Dhanalaxmi and Company V. Assessment Unit, National Faceless Assessment Centre, Income Tax Department, Ministry of Finance and The Income Tax Officer, Ward 9(1), Hyderabad

WP/6954/2024

AI Insights

The case involves Dhanalaxmi and Company, represented by its managing partner, challenging an order from the Income Tax Department under sections 147 r.w.s 144B of the Income Tax Act, 1961, for the assessment year 2015-16. The petitioner argued that the order was arbitrary, illegal, and void ab initio, violating provisions of sections 148A and 149 of the Act, and contrary to a CBDT circular and section 151A of the Act. The main legal contention was that the reopening of the assessment was not conducted in accordance with the amended provisions that came into effect on 01.04.2021, which require a faceless procedure and an opportunity for the assessee to be heard. The court referenced a previous judgment in a similar batch of writ petitions, which had addressed the jurisdictional issue raised by the petitioner.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 818867 (HC-TELANGANA)
• Appeal Type: Others
• Pronouncement Date: 18-03-2024
• Assessment Year: misc
• Other Referred Cases: Ashish Agarwal
• Laws Referred To: Article 226 of the Constitution of India, Section 147 r.w.s 144B of the Act, Section 148A and Section 149 of the Act, Section 151A of the Act
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: B SAPNA REDDY
• Assessee Lawyers: A V RAGHURAM
• Keywords: Faceless assessment; Income Tax; Jurisdictional issue; Procedural Flaw; Writ of Mandamus
• Section: 147; 149; 144B; 148A; 151A; 226

Judgement Text

"HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD (Special Original Jurisdiction) IVONDAY, THE EIGHTEENTH DAY OF MARCH TWO THOUSAND AND TWENTY FOUR PRESENT THE HONOURABLE SRI JUSTICE P.SAM KOSHY AND THE HONOURABLE SRI JUSTICE N.TUKARAMJI WRIT PETITION NO:6954 OF 2024 [ 337e ] ..PETITIONER Between: Dhanalaxmi and Company, Shop No.168, Sri Krupa ltrlarket, Malakpet, Hyderabad - 500036. Rep., by its Managing Partner, [ /r, Moharumed-yaqub, S/o. Mr. Mohd-Kareem. AND 1 2 Assessment Unit, National Faceless Assessment Centre, lncome Tax Department, lviniitry of Finance, Room No. 4O1 ,2\"d Floor, E-Ramp, Jawaharlal Nehru Stadium, Delhi - 1 10 003 The lnconre Tax Officer, Ward 9(1), Hyderabad, l.T. Towers, A.C. Guards, lvlasabtank, Hyderabad. ...RESPONDENTS 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 pass an order or direction, especially one in the nature of WRIT OF MANDAI 4US holding that the order passed by 1'r Respondent uls. 147 r.w.s 1448 of the Act, dt 13tO2l2O24 with DIN No.ITBA/AST/S114712023-2411060869850(1) for the Ay.20'l 5-16, as arbitrary, illegal, bad in law, void ab initio, apart from being violative of provisions of section 148A andsection 149 of the Act and also contrary to the circular issued by CBDT and provisions of section 151A of the Act, and consequently set aside the order passed by 1st Respondent u/s- 147 r.w-s 1448 of the Act, dt 13tO2l2O24 with DIN No.ITBA/AST/S 114712023-2411060869850(1) for the Ay.2015-16 and all consequential proceedings pursuant thereto- ; I I I I i lA NO: 't OF 2024 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, including any recovery, pursuant to the order passed by the 1't Respondent uls. 147 r.w.s 144B of the Act, dt.13.02.2124 with DIN No.lTBA/AST/S 114712023-2411060869850(1 ) for the Ay.201 5-1 6. Counsel for the Petitioner: SRI A V RAGHU RAM Counsel for the Respondents: MS. B. SAPNA REDDY(SC FOR INCOME TAX) The Court made the following: ORDER 4 / THE HONOURABLE SRI JUSTICE P.SAM KOSI{Y AND THE HONOURABLE SRI JUSTICE N.TUI{ARAMJI WRIT PETITION No.6954 OF 2o24 ORDER:(per Hon'ble Sri Justice P-S,AM I