DRF Employees Welfare Society V. The Principal Commissioner of Income-tax-6

WP/29989/2021

AI Insights

The case involved DRF PAN. AND FpptpygC: Welfare Society, represented by its Secretary Lakshminaraybna Neti, as the petitioner, challenging the proceedings and orders issued by various Income Tax authorities under the Income Tax Act, 1961. The petitioner sought to declare the orders as passed without pecuniary jurisdiction and thus void ab initio. The High Court of Telangana at Hyderabad heard the arguments from both sides but ultimately allowed the petitioner to withdraw the writ petition, suggesting the possibility of filing a review petition instead.

• Counselvise Citation: [2021] 140 COUNSELVISE.COM (IT) 726621 (HC-TELANGANA)
• Appeal Type: Others
• Pronouncement Date: 24-11-2021
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Applicant
• Court: HIGH COURT
• Department Lawyers: K RAJI REDDY
• Assessee Lawyers: C P RAMASWAMI
• Keywords: Consequential actions; Misreporting of income; Nullity; Pecuniary Jurisdiction; Penalty; Under reporting; Void ab initio; Writ of Mandamus
• Section: 143(3); 274; 270A; 1448; 156

Judgement Text

"HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD (Special Original Jurisdiction) WEDNESDAY, THE TWENTY FOURTH DAY OF NOVEMBER TWO THOUSAND AND TWENTY ONE PRESENT THE HON'BLE SRIJUSTICE UJJAL BHUYAN AND THE HON'BLE DT. JUSTICE CHILLAKUR SUMALATHA Between: DRF PAN. AND FpptpygC: Welfare Society, 7-1-27 , Ameerpet, Hyderabad-500016 AAAAD0604L Rep.by its Secretary Lakshminaraybna Neti. ...pETtTtONER 1. The Principal Commissioner of lncome{ax-6, lT Towers, AC Guards, Masab Tank, Hyderabad. 2. The lncome-tax Officer, Ward-6(2), lT Towers, AC Guards, IMasab Tank, Hyderabad. 3. The Additional /Joint/ Deputy/ Assistant Commissioner of lncome Tax,/lncome Tax Officer, National Faceless Assessment Center, Delhi. ...REspoNDENT. 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 particularly one in the nature of Writ of Mandamus declaring the impugned proceedings and order passed in terms of Sections 143(3) r/w. 1448 of the lncome Tax Act, 1961, dated 24.09.2021 in DIN ITBA/AST/S/143(3)12021-2211035860580(1) as an order passed without pecuniary jurisdiction and consequently a nullity as it is void ab initio, and consequently to quash the same alone with all consequential actions, including notice under section 156 of the lncome Tax Act, 1961, dated 24.09.2021, DtN |TBAiAST/S/'1 56t202i-22 i1035860617(1)for recovery of tax pursuant to the said impugned order, and quash the notice for Penalty under sections 270A read with Section 274 of lhe lncome Tax Act, 1 961 dated 241091 202 1, Dl N. ITBA/PNL/S/27 0Al 2021 -221 1 035860620( I ). lA NO: 1 oF 2021 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 of the Notice for Penalty for alleged under reporting and misreporting of income under sections 27oA rlw section 224 oI the lncome Tax Act, 1 96 1 dated 241 Og 12021, Dl N : ITBA/PN Ll S I 27 O At 2021-2211 035860620( 1 ). WRIT PETITION NO: 29989 OF 2021 lA NO: 2 oF 2021 Petition under St ction 151 CPC praying that in the circumstances stated in the affidavit filed in suppor of the petition, the High Court may be pleased to stay all further proceedings inc lding collection of taxes in terms of notice under section 156 of the lncome Tax , rct, 1961, dated 24.09.2021, DIN ITBA/AST/S/156/2021- 2211035860617(1) Counsel for the Petitio rer: Dr. C. P. RAMASWAMI Counsel for Responde rts: SRI K. RAJI REDDY, SENIOR SC FOR INCOME TAX The Court made the fo owing: OROER , HONOURABLE SRI JUSTICE UJJAI BHUYAN AND HONOURABLE DRJUSTICE CHILLAKUR SUMALA'THA W.P.No.29989 of 2021 ORDER: (Per LIor'bk Si .lttie [J1jal Bhttyar) l. Fleard Dr. CP.Ramswami, leamed counsel for the petitioner/Society, and lVIr. K.Ra,i Reddy, leamed Senior Standing Counsel for Income Tax Depanment appearing for the respondents. 2. After hearing leamed counsel for the petirioner and on going through the materials on record, we find that acceding to the prapr of the petitioner would result in recalling/reviewing of our order dated 02.11.202t, passed in the case of the petitioner itself in 7.p.No.22456 of 2021. 3. In such circumstances, without dxpressing any opinion, we permit the petirioner to withdraw the Vrit petition and to file a fuviewPetition, if so advised. 4. With the above libeny, 7rit Petition is dismissed on withdrawal. Related interlocutory applications are also dismissed on withdrawal. 5. No,Eosts SD/.K.VENKAIAH ASSISTANT REGISTR R //TRUE COPY// SECTION OFFICER To, 1 . One CC to Dr. C P Ramaswami Advocate [OPUC] 2. One CC to Sri K Raji Reddy, Senior SC for Income Tax IOPUUI I 3. Two CD CoPies 4. One SPare CoPY MBC I I HIGH COURT DATED: 2411112021 6€ Sr-A rj:- { a o ! 3 JEII 2i?2 o ORDER WP.No.29989 of 2021 DISMISSIN(; THE WRIT PETITION AS WITHDRAWN, WITHOUT COSTS -.=:! "