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, Bengaluru and DGIT (Systems), ARA Centre, New Delhi

WP/6637/2023

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 challenged the inaction of the respondents in not disposing of a rectification application dated 26.12.2019 and not granting refunds as per the Income Tax Act, 1961. The petition also sought directions for the credit of all pre-paid taxes of merged entities and the expeditious disposal of the rectification application. The court considered a similar writ petition (W.P.No. 6638 of 2023) and based on the proceedings and submissions, decided to dispose of the current petition with specific directions to the respondents.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 683343 (HC-TELANGANA)
• Appeal Type: Others
• Pronouncement Date: 04-10-2023
• Assessment Year: misc
• Other Referred Cases: W.P.No. 6638 of 2023
• Laws Referred To: Article 226 of the Constitution of India, Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: SUNDARI PISUPATI
• Assessee Lawyers: ANANYA KAPOOR
• Keywords: Income Tax; Rectification Application; Refund; Writ of Mandamus
• Section: 226

Judgement Text

"[ 3386 ] HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD (Special Original Jurisdiction) WEDNESDAY, THE FOURTH DAY OF OCTOBER TWO THOUSAND AND TWENTY THREE PRESENT THE HONOURABLE SRI JUSTICE P.SAM KOSHY AND THE HONOURABLE SRI JUSTICE LAXMI NARAYANA ALISHETTY WRIT PETITION NO: 6637 OF 2023 Between: AND 1 Virtusa Consulting Services Private Limited., Sy. No. 11S/Pan, Plot No. 10, Nanakramguda Village, Serilingampally I ,4andal, Hyderabad, Telangana, 500008 Rep. by its Authorized Representatrve Vasu Pendyala, S/o. Pandu Pendyala, Aged about 53 years, Rlo.31-124, Ramakrishna Puram, Near Rly Station, R K Puram, I 4alkajgiri, Hyderabad, Telangana - 50OO47 ...PETITIONER 2 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 T ax- 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-tax Department, Bengaluru, Karnataka 560500 3 4. DGIT (Systems), ARA Centre, Ground Floor, Jhandewalan Extension, New Delhi-1 10001 ..RESPONDENTS Petition under Artrcle 226 of lhe 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: l. Declaring the in-actions of the Respondents in not disposing off the rectification application dated 26.12.2O'19 and not granting the refunds, as illegal, unjust, and against the provision of the lncome Tax Act, 196'1; and l I ll. Directing the Respondents to grant crec it of all pre-paid taxes of merged entities in the hands of the Petitioner: arrd lll. Directing the Respondents to expediticusly dispose of the rectification application dated 26 12-2O19 and granl/rssut: rcfund of Rs. 17,13,22,7261- (Rs. 13,22,95,5411- principal amount with Rs. 3,)0.27,1851- interest amount) along with up to date interest within a re a l;ona b le/s pecrfied time frame by electronic/manual/paper mode and ensure thirt rr,,fund is not withheld due to any technical difficulties/reasons. lV. For such further and other reliefs, inclurJing costs of this petition, as this Hon'ble Courl may deem fit and proper in the nature and circumstances of the case. V. Award the costs Respondents. of this Writ Petition in fz vour of the Petitioner and against Counsel for the Petitioner: M/s. ANANYA KAPOOR Counsel for the Respondents: M/s. SUNDARI R.PISUPATI, Sr. SC FOR lT DEpT. The Court made the following: ORDER ( i THE HON'BLE SRI JUSTICE P.SAM KOSHY AND THE HON'BLE SRI JUSTICE LAXMI NARAYANA ALISHETTY w.P. No.6637 of2023 ORDER : (per f tolr'l)/(' .srr, /rr s l r( (' P. sAM KosHy/ Heard Ms. Ananya Krtpoor, learned counsel for the petitioner and Ms. Sundari R. Pisupati, learned Senior Standing Counsel for lncome Tax Departmcnt for tltc 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 26. 12.2019 ancl so far as not granting refund amounts, as itlegal and unjust It u'as also the prayer of the petitioner to direct the respondents to laran[ credit of all pre-paid taxes of merged entities in the hands of the petitioner' 3. During the course of hearing, Iearned counsel lor the petitioner produced before this Court a copy of W'P'No'6638 of 2023 hled of similar nature by the petitioner' In the said writ petition' there was merger of Polaris Consulting & Scrvices Limited (hereinafter referred to as, 'Polaris') to thc petitioner's establishment i'e' Virtusa Consulting Services Private Limited (hereinafter referred to as' Virtusa'). The merger of Polaris with Virtusa was on the basis of the order passed by the National Company Law Tribunal datedo3.o4.2o18witheffectfromol.o4.2olT.Consequenttothe said merger, the learned Senior Standing Counsel for the Department in i.P.No (163li oi 2023 srrbmirs (,n ins;trucli.rns thar thc chrll.rn lrorn [)olzrris to VirtrLsa [-rad bcen s r-tcces s f -rli-r migr:rtcci :rncl r,n the s:rirl statenr( nt mi)d(' bY the leirrned c,)unsltl for rhe L)L-partmcrti. rhc saicl urit pctitron sr.()od disposed oI vide ordcr riated 09.O6.2023. In thc instant L-zrsc arlso, Lhe merger has been on the basis ot'ttrc ordcr of thc Nrrtional Comp;rnt [-:ru Tribuna] Therealter, th. 'rit pr-ririon has norv bccn iilcd for:r similar reliel. 4. lJou,eve r, in the instant case, leerrncd Sc-nior- St:rncling Counsel for the Departrncnt submits on thc basis of the instructio:rs that the miglzrtion of onc ol the companies hasr to [;e done from L]rc Chennai Officc, as the said company lalls u,ir-hin Circle III and it. is being pursuccl a1, Chennai by the respondents hcrcin. irurthc: that it is expected to terke place at the earliest, but lor lhe technir:al reasons that are coming in the wa]' o[ the Department, iL rvoulc] take some time to procecd u'ith thc same. 5. Cliven the said submission by the learnecl Senior Standing Counsel lor the Department that so far as the role that has to be played b,\"- the Olfice of the respondent-s in H-l'derabad is concerncd, that has already been done and that the lurther steps have to bc taken b1' the concerne(l ofhcers of the Income Tax Department at Circle-lll, Chcnnzri, we do not find any good reason to keep the writ pctition pending any furthcr. ,1. 1 6. Accordingly, in the light of thc disposal of W.P,No-6638 of 2023, the present writ petition also stands disposecl ol rvith a specific direction to respondent No. I to ensure that the rectification application initiated by the petitioner is dealt rvith and finalized at the earliest, within an outer limit of eight (8) weeks, as was granted in the earlier writ petition. Subject to thc migration being done successfully, the petitioner would be entitlcd for claiming u,hatever relund that they are entitled for in accordance rvith lan'. Thc rclund application if any also shall be processed ancl 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 REGI$TRAR L-- sEcTloN o/PlcER To, 6 7 BSR GJP 1. The Deputy Commissioner of lncome Tax, Circle 8(1), Signature Towers, Sy' f.fo. Ofpt 6f Kondapur, Sy. 3/(P) of Kothaguda, Opp. Botanical Gardens' Serlingainpally, R.R. Distriat. Hyderabad, Telangana 500084. 2. fhe Pr. Commissioner of lncome Tax- 2' Signalure Towers, QV. No' 6(P).of - XonOapui, Sy. 37(P) of Kothaguda, Opp -Bo[anical Gardens, Serlingampally, R. R. District, 'Hyderabad, Telangana 500084 3. The Centralized Processing Centre, lncome{ax Department, Bengaluru, Karnataka 560500 4.TheDG|T(Systems),ARACentre,GroundFloor,JhandewalanExtension, 5 New Delhi-1 10001 One CC to M/s. ANANYA KAPOOR' Advocate IOPUC] One CC to IV/s. SUNDARI R. PISUPATI, Sr' SC FOR lT DEPT IOPUCI Two CD Copies I tl ii HIGH COURT DATED: 0411012023 ORDER WP.No.6637 of 2023 DISPOSING OF THE WRIT PET'ITION, WITHOUT COSTS --a:, g 0TATtr i \"i! _/ ,r :) ) -t 3[ 0[1 ?m -.4 '.,,1., :_ t 2c "