Virtusa Consulting Services Private Limited V. Deputy Commissioner of Income Tax, Circle B(1) and Pr. Commissioner of Income Tax-2 and Centralized Processing Centre, Income Tax Department and DGIT (Systems)

WP/6636/2023

AI Insights

The case involves Virtusa Consulting Services Private Limited, which filed a writ petition against various respondents including the Deputy Commissioner of Income Tax, seeking judicial intervention under Article 226 of the Constitution of India. The petitioner sought to declare the inaction of the respondents in not disposing of a rectification application dated 14.04.2021 and not granting refunds as illegal and unjust. The petition also requested the court to direct the respondents to grant credit of all pre-paid taxes of merged entities and to expedite the disposal of the rectification application. The court noted a similar case (W.P.No.6638 of 2023) involving the same parties and issues, which had been resolved by ensuring the migration of tax credits from Polaris Consulting & Services Limited to Virtusa. Following this precedent and the subsequent rectification order passed by the respondents, the court disposed of the current writ petition with specific directions for timely action on the rectification application and any resultant refunds.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 680081 (HC-TELANGANA)
• Appeal Type: Others
• Pronouncement Date: 05-12-2023
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961, Article 226 of the Constitution of India
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: SUNDARI PISUPATI
• Assessee Lawyers: ANANYA KAPOOR
• Keywords: Income Tax; Merger; Rectification Application; Refund; Writ of Mandamus; Pre-paid Taxes
• Section: 226

Judgement Text

"[ 337e ] IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD (Special Original Jurisdiction) TUESDAY, THE FIFTH DAY OF DECEMBER TWO THOUSAND AND TWENTY THREE PRESENT THE HONOURABLE SRI JUSTICE P. SAM KOSHY AND THE HONOURABLE SRI JUSTICE N. TUKARAMJI WRIT PETITION NO: 6636 OF 2023 Between: Virtusa Consulting Services Private Limited, Sy. No. 115lPan, Plot No. 10, Nanakramguda Village, Serilingampally Mandal, Hyderabad, Telangana, 500008 Rep. by its Authorized Re-presentative Vasu Pendyala, S/o. Pandu Pendyala, Aged about 53 years, No.31-124, Ramakrishna Puram, Near Rly Station, R K Puram, Ir/alkajgiri, Hyderabad, Telangana - 500047 ...PETITIONER AND 1 Deputy Commissioner of lncome Tax, Circle B('1 ), Signature Towers, Sy. No. 6(P) of Kondapur, Sy. 37(P) of Kothaguda, Opp. Botanical Gardens, Serlingampally, R.R. District, Hyderabad, Telangana 500084 Pr. Commissioner of lncome Tax- 2, Signature Towers, Sy. No. 6(P) of Kondapur, Sy. 37(P) of Kothaguda, Opp. Botanical Gardens, Serlingampally, R.R. District, Hyderabad, Telangana 500084 Centralized Processing Centre, lncome{ax Department, Bengaluru, Karnataka 560500 DGIT (Systems), ARA Centre, Ground Floor, Jhandewalan Extension, New Delhi-1 1000 1 ...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 14.04.2021 and not granting the refunds, as illegal, unjust, and against the provision of the Income Tax Act, 1961 , and ii. Directing the Respondents to grant credit of all pre-paid taxes of merged entities in the hands of the Petitioner, and iii. Directing the Respondents to expeditiously dispose off the reclification application dated 14.O4.2021 and grant/issue refund of Rs. 79,19,61,051|(Rs. 64,12,64,0091- principal amount with Rs. 15,06,97,0421- interest amount) along 2 3 4 with up to date interest within a reasonable/specified time frame by electronic/manual/paper mode and ensure that refund is not withheld due to any technical difficulties/reasons. iv. For such further and other reliefs, including costs of this Petition, as this Honble Court may deem fit and proper in the nature and circumstances of the case, v- Award the costs of this Writ Petition in favour of the Petitioner and against Respondents. Counsel for the Petitioner: Ms. ANANYA KAPOOR REPRESENTING FOR SRI CHALLA GUNARANJAN Counsel for the Respondents: Ms. SUNDARI R. PISUPATI (sR.sc FoR rNcoME TAX DEPARTMENT) The Court made the following: ORDER tz THE HONOURABLE SRI JUSTICE P.SAM KOSHY AND THE HONOURABLE SRI JUSTICE N.TUKARAMJI UTRIT PETITION No.6636 oF 2023 ORDER (per flon'ble Sn Jusrrce P.SAM KOSlHfl) Heard Ms. Ananya Kapoor, learned counsel for the petitioner and Ms. Sundari R. pisupati, learned Senior Standing Counsel for Income Tax Department for the respondents 2. The instant writ petition has been filed seeking to declare the in-actions of the respondents in not disposing off the rectification application dated 14.04.2O2 I and so far as not granting refund amounts, as illegal and unjust. It was also the prayer of the petitioner to direct the respondents to grant credit of all pre_paid taxes of merged entities in the hands of the petitioner. 3. During the course of hearing, learned counsel for the petitioner produced before this Court a copy of W.P.No.6638 of 2023 filed of similar nature by the same petitioner. In the said writ petition, there was merger of Polaris Consulting & Services Limited (hereinafter referred to as, 'Polaris) to the petitioner,s establishment i.e, Virtusa ) PSK,J & NTR,J W,P.No.6636 of 2023 Consulting Services private Limited (hereinafter referred to as, l/irtusa'). The merger of polaris with Virtusa was on the basis of the order passed by the National Company Law Tribunal dated 03.O4.2018 with effect from Ot.O4.2OlZ. Consequent to the said merger, the learned Senior Standing Counsel for the Department in W.p.No.663g of 2023 submits on instructions that the challan from polaris to Virtusa had been successfully migrated and on the said statement made by the learned counsel for the Department, the said writ petition stood disposed of vide order dated Og .06.2023. In the instant case also, the merger has been on the basis of the order of the National Company Law Tribunal. Thereafter, the writ petition has now been filed for a similar relief. 4. Subsequent to the filing of the present writ petition, the respondents have since passed the rectilication order on 04.07.2023 which was also brought to the notice of the learned counsel for the Department as would be evident from the docket order in the present writ petition dated 08.O8.2023 to seek appropriate instructions. yet it appears that the instructions and the response of the respondents .// PSK,J & NTR,J W.P.No.6636 oJ 2023 till date have not received, nonetheless, in the light of the disposal of W.P.No.6638 of 2023, the present writ petition also deserves to be and accordingly stands disposed of with a specific direction to respondent No.l to ensure that the rectification application initiated by the petitioner is dealt with and finalized at the earliest, within an outer limit of eight (8) weeks, as was granted in the earlier writ petition. Subject to the migration being done successfully, the petitioner would be entitled for claiming whatever refund that they are entitled for in accordance with law. The refund application if any also shall be processed in accordance with la'*, and finalized as expeditiously as possible. No order as to costs. Consequently, miscellaneous petitions pending, if any, shall stand closed. //TRUE COPY// SD/. K. VENKAIAH ASSISTANT REGISTRAR SECTION OFFICER To, 1 Deputy Commissioner of lncome Tax, Circle 8(1), Signature_ Towers, Sy. No. 6(P) oi Kondapur, Sy. 37(P) of Kothaguda, Opp. Botanical Gardens, Seriingampally, R.R. District, Hyderabad, Telangana 500084 Pr. Cohmissioner of lncome Tax- 2, Signature Towers, Sy. No. 6(P) of Kondapur, Sy. 37(P) of Kothaguda, Opp. Botanical Gardens, Serlingampally, R.R. District, Hyderabad, Telangana 500084 Centralized Processing Centre, Incometax Department, Bengaluru, Karnataka 560500 DGIT (Systems), ARA Cenke, Ground Floor, Jhandewalan Extension, New Delhi-1 10001 One CC to SRI CHALLA GUNARANJAN, Advocate [OPUC] One CC to Ms. SUNDARI R. PISUPATI (SR.SC FOR INCOME TAX DEPARTMENT) IOPUC] Two CD Copies 3 4 5 Cl 2 7. BN GJP BAJ I I I HIGH COURT DATED:0 511212023 ORDER WP.No.6636 of 2023 DISPOSING OF THE WRIT PETITION WITHOUT COSTS T S e ts 1 f, o E T ?$i1 0t[ .t-) i,/ ,,/ r n * "