Sectioon148A(b) of the Income Tax Act, 1961(“the Act”). - 5 - NC: 2024:KHC:37198 WP No. 18395 of 2024 ii) Copy of the notice dated 09.08.2024 issued by the 1st Respondent under Section 148A(b) of the Act. iii) Copy of the submissions dated 19.08.2024 filed by the Petitioner. iv) Copy of the order dated 30.08.2024 passed by the 1st Respondent under Section 148A(d) of the Act. v) Copy of the notice dated 30.08.2024 issued by the 1st respondent under Section 148 of the Act.” 5. A perusal of the aforesaid documents will indicate that during the pendency of the present Petition, the 1st Respondent has initiated proceedings against the Petitioner-Company showing the correct PAN Number of the Petitioner-Company in respect of the same which leads to unmistakable conclusion that the earlier proceedings culminated in the impugned order in relation to the Petitioner-Company under the old PAN Number would not survive and the same deserves to be quashed. 6. In the result, I pass the following:- ORDER i) Petition is hereby allowed. ii) The Impugned order at Annexure-P bearing No. ITBA/AST/F/148A/2023-24/1063772974(1) and Annexure – Q bearing No. ITBA/AST/S/148.1/2023- - 6 - NC: 2024:KHC:37198 WP No. 18395 of 2024 24/1063779395(1), both dated 31.03.2024 are hereby quashed. Sd/- (S.R.KRISHNA KUMAR) JUDGE Bsv List No.: 1 Sl No.: 27 "