M/s. Virtusa Consulting Services Private Limited vs. The Assistant Commissioner of Income Tax

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WP/36622/2024HC TelanganaHBHC01071410202428 April 2025Bench: P.SAM KOSHY,NARSING RAO NANDIKONDA4 pages
AI SummaryRemanded

What did the High Court hold?

The High Court has not decided the merits of the case. Instead, it has ordered that the writ petition be listed for hearing on August 27, 2026, along with a batch of similar cases. Crucially, the Court has granted an interim stay on the impugned orders. This interim relief is granted in light of an order passed by the Hon'ble Supreme Court in Diary No. 2196 of 2026 and batch, decided on April 10, 2026. The reasoning for the interim stay is based on the Supreme Court's directive, indicating a potential common issue across these cases. No specific findings on the legality or validity of the notices and orders have been made at this stage. The operative direction is to list the matter for further hearing and to maintain the interim stay.

What were the facts?

This case involves a writ petition filed by M/s. Virtusa Consulting Services Private Limited, represented by its Director, against several Income Tax authorities. The petitioner is challenging a Show Cause Notice dated February 5, 2024, an Order dated March 23, 2024, a Notice dated March 23, 2024, and an Assessment Notice dated October 17, 2024. The respondents include the Assistant Commissioner of Income Tax, Deputy Commissioner of Income Tax, Principal Commissioner of Income Tax, the Assessment Unit of the National Faceless Assessment Centre, and the Union of India. The petition seeks to quash and set aside these notices and orders. The High Court has listed the matter for further hearing on August 27, 2026, along with a batch of similar cases. In the interim, the Court has granted a stay on the impugned orders.

What were the issues?

1. Whether the impugned Show Cause Notice dated February 5, 2024, the Order dated March 23, 2024, the Notice dated March 23, 2024, and the Assessment Notice dated October 17, 2024, issued by the respondents are legal and valid, and thus liable to be quashed and set aside. This is a question of law and mixed fact and law, potentially turning on principles of natural justice and procedural fairness under the Income Tax Act, 1961. Assessee's Contention: The petitioner seeks to quash the impugned notices and orders, implying they believe these actions are arbitrary, illegal, or procedurally flawed. Specific grounds for challenge are not detailed in the provided text, but the nature of a writ petition suggests a challenge to the authority or process. Revenue's Contention: The revenue, represented by the Income Tax Department, would likely defend the legality and validity of the notices and orders issued, arguing that they were passed in accordance with the provisions of the Income Tax Act, 1961, and relevant procedures.

AI-generated summary — verify with the full judgment below

5 IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD (SPecial Original Jurisdiction) THURSDAY, THE THIRTEENTH DAY OF AUGUST TWO THOUSAND AND TWENTY SIX PRESENT THE HONOURABLE SRI JUSTICE P.SAM KOSHY AND THE HONOURABLE SRI JUSTICE NARSING RAO NANDIKONDA WRIT PETITION No.366 22 ot 2024 Between: AND M/s. Virtusa Consulting Services Private Limited, Add' SyNo115Pan" Plot-No 10' Nrnafi"rgrou Viilag6, Serilingampaily Mandal, Hyderabad, Telangana 500008. R;;. ,y its"Director Sri Vasu pendyata, -.S/o. Shri.^pandu pendyala, Aged. 54 yrs, A/o. ilaZq, Ramakrishna Puram, Near RLY Station, RK Puram' Malkajgiri' Hyderabad, Telangana 500056 ...PETITIONER 1. The Assistant commissioner of lncome Tax, Circle 8 1, signature Towers, SV.tfo.O(p) of Kondapur, Sy.37(P) of Kothaguda, Opp Botanical Gardens' SLningampatly (M), R.R. District, Hyderabad Telangana 500084' 2. The Seputy bommissioner of lntome Tax, LB Stadium' Basheer Bagh' Hyderabad, Telangana a ine principal Comhissioner of lncome rax - 2, Signature Towers' Sy No 6(P) of Kondapur, Sy.37(P) of Kothaguda, Opp' Botanical Gardens' Serlingampally (M), R.R. District, Hyderabad, Telangana 500084 +. ine Rssessment Unit, National Faieless Assessment Centre lncome Tax Department, New Delhi. 5.TheUnionoflndia,throughtheMinistryofFinance,DepartmentofRevenue' having its office at Nehru Place , New Delhi, Delhi-1 1 0 019' ...RESPONDENTS Peiltion under Article 226 of lhe constitution of lndia praying that in the circumstancesstatedintheaffidavitfiledtherewith,theHighCourtmaybepleased to issue a wdt of certiorari or a writ in the nature of certiorari or any other appropriatewrit,orderordirectionunderArticle226andlorArticle22Tofthe constitution of lndia calling for the records of the Petitioner's case and after examining, the legality and validity there of quash and set aside the lmpugned Show

6 Cause Notice dated SFebruary 2024 bearing DIN and Notice No. ITBA,AST, F7148A(SCNy2023- 2411060526935(1), the lmpugned Order dated 23 March 2024 bearing DIN and Notice No. ITBA/AST/F/148N2023-24;1063232448(1) and lmpugned Notice dated 23 March 2024 bearing DIN and Notice No. ITBA/AST/S/1 48-]12023-2411063233798(1 ) issued by the Respondent No. 'l and the lmpugned Assessment Notice dated 17 Octcber 2024 DlN. ITBA/AST/F/1 4 2(1 )l 2024-25 I 1 0697 1 I 434(1 ) issued by the Rest)ondent No. 4 Counsel for the Petitioner: SRl. T PRADYOTH Counsel for the Respondents: Ms. J SUNITHA , SENIOR SC FOR INCOME TAX DE:PARTMENT The Court made the following: ORDER List on 27.08.2026 along with batch. Meanwhile, there shall be interim stay of the impugned order, in the light of the order granted by the Ho'nble Supreme Court vide its order in Diary No.2196 of 2026 and batch decided on 10.04.2026 SD/- M. OSMAN ALI BAIG TANT REGISTRAR //TRUE COPY// E OFFICER To, 1. The Assistant Commissioner of lncome Tax, Circle I 1, Signature Towers, Sy.No.6(P) of Kondapur, Sy.37(P) of Kothaguda, Opp. Botanicat Gardens, Serlingampally (M) R.R. District, Hyderabad Telanganz, 500084. 2. The Deputy Commissioner of lncome Tax, LB Stadium, Basheer Bagh. Hyderabad, Telangana 3. The Principal Commissioner of lncome f ax - 2, Signature Towers, Sy.No.6(p) of Kondapur, Sy.37(P) of Kothaguda, Opp. Botanical Gardens, Serlingampally (M), R.R. District, Hyderabad, Telangana 500084. 4. The Assessment Unit, National Faceless Assessment Centre lncome Tax Department, New Delhi. 5. The Union of lndia, through the Ministry of Finance, D:partment of Revenue, having its office at Nehru Place , New Delhi, Delhi-1 10 119. 6. The Section Officer, Writ Division Bench, Section High Court for the State of Telangana, Hyderabad 7. The Section Officer, Posting Section , High Court for the State of Telangana , Hyderabad

7 8. One CC to SRl. T. PRADYOTH, Advocate [OPUC] 9. One CC to Ms. J SUNITHA , SENIOR SC FOR INCOME TAX DEPARTMENT loPUcl 10.Two CD Copies BM GJP Uy

8 TWO DRAFTS HIGH COURT DATED: 1310812026 ORDER WP.No.36622 of 2024 D!RECTION LIST ON 27.08.2026 ALONG WITH BATCH (oB lHE SI4 0 5 stP zt[fi o L, \> -2. oI t ..\ DFina -r;:<. '1 .. @t c a 1b

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