Abdul Rehman Khan V. Union of India and 3 others

WP/22662/2022

AI Insights

Abdul Rehman Khan filed a writ petition challenging the assessment order issued by the 4th respondent, which imposed a penalty for alleged violations of Section 269SS of the Income Tax Act. The petitioner argued that the assessment order was illegal, arbitrary, and violated several articles of the Constitution, including principles of natural justice. The court, however, directed the petitioner to appeal the matter to the appropriate appellate authority, emphasizing that the order was appealable under Section 246 of the Act.

• Counselvise Citation: [2022] 140 COUNSELVISE.COM (IT) 740633 (HC-TELANGANA)
• Appeal Type: Others
• Pronouncement Date: 29-04-2022
• Assessment Year: misc
• Laws Referred To: Income Tax Act
• Result in Favour of: Partly Allowed
• Court: HIGH COURT
• Department Lawyers: NAMAVARAPU RAO; K REDDY
• Assessee Lawyers: VIJAY PAROPAKARI
• Keywords: Assessment Order; Income Tax; Penalty; Violation of natural justice; Writ of Mandamus
• Section: 271D; 269SS; 226

Judgement Text

"HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD (Special Original Jurisdiction) FRIDAY ,THE TWENTY NINTH DAY OF APRIL TWO THOUSAND AND TWENTY TWO PRESENT THE HONOURABLE SRI JUSTICE UJJAL BHUYAN AND THE HONOURABLE MRS JUSTICE SUREPALLI NANDA Between: Abdul Rehman Khan, S/o. S. lbrahim Khan, Aged about 48 years, Occ Businels, Presently residing at 16-2-5119, Anees Estates, Akbar Bagh, Near Akbar Bagh Circle, I ,4alakpet, Hyderabad - 500 036. ...PETITIONER AND 1. Union of lndia, Rep. by its Secretary, tr/inistry of Finance, New Delhi 2. The Government of lndia, l ,4inistry of Finance, lncome Tax Department, New Delhi. 3. The Commissioner, lncome Tax Department, Aayakar Bhavan, Basheerbagh, Hyderabad 4. The Additional/Joint Commissioner, lncome Tax Department, National phase less Assessment Centre, New Delhi. ..,RESPONDENTS Petition under Article 226 of the Constrtution of lndia praying that in the circumstances stated in the affidavit filed therewith, the High Court may be pleased to issue an appropriate Writ of mandamus or direction, declaring the action of the 4th Respondent issuing Assessment Order U/s. 279-D of the Income Tax Act by Order dated 25.03.2022, communicated to the Petitioner on his mail on 25.03.2022, whereby and where under the Petitioner was called upon to pay a penalty of Rs.1 ,24,65,0001 on the alleged ground of violating Sec. 269(ss) of the lncome Tax is challenged in this Writ Petition as being illegal, arbitrary, violative of Articles 14, 19 (1) (g), 21 and 300-4 of the Constitution of lndia, besides being violative of Principles of Natural Justice and consequently set aside the impugned Assessment Order dated 25.03.2022 Uls.279-D of the lncome Tax Act. Petition under Section 15'1 CPC praying that in the circumstances stated in the affidavit filed in support of the petition, the High Court may be pleased to stay all further proceedings, including recovery of Rs.'1 ,24,65,000/-in pursuance of the WRIT PETITION NO: 22662 OF 2022 lA NO: 1 OF 2022 1 Assessment Order dated 25.03.2022 U/s. 279-D of the lncome Tax Act in DIN No. ITBA/ PN Ll F1271 D12021 2211041545170(1), pending disposal of the above Writ Petition. Counsel for the Petitioner:SRl. VIJAY B PAROPAKARI Counsel for the Respondent No. 1: SRl. NAMAVARAPU RAJESHWAR RA,O, ASST. SOLICITOR GENERAL Counsel for the Respondent Nos. 2 to 4: SRl. K. RAJI REDDY, SC FOR CT The Court made the following: THE HONOURABLE SIII JUSTICE UJJAL BHUYAN AND THE HONOURABLE MRS JUSTICE SUREPALLI NANDA ORDER: (Per Hon'bLe Si Justice ujjal Bhugan) Heard Mr. Vij ay B.Paropakari, learned counsel for the petitioner; Mr. B.Mukherjec, learned counsel appearing on behalf of Mr. N.Rajeshwar Rao, learned Assistant Solicitor General for respondent No.I -Union of India; and Mr. K.Raji Reddy, learned counsel lor respondcnt Nos.2 to 4. 2. In this u,rit pe tition, petitioner has challenged 4th respondent under Section 27 lD of the Income Tax Act, 196 i (briefly' referred to hereinaftcr as 'the Act') for the assessment year 2017 - 8. 3. By the aforesaid order, 4th respondent has held Rs.1,24,65,000.00 in contravention of Section 269SS of the Act, thereby attracting panel provision under Section 27 lD of WRIT PETITION No.22662 of 2022 legality and validity of order datcd 25.03.2022 issued by the that petitioner had accepted cash deposits of UB,,] & SN,J W.P.No.22662 of 2022 the Act. Consequently penalty of Rs.1,24,65,000 00 has been levied on the petitioner. 4. We find that an order passed under Section 271D of the Act is an appealable one, under Section 2464. of the Act. 5. That being the position, we direct that if the petitioner files appeal before the appellate authority within a period of 15 days from today, the same sha1l be considered by the appellate authority on its merit. 6. This disposes of the Writ Petition. However, there shal1 be no order as to costs. 7. As a sequel, miscellaneous applications pending, if any, in this Writ Petition, shall stand closed. //TRUE COPY/i SECTION OFFICER 1. The Secretary, Ministry of Finance, Union of lndia, New Delhi 2. The Government of lndia, Ministry of Finance, lncome Tax Department, New Delhi. 3. The Commissioner, lncome Tax Department, Aayakar Bhavan, Basheerbagh, Hyderabad The Additional/Joint Commissioner, lncome Tax Department, National Phase less Assessment Centre, New Delhi. One CC to Sri. Namavarapu Rajeshwar Rao, Asst. Solicitor General [OPUC] Two CD Copies. To, 4 tr b. 2 SD/.K.SAILESHI ASSTSTANT REGISTR4R HIGH COURT DATED:2910412022 ORDER WP.No.22662 ol 2022 Disposing of the WP Without costs. 3 0 JIJL ?[22 D';1;gt ,,:;! * * STA:.€ { J o t) ( I @*f "