IBM INDIA PRIVATE LIMITED vs. THE ADDITIONAL COMMISSIONER OF

W.P.26188/11 c/w 28380/11 c/w 52227/12

- 1 - IN THE HIGH COURT OF KARNATAKA AT BANGALORE

DATED THIS THE 19TH DAY OF MARCH 2013 BEFORE THE HON’BLE MR.JUSTICE RAM MOHAN REDDY

WRIT PETITION NO. 26188 OF 2011 (T-IT) C/W WRIT PETITION NO. 28380 OF 2011 C/W WRIT PETITION NO. 52227 OF 2012

IN W.P.NOS. 26188/11 & 28380/11

BETWEEN:

IBM INDIA PRIVATE LIMITED A COMPANY INCORPORATED IN THE INDIAN COMPANIES ACT, 1956, CORPORATE OFFICE AT: NO.12 SUBRAMANYA ARCADE BANNERGHATTA ROAD, BANGALORE - 560029 REP. BY ITS DIRECTOR SMT.ANITA SANGHI D/O SRI MAHABIR LOSALKA AGED 45 YEARS ... COMMON PETITIONER

(BY SMT. VANI H, ADV.)

AND

W.P.26188/11 c/w 28380/11 c/w 52227/12

- 2 - 3. CENTRAL BOARD OF DIRECT TAXES REP. BY UNDER SECRETARY O T DIVISION, FOURTH FLOOR JEEVANDEEP BUILDING PARLIAMENT STREET NEW DELHI-110001 ... COMMON RESPONDENTS

(BY SRI. E I SANMATHI, ADV. FOR R1 & R3 SRI. KALYAN BASAVARAJ, ASG FOR R2)

THESE WRIT PETITIONS ARE FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO DECLARE SECTION 58 OF THE FINANCE (NO.2) ACT, 2009 WHICH INSERTED EXPLANATION 3 TO SEC. 147 WITH EFFECT FROM THE 1ST DAY OF APRIL 1989 AS ULTRA VIRES THE CONSTITUTION OF INDIA AND OTHER PROVISIONS OF THE INCOME TAX ACT, 1961; ISSUE A WRIT OF CERTIORARI OR A WRIT OF PROHIBITION TO THE 1ST RES. TO NOT REASSESS ISSUES WHICH ARE THE SUBJECT MATTER OF APPEAL ( INCLUDING BUT NOT LIMITED TO THE MATTERS RELATING TO CLAIM UNDER SEC. 10A OF THE ACT WHICH IS A SUBJECT MATTER OF APPEAL) IN LIGHT OF THE PROVISIONS OF LAW, PURSUANT TO THE ISSUE OF NOTICE DT 1.3.11 ISSUED UNDER SEC. 148 OF THE I.T.ACT, 1961 VIDE ANNEX-A; QUASH THE REASSESSMENT NOTICE DT 1.3.11 ISSUED UNDER SEC. 148 OF THE INCOME TAX ACT, 1961 BY THE 1ST RES. FOR ASSESSMENT YEAR 2006-07 VIDE ANNEX-A IN W.P.26188/11 AND NOTICE DT. 18/2/2011 FOR ASSESSMENT YEAR 2004-05; AND ETC.

IN W.P.NO. 52227/12

BETWEEN

IBM INDIA PRIVATE LIMITED (FORMERLY IBM GLOBAL SERVICES INDIA PVT LTD.) NO.12, SUBRAMANYA ARCADE BANNERGHATTA ROAD BANGALORE 560029 REP. HEREIN BY ITS MANAGER - DIRECT TAXES MR. SURYAPRAKASH B S ... PETITIONER

(BY SRI. T. SURYANARAYANA, ADV. FOR M/S. KING & PARTRIDGE )

W.P.26188/11 c/w 28380/11 c/w 52227/12

- 3 - AND

(BY SRI. K V ARAVIND, ADV.)

THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO DECLARE THAT SECTION 58 OF THE FINANCE [NO.2] ACT 2009 INSERTING EXPLANATION 3 TO THE SECTION 147 OF THE ACT WITH RETROSPECTIVE EFFECT FROM 1.4.1989 IN ULTRA VIRES THE CONSTITUTION OF INDIA AND OTHER PROVISIONS OF THE ACT; DECLARE THAT THE IMPUGNED PROCEEDINGS INITIATED BY THE 1ST RESPONDENT UNDER SECTION 147 READ WITH SECTION 148 OF THE ACT ARE BARRED BY LIMITATION AND OPPOSED TO THE SAID PROVISIONS AND THERFORE WITHOUT JURISDICTION; QUASH THE NOTICE DATED 27.3.2012 VIDE ANNEXURE-D ISSUED BY THE 1ST RESPONDENT UNDER SECTION 148 READ WITH SECTION 147 OF THE ACT FOR THE ASSESSMENT YEAR 2005-06; AND ETC.

THESE WRIT PETITIONS ARE COMING ON FOR PRL.HEARING ‘B’ GROUP THIS DAY, THE COURT MADE THE FOLLOWING:

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- 4 - O R D E R

Learned counsel for the petitioners submits that since petitioners have been permitted to file objections to the notice under Sec.147 of the Income Tax Act pursuant to the order dt. 18/3/2013, these petitions be disposed of reserving liberty to the petitioners to question the final outcome of the proceedings pursuant to the said notice.

Reserving liberty to the petitioners as sought for, petitions are accordingly disposed of.

Sd/- JUDGE Rd/-