Bharath Kumar Thunuguntia V. The Union of India and The Principal Chief Commissioner of Income Tax, Andhra Pradesh and Telangana and Faceless Commissioner of Income Tax (Appeals), National Faceless Assessment Centre and The Income Tax Officer, Office of the Income Tax Office ward 1, Tenali, Guntur District, Andhra Pradesh and Faceless Assessing Officer, National Faceless Assessment Centre

WP/27083/2024

AI Insights

The case involves Bharath Kumar Thunuguntia, the petitioner, challenging various orders and notices related to the Income Tax assessment for the year 2018-19. The petitioner contested the procedural validity of notices and orders issued under Sections 148A(b), 148A(d), 147, 144, 144B, and 250 of the Income Tax Act, 1961, claiming they were arbitrary, illegal, and violative of natural justice and constitutional provisions. The respondents included various officials from the Income Tax Department and the Union of India. The court's decision focused on the procedural aspects of the faceless assessment mechanism and the appropriate judicial recourse available to the petitioner.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 813395 (HC-AMARAVATI)
• Appeal Type: Others
• Pronouncement Date: 25-11-2024
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961, Constitution of India
• Result in Favour of: Revenue
• Court: HIGH COURT
• Department Lawyers: P PONNA RAO; Y N VIVEKANANDA
• Assessee Lawyers: BOPPUDI ALEKHYA
• Keywords: Faceless assessment; Income Tax; Natural Justice; Writ of Mandamus; Violation of Articles 14 and 265
• Section: 147; 144; 250; 144B; 148A(b); 148A(d); 226

Judgement Text

"IN THE HIGH COURT OF ANDHRA PRADESH :: AMARAVATI (Special Original Jurisdiction) i MONDAY, THE TWENTY FIFTH DAY OF NOVEMBER TWO THOUSAND AND TWENTY FOUR PRESENT THE HON’BLE SRI JUSTICE G.NARENDAR AND THE HON’BLE SMT JUSTICE KIRANMAYEE MANDAVA WRIT PETITION NO: 27083 OF 2024 Between: Bharath Kumar Thunuguntia, S/o. Siva Sankar, aged about 39 years, R/o. D.No.8-59, Sivalayam Street Main Road, Kolluru, Guntur District, Andhra Pradesh-522324. ...PETITIONER AND 1. The Union of India Rep. by its Secretary, Finance Department, New Delhi. 2. The Principal Chief Commissioner of Income Tax, Andhra Pradesh and Telangana, Hyderabad.Room No. 922, 9th Floor, B Block, I.T.Towers, 10- 2-3, AC Guards Hyderabad - 500 004, Telangana. 3. Faceless Commissioner of Income Tax (Appeals), National Faceless Assessment Centre, Income Tax Department, New Delhi. 4. The Income Tax Officer, Income Tax Department, Office of the Income Tax Office ward 1, Tenali, Guntur District, Andhra Pradesh, 522201. 5. Faceless Assessing Officer, National Faceless Assessment Centre, Income Tax Department, New Delhi. ...RESPONDENTS Petition under Article 226 of the Constitution of India praying that in the circumstances stated in the affidavit filed therewith, the High Court may be pleased to issue an order, writ or direction, more particularly one in the nature of Writ of Mandamus by declaring that (a) the order passed under Sec.148A(d) of the Income Tax Act, 1961, dated 07.04.2022,bearing DIN and Notice No ITBA/AST/F/148A/2022 23/1042609232(1), issued by the 4*^ Respondent, for the Assessment Year 2018-19, (b) the notice issued under Section 148A(b) of the Income Tax, 1961 dated 21.03.2022,bearing DIN and Notice No ITBA/AST/ F/148 A(SCN) /2021 - 22 /1041112617(1), by the 4‘^ respondent for the Assessment Year 2018-2019, (c) the Assessment Order passed under Section 147 r/w Section 144 r/w. Section 144B of the Income Tax Act, 1961 dated 28.02.2024, bearing DIN No. ITB>ayAST/S/147/2023-24/1061691835(1) by the 5‘^ respondent, for the Assessment Year 2018-19, (d)the Order passed under Section 250 of the Income Tax, 1961, dated 02.09.2024 bearing DIN No. ITBA/NFAC/S/250/2024- 25/1068261896(1 ), by the respondent for the Assessment Year 2018-19 and all the consequential proceedings and orders issued and passed by the respondents as arbitrary, illegal, bad in law, void ab initio, violative of the principles of natural justice, apart from being violative of Articles 14 and 265 of the Constitution of India and contrary to the provisions of the Income Tax Act, 1961, and to consequently set aside (a) the order passed under Sec. 148A(d) of the Income Tax Act, 1961, dated 07.04.2022,bearing DIN and Notice No.lTBA/AST/F/148A/2022- 23/1042609232(1), issued by the 4**^ Respondent, for the Assessment Year 2018-19, (b) the notice issued under Section 148A(b) oif the Income Tax, 1961 dated.21.03.2022, bearing Din and Notice No.lTB/A/AST/F/148A(SCN )/2021- 22/104111217(1), by the 4‘^ respondent for the Assessment Year 2018-2019, (c) the Assessment Order passed under Section 147 r/w Section 144 r/w. Section 144 r/w Section 144B of the Income Tax Act, 1961 dated 28.02.2024, bearing DIN No. ITBA/AST/S/147/2023-24/1061691835(1), by the 5 respondent, for the Assessment Year 2018-19, th (d) the Order passed under Section 250 of the Income Tax, 1961, bearing DiN No.lTBA/NFAC/S/250/2024-25/1068261896(1), dated 02.09.2024 by the 3'\"^ respondent for the Assessment Year 2018-19 and all the consequential proceedings and orders issued and passed by the respondents. lA NO: 1 OF 2024 Petition under Section 151 CPC praying that in the circumstances stated in the affidavit filed in support of the writ petition, the High Court may be pleased to stay all further proceedings, including any recovery, pursuant to the order passed under Section 250 of the Income Tax, 1961, dated 02.09.2024, bearing DIN No. ITBA/NFAC/S/250/2024-25/1068261896(1), for the AY 2018- 19 by the 3^*^ respondent. Counsel for the Petitioner: Mrs. BOPPUDI ALEKHYA Counsel for the Respondent No.1 : SRI P. PONNA RAO, DEPUTY SOLICITOR GENERAL OF INDIA Counsel for the Respondent Nos.2 to 5 : SRI Y. N. VIVEKANANDA, SC FOR INCOME TAX The Court made the following: ORDER - ■» IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI THE HONOURABLE SRI JUSTICE G.NARENDAR THE HONOURABLE SMT. JUSTICE KIRANMAYEE MANDAVA WRIT PETITION NO: 27083/2024 ORDER; (PerHon’ble Smt. Justice Kiranmayee Mandava) Heard Sri Boppudi Alekhya, learned counsel for the petitioner and Sri Y.N.Vivekananda, learned Standing Counsel for Income Tax Department appearing for the 2\"\"^ to 5'^ respondents. 2. The Writ Petition is filed assailing the notice issued by the 4*^ respondent under Sections 148A(b) and 148A(d) of the Income Tax Act, 1961, dated 07.04.2022, for assessment year 2018-19, and the assessment order passed in consequence to the notice(s) thus issued, as well as the order passed by the Commissioner of Income Tax (Appeals) under Section 250 of the Income Tax Act, 1961 in the appeal filed against the said assessment order. 3. The facts of the case are: The grievance of the petitioner is that with the advent of the faceless assessment mechanism, the issuance of notice under Section 148A(d) of the Income Tax Act, 1961 by the jurisdictional officer rather than by the faceless officer, vitiates the consequential order of assessment passed under Section 147 r/w Section 144 r/w Section 144B of the Income Tax Act, 1961. 2 » As observed from the writ prayer, the petitioner has also challenged 4. the order passed by the First Appellate Authority in the appeal filed by the petitioner against the assessment order passed under faceless assessment procedure. This Court is of the view that pursuant to the notice issued under 5. Section 148A(d) of the Act, assessment was made under Section 147 r/w Section 144 r/w Section 144B of the Income Tax Act, 1961 and an appeal was preferred by the petitioner before the Commissioner of Income Tax (Appeals), under Section 246A of the Income Tax Act, 1961 against the assessment order. In that view of the matter, this Court is of the view that to invoke the jurisdiction of this Court under Article 226 of the constitution of India, no case has been made out by the petitioner. While holding that we are not inclined to entertain the writ petition, liberty is granted to the petitioner to avail the alternative remedy of appeal before the Income Tax Appellate Tribunal. The Tribunal is directed to receive the appeal and pass appropriate orders, if the same is filed within a period of two weeks from the date of receipt of the order, without raising the issue of limitation. The observations made by us, herein above, are only for the 6. purpose of deciding the present Writ Petition. We have not expressed any views on the merits of the issue involved in the appeal. 3 7. With the above observations, the Writ Petition stands disposed of. There shall be no order as to costs. As a sequel, interlocutory applications pending, if any, shall stand closed. Sd/- P.U.V.BHASKAR RAO ASSISTANT REGISTRAR //TRUE COPY// To, SECTION OFFICER 1. The Secretary, Finance Department, Union of India, New Delhi. 2. The Principal Chief Commissioner of Income Tax, Andhra Pradesh and Telangana, Hyderabad.Room No. 922, Floor, B Block, I.T.Towers. 10-2- 3, AC Guards Hyderabad - 500 004, Telangana. 3. The Faceless Commissioner of Income Tax (Appeals), National Assessment Centre, Income Tax Department, New Delhi. 4. Tte Income Tax Officer, Income Tax Department, Office of the Income Office ward 1, Tenali, Guntur District, Andhra Pradesh 5, The Faceless Assessing Officer, National Faceless Assessment Centre Income Tax Department, New Delhi. Faceless Tax , 522201. 6. One CC to Mrs. Boppudi Alekhya, Advocate [OPUC] 7. One CC to Sri P. Ponna Rao, Deputy Solicitor General of India (OPUC) 8. One CC to Sri Y. N. Vivekananda, SC for Income Tax [OPUC] 9. Three C.D. Copies. Cnr HIGH COURT DATED:25/11/2024 ORDER ^ . Current Section 2 'i JAN 20:1 ' <3. Co, WP.No.27083 of 2024 DISPOSING OF THE W.P. WITHOUT COSTS "