Caps Gold Pvt.Ltd. V. Dy. Commissioner of Income-tax and Another

WP/11205/2022

AI Insights

In this case, Caps Gold Pvt. Ltd., represented by its Managing Director Chanda Venkatesh, filed a writ petition under Article 226 of the Constitution of India against the Deputy Commissioner of Income-tax and other officials. The petition challenged the legality and validity of a notice issued under Section 148 of the Income Tax Act, 1961, for the assessment year 2015-16, claiming that the notice was illegal, arbitrary, and violated statutory provisions and a Supreme Court judgment in GKN Drivershafts (India) Ltd. vs ITO. Initially, the petitioner was not provided the reasons for the notice, but subsequently, these were furnished. The court, referencing the Supreme Court's decision, allowed the petitioner to file objections to the notice, which the respondent must address within the stipulated time.

• Counselvise Citation: [2022] 140 COUNSELVISE.COM (IT) 738170 (HC-TELANGANA)
• Appeal Type: Others
• Pronouncement Date: 09-03-2022
• Assessment Year: misc
• Other Referred Cases: GKN Drivershafts (India) Ltd. vs ITO
• Laws Referred To: Article 226 of the Constitution of India, Section 148 of the Income Tax Act, 1961, Section 147 of the Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: B SARMA
• Assessee Lawyers: Y RATNAKAR
• Keywords: Assessment Year 2015-16; Income Tax; Mandamus; Notice Challenge; Writ petition; GKN Drivershafts (India) Ltd. vs ITO
• Section: 147; 148; 226

Judgement Text

"HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD (Special Original Jurisdiction) WEDNESDAY, THE NINTH DAY OF IVARCH TWO THOUSAND AND TWENTY TWO PRESENT THE HON'BLE SRI JUSTICE UJJAL BHUYAN AND THE HON'BLE SRI JUSTICE A. VENKATESHWARA REDDY WRIT PETITION NO: 11205 OF 2022 Caps Gold Pvt.Ltd., Secunderabad. Rep. by its Managing Director Chanda Venkatesh ...PETrroNER AND 1. Dy. Commissioner of lncome-tax and Another, Circle -1(1), l.T.Towers, A.G.Guards, Hyderabad. 2. Additional /Joint /Deputy/ AC of lncome tax, lncome{ax Officer, National Faceless Assessment centre' Delhi ...RES'.NDENTS 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 a Writ in the nature of Mandamus or any other Writ, or order or direction declaring the impugned notice on the petitioner bearing PAN- AADCC65B1E, U/S.148 dated 31/03/2021 forAssessment Year 2015-16 as illegal, arbitrary and as in violation of the statutory provisions and judgment of the Honourable Supreme Court in the case of GKN Drivershafts (lndia) Ltd., Vs ITO and others lA NO: 1 OF 2022 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 stay all further proceedings pursuant to the impugned notice, on the petitioner bearing PAN -. AADCC6581 E, u/s.1 48, dl. 31 1312021 for assessment year 201 5-1 6 Counsel for the Petitioner: SRI Y. RATNAKAR Counsel for Respondents: SRI B. NARASIMHA SARMA The Court made the following: ORDER Betwee n: THE HON'BLE SRI JUSTICE UJJAL BHUYAN AND THE HON'BLE SRI JUSTICE A. 'ENKATESHN(ARA REDDY 20 f ORPER: ()er Hon'bb Si -[uttice ulial Bhayt) Heard Mr. Y'Rarnakar, leamed counsel for petitioner' and Mr. B.Narasimha Sarma, leamed Standing Counsel for the Income Tax Department for the resPondents' 2. By filing this petition under Article 226 of the C-onstitution of India, petitioner has challenged the legaliry and validity of notice dated 31.01.2021, issued by respondent No'1 under Section 148 of the Income Tax Act, 1961 @riefly'the Act' hereinafter) for the assessmeff year2015-16. 3. Bythe impugned notice, respondent No'1 has recorded that he has reasonstobelievethatincomeofthepetitioner'chargeabletotaxforthe assessment lear under consideration' has escaped assessment within the meaning of Section 147 of the Act. He has, therefore' proposed to re-assess the income of the petitioner for the said assessment par' in this connecdon, petitioner has been called upon to submit a retum i'n the I UB,J & AVR,J W.P.lJo.ri2o5 of 2o22 prcscribed form for the said assessmenr year within thiny dap from the service of notice. 4. When the mamer was taken up on 03.03.2022, we had queried Ieamed cournsel for the petitioner as to whether reasons for issuance of impugned nodce were fumished to the petitioner to which, leamed cor'rnsel for the petitioner submined that no such reasons were fumished. At that stage, leamed counsel for the respondents prayrd for time to obtain the reasors recorded by respondent No.1 for issuing the impugned notlce. 5. Today, when rhe matter is called upon, leamed counsel for the petitioner submits that petitioner was served lester-day, with a copy of the reasons recorded by the assessing officer 2.e., respondenr No.1 for issuance of impugned notice. 6. Leamed counsel for the respondenr has also produced before us a copy of the reasons recorded dated 0g.03.2022, which has been c ommruric ated to the petitioner. 7. Though leamed counsel for the respondents would lile us to go through rhe reasons recorded, we are nor incrined to do so at this stage in view of the order which we propose to pass in terms of the decision of 2 ::3 UB,J & AVR,J W.P.No.112o5 of 2022 the the Supreme Coun in GKN DRIVESHAFTS (INDIA) LTD. v. Income Tax Officeri. 8. Since the ieasons have noq, been fumished to the petitioner, petitioner shall file objections to the impugned notice within a period of fifteen dap from today. 9. Upon receipt of such objections, respondent No.1 shall dispose of the same by passing a speaking order within a period of fifteen dap from the date of receipt of the objections, which should be communicated to the petitioner. 10. X,/ith the above directions, 'Vrit Petition is disposed of. Related interlocutoryapplications, pending if any, stand disposed of. 17. All contentions are kept open. 12. No costs. '(2003) 1 SCC 72 SD/.K.AMMAJI ASSISTANT REGISTRAR //TRUE COPY// 1 ,'' SECTION OFFICER To, 1. 2. a 4. 6. MBC SB The Deputy Commissioner of lncometax and Another, Circle -1(1), l.T.Towers, A.G.Guards, Hyderabad. The Additional /Joint /Deputy/ AC of lncome tax, lncometax Officer, National Faceless Assessment Centre, Delhi. One CC to Sri Y Ratnakar Advocate [OPUC] One CC to Sri B Narasimha Sarma Advocate [OPUC] Two CD Copies One Spare Copy u{ HIGH COURT DATED: 0910312022 () .f .r'.) ORDER WP.No.11205 of 2022 DISPOSING OF THE WRIT PETITION a '1gilriii ?i1?' WITHOUT COSTS z#-=sr .;c_ SrarS €.u ' t oq '- >J-,.z.d @ {L_-