Nunhems India Pvt. Ltd. V. Deputy Commissioner of Income Tax Circle -5(1), Hyderabad and The Union of India, through the Secretary, Ministry of Finance, Government of India

WP/37863/2021

AI Insights

The case involves Nunhems India Pvt. Ltd., the successor to Nunhems Vegetable Seeds Pvt. Ltd., challenging notices issued by the Income Tax Department under Section 148 of the Income Tax Act, 1961, for the assessment year 2016-17. The petitioner argued that the notices were issued to a non-existing entity following an approved scheme of amalgamation, rendering the notices invalid. The court examined precedents and legal principles regarding the issuance of notices to non-existing entities post-amalgamation and found the notices to be legally unsustainable.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 805200 (HC-TELANGANA)
• Appeal Type: Others
• Pronouncement Date: 04-01-2024
• Assessment Year: misc
• Other Referred Cases: PCIT Vs. Maruti Suzuki India Limited, Virchow Drugs Limited Vs. Income Tax Officer, SIS India (P) Ltd. Vs. Deputy Commissioner of Income Tax, Spice Infotainment case
• Laws Referred To: Article 226 of the Constitution of India, Income Tax Act, 1961, Taxation and Other Laws Act, 2020
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: SAPNA REDDY; B MUKERJEE
• Assessee Lawyers: NISHANT THAKKAR; HITEN THAKKAR
• Keywords: Amalgamation; Non-existing entity; Unconstitutional; Writ of Certiorari; Excessive delegation of legislative functions; Arbitrary and discriminatory
• Section: 148

Judgement Text

"[ 337e ] HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD (Special Original Jurisdiction) THURSDAY, THE FOURTH DAY OF JANUARY TWO THOUSAND AND TWENry FOUR PRESENT THE HONOURABLE SRI JUSTICE P.SAM KOSHY AND THE HONOURABLE SRI JUSTICE N.TUKARAMJI WRIT PETITION NO: 37863 OF 2021 Between: AND 1 trlu.nhgmg lndia Pvt. Ltd, (Successor to Nunhems Vegetable Seeds pvt. Ltd.),S-196, Kenalakoya Village, Medchal to t riyapur BypZss Road, Medchal, !-l Vdera f-r_ad, Telangana -501403, Through its AJthbrized Signatory, 'Mr. Sushii Kumar Kaushik, Director. ...PETITIONER Tte^Depy.ty Commisjioter of lncome Tax Circle -5(1), Hyderabad, Room No.344, 3'' Floor, l.T. Towers, A.C. Guards, Masa6 fank, Hyderabad-SoOOO4 The Union of lndia, through the Secretary, Ministry of Finance, Government of lndia, North Block, New Delhi 110 101 ...RESPONDENTS 2 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 of Certiorari, or a writ in the nature of Certiorari, or any other appropriate writ, order or direction under Article 226 of the constitution of lndia, calling for the records of the Petitioner's case so far as they relate to the issue of the lmpugned Notice dated 17 June 2021 issued by the First Respondent (Exhibit \"P'1\") and Notices dated 24 November 2O21 and 25 November 2021 (Exhibit \"P20\" and \"P21\") re{ating to the A.Y. 2016-17, after going through and examining the question of the validity, propriety and legality thereof, be pleased to quash the same.(b)declaring the provisions of section 3 of the Taxation and Other Laws Act, 2020 (Exhibit \"P4\") as suffering from the vice of excessive delegation of legislative functions as also being arbitrary and discriminatory, thus violative of unconstitutional. (c)declaring Notification No.2Ol2O21 dated 31 March 2021 (Exhibit. \"P2\") and Notification No.38/2021 dated 27 April 2021 (Exhibit \"P3\") as having been issued in exercise of powers which suffer from the vice of excessive delegation of legislative functions as also arbitrary and discriminatory, thus violative of Article 245 and 14 of the Constitution of lndia and consequently unconstitutional.(d )Passing such other order or orders as may be deemed fit and proper in the circumstances of the case and in the interests of justice. lA NO: 2 OF 2021 Petition under Order 39, Rules 1 & 2 of praying that in the circumstances stated in the affidavit filed in supporl of the petition, the High Court may be pleased to restrain the respondents, their subordinates, servants and agents from acting upon or taking any further proceedings in pursuance of and/or in implementation and/or inn furtherance of the impugned Notice dated 17rh June, 2021 issued by the First Respondent under Section 148 of the lncome Tax Act, '1961 (Exhibit \"Pl\") and Notices dated 24th November 2021 and 25 November, 2021 (Exhibit \"P20\" and \"P21\") relating to the A.Y.2016-17 pending disposal of the above Writ Petition. Counsel for the Petitioner: SRI NISHANT THAKKAR AND SRI HITEN THAKKAR REPRESENTING FOR SRI G NARENDRA CHETTY Counsel for the Respondent No.1: MS. SApNA REDDY, SC FOR INCOME TAX Counsel forthe Respondent No.2: SRI B. MUKERJEE, SC REPRESENTING FOR GADI PRAVEEN KUMAR, DEPUW SOLICITOR GENERAL OF INDIA The Court made the following: ORDER THE HON'BLE SRI JUSTICE P.SAM KOSI{Y AND THE HON'BLE SRI JUSTICE N.TUKARAMJI W.P.No.37863 of 2O2l ORDER:6-re' rro n'bte Sn Justice P.SAM l0. > ',a- | "