Bombay High Court
Hinduja Global Solution Limited vs Principal Commissioner Of Income Tax on 19 December, 2025
Author: B. P. Colabawalla
Bench: B. P. Colabawalla
2.wp.4867.2025.doc
IN THE HIGH COURT OF JUDICATURE AT BOMBAY
ORDINARY ORIGINAL CIVIL JURISDICTION
WRIT PETITION NO.4867 OF 2025
Hinduja Global Solutions Limited .. Petitioner
Versus
Digitally
signed by
Principal Commissioner of Income Tax,
UTKARSH
UTKARSH
KAKASAHEB Central-1, Mumbai & Ors. .. Respondents
KAKASAHEB BHALERAO
BHALERAO Date:
2025.12.20
15:25:56
+0530 Mr.Percy Pardiwalla, Senior Counsel a/w Mihir
Naniwadekar i/b Shailendra Kanetkar, Advocates for the
Petitioner.
Ms.Shilpa Goel, Advocate for the Respondents.
CORAM : B. P. COLABAWALLA &
AMIT S. JAMSANDEKAR, JJ.
DATE : DECEMBER 19, 2025
P. C.
1. Leave is granted to amend the prayer clause (g) by correcting a typographical mistake. The word "reassessment" appearing in prayer clause (g) shall be substituted with the word "assessment". The correction shall be carried out by 22nd December 2025. Reverification is dispensed with.
2. The above Writ Petition seeks a declaration that the invocation of Chapter X-A of the Income Tax Act, 1961 (for short "the Page 1 of 4 DECEMBER 19, 2025 Utkarsh ::: Uploaded on - 20/12/2025 ::: Downloaded on - 26/12/2025 21:51:33 :::
2.wp.4867.2025.doc IT Act") is ultra vires and contrary to the statutory scheme of the IT Act. A further declaration is sought that the impugned reference made by Respondent No.1 under Section 144BA of the Act dated 31 st March 2025 and/or the impugned directions given by Respondent No.3 dated 30th October 2025 for A.Ys.2022-23 and 2023-24 are illegal and wholly without jurisdiction and liable to be quashed. There is also a prayer for quashing the impugned reference dated 31 st March 2025 as well as for quashing of the directions issued by Respondent No.3 dated 30 th October 2025.
3. After hearing the parties for some time, we are of the opinion that the Writ Petition raises arguable questions that require further consideration. We are also mindful of the fact that there is no provisions for an Appeal for impugning the reference made by Respondent No.1 or the directions issued by Respondent No.3 invoking the provisions of Chapter X-A of the IT Act. Hence, we issue Rule.
4. As far as interim relief is concerned, prima facie, we find that the Petitioner has made out a case for interim relief. In the present case, there is a demerger of the Digital Communication Undertaking of company called NXTDIGITAL which was hived off to the Petitioner Page 2 of 4 DECEMBER 19, 2025 Utkarsh ::: Uploaded on - 20/12/2025 ::: Downloaded on - 26/12/2025 21:51:33 :::
2.wp.4867.2025.doc under the scheme of demerger sanctioned by the NCLT. Before the demerger was sanctioned, the Income Tax Authorities were given notice. No objection was raised to the aforesaid demerger. In this light, it is the contention of the Petitioner that the provisions of Chapter X-A could never have been invoked once there is a binding demerger order passed by the competent authority, namely the NCLT.
5. This apart, it is the contention of the Petitioner that Chapter X-A of the IT Act could never have been invoked in the facts of the present case especially, considering the provisions of Section 72A(4) which categorically allows the transfer of accumulated loss and unabsorbed depreciation of the demerged undertaking. In other words, once the Act itself permits such a transfer, the provisions of Chapter X-A have been wrongly invoked which are basically for Anti Avoidance of Tax.
6. In these circumstances, we find that a strong prima facie case for interim relief is made out. Accordingly, there will be interim relief in terms of prayer clause (g) which reads thus:-
"(g) Pending the hearing and disposal of this Petition, to stay the operation and implementation of the Impugned Reference u/s 144B of the Act dated 31 March 2025 (Exhibit A), the Impugned Directions dated 30 October 2025 (Exhibit B) and Page 3 of 4 DECEMBER 19, 2025 Utkarsh ::: Uploaded on - 20/12/2025 ::: Downloaded on - 26/12/2025 21:51:33 :::
2.wp.4867.2025.doc to stay the impugned assessment proceedings for AYs 2022-
23 and 2023-24;"
7. At the request of the Revenue, the hearing of the above Writ Petition is expedited and is peremptorily fixed for directions on 19 th January 2026. On that date, the Court may decide to fix the Writ Petition for hearing and final disposal.
8. This order will be digitally signed by the Private Secretary/ Personal Assistant of this Court. All concerned will act on production by fax or email of a digitally signed copy of this order.
[AMIT S. JAMSANDEKAR, J.] [B. P. COLABAWALLA, J.] Page 4 of 4 DECEMBER 19, 2025 Utkarsh ::: Uploaded on - 20/12/2025 ::: Downloaded on - 26/12/2025 21:51:33 :::