Karnataka High Court
Harman Connected Services ... vs Deputy Commissioner Of Income Tax on 15 June, 2023
Bench: S.Sunil Dutt Yadav
-1-
NC: 2023:KHC:20663
WP No. 11549 of 2023
IN THE HIGH COURT OF KARNATAKA AT BENGALURU
DATED THIS THE 15TH DAY OF JUNE, 2023
BEFORE
THE HON'BLE MR JUSTICE S SUNIL DUTT YADAV
WRIT PETITION NO. 11549 OF 2023 (T-IT)
BETWEEN:
HARMAN CONNECTED SERVICES CORPORATION
INDIA PVT. LTD.,
(FOR THE MERGED ENTITY HARMAN CONNECTED
SERVICE TECHNOLOGIES PRIVATE LTD.)
A COMPANY INCORPORATED UNDE THE
COMPANIES ACT, 1956
HAVING ITS REGISTERED OFFICE AT
NO.3 AND 3A, EOIZ INDUSTRIAL AREA
SURVEY NOS. 85 AND 86,
SADARAMANGALA VILLAGE
KRISHNARAJAPURAM HOBLI
WHITEFIELD, S O., RAMAGONDANHALLI
BENGALURU-560066.
REP. BY HEREIN BY ITS
VIVEK KHEMKA
DIRECTOR
...PETITIONER
(BY SRI. S.SURYANARAYANA SENIOR ADVOCATE FOR
Digitally signed
by SHWETHA SMT. TANMAYEE RAJKUMAR ALONG WITH
RAGHAVENDRA SMT. SHRUTI SINGH., ADVOCATES)
Location: HIGH
COURT OF AND:
KARNATAKA
1. DEPUTY COMMISSIONER OF INCOME TAX
CIRCLE 3(1)(1),
BMTC BUILDING, 6TH BLOCK
80 FEET ROAD, KORAMANGALA
BANGALORE-560095.
2. THE PRINCIPAL COMMISSIONER OF INCOME TAX-3
BMTC BUILDING, 6TH BLOCK
-2-
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WP No. 11549 of 2023
80 FEET ROAD, KORAMANGALA
BANGALORE-560095.
...RESPONDENTS
(BY SRI. M. DILIP., ADVOCATE)
THIS WRIT PETITION IS FILED UNDER ARTICLE 226 OF THE
CONSTITUTION OF INDIA PRAYING TO QUASH THE ORDER DTD
30/03/2023 BEARING NO. ITBA/AST/F/148A/2022-
23/1051654084(1) (ANNEXURE-G) PASSED BY THE R-1 U/S
148A(d) OF THE ACT, REJECTING THE PETITIONERS OBJECTIONS
AS TO THE INITIATION OF THE ASSESSMENT PROCEEDINGS FOR
THE AY 2019-20 AND ETC.
THIS WRIT PETITION, COMING ON FOR PRELIMINARY
HEARING, THIS DAY, THE COURT MADE THE FOLLOWING:
ORDER
The petitioner Harman Connected Services
Corporation India Pvt. Ltd. has called in question the
validity of the order dated 30.3.2023 at Annexure-G which
is an order passed by the respondent No.1 under Section
148A(d) of the Act, rejecting the petitioner's objections for
initiation of re-assessment proceedings for the Assessment
Year 2019-20 and has also sought for quashing of the
notice issued under Section 148 for the Assessment Year
2019-20.
2. It is pointed out that the notice under Section
148A(d) was issued on 25.1.2023 as regards the
entity-Harman Connected Services Technologies Pvt. Ltd.
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WP No. 11549 of 2023
It is submitted that the said entity is no longer in
existence as on the date of issue of notice under Section
148A(b) of the Act, by virtue of order passed under
Section 233 of Companies Act whereby the said entity has
merged with the petitioner company with effect from
1.4.2017.
3. Accordingly, it is submitted that the notice
under Section 148A(b) and the order passed under Section
148A(d) require to be set aside. Reliance is placed on the
judgment of the Apex Court in the case of Prl.
Commissioner Income Tax, New Delhi vs. Maruti
Suzuki India Limited reported in 2019 107
Taxman.com page 375 (SC).
4. Facts are not in dispute. The fact that 148A(b)
notice was issued to Harman Connected Services
Technologies Pvt. Ltd., which has ceased to exist by virtue
of approval of scheme of merger with effect from the
1.4.2017 is an undisputed fact.
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5. An identical legal question was raised in
WP No.9594/2023, which was disposed off on 1.06.2023,
the relevant para 9 of the said order reads as follows:-
9. In light of the judgment of the Apex Court in the
case of Principal Commissioner of Income Tax, New
Delhi v. Maruti Suzuki India Ltd. reported in (2019)
107 taxmann.com 375 (SC), it is clear that notice and
assessment order passed in the name of non-existing
company is a substantive illegality and is an order
passed without jurisdiction. Accordingly, only on the
above ground of M/s.Shankar Resources (P) Ltd.,
having merged with the petitioner company and was
not an existing entity as on the date of issuance of
notice, the notice under Section 148A (b) dated
28.01.2023 vide Annexure-D, similar identical notice
dated 23.02.2023 at Annexure-F and notice dated
13.03.2023 at Annexure-H are set aside. So also,
order under Section 148A (d) dated 28.03.2023 vide
Annexure-K and notice under Section 148 dated
28.03.2023 vide Annexure-L are set aside.
6. Accordingly, taking note of the admitted fact
that notice was issued to a non-existent entity in the light
of the observations made by the Co-ordinate Bench at
para 9 reproduced above, the order at Annexure-G under
Section 148A(d) and the notice under Section 148 at
Annexure-H issued in the name of Harman Connected
Services Technologies Pvt. Ltd., are set aside.
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7. Needless to state that the authorities are at
liberty to initiate appropriate proceedings as is open in law
and permissible insofar as subject matter of the
information as contained in the notice under Section
148A(b) against the petitioner company, as permissible in
accordance with law.
Sd/-
JUDGE
SR
