M/s. Virtusa Consulting Services Private Limited V. Union of India, through the Ministry of Finance, Department of Revenue and Assistant Commissioner of Income Tax, Circle 8(1)

WP/22307/2021

AI Insights

The case involves M/s. Virtusa Consulting Services Private Limited, the petitioner, challenging an income tax reassessment notice issued by the Assistant Commissioner of Income Tax, Circle 8(1), Hyderabad. The notice was issued under Section 148 of the Income Tax Act, 1961, for the assessment year 2013-14. The petitioner sought to quash this notice and also challenged certain explanations to notifications as unconstitutional. The legal proceedings were based on the grounds that no further actions were taken following the Supreme Court's judgment in Union of India Vs. Ashish Agarwal, which impacted the reassessment procedures. The court allowed the withdrawal of the writ petition, emphasizing the petitioner's right to approach the court again if necessary.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 804172 (HC-TELANGANA)
• Appeal Type: Others
• Pronouncement Date: 28-02-2023
• Assessment Year: misc
• Other Referred Cases: Union of India Vs. Ashish Agarwal (2022) SCC Online SC 543
• Laws Referred To: Income Tax Act, 1961, Constitution of India
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: GADI KUMAR; A KRISHNA
• Assessee Lawyers: KAMAL SAWHNEY
• Keywords: Assessment; Income Tax; Notice; Re-assessment; Ultra Vires; Unconstitutional; Writ petition
• Section: 148; 151

Judgement Text

"[ 3311 ] HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD (Special Original Jurisdiction) TUESDAY, THE TWENTY EIGHTH DAY OF FEBRUARY TWO THOUSAND AND TWENTY THREE PRESENT THE HONOURABLE THE CHIEF JUSTICE UJJAL BHUYAN AND THE HONOURABLE SRI JUSTICE N.TUKARAMJI WRIT PETITION NO: 22307 OF 2021 Between: AND M/s.Virtusa Consulting Services Private Limited, (Polaris Consulting and Services Ltd., merged with M/s. Virtusa Consulting Services Private Limited vide the Hon'ble NCLT Order dated 09.12.2019) Sy. No. 115lPar1, Plot No. 10, Nanakramguda Village, Serilingampally Mandal, Hyderabad, Telangana. 500008 Represented by its Director, [ ilr. Vasu Pendyala. ...PETITIONER 1. Union of lndia, through the Ministry of Finance. Department of Revenue, North Block, New Delhi, Delhi - 1 10 001 . 2. Assistant Commissioner of lncome Tax, Circle 8(1), Signature Towers, Sy. No. 6(P) of Kondapur, Sy. 37(P) of Kothaguda, Opp. Botanical Gardens, Serlingampally, R.R. District, Hyderabad, Telangana 500084 ...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: (a)lssue an appropriate writ, order or direction more particulady in the nature of CERTIORARI quashing the impugned notice dated 29.06.2021 bearing no. TIBA/ASTIS|148|2O21- 2211033851442(1) lor AY 2013- '14, issued by Respondent No.2 under section 148 of the lncome Tax Act, '1961 (b) Declare the Explanation to clause (A)(a) of Notification No. 2012021 dated 31 .03.2021 and Explanation to clause (AXb) of Notification No. 38 of 2021 dated 27.04.2O21 as unconstitutional and ultra-vices the parent act lA NO: 1 OF 2021 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 dispense with the filing of the certified copy of the impugned assessment/ re-assessment notice dated 29.06.2021 bearing no. ITBA/AST lsl14Al2O21- 2211033851442(1) lor AY 2013- 14, issued under Section 1 48 of the lncome Tax Act, 1961 by the Respondent No.2, as the same was sent to the Petitioner by e- mail only and the Petitioner has filed e-mail copy of the same lA NO: 2 OF 2021 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 grant stay of operation of the lmpugned Notice dated 29.06.2021 bearing no. IMA/AST/S/14812021- 2211033851442(1) for AY 2013-14, issued by Respondent No.2 under section 148 of the lncome Tax Act, 1 961 Counsel for the Petitioner: SRI KAMAL SAWHNEY FOR G. NARENDRA CHETTY Counsel forthe Respondent No.1: SRI GADI PRAVEEN KUMAR, DEPUTY SOLICITOR GENERAL OF INDIA Counsel for the Respondent No.2: SRI A.RADHA KRISHNA, SC FOR INCOME TAX DEPARTMENT The Court made the following: ORDER l_ I ) THE HOI{'BLE THE CHIEF JUSTICE UJJAL BIITIYAN AND THE HON'BLE SRI JUSTICE N.TUKARAMJI Writ Petition No.223O7 of 2O2l ORDER: eer the Hon'bte the ChiefJustrce Utjat Bhu!$tl) Heard Mr.Kamal Sawhney, learned counsel on behalf of Mr.G.Narendra Chetty, Iearned counsel for the petitioner; Mr.Gadi Praveen Kumar, learned Deputy Solicitor General of India for the first respondent; and Mr.A.Radha Krishna, iearned Standing Counsel, Income Tax Department for the second respondent. 2. Learned counsel for the petitioner submits that no consequential steps have been taken by the second respondent pursuant to issuance of. the impugned notice under Section 148 of the Income Tax Act, 1961 as well as following the judgment of the Supreme Court in the case of tlnlon of Indla Vs. Ashish Agarwal reported in (2022) SCC Onllne SC 543. ( I & .- 2 3. He therefore seeks leave of the Court to \"r'ithdralr the writ petition with liberty to approach the appropriate forum in the event a fresh cause of action arises. 4. Writ petition 1S accordingly dismissed on withdrawal with liberty as prayed for Miscellaneous applications pending, if any, shall stand closed. However, there shall be no order as to costs. SD/. K. VENKAIAH //TRUE COPY// ASSlSrAlffiGlsrRAR SECTION OFF]CER To,1. One CC to SRI G. NARENDRA CHETTY Advocate [OpUC] 2. ONE CC tO SRI GADI PRAVEEN KUMAR, DEPUTY SOLICITOR CCNENNT oF rNDrA [OPUC] 3. One CC to SRI A. RADHA KRISHNA, SC FOR TNCOME TAX DEPARTMENT loPUcl 4. Two CD Copies KKS. cJPa*.- I HIGH COURT DATED:2810212023 ORDER WP.No.22307 of 2O21 DISMISSING OF THE WP AS WITHDRAWN WITHOUT COSTS NA-- '::Tn I :o, i_)f - .i ,r ..: :-. tE [?tN8 t v> a @ "