Troikaa Pharmaceuticals Ltd. through Director Ketan Rajnikantbhai Patel V. Union of India

SCA/13519/2021

AI Insights

The case involves Troikaa Pharmaceuticals Ltd., which challenged a notice issued under Section 148 of the Income Tax Act, 1961, for reopening the assessment for the assessment year 2016-17. The notice was issued in the name of Troikaa Pharmaceuticals Ltd., which had already merged with Troikaa Exports Private Ltd., rendering it a non-existing entity at the time the notice was issued. The petitioner argued that the notice was illegal as it was directed to a non-existing company. However, the Department later dropped the notice, leading to the disposal of the writ application without further adjudication on the merits.

• Counselvise Citation: [2022] 140 COUNSELVISE.COM (IT) 802185 (HC-GUJARAT)
• Appeal Type: Others
• Pronouncement Date: 11-01-2022
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: M R BHATT; DEVANG VYAS
• Assessee Lawyers: NUPUR SHAH
• Keywords: Ad-interim relief; Bad in law; Illegal; Non-existing entity; Notice; Quashing; Setting Aside; Stay; Writ of Mandamus; Restrain; Cost of this petitioner
• Section: 148

Judgement Text

"C/SCA/13519/2021 ORDER DATED: 11/01/2022 IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/SPECIAL CIVIL APPLICATION NO. 13519 of 2021 ========================================================== TROIKAA PHARMACEUTICALS LTD. THROUGH DIRECTOR KETAN RAJNIKANTBHAI PATEL Versus UNION OF INDIA ========================================================== Appearance: MS NUPUR D SHAH(10233) for the Petitioner(s) No. 1 . for the Respondent(s) No. 2 ..... for the Respondent(s) No. 1 M R BHATT & CO.(5953) for the Respondent(s) No. 2 MR DEVANG VYAS(2794) for the Respondent(s) No. 1 ========================================================== CORAM: HONOURABLE MR. JUSTICE J.B.PARDIWALA and HONOURABLE MS. JUSTICE NISHA M. THAKORE Date : 11/01/2022 ORAL ORDER (PER : HONOURABLE MR. JUSTICE J.B.PARDIWALA) 1. By this writ application under Article 226 of the Constitution of India, the writ applicant, an assessee, has prayed for the following reliefs; “a) The Hon’ble Court be pleased to issue a writ of mandamus or any other writ, order, direction or command in the nature of writ of mandamus holding and declaring that the impugned notice issued in the name of the non-existing entity is prima facie illegal and bad in law. b) That the Hon’ble Court be pleased to issue a writ of mandamus or a writ in the nature of mandamus or any other appropriate writ, order or direction quashing and setting aside the impugned notice dated 28.03.2021 issued u/s. 148 of the Page 1 of 3 C/SCA/13519/2021 ORDER DATED: 11/01/2022 Income Tax Act by the Respondent No.2 (Annexure- D). c) That pending the hearing and final disposal of the Petition, the Hon’ble Court be pleased to stay the impugned notice dated 28.03.2021 issued u/s.148 of the Income Tax Act by the Respondent No.2 (Annexure-D) and to restrain the Respondent No.2 from acting in furtherance thereof. d) For ad interim relief in terms of Para-8(c) and (d) hereinabove. e) Award the cost of this petitioner. f) Grant such other and further reliefs as this Hon’ble Court deems fit.” 2. We have heard Ms. Nupur Shah, the learned counsel appearing for the writ applicant, Mr. M.R. Bhatt, the learned senior counsel appearing for the Revenue and Mr. Devang Vyas, the learned Addl. Solicitor General appearing for the respondent No.1. The subject matter of challenge in the present writ application is to the notice issued under Section 148 of the Income Tax Act, 1961 (for short “the Act, 1961”) dated 28.03.2021 for reopening of the assessment for the A.Y.2016-17. The impugned notice came to be issued by the Department in the name of the present writ applicant. Ms. Shah would submit that the writ applicant, namely, Troikaa Pharmaceuticals Ltd came to be merged with Troikaa Exports Private Ltd. Ms. Shah invited the attention of this Court to the order passed by this High Court in the Company Petition No.18 of 2016 decided on 09.03.2016 approving the merger. Page 2 of 3 C/SCA/13519/2021 ORDER DATED: 11/01/2022 3. In view of the aforesaid, the principal argument of Ms. Shah is that Troikaa Pharmaceuticals Ltd. could no longer be said to be in existence and, therefore, the notice issued under Section 148 to a non-existing company could be said to be a nullity. 4. Mr. Bhatt, the learned senior counsel appearing for the Revenue would submit that there is no need for this Court to adjudicate this writ application on merits because he has been instructed by the Department that the impugned notice at Page-182 of the paper-book has been dropped vide order dated 27.12.2021. 5. In view of such statement being made by Mr. Bhatt, nothing survives in this matter. 6. In view of the aforesaid, this writ application stands disposed of. Notice stands discharged. (J. B. PARDIWALA, J) (NISHA M. THAKORE,J) Vahid Page 3 of 3 "