HBL Power Systems Limited V. The Deputy Commissioner of Income-tax

WP/17288/2022

AI Insights

The case involved HBL Power Systems Limited filing writ petitions against the Deputy Commissioner of Income-tax, the Central Board of Direct Taxes, and the Union of India, challenging notices issued for reassessment under the Income-tax Act for various assessment years. The petitioner argued that the notices were issued without following due procedure and were thus void, illegal, and ultra vires the Constitution of India. However, the High Court of Telangana found the petitions to be infructuous based on a Supreme Court decision, leading to the dismissal of the petitions without further proceedings.

• Counselvise Citation: [2022] 140 COUNSELVISE.COM (IT) 692097 (HC-TELANGANA)
• Appeal Type: Others
• Pronouncement Date: 27-09-2022
• Assessment Year: misc
• Other Referred Cases: Union of India v. Ashish Agarwal
• Laws Referred To: Article 226 of the Constitution of India, Income-tax Act
• Result in Favour of: Revenue
• Court: HIGH COURT
• Department Lawyers: K MAMATA CHOWDARY
• Assessee Lawyers: D SASHANK MANMOHAN
• Keywords: Assessment Year; Due Procedure of Law; Income Tax; Reassessment proceedings; Writ of Mandamus
• Section: 148

Judgement Text

"t 32e5 I HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD (Special Original Jurisdiction) TUESDAY, THE TWENTY SEVENTH DAY OF SEPTEMBER TWO THOUSAND AND TWENTY TWO PRESENT THE HON'BLE THE CHIEF JUSTICE UJJAL BHUYAN AND THE HON'BLE SRI JUSTICE C. V. BHASKAR REDDY WRIT PETITION NOS: 17241 17288 AND 172950F 2022 wP NO.17241 0F 2022: Between: HBL Power Systems Limited, 8-2-601 , 10, Banjara Hills, Hyderabad-500034. Represented by its Managing Director' ...pETrroNER AND 1. The Deputy Commissioner of lncome-tax, Circle 2(1), 514, Sth Floor, Signature Towers, Sy. No. 6(P) of Kondapur, Sy. 37(P) of Kothaguda, Opp. Botanical Gardens, Serlinganrpally, Hyderabad - 500084 2. The Central Board of Direct Taxes, Department of Revenue, Ministry of Finance, Govt. of lndia, Secretariat Buildings, New Delhi - 110001. Represented by its Chairman. 3. The Union of India, Ministry of Finance, Central Secretariat, North Block, New Delhi-l 10001 . Represented by its Secretary ..RES'.NDENTS 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, by declaring the impugned notice issued by the 1st respondent vide Document ldentification No.(DlN) ITBA/AST/S/14812021-2211032302231(1) dt.0810412021, for the Assessment Year 2013-14, without following the due procedure of law, that too by taking shelter under the explanations inserted in CBDT notification nos. 2012021 dL.3110312021 and 3812021 dt.2710412021, as, void, illegal and contrary to the provisions of lncome-tax Act and ultra vires the Constitution of lndia, 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 pleased HBL Power Syr tenrs Limited, 8-2-601 , 10, Banjara Hills, Hyderabad-500034. Represented br its Managing Director. ...pETt,oNER AND 1. The Deputy Co ntnissioner of lncome-tax, Ctcle2(1),514, Sth Floor, _ Signature Towe rs, Sy. No. 6(P) of Kondapur, Sy. 37(P) of Kothaguda, Opp. Botanical Gardr ns, Serlingampally, Hyderabad - 500084 2. The Central Bo rnj of Direct Taxes, Department of Revenue, Ministry of Finance, Govt. rf lndia, Secretariat Buildings, New Delhi - 1 10001 . Represented b1 its Chairman. 3. The Union of ln lia, Ministry of Finance, Central Secretariat, North Block, New Delhi-1 10001 . I epresented by its Secretary ..RES'.NDENTS Petition under Alicle 226 of the Constitution of lndia praying that in the circumstances statec in the affidavit filed therewith, the High Court may be pleased to issue a w it. order or direction, more particularly one in the nature of Writ of Mandamus, by declaring the impugned notice issued by the 1st respondent vide Document ldent fit;ation No.(DlN) ITBA/AST/Si 14812021- 2211032302218(1) dt. 08.04.2021, for I rer Assessment Year 2014-15, without following the due procedure of law, thi t too by taking shelter under the explanations inserted in CBDT notification no 2012021 dt. 31.03.2021 and 3812021 dt. 27.04.2021, as, void, illegal and contr ary to the provisions of lncome-tax Act and Ultra vires the Constitution of lndia, to suspend the reassr s:;ment proceedings initiated by issuing notice u/s 148 of the Act vide Docur r€nt ldentification No.(DIN) ITBA/AST/S/14812021- 22t1032302231(1) dt 03t04t2021 , WP NO: 17288 OF 20 2t Betweer: lA NO: 1 OF 2022 Petition under I ;ection 151 CPC praying that in the circumstances stated in the affidavit filed in t upport of the petition, the High Court may be pleased to suspend the reasses: ment proceedings initiated by issuing notice u/s 148 of the Act vide Docun enl ldentification No.(DlN) ITBAJAST/S/14812021- 2211032302218(1) dt 0tt.04.2021 , and may pass such other orde(s) as the Honble Court deems f t and proper in the interests of substantial justice, as otherwise the Petitionr'r would be put to irreparable loss and severe injury AND HBL Power Systems Limited, 8-2-601, 10, Banjara Hills, Hyderabad-500034. Represented by its Managing Director. ...pETrroNER IA NO: 10F 2022 1. The Deputy Commissioner of lncome-tax, Circle 2(1),514, Sth Floor, Signature Towers, Sy. No. 6(P) of Kondapur, Sy. 37(P) of Kothaguda, Opp. Botanical Gardens, Serlingampally, Hyderabad - 500084 2. The Central Board of Direct Taxes, Department of Revenue, Ministry of Finance, Govt. of lndia, Secretariat Buildings, New Delhi - 1'10001 . Represented by its Chairman. 3. The Union of lndia, Ministry of Finance, Central Secretariat, North Block, New Delhi-1 '10001 . Represented by its Secretary ..RES,'NDENT' Petition under Article 226 of lhe Constitution of India 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, by decraring the impugned notice issued by the 1st respondent vide Document of ldentification No.(DlN) ITBA/AST/S/14 Bt2O21_ 2211032302225(i) dt.08.04.2021 , for the Assessment year 20.15_.16, without following the due procedure of raw, that too by taking sherter under the expranations inserted in GBDT notification nos. 20t2021 dt. 31 .03.2021 and 3812021 dt 27.04.2021, as, void, iregar and contrary to the provisions of Income_ tax Act and ultra vires the Constitution of lndia petition under Section 151 cpc praying that in the circumstances stated in the affidavit fired in support of the petition, the High court may be preased to suspend the reassessmer Act vide Document proceedings initiated by issuing notice u/s 14g of the 22r103230222s(1) dt. oB.o4_2ldentification No'(DlN) lrBA/AST/s/'r4 Bt2o21- ff :iir'\"til'liilo\",','iliJi''sRTDUNDUMANM.HAN Counsel for Respondent No 1 and 2 : Ms. K. MAMA ff :lTL';,.X?j.,?,f,\"Ji'., ;:i:lltl,Y:l*:, \"# The Court made the following: COMMON ORDER WP NO: 17295 OF 2022 Between: THE I CN'BLE THE CHIEF JUSTICE UJJAL BHUYAN THE, T()II'BLE SRI JUSTICE C.V.BHASKAR REDDY WRIT PETI I.[ON Nos. 1724L, L7288 and, L7295 of 2022 COMMON OF DERi ger tne rlon ble the Chief Justice lljjal Bhulan) Heard Mr. D.Sashank Manmohan, learned counsel fo the petitioner and Ms' K'Mamata Chowdary, l::rrned Standing Counsel for Income Tax Department aopearing for respondents No- | and 2' 2 Learnet I counsel for the parties are in agreement that the u rit petitions have become infructuous following thr tlt:cision of the Supreme Court in Union of India v. A shish Agarrrall' In view of the above, writ petitions are disposed of as infructuor rs,. | 2022 SCC Onlin SIC 543 AND J 2 Miscellaneous applications pending, if any, shail stand closed. However, there shall be no order as to costs. SD/-K.SAILESHI DEPUTY REGISTRAR //TRUE COPY// Ap SECTION OFFICER To BC N/ 1 2 3 4 ( One CC to Sri Dundu Manmohan Advocate TOPUCI One CC to Assistant Solicitor General Of lndia [OpUC] One CC to Ms. K. Mamata Chowdary. SC for lncom-e fax [OPUC] Two CD Copies One Spare Copy SW &s( a HIGH COURT DATED: 2710912022 t s rAr[ () { i rl lril [fJ I ,j COMMON ORDER WP rlCtS: 17241, 17288 AND 17295 OF 2022 DISPOSING OF THE WRIT PETITIONS WITHOUT COSTS b ,x * g>A- NA "