Vertex Projects LLP V. Income Tax Officer

WP/11319/2023

AI Insights

Vertex Projects LLP challenged the legality and validity of the notices and orders issued by the Income Tax Officer, Ward 17(1), Hyderabad, under various sections of the Income Tax Act, 1961, for the assessment year 2016-17. The petitioner argued that Vertex Projects Limited, the entity originally assessed, had been converted into a limited liability partnership and was thus no longer in existence to be liable for the tax assessments. The court, however, noted that the directors of Vertex Projects Limited are the partners of Vertex Projects LLP and found no merit in the argument that the LLP could not be assessed for the income that had escaped assessment. The court dismissed the petition, allowing the reassessment to proceed.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 692132 (HC-TELANGANA)
• Appeal Type: Others
• Pronouncement Date: 24-04-2023
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Revenue
• Court: HIGH COURT
• Department Lawyers: J V PRASAD
• Assessee Lawyers: CHALLA GUNARANJAN
• Keywords: Assessment Year; Income Tax; Natural Justice; Reassessment; Writ of Certiorari
• Section: 148; 148A(b); 148A(d)

Judgement Text

"[ 3311 I HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD (Special Original Jurisdiction) IVIONDAY ,THE TWENTY FOURTH DAY OF APRIL TWO THOUSAND AND TWENTY THREE PRESENT THE HONOURABLE THE CHIEF JUSTICE UJJAL BHUYAN AND THE HONOURABLE SRI JUSTICE N.TUKARAMJI WRIT PETITION NO:'11319 OF 2023 Between: Vertex Projects LLP (Formerly Vertex Projects Lrmited), 156-159, Paigah House, S.P. Road. Secunderabad, Telangana-500003. Represented by its Authorized Srqnatory T Ravi Prakash. S/o T Prem Kumar. ...'ET'T.ONER AND lncome Tax Officer Ward-17(1 ), Hyderabad Signature Towers, Kondapur Hvderabad-500084 ...RES,.NDENT' Petitron under Artrcle 226 of the Constitution of lndia praying that in the circumstances stated rn the affidavrt filed therewith, the High Court may be pleased to rssue a wflt of certroran or wnt rn the nature of certiorari, or any other appropriate wnt order or drrectron calling for the records of the case, after going through the correctness thereof be pleased to quash and set aside the impugned notice No ITBA/A S T/F/ l48A(SCN)12022-2311050371869(1) d1.0310312023 issued by the Respondent under Section 148A(b) of the lncome Tax Act, 1961. and the impugned order No.ITBfuAST/F 1148412022- 2311051654343(1 ) dt 30 03 2023 under Sectron 148A (d) of the lncome Tax Act, 1961 issued by the Respondent and the lmpugned Notice No. ITBA/AS T/S/148 112022-2311051654 644 (1 ) dt 30/03/2023 issued by the Respondent under section 148 of the lncome Tax Act. 1961 lA NO: 2 OF 2023 Petition under Sectron 15'l CPC praying that in the circumstances stated in the affidavrt frled rn support of lhe petrtron, the High Court may be pleased to stay the Order No ITBA/AST/F/148At2022-231 1051654343(1) dated 30/03i2023 { passed under S( ct on '148A(d) of the lncome Tax Ac: Yea( 2016'17 z ncl tne Notice No ITBA/AST/S/148 dated 30.03.2(12 i issued under Sectron 148 of the ln(lonle Assessment Yea 2016-17 Counsel for the 'etitioner: SRI CHALLA GUNARANJAN counselforthelespondents:SRI.J.v.PRASAD(sCFoRINcoMETAx) The Court made the following: ORDER 1 96' f )r tle Assessment 1l 2o:'.,2 23,105165464 4(1) a ( Art 1961 for the ; 1 i I t i : i i ! 5 I I I I ! 1 ! ! $ s I I ! I I I I I I t i I I I I THE HON'BLE THE CHIEF JUSTICE UJJAL BHTryAN AND THE HON'BLE SRI JUSTICE N.TUKIIRAMJI Writ Petition No. 11319 of 2023 ORDER: Per thc Ilon ble the ('tre| Justte LJ at Bttula4 Heard Mr.Challa Gunaranjan, learned counsel for the petitioner. 2. This petition undcr Article 226 of the Constitution of India has assailed lcgalitl' and validit_y of the order dated 3O.O3.2O23 passed b_v thc Income Tax Officer, Ward 17(l), Hyderabad (briefi_r' '[ncome Ta-x Officer', hereinafter) under Section 148A(d) of the lncome Tax Act, 196 1 (briefly the Act' hereinafter) Ibr the assessment year 20 16- 17 as well as consequential notice issued lrnder Section 148 of the Act. 3. From a perusirl of the impugned order, it is seen that the assessee herd not fited its re[urn of income for the assessment year undcr consideration. In the circumstances, lncomc Taux Officer took the view from the lnforrnation receivcd, that income to the extent of Rs.513,35,58,763.OO has escapcd zisscssment. 2 + ol- ,h : Act r.t as issued to Verte>i I)t cle't:ts Limite d otl A3.O3 2023 to shor;t' cause as to v hv t r a llovc elmount shor-rl, I not be treated as income clr:rt gc rl lc to tarx in the Follon'ing the same, notice urtclt '' Se:'liorl 14BA(b) hanrls of assessee which has escapcci ast,es;mctlt rvithin tlre n eraning of Section 747 of t htr . t ( or I hc saicl asse ss ment year After service of noticc, lls;scss ce sourgl-rt for 'l l'rc r-e lorc. tto acljour rrrnent and finally submittcd rr pl' otr 20.O:J 2023 Conrer rtion of the assessee was th:tt Veltcr )1-()lecls Lllnited h;rs lre i]n now converted into a Limitt d -iirlrrlitr P:trtrle rship i.r:.. V'rtex Project LLP w.e.l 1cl.0ij.2() I incotrtr ta-x return r.r,as liled b ' ''c tc 'r o.jclt [-1,[) ft-otr.t O I .0'1. lO 15 to 18.08.2015. Thc fetcttrtn of sut'lr cotrversiott rils in ormed to the Income Tax Dc'Pirrt;tterrt 6. lncome Tax Officer aftcr tilr'ro-t3 ex,Ltnin:rtiotl of all :rsp et:ts of tl-re matter cortcIudcrl tllnl illr:ollle to lhe exlerrt of Rs.363,51,49,698.OO hits e r;c:11: