Film Nagar Wine Mart V. Assessment Unit, Income Tax Department, National e-Assessment Centre, New Delhi and The Income Tax Officer, Ward 14(1), Hyderabad and The Principal Commissioner Of Income Tax 1, Hyderabad

WP/4772/2024

AI Insights

The case involves Film Nagar Wine Mart, represented by its partner, challenging an order issued by the Income Tax Department under sections 147, 144, and 144B of the Income Tax Act, 1961, for the assessment year 2019-20. The petitioner argued that the order was passed without adhering to the amended provisions of the Act, which came into effect on April 1, 2021, requiring a notice under section 148A and a faceless proceeding. The respondents did not dispute the procedural objection but contended that there were other objections raised by the petitioner. The court, referencing a previous judgment, allowed the writ petition on the grounds of procedural non-compliance, reserving the rights of the parties as per the Supreme Court's directive in the case of Ashish Aganual.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 799396 (HC-TELANGANA)
• Appeal Type: Others
• Pronouncement Date: 23-02-2024
• Assessment Year: misc
• Other Referred Cases: Ashish Aganual
• Laws Referred To: Income Tax Act, 1961, Constitution of India
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: VIJHAY PUNNA
• Assessee Lawyers: A V A KARTIKEYA
• Keywords: Faceless Proceedings; Income Tax; Jurisdictional issue; Natural Justice; Writ of Mandamus
• Section: 147; 144; 144B; 148A; 265; 226; 19(1)(g)

Judgement Text

"[ 33ee ] HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD (Special Original Jurisdiction) FRIDAY, THE TWENTY THIRD DAY OF FEBRUARY TWO THOUSAND AND TWENTY FOUR PRESENT THE HONOURABLE SRI JUSTICE P.SAM KOSHY AND THE HONOURABLE SRI JUSTICE SAMBASIVARAO NAIDU WRIT PETITION NO:4772 OF 2024 Between: lvl/s Film Nagar Wine Mart, Plot No.50, Survey No.403, Journalist Colony, Film Nagar, Hyderhbad - 500 036, Telangana. Represented by its Partner, tvlr. Kantheti Surya Kumar Raju S/o. Mr. Vishwanadha Raju Kantheti. .....PETITIONER AND 1. Assessment Unit, lncome Tax Department, National e-Assessment Centre, New Delhi, Room No.. 401,2nd Floor, E-Ramp, Jawaharlal Nehru Stadium, New Delhi - 110 003. 2. The lncome Tax Officer, Ward 14(1), Hyderabad, l.T. Towers, AC Guards, Masab Tank, Hyderabad - 500 004, Telangana. 3. The Principal Commissioner Of lncome Tax 1, Hyderabad, l.T. Towers, AC Guards, Masab Tank, Hyderabad - 500 004, Telangana. .....RESPONDENTS Petition Under Articte 226 of the Constitutioh of lndia praying that in the circumstances stated in the affidavit filed therewith, the High Court may be pleased to issue a Writ of lvlandamus or any other appropriate Writ, Order or Direction, declaring that the order passed by order passed by the 1\"t Respondent, uls 147 r/w Sec. 144 rlw Sec. 144B of the lncome Tax Act' 1961, dated O2-O2-2O24, bearing DIN and Notice No.. ITBA/AST/S/14712023' 24t1060411 9S6(1), for the Assessmenl Year 2O1S - 20 as arbitrary, illegal, bad in law, void-ab-initio, violative of the principles of natural justice apart from being violative of Articles 1a, 19(1Xg) and 265 of the Constitution of lndia and Sec. '148A of the lncome Tax Act, 1961, and consequently set aside the same in the interests of lustice. |.A.NO:1 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'r Respondent, uls 147 r/w Sec. 144 rlw Sec. 1448 of the lncome Tax Act, '1961 , dated 02.02.2024, bearing DIN and Notice No.. ITBA/AST/S/14712023-2411060411986(1), for the Assessmerrt Year ZOlg - 20, pending disposal of the above writ petition. Counsel for the Petitioner : SRI A.V.A.SIVA KARTTKEYA Counsel for the Respondents : SRI VIJHAY K.PUNNA (SENIOR SC FOR ITD) The Court made the following ORDER THE HONOURABLE SRI JUSTICE P.SAM KOSHY AND THE HONOURABLE SRI JUSTICE SAMBASTVA RAO NAIDU UIRIT PETITI ON No.4772 OF 2o24 ORDER:/per Hon'ble Si Justice P.SAM KOSHY) The instant Writ Petition has been frled by the petitioner under Article 226 of the Constitution of India seeking for the following relief: \"to issue a Wit of Mandamus or ang other appropiate Wit, Order or Direction, declaring the order passed bg respondent No.l, u/s.147 r/u Section 144 r/w Section 1448 of the Income Tax Act, 1961 dated 02.02.2024, beaing DIN and. notice No.:ITBA/ AST/ S/ 147/ 2023-24/ 1060411986(1), .for the assessment geor 2O19-2O, as arbitrary, illegal, bad in lana, uoid ab initio, uiolatiue of the pinciples of natural justice and being uiolatiue of Articles la, rc(l)(g) and 265 of the Constitution of India and Section 148A of the Income Tax Ac[ 1961 and consequently to set oside the same and pass such other orders as this Hon'ble Court maA deem ilt and proper\" - 2. One of the contentions that the petitioner has raised in the present Writ Petition is that under the amended provisions of the Act which came into effect from Ol.O4.2O2l, tlre respondents, while proceeding under Section 148 of the Act, were required to issue notice under Section 148A and provide an opportunity of hearing to the assessee. As per the amended 2 PSK,J & SSR.IV,- W.P,ito.4772 of 2024 provision of law, the proceedings to be drawn are also in a faceless manner. 3. Whereas, learned counsel for the petitiorrer contended that, in the instant case, reopening has been in itiated by the Jurisdictional Assessing Officer. In support of his contention, he relied upon the recent judgment rendered by this very Bench in WP.No.259O3 of 2022 & batch, dated 14.09.2023 wherein this Court disposed of the batch of writ petitions to the limited extent. 4 . On the other hand, Iearned Stalding Co unsel for the respondent-Department does not dispute that the said objection was decided in the aforesaid batch of Vrit petitions. However, he further contended that apart from the aforesaid objection, there have been other various objectiorrs also which the petitioner has raised in the writ petition. 5. So far as this contention of the learned counsel for the respondent-Department is concerned, this Elench, while disposing of said batch of writ petitions, had takr:n note of the same at paragraph Nos.37 & 38 which are reproduced herein under: ./ 3 PSK,J & SSRII,J W.P.No.4772 oJ 2024 \"37. The preliminary objechon raised bg the petitioner is sustainei and. all ttrcse wit petitions itands- alliwed on this uery juisdictional issze. Since the impugned notic€s and orders are getting qtashed on the point of jurisdiction, u)e are not inclined to proceed further and decide the other issues raised by the petitioner uhich stands reserued to be roised and contended in an appropiate proceedings.\" \"38. Since the Hon'ble Supreme Court had, in the case of Ashish Aganual, suprd, as o one-time measure exercising the pouers under Article 142 of the Constittttion of Indio, permitted the Reuenue to proceed under the substituted prouisions, and this Court allouing the petitions onlg on the procedural J1aut, the right confered on the Reuenue uould remain reserued to proceed further if theg so uant from the stage of the order of the Sryreme Court in the case of Ashish Ag ona al, sup ra. \" 6. In view of the same, we are inclined to allow the present writ petition also on similar terms. Accordingly, the present Writ Petition stands allowed on the objection of the petitioner that the proceedings have not been drawn in accordance with the amended provision but under the un-amended provision which is otherwise not sustainable. 7. As has been held by this Bench in the aJoresaid batch matters, the rights of the parties would stand reserved as is envisaged at paragraph Nos.37 & 38 of the said order passed in the batch of writ petitions. No order as to costs. I I 4 JDSIT,J & SSRAI,J W.P.I[o.4772 of 2O24 To SA KKS Consequently, miscellaneous petitions pending, if any, shall stand closed. SD/- N. SRIHARI ASSISTANT REGISTRAR //TRUE COPY// SECTION OFFICER 1. The Assessment Unit, lncome Tax Department, National e-Assessment Centre, New Delhi, Room No.. 401 , 2nd Floor, E-Ramp, .Jawaharlal Nehru Stadium, New Delhi - 110 003. 2. The lncome Tax Officer, Ward 14('1), Hyderabad, l.T. Tor,vers, AC Guards, fi/asab Tank, Hyderabad - 500 004, Telangana. 3. The Principal Commissioner Of lncome Tax 1, Hyderabal, l.T. Towers, AC Guards, Arlasab Tank, Hyderabad - 500 004, Telangana. 4. One CC to Sri A.V.A.Siva Kartikeya, Advocate [OPUC] 5. One CC to Sri Vijhay K Punna (SENIOR SC FOR ITD) [OPUC] 6. Two CD Copies ! t HIGH COURT DATED:2310212024 ORDER WP.No.4772 of 2024 o ltL .4. /-] ,.:' .J\",t- C) s .$' s t::i ,l lr-:-; t;1 ,. ALLOWING THE W.P WITHOUT COSTS. r(aE1 hy, "