Genpact India Private Limited vs Deputy Commissioner Of Income Tax

3. The facts leading to the filing of the present appeal, in brief, are as under:

(2) Notwithstanding that no income-tax is payable by a domestic company on its total income computed in accordance with the provisions of this Act, the tax on the distributed income under sub-section (1) shall be payable by such company.

(3) The principal officer of the domestic company and the company shall be liable to pay the tax to the credit of the Central Government within fourteen days from the date of payment of any consideration to the shareholder on buy- back of shares referred to in sub-section (1).

domestic companies and its payment” were given in “Schedule DDT” where the details of aforesaid transactions were given but the liability to pay any tax was denied. A notice under Section 143(2) of the Act was issued to the appellant on 03.09.2015 seeking further explanation, pursuant to which requisite details were furnished.

m) The High Court also recorded certain concessions made on behalf of the Revenue and disposed of the Writ Petition by its Judgment and Order dated 19.08.2019 with following directions:

4. Challenge to the aforesaid view taken by the High Court was raised by way of Special Leave Petition No.20728 of 2019 filed in this Court on 26.08.2019. Within the time limit of 10 days as afforded by the High Court, an appeal was also preferred by the appellant “without prejudice” on 30.08.2019 against the “demand raised/order passed under Section 115QA”. The aforesaid Special Leave Petition came up before this Court on 06.09.2019, whereafter the matter was adjourned on few occasions and then taken up for final disposal.

(v) The Court places on record the statement of the Revenue that it will not raise any objection before the CIT (A) as to the maintainability of such an appeal and as to the appeal being barred by limitation. The Court also takes on record the statement of the Revenue that it will not enforce the demand in terms of the impugned assessment order till the disposal of the above appeal. All of the above is subject to the Assessee filing the appeal before the CIT (A) within ten days from today.

(q) an order imposing a penalty under Chapter XXI;

14. We, therefore, reject the submissions advanced by the appellant and hold that an appeal would be maintainable against the determination of liability under Section 115QA of the Act.

16. We do not, therefore, find any infirmity in the approach adopted by the High Court in refusing to entertain the Writ Petition. The submission that once the threshold was crossed despite the preliminary objection being raised, the High Court ought not to have considered the issue regarding alternate remedy, may not be correct. The first order dated 25.01.2017 passed by the High Court did record the preliminary objection but was prima facie of the view that the transactions defined in Section 115QA were initially confined only to those covered by Section 77A of the Companies Act. Therefore, without rejecting the preliminary objection, notice was issued in the matter. The subsequent order undoubtedly made the earlier interim order absolute. However, the preliminary objection having not been dealt with and disposed of, the matter was still at large.

In State of U.P. v. U.P. Rajya Khanij Vikas Nigam Sangharsh Samiti and others24 this Court dealt with an issue whether after admission, the Writ Petition could not be dismissed on the ground of alternate remedy.

17. We do not, therefore, find any error in the approach of and conclusion arrived at by the High Court. It is relevant to mention that the concessions given on behalf of the Revenue as recorded in the directions issued by the High Court also take care of matters of prejudice, if any.

Consequently, the appellant, as a matter of fact, will have a fuller, adequate and efficacious remedy by way of appeal before the appellate authority.

18. Certain issues raised during the course of hearing touching upon the aspects whether the appellant is liable under Section 115QA of the Act or whether the transaction of buy back of shares in the present matter would come within the statutory contours of said Section 115QA or not, are issues which will be gone into at the appropriate stages by the concerned authorities; and as such we have refrained from dealing with those issues.

19. In the circumstances we find that the judgment and order under appeal does not call for any interference. This appeal is, therefore, dismissed. No costs.

Civil Appeal No. 8945 of 2019 @ SLP(C) No.20728 of 2019 Genpact India Private Limited v. Deputy Commissioner of Income Tax & Anr.

20. Needless to say that the appeal preferred by the appellant on 30.08.2019 shall now be proceeded with in accordance with law.

November 22, 2019.