Telangana HC allows Refund of Advance Tax and TDS as Rectified Migration Order was Uploaded Timely [Read Order]
Telangana HC allows Refund of Advance Tax and – TDS as Rectified Migration Order was Uploaded Timely – TAXSCAN
Telangana HC allows Refund of Advance Tax and – TDS as Rectified Migration Order was Uploaded Timely – TAXSCAN
The Telangana High Court allowed the refund of advance tax and Tax deducted at Source(TDS) as the rectified migration order was uploaded timely.
Ms Ananya Kapoor, counsel for the petitioner and Mr J.V.Prasad, Standing Counsel, Income Tax Department for the respondents.
The petitioner filed a petition and sought for declaring the in-action of the respondents in not disposing of the rectification application dated 28.01.2022 and not granting the refunds, as illegal, unjust, and against the provision of the Income Tax Act, 1961;
Further prayed for directing the respondents to grant credit of all pre-paid taxes of merged entities in the hands of the petitioner.
The petition also sought for directing the respondents to expeditiously dispose of the rectification application dated 28.01.2022 and grant/issue a refund of Rs. 55,48,66,713/- (Rs.47,22,26,990/- principal amount with Rs.8,26,39,723/- interest amount) along with up to date interest within a reasonable/specified time frame by electronic/manual/paper mode and ensure that refund is not withheld due to any technical difficulties/reasons.
The matter was related to the migration of credit for advance tax and tax deducted at source (TDS) from Polaris Consulting & Services Limited (‘Polaris’) to Virtusa Consulting Services Private Limited (‘Virtusa’).
The related prayer has been made following the merger of Polaris with Virtusa based on the order of the National Company Law Tribunal dated 03.04.2018 with effect from 01.04.2017. Virtusa requested the revenue to allow credit of taxes paid by Polaris in the merged entity of Virtusa. However, the migration order finally got uploaded manually on 07.06.2023 and credit for advance tax and TDS was allowed resulting in a refund of Rs.51.66 crores.
“Since the basic grievance of the petitioner has been redressed, we are of the view that the consequential refund is required to be remitted to the petitioner at an early date with applicable interest by the law.”, Chief Justice Ujjal Bhuyan and Justice N Tukaramji.
To Read the full text of the Order CLICK HERE
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