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Income Tax Appellate Tribunal, Bengaluru Bench
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ITA No. 875 of 2018
IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 12TH DAY OF DECEMBER, 2022 PRESENT THE HON'BLE MR JUSTICE P.S.DINESH KUMAR AND THE HON'BLE MR JUSTICE T G SHIVASHANKARE GOWDA INCOME TAX APPEAL NO. 875 OF 2018 BETWEEN: 1. THE PR. COMMISSIONER OF INCOME TAX, CIT(A) 5TH FLOOR, BMTC BUILDING 80 FEET ROAD, KORMANGALA BENGALURU-560 095 2. THE ASST. COMMISSIONER OF INCOME TAX CIRCLE-2(1)(2) 2ND FLOOR, BMTC BUILDING 80 FEET ROAD, KORMANGALA BENGALURU-560 095 …APPELLANTS (BY SHRI. K.V. ARAVIND, STANDING COUNSEL) AND: M/S. EIT SERVICES INDIA PVT. LTD (FORMERLY KNOWN AS HEWLETT PACKARD GLOBAL SOFT PVT. LTD.,) (IN THE CASE OF ERSTWHILE RELQ SOFTWARE PVT.LTD.) PLOT NO.39/40, ELECTONICS CITY PHASE II HOSUR ROAD BENGALURU-560 100 PAN: AAACR 9468C …RESPONDENT (BY SHRI. T. SURYANARAYANA, SENIOR ADVOCATE FOR SMT. TANMAYEE RAJKUMAR, ADVOCATE)
THIS INCOME TAX APPEAL IS FILED UNDER SEC.260-A OF INCOME TAX ACT 1961, ARISING OUT OF ORDER DATED 27.07.2018
Digitally signed by YASHODHA N Location: HIGH COURT OF KARNATAKA
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ITA No. 875 of 2018
PASSED IN IT(TP)A NO.1088/BANG/2011, FOR THE ASSESSMENT YEAR 2007-2008 PRAYING TO FORMULATE THE SUBSTANTIAL QUESTIONS OF LAW STATED THEREIN AND ALLOW THE APPEAL AND SET ASIDE THE ORDER PASSED BY THE INCOME-TAX APPELLATE TRIBUNAL, BENGALURU IN IT(TP)A NO.1088/BANG/2011 DATED 27.07.2018 FOR ASSESSMENT YEAR 2007-2008 ANNEXURE-D AND CONFIRM THE ORDER OF THE DRP CONFIRMING THE ORDER PASSED BY THE ASST. COMMISSIONER OF INCOME TAX, CIRCLE-2(1)(2), BENGALURU AND ETC.,
THIS INCOME TAX APPEAL, COMING ON FOR ORDERS, THIS DAY, P.S. DINESH KUMAR J., DELIVERED THE FOLLOWING: JUDGMENT This appeal by the Revenue, directed against the order dated 27.07.2018 in IT(TP)A No.1088/Bang/2011 passed by the ITAT1, "A" Bench, Bengaluru, for the Assessment year 2007-08, has been admitted to consider following questions of law: 1. Whether on the facts and in the circumstances of the case, the Tribunal is justified in law in holding that assessment order passed is invalid on the ground that assessee- company did not exist on the day of passing assessment order by following the decision which has not reached finality and not applicable to the facts of the present case?
1 Income tax Appellate Tribunal, Bengaluru Bench
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ITA No. 875 of 2018
Whether in the facts and circumstances of the case, the Tribunal is justified in law in holding that assessment order is invalid when name of the Company was EIT Service India Pvt. Ltd. during Financial Year 2006-07 and the order of this Hon'ble Court approving merger scheme of the assessee was passed on 16.11.2007 and as such assessee-company existed during the financial year 2006-07, as such assessment order passed in the name of the assessee is proper and justified?
Heard Shri K.V.Aravind, learned Senior Standing Counsel for the Appellant-Revenue and Shri T.Suryanarayana, learned Senior Advocate for the Respondent-Assessee. 3. Brief facts of the case are, the original name of the assessee was M/s RelQ Software Pvt. Ltd. It got merged with M/s Hewlett Packard Global Soft Pvt. Ltd. and the said company was renamed as M/s EIT Services India Pvt. Ltd.
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ITA No. 875 of 2018
Assessment order has been passed on 14.09.2011 in the name of M/s RelQ Software Pvt. Ltd. According to Shri Suryanarayana, amalgamation took place vide order of this Court dated 09.08.2010 and though the A.O2 has noted in the order that M/s RelQ Software Pvt.Ltd. was merged with M/s Hewlett Packard Global Soft Pvt. Ltd., he has proceeded further to pass the assessment order in the name of M/s RelQ Software Pvt.Ltd. It was urged by the assessee before the DRP3 that assessee company had merged with M/s Hewlett Packard Global Soft Pvt. Ltd., but, the DRP has rejected the said contention. On further appeal, the ITAT, by the impugned order, has set aside the assessment order. 5. Shri. Aravind, learned Senior Standing Counsel for the Revenue arguing in support of this appeal
2 Assessing Officer 3 Dispute Resolution Panel
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ITA No. 875 of 2018
submitted that the name of the assessee was M/s EIT Services Pvt. Ltd., during the F.Y. 2006-07 and the amalgamation order was passed much later and as such, the assessee -Company was in existence during the F.Y. 2006-07. Therefore, the Assessment order passed in the name of the assessee - Company is valid in law. 6. In reply, Shri Suryanarayana submitted that the issue involved in this appeal is covered by the decision of this Court in Logica Pvt.Ltd. Vs. Assistant Commissioner of Income Tax and another.4 This Court following the decision of the Hon'ble Supreme Court of India in Principal Commissioner of Income Tax Vs. Maruti Suzuki India Ltd.5, in Logica Pvt.Ltd.'s case, has allowed assessee's appeal and answered the questions
4 ITA No.1008/2017 DD 01.08.2022. 5 (2019)107 taxmann.com 375
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ITA No. 875 of 2018
of law in favour of the assessee. Accordingly, he prayed for dismissal of this appeal. 7. We have carefully considered rival contentions and perused the records. 8. It was argued by Shri. Suryanarayana that the issues involved in this case are similar to the one in Logica Pvt. Ltd. The questions raised in the said case read as follows: "(a) That the Hon'ble Tribunal was right in rejecting the Appellant's contention that the assessment order passed on LGSPL, which was non- existent as on the date of the order, was invalid, holding that at the time of issue of the notice under Section 143(2) of the Act, the amalgamating company was in existence although the same is contrary to the decisions of the jurisdictional High Court and various other High Courts? (b) That the Hon'ble Tribunal was justified in remitting the matter back to the file of the 1st respondent to pass fresh order on the amalgamated company despite the time limit for doing so in terms of Section 153 of the Act having expired?
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ITA No. 875 of 2018
[ 9. In this case also, admittedly, the assessment order is passed in the name of M/s RelQ Software Pvt. Ltd. which has been merged with M/s Hewlett Packard Global Soft Pvt. Ltd. by the order of this Court, prior to the date of assessment order. Therefore, this appeal must fail and hence the following: ORDER (i) Appeal is dismissed; (ii) The questions of law are answered in favour of the Assessee and against the Revenue. No costs.
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