A. Linga Reddy, Proprietor, Balaji Wines and M/s. Bony Wines, represented by Sri G. Amruth Reddy and Sri Balaji Wines, represented by Smt G. Chandrakala V. The Assistant Commissioner of Income Tax, Circle 11(1) Hyderabad and The Deputy Director of Income Tax (Inv), Unit (1), Hyderabad

WP/15056/2005

AI Insights

The case involves three writ petitions filed by A. Linga Reddy, M/s. Bony Wines, and Sri Balaji Wines against the Assistant Commissioner of Income Tax and the Deputy Director of Income Tax, challenging the legality of proceedings initiated under Section 132 of the Income Tax Act, 1961. The petitioners sought to declare these proceedings illegal and without jurisdiction, and to set aside notices and orders issued under Sections 153A and 281B of the Income Tax Act for the assessment years 2000-01 to 2005-06. The High Court's decision to dismiss the petitions came after the respondents dropped all proceedings against the petitioners and vacated the interim orders, rendering the petitions infructuous.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 685183 (HC-TELANGANA)
• Appeal Type: Others
• Pronouncement Date: 12-09-2023
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: J V PRASAD
• Assessee Lawyers: A V KOUNDINYA
• Keywords: Illegal proceedings; Income Tax; Jurisdiction; Mandamus; Provisional attachment
• Section: 132; 153A; 281B

Judgement Text

"_1 HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD (Special Original J urisdiction) TUESDAY, THE TWELFTH DAY OF SEPTEMBER TWO THOUSAND AND TWENTY THREE PRESENT THE HONOURABLE SRI JUSTICE P.SAM KOSHY AND THE HONOURABLE SRI JUSTICE LAXMI NARAYANA ALISHETTY WRIT PETITION NOS: 15052 15055 AND 15056 0F 2005 wP NO.15052 0F 2005: Between: A.Linga Reddy, S/o.A.Ranga Reddy, Proprietor, Balaji Wines, 14-2OBl3, Mizalaguda, Malkajgiri, Hyderabad. ...PETITIONER AND 1. The Assistant Commissioner of lncomeTax, Circle 11(1) Hyderabad. 2. The Deputy Director of lncome Tax (lnv), Unit (1), HyderabadieSpO,OerufS Petition under Article 226 of the Constitution of lndia praying that in the circumstances stated in the affidavit filed therewith, the High Court may be pleased to issue a writ, order or direction more in the nature of Mandamus declaring that the proceedings initiated by the respondents under section '132 of the lncome Tax Act, 1961 are illegal, bad and without jurisdiction and consequently set aside the notices issued by the 1't respondent vide PAN/GIR No. ACTPA 56071/ACIT-1 1(1), dated 06-06-2005 under section 153A of the lncome tax Act, 1961 for the Assessment years 2000-01 to 2005-06 along with the order PAN-ACTPA 5607L, dated 09-6-2005, passed by him under section 28lB of the lncome Tax Act, 1961 and pass such other order or orders as it deems fit and proper in the circumstances of the case. l.A. NO: 1 OF 2005(WPMP. NO: 19133 OF 200s) Petition under Section 151 CPC praying that in the circumstances stated in the affidavit filed in support of the petition, the High Court may be pleased to suspenil the operation of the notices issued by the 1'r respondent vide PAN/GlR NO.ACTPA 56071/ACIT-11(1), dated 06-06-2005 under section 153A of the lncome Tax Act, 1961 for the Assessment years 2000-01 to 2005-06 along with the order PAN:ACTPA 5607L, dated 09-6-2005 passed by him under section 2818 of the lncome Tax Act, 1961 , pending disposal of the above writ petition in the interests of justice otherwise the petitioner would be put to serious and irreparable loss. [ 3386 ] wP NO.15055 0F 20 )5: Between: M/s. Bony Wines, re6. by its Partner, Sri G.Amruth Redrly, S/o.Jangla Reddy, aged 52 years, C/o.Bony ! ines,28-1511 , Vinayakanagar Road tValk,rjlriri, Hyderabad. ...PETITIONER AND '1 . The Assistant ()ommissioner of lncomeTax, Circle 11(1)Hvde'abad. 2. The Deputy Director of lncome Tax (lnv), Unit (1), llyderzrb;rdif SpOruOerufS Petition under Article 226 of the Constitutron o' lndi; p,raying that in the circumstances state j in the affidavit filed therewith, the llir;h Court may be pleased to issue a writ, order or direction one in he n;rtrrre of Mandamus declaring that the pr,rceedings initiated by the respondents un,ler section 132 of the lncome Tax Act, '1961 are iltegal, bad and withcut jr-risdiction and consequently set as de the notices issued by the 1't resporrd:nt vide PAN/GlR No. AAFB2401F/AC lT-1 1(1 ), dated 06-06-2005 uncer s€,clion 153A of the lncome tax Act, 196'l for the Assessment years 2000 01 to 2105-06 along with the order PAN-AAFE2401F, dated 09-6-2005, passed lry hinr rndr;r section 28lB of the lncome Tax A:t, 196 1 and pass such other orde r or orders as it deems fit and proper in the cirr umstances of the case. l.A. NO: 1 OF 2005( f rPMP. NO: 19138 OF 200s) Petition under Section 151 CPC praying that in the cirr:umstances stated in the affidavit filed ir support of the petition, the High Court rray be pleased to suspend the operatic n of the notices issued by the 1sr respo rclent vide PAN/GlR No.AAFB2401F/ACll'-1 1(1), dated 06-06-2005 under s,:ction 1r;3A of the lncome Tax Act, 1961 for the Assessment years 2000-0'1 to 20()5-06 al:ng with the order PAN:AAFB24O1F, drrted 09-6-2005 passed by him urder r;e,:tion 281B of the lncome Tax Act, '1961, pending disposal of the above vrrit pe:ition in the interests of justice otherwise t re petitioner would be put to serious anc irreparable loss. wP NO.15056 0F 20,)5: Between: Sri Balaji Wines, rep. By Smt G.Chandrakala, W/o.G. Ra makri;h ra Goud, aged 45 years, C/o.Sri Balaji Vtines, 1-12Bll2l1 , Bhavani nagar, Malkajgiri t)ist'ict. ...PETITIONER AND 1. The Assistant Oommissioner of lncome Tax, Circle'1 1(1)Hvde-abad. 2. The Deputy Director of lncome Tax (lnv), Unit (1), t,rdur. O,llirrp.NDENTS Petition under Article 226 of the Constitution ol lndia praying that in the circumslances staterl in the affidavit filed therewith, the l-{ic;h Court may be pleased to issue a writ, order or direction one in lhe nittr re of Mandamus declaring that the prt)ceedings initiated 'by the respondents r.rnrler section 132 of 7 the lncome Tax Act, 1961 are illegal, bad and without jurisdiction and consequently set aside the notices issued by the 1\"t respondent vide No./ACIT- 11(1)1153A105-06, dated 06-06-2005 under section 153A of the lncome tax Act, 1961 for the Assessment years 2000-01 to 2005-06 along with the order PAN- ACTPA5607L, dated 09-6-2005, passed by him under section 281B of the lncome Tax Act, 1961 and pass such other order or orders as it deems f it and proper in the circumstances of the case. Petition under Section 'l 51 CPC praying that in the circumstances stated in the affidavit filed in support of the petition, the High Court may be pleased to suspend the operation of the notices issued by the 1\"t respondent vide No./ACIT- 11(1y153A/05-06, dated 06-06-2005 under section 153A of the lncome Tax Act, 1961 for the Assessment years 2000-01 to 2005-06 along with the order PAN:ACTPA5607L, dated 09-6-2005 passed by him'under section 2818 of the lncome Tax Act, 1961 , pending disposal of the above writ petition in the interests of justice otherwise the petitioner would be put to serious and irreparable loss. Counsel for the Petitioners in all WPs : SRI A.V.KRISHNA KOUNDINYA Counsel for the Respondents in all WPs : SRI J.V.PRASAD The Court made the following: COMMON ORDER l.A. NO: 1 OF 2005(WPMP. NO: 19139 OF 2005) THE T:ONOURABLE SRI JUSTICE P. SA]VI KOT;HY AND THE'HONOITRABLE SRI JUSTICE LAXMI NARA:'ANA AI,ISIIETTY WRIT PE TITION Nos.15O52 15O55 and 15056 of t:loos COMMON ORD AR, A)er Hotl'ble Sn Ju.sri.(i P.SAM IrOSITI'/ Heard Sri A.V. Krishna Koundinya, learnetl ,:ounsel on behalf of the lretitioner and Sri J.V. Prasad, lealn:d counsel appearing on behalf of the respondents and p('rused the record. 2. These present writ petitions are filed seek r-r,g a writ of Mandamus ch rlienging the initiation of the procer:clinp,s under Section 132 ol the Income Tax Act, 1961 and alsio prayed for setting aside the consequent notices is sued I ry lhe 1\"t respondent undt:r section 153A of the said Act, 1t)6 l 3. Today, rzhen the matters are taken up fr,r hearing, learned coun:iel for the petitioner submits th:,tt in fact, pending the v rit petition, the interim order granled by this court on 14.C7 2OO5. Subsequently, the resp,)rrdents had dropped the p-oceedings against the petitio;-rer antl have also issued instru<,tions to the petitioner calling upon -hem to collect the im1'ounded materials from the office cf he Deputy Commissioner Further, they have stated ir-r their - 2 PSK.J & LNAJ W P.No.15052 of2005 correspondence that no further proceedings are pending against the petitioner. 4. In view of the same nothing further survives to be adjudicated upon the instant writ petition and therefore, the same stands disposed of as infructuous. 5. At this juncture, learned counsel for the petitioner submits that by virtue of the interim order granted by this Court dated 14.07.2OO5, the provisional attachment of the bank account still continues and it would be permitted to be operated only on the interim relief being modified to that extent. 6. Coming to the fact that the writ pctition itself has rendered as infructuous, the interim order on 14 .O7 .2OOS, stands vacated. In the event, if the petitioner approach the concerned bank seeking permission to operate the bank account which was provisionally attached, this Court would only clarify that as a result of the disposal of the writ petition ald also on vacating the interim order granted pursuant to the dropping of all the proceedings we see no hindrance on the bank authority in permitting the petitioner to operate the I'SK.J & L-NA.J P ,, ljojl ol t00j bank account unless otherwise there is anlr c)ther specific instructions. There shall be no order as to costs. Miscella:reous applications pending, il any, shzrll stand closed. SD/. MC,HD. SAIIAIJLLAH ANSARI ASSISTA]{T REGISTRAR ,TRUE COPY// ( ,,(] {}EC:TION OFFICER To Kj 1 2 3 4 5 The Assistant Commissioner of lncome Tax,, Circ e '1 1(' ) lycerabad The Deputy Director of lncome Tax (lnv),, Unit (1) Hyderabac. One CC to Sr A.V.Krishna Koundinya, Advocate IOPUC;I One CC to Sr J V.Prasad, Advocate [OPUC] Two CD Copi,:s GJP Pru(, HIGH COURT DArED:1210912023 COMMON ORDER WP.Nos.1 5052, 1501i5 and 1 5056 of 2005 6 to t-9 o 4 c) ,.u LL 6-, ,$ A , Hor$ j ? * o tt) I / DISPOSING OF THE WPs AS INFRUCTUOUS WlTHOl.,T COSI'S. i "