Virtusa Consulting Services Private Limited V. Deputy Commissioner of Income Tax, Circle 8(1) and Pr. Commissioner of Income Tax-2 and Centralized Processing Centre, Income-tax Department, Bengaluru and DGIT (Systems), ARA Centre, New Delhi

WP/6638/2023

AI Insights

The case involves Virtusa Consulting Services Private Limited, which filed a writ petition under Article 226 of the Constitution of India against various income tax authorities. The petitioner sought a writ of mandamus to address the inaction of the respondents in not disposing of a rectification application and not granting refunds related to prepaid taxes of merged entities. The petition was prompted by the merger of Polaris Consulting & Services Limited with Virtusa, which required the migration of tax credits and the issuance of refunds. The court's decision followed the successful migration of these credits and acknowledged the refund amount, leading to the dismissal of the petition with directions for the timely remittance of the refund.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 814560 (HC-TELANGANA)
• Appeal Type: Others
• Pronouncement Date: 09-06-2023
• Assessment Year: misc
• Laws Referred To: Article 226 of the Constitution of India, Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: J PRASAD
• Assessee Lawyers: ANANYA KAPOOR
• Keywords: Income Tax; Rectification Application; Refund; Technical difficulties; Writ of Mandamus
• Section: 226

Judgement Text

"HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD (Special Original Jurisdiction) FRIDAY, THE NINTH DAY OF JUNE TWO THOUSAND AND TWENTY THREE PRESENT THE HONOURABLE THE CHIEF JUSTICE UJJAL BHUYAN AND THE HONOURABLE SRI JUSTICE N.TUKARAMJI WRIT PETITION NO: 6638 0F 2023 [ 3311 ] ...PETITIONER Between: AND 1. Virtusa Consulting. Service.q Private Limited., Sy. No. 115tPan, plot No. 10, Nanakramguda Village, Serilingampally Ir,/andal, Hyderabad, Telangana, 500008 Fep., by its.Authorized Replesentative Vasu pendyala, S/o. pandu pendyala, Ag_ed about Q9 yqqr:, Rlo.31-124, Ramakrishna puram, Near Rly Statioh, Fi K Puram, Malkajgiri, Hyderabad, Telangana - SOOO47 Deputy.Commissioner of Income Tax, Circle 8(1), Signature Towers, Sy. No 6(P) of Kondapur, Sy. 37(P) of Kothaguda, Opp..Botanicat Gardens,. Serlingampally, R.R. District, Hyderabad, Telangana 500084 2. Pr. Commissionerof lncome Tax- 2 Signature Towers,, Sy. No. 6(p) of fo1dlggr, Sy..37(P) of Kolhaguda, Opp. Botanicat Gardehs, Sedinlampaily, R.R. District, Hyderabad, Telangana 500084 3. Centralized Processing Centre,, lncome-tax Department, Bengaluru, Karnataka 560500 4. DGIT (Systems), ARA Centre, Ground Floor, Jhandewalan Extension, New Delhi-1 10001 ...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 a writ, order or direction, more particularly in the nature of Writ of Mandamus declaring and directing the Respondents to. i. Declaring the in- actions of the Respondents in not disposing off the rectification application dated 28.O1 .2022 and not granting the refunds, as illegal, unjust, and against the provision of the lncome Tax Act, '1961 and ii. Directing the Respondents to grant ,l credit of a1l pre-f,a rl taxes of merged entities rn the hands arf the Petitioner and iii. Directing th() li )spondents to expeditiously dispose rff the rectification application datel 8 O1 .2022 and grant/issue refun(1 o; Rs 55,48,66,713/-(Rs. 47,22,26,99Ot.. p'rirr:i :al amount with Rs. 8,26,39,7i'31- intr:-es1 amount) along with up to date nterest within a reasonable/specif erl lime frame by electro nic/ma rruzrl/1 aper mode and ensure that refun(i is nct rvithheld due to any technical difficultier,/rr:asons. rv.For such further and other r:liefs including costs of this Petition, ;rs his Hon'ble Court may deem fit and proD(, r ir the nature and circumstances of tf 3 lase Counsel for the Pe itioner: MS. ANANYA KAPOOR FOR Sfll CHALLA GUNARANJAN Counsel for the Re ;pondents: SRl. J. V. PRASAD (SC FOR thtCCME TAX) The Court made th. following: ORDER THE HON'BLE THE CHIEF JUSTICE UJJAL BHIIYAN AND THE HON'BLE SRI JUSTICE N. TUKARAMJI WRIT PETITION No.6638 of 2023 ORDER: eer Lhe Hon'ble tLe ChbI Justrce UJtat Bhutlan) Heard Ms. Ananya Kapoor, learned counsel for the petitioner and Mr. J.V.Prasad, learned Standing Counsel, Income Tax Department for the respondents 2. By frling this petition under Article 226 of the Constitution of India petitioner has prayed for the foliowing reliefs: i. Declaring the in-action of the respondents in not disposing of the rectihcation. application dated 2a.O1 .2022 and not granting the refunds, as illegal, unjust, and against the provision of the Income Tax Act, 196 l; and ii. Directing the respondents to grant credit of all pre-paid taxes of merged entrties in the hzrnds of the petitioner; and iii. Directing the respondents to expeditrously dispose of the rectihcation application dated 28.01.2022 and grarrt/issue relund of Rs. 55,48,66'7131- I I l tRs.47,2: Rs. ti,2 6 : inIcrcr;1 eler:1.rc,ni rs n:t q.i .::!6,99O I - principal ainou nt 'iitl , 9 723 l- interest amount) along with up t ) ,lato ,. .ithin a reason able / specified tirne liiuot: bv : / larual/paper mode artd ensure thilt I o'un(l rlreld duc to any technical dilhculticsT rt:z s:rns 3. MzL[tr:r relates to migration of credit for acli'ance tax ir.. Fr r r;uch further arld other reliefs, incluiirL6 c,osts of tJ-ris p 't..lion, as this Hon ble Court may tleem 1i: anr{ prolrer ir tlle nature and circumstalces of tlle cas(r: '. A ;a-d the costs of this writ petition in favll.r ol rhe pclit .rr: er and against respondents. c a11ou' credit of taxes paid by P,l a -is in t1-re.. ancl ta-x Cedr c ed at source (TDS) from Polaris C cn:iulting & Services L n-Lited (hereinafter referred to as, Ir lla:is') to Virtusa Con ;ulting Services Private Limite(l l1'r,:reinafter referred r-o as, 'Virtusa') 4. Thr: rel, rtr:d prayer has been made fol1ou'in I merger of' Polaris vrith y'irtusa on the basis of order of the' National Compar-l.r l-a v Tribunal dated 03.04.2018 with elTect from Ol.O4.2O1','. .)r:rnsequent to such merger, VirtusiL l-equested '- the revenue merged e.n1.rt' r:rf Virtusa -) I ( 5. On 13.03.2023, learned Standing Ccunsei w-as granted time to obtain instruction regarding migration of advance tax and TDS challans paid in the PAN of Polaris to Virtusa following merger of Polaris and Virtusa' 6. On the next date i.e., on 17.04.2A23, time was sought for by Mr. J.V.Prasad, Iearned Standing Counsel' 7. Today when the matter is called upon' Mr. J.V.Prasad, learned Standing Counsel submits on the basis of written instruction that challan from Polaris to Virtusa has been successfully migrated\" Earlier such migration could not be uploaded as manual order could' not be uploaded. However, the migration order finally got uploaded manually on 07.06.2023 and credit for advance tax and TDS was allowed resulting in a refund of Rs'51'66 crores. 8. Learned counsel for the petitioner submits that direction may be issued to the respondents to release the refund to the petitioner in a time-bound manner' ii + 9. Sr-Lct: 1 I'x: itasic grievance of the petttioner has been redresseC, r,v r rrre of the vier'v that the consequellt la1 refund is requi;-eri l r be remitted to Lhe petitioner at arr r:ar[-1' date r'vith applic:al ,L itrterest. in accordance with lau' 10. Lct .h : refund along with applicable r: ter:st be remitleci trr he petitioner within a periocl of e i1: ht r'veeks from the d r 1-, , ,f receipt of a copy of this orcier 1 1 . Th: s di ;proses of the rn.rit petition Mir;cr:1l 1r eous applications pending, if a ay, sl-ra1l stard closccl .lourever, there shall be no order €.s to costs ,TRUE COPY// SD/. K.VENKATAH ASSIS ANT REGISTRAR a!-, [iECTION OFFICER To, 1 2 The Deoutv C :rtmissioner of lncome Tax, Circle 8(1), S grratrrre Towers, Sy No. of p'i oi Xi nrlapur, Sv. 37(P) of Kothaguda' Opp. Botar ica Gardens, Serlin'oarnrall l, R.R. Disirict, Hyderabad, Telangana 50(r0i34 Fi Coinrnitii ir,:r of lncome Tdx- 2 Signature Tbwers,, liy No 6.(P) of Kondaour. Sl ll7(P) of Kothaguda, Opp. Botanical Garder's, Sjerlingampally' R.R. D'istricl,- lyderabad, Telahgana 500084- C\"ntriir.c P ri,;essing Centre.Ilncometax Depa'tment' [:tenr]aluru, ^urnr1uP3 5$ )5i00 rjCiiiSyit\". s), ARA Centre, Ground Floor, Jhandewalat' Extension, New Delhi-1 1C001 On\" CC to S i. Chatla Gunaranjan, Advocate [OPU9-]- One CC. to Sr ..r. V. Prasad (SC for INCOME TAX) [OPUi)] Two CD Copi :s, 3 4 6 7 TJ GJP / HIGH COURT DATED:0910612023 ORDER WP.No.6638 of 2023 DISPOSING C F THE WRIT PETITION WITHOUT COSTS. /',. i-' t a-- '_::::l-_,- ,. Y. Si,l ,- , ) ' til C I I ,iut{'lm '1 It i i:l )/' ( eS 0 Y) l)-) I ! : i i I I ap "