M/s Sri Krishna Jewellers Private Limited V. Union of India and 2 others

WP/38163/2022

AI Insights

M/s Sri Krishna Jewellers Private Limited filed a writ petition under Article 226 of the Constitution of India against the Union of India and other respondents, challenging the initiation of income tax proceedings and subsequent orders issued against the partnership firm, which had been converted into a private limited company. The petitioner argued that the proceedings were arbitrary, illegal, and without jurisdiction. However, the court found that the impugned order was issued against the partnership firm, which was still legally recognized for the purpose of the proceedings, and not against a non-existent entity. The court dismissed the petition, allowing the petitioner to contest the proceedings through appropriate legal channels.

• Counselvise Citation: [2022] 140 COUNSELVISE.COM (IT) 740580 (HC-TELANGANA)
• Appeal Type: Others
• Pronouncement Date: 13-10-2022
• Assessment Year: misc
• Laws Referred To: Article 226 of the Constitution of India, Income Tax Act of 1961
• Result in Favour of: Revenue
• Court: HIGH COURT
• Department Lawyers: B MUKHERJEE; J V PRASAD
• Assessee Lawyers: VIMAL VASIREDDY
• Keywords: Assessment Year; Income Tax; Jurisdiction; Writ of Mandamus; Arbitrary and Illegal Proceedings
• Section: 148; 148A(d)

Judgement Text

"M/s Sri Krishna Jewellers Private Limited, through its Director Shiv Charan, H. No. 8- 2-62612, Sri Krishna House, Road No.'10, Ban.jara Hills, Hyderabad - 500 034. HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD (Special Original Jurisdiction) THURSDAY, THE THIRTEENTH DAY OF OCTOBER TWO THOUSAND AND TWENTY TWO PRESENT THE HON'BLE THE CHIEF JUSTICE UJJAL BHUYAN AND THE HON'BLE SRI JUSTICE C.V. BHASKAR REDDY WRIT PETITION NO: 38163 OF 2022 Between .,.PETITIONER AND 1 Union of lndia, Represented by its Secretary, Ministry of Finance, North Block, New Delhi. Assistant Commissioner of lncome Tax, DCIT, Circle 5(1) Hyderabad Principal Chief- Commisstoner of lncome Tax, Andhra Pradesh and Telangana, 10\"' Floor, \"D\" Block, lT Towers, A.C. Guards, Hyderabad- 500004. ...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 issue order, writ or direction more particularly one in the nature of Writ of Mandamus a. Declare the initiation of proceedings under the provisions of Income Tax by the Respondents in the name of M/s Sri Krishna Jewellers as being arbitrary and illegal and without jurisdiction. b. Set aside the Order No ITBtuCOM/F/1712022 - 2311044241854(1) dated 28.07.2022 and all other consequent proceedings. c. Set aside notice issued under provisions of the lncome Tax Act of 1 961 vide notice No ITBA/AST/S/1/14812021 2 3 2211033837029(1) 29 06-202.1and 30.06.2022. d. Declare the proceedings initiated by the Respondents against the petitioner as being arbitrary and i,egar 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 suspend the impugned passed by the Assessment order No rrBNCOMrFrlTr2o22-23r1044241854(1) dated 28.07.2022 passed bv 2nd Respondent and further dtrect the Respondents not to take any coercive steps against the Petitioner, pending disposal of the main writ petition. Counsel for the petitioner: Mr. VIMAL VARMA VASIREDDY Counsel for the Respondent No.1: Mr. B. MUKHERJEE, REp. FOR Ms. B. KAVTTHA YADAV, S.c. FOR CENTRAL GOVERNMENT Counsel for the Respondent Nos.2 & 3: Mr. J.V. PRASAD, S.C. FOR INCOME TAX The Court made the following: ORDER TEE HAILEI-P !tI!.ErI]P! {USTICE U.'JAL BHUYAN AND THE HON,BLE SRI JUSTICE C .V.BHASKAR REDDY WRIT PETITION No.381 63 of 2022 ORDER: 0,er the t totibt., th(, (:]1k.t.Ju:nn ? !jLtui ithuqe,r) Heard Mr. Vimai Varma Vasireddy, learned counsel for the petitioner; Mr. B.Mukherjee, learned counser representing Ms. B. Kavitha yadav, learned cou nsel for respondent No. i; and Mr. J.V.prasad. learned Standing counsel for the income 1.:x Departnlent representing respondentsNo.2&3. 2. By filing this u,rit petition under Article 226 of tltc: Constitution of Inclia, petitioner seeks quashing ol ordcr dated 28.OT.2O22 passed by the second respondent under Section 148A (d) of the Incomc Tax Acr, 196 I (briefly ,the Act' hereinafter) for the assessment year 2076_12. 3. Petitioner before us is a private limited compan_ , having been incorporatecl as such vide the certificerte of incorporation dated 06. 12.2012. Learned counsel for tho . petitioner submits thAt impugned order. has been passed against Sri Krishna .Icwellcrs, which u,as a partnershi6r iirm. 'lhe saicl parinership has since beeu converted into a priv.uc limirt:tl companl i.e.. the petiLioner. Sri I(rishna ,Jt:u,ellcrs, tlrc partnership lirm, is tlou' no longer 1n cxistcnce. Irnpugned proceedings have beetr initiated against a noIl - cxl stent assessee. 4. On a query b1' the Court. learned counsel for the pctitioner submits that both the partnership firm and the petitioner havc the same bank account. 5. Front a perusal of the materials on record, we are not convinced with the contention advanced by learned counsel for the petitioner that partnership Iirm has been converted into a private limited company. it is a case of incorporation of a private limited company. Partners of the partncrship firm against '\"r'hich the impugned order has been passed are not before us to challenge the legalily of the same. Impugned order has not been passed against M/s. Sri Krishna Jewellers Private Limited which is the petitioner before us. 6. Be tl-rat as it may, all that the impugned order says is that it is a lit case for issue of notice under Section 148 I I of thc Act. As a r:orrsCclue nc:t, Of thc in-rpr,rgned or(i(.r., nolicc undcr Sectiorr 1..i8 of thc Act rr,,as issucd on 29.O7..2022. Petitioner or, for t hat maLurr. l)arlncr-s ol. lhc ltart rri,r.shrp lirm rr,ould hat,c thcir opportLrnit.,v to colitest the r(,opcning proceedit-rgs. 7. Therelore, at this sL.1gc, .c zrrc not inclinccl tcr entertain the u.rit pctrtion. B. Accordingi.l,, the u,rit pctition is dismissed Miscellaneous applications pending, il an- ., shail stand closed. Horve'er, there shal bc no order.rs to costs. To, GJP $1 ,rR u E c op;\"' oX's S,tlifr lH\"fl+?frXi 7 ..:#\" oFFrcER ffi tr[ffi !{#hffi xJfl i;.\":'Ja#,{iil\"q\"!i,,,#n,ropuc] 1 2 3 4 MP HIGH COURT DATED:1311012022 .{ ,t 0 3 L:[ 20,7? ORDER WP.No.38163 of 2022 DISMISS!NG THE WRIT PETITION WITHOUT COSTS a: q? r...t ) "