Jaya Sree Vadla V. National Faceless Assessment Center, Income-tax Department, New Delhi, India and Income Tax Officer, Ward '11 (1)', Hyderabad and Assessment Unit, Income Tax Department, Government of India, New Delhi

WP/23553/2024

AI Insights

The case involves Jaya Sree Vadla, the petitioner, challenging the notices and reassessment orders issued by the Income Tax Department under Sections 148 and 148A of the Income Tax Act, 1961. The petitioner argued that these notices and the subsequent reassessment were not in accordance with the modified reassessment procedure established by the Finance Act, 2021. The respondents included the National Faceless Assessment Center and various officials from the Income Tax Department. The court referenced a common order from a batch of writ petitions (W.P.No.25903 of 2022) decided on 14.09.2023, which had similar issues and found the procedures followed by the department to be illegal and unsustainable.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 688163 (HC-TELANGANA)
• Appeal Type: Others
• Pronouncement Date: 29-08-2024
• Assessment Year: misc
• Other Referred Cases: Ashish Agarwal
• Laws Referred To: Article 226 of the Constitution of India, Section 148A(d) of the Income Tax Act, 1961, Section 148 of the Income Tax Act, 1961, Section 147 of the Income Tax Act, 1961, Finance Act, 2021
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: B SAPNA REDDY; GADI PRAVEEN KUMAR
• Assessee Lawyers: M NAGA DEEPAK
• Keywords: Arbitrary; Illegal; Reassessment order; Violate of Article 14; Void; Without jurisdiction; Writ of Mandamus
• Section: 147; 148; 148A(d)

Judgement Text

"13411 I HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD (Special Original Jurisdiction) THURSDAY, THE TWENTY NINTH DAY OF AUGUST TWO THOUSAND AND TWENTY FOUR PRESENT . THE HONOURABLE SRI JUSTICE SUJOYPAUL AND THE HONOURABLE SRI JUSTICE NAMAVARAPU RAJESHWAR RAO WRIT PETITION NO: 23553 OF 2024 ...PETITIONER AND 1. The National Faceless Assessment Center, lncome-tax Department, New Delhi, lndia 2. lncome Tax Officer, Ward 'l 1 (1) Hyderabad 3. The Assessment Unit, lncome Tax Department Govemment of lndia New Delhi ...RESPONOENTS Petition under Arlicle 226 of the Constitution of lndia praying that in the circumstances stated rn the affidavit filed therewith, the High Court may be pleased to issue a writ, order or direction, more particularly in the nature of writ of mandamus declaring order dated 2710312023 under Section 148A(d) bearing DIN and Notice No. ITBA/AST/F 1148A12022-23/1051399800('l ), th€ consequent notice dated 27 I O3l2O23 ut s. 1 48 bearing ITBtuAST/S/1 48-1 /2022-231 1 O51 4191 66(1 ) and the reassessment order dated 2210212024 bearing ITBfuAST/S/14712023- 2411061318881(1 ), as being void, illegal, arbitrary, without jurisdiction, violate of Article 14 of the Constitution of lndia and consequently set aside the same. Between: Jaya Sree Vadla, D/o. Beema Chary, Aged 52 Years, 2-93 Dundigal, Quthbullapur Rangareddy 500043 , Telangana lndia IA NO: oF 2024 1 Petition under section 1 51 cpc praying that in the circumstances stated in the affidavit fired in support of the petition, the High court may be preased to stay all further proceedings including collection of tax pursuant to reassessment order d ated 221 021 2024 be aring I TBA/AST/S/ 1 4 I t 20 23 _2 4 I 1 06 13 I 88S 1 ( I ). Counsel for the petitioner: SRt M. NAGA OEEPAK Counsel for the Respondent Nos.1 and 2: MS. B. SAPNA REDOY, SC FOR TAX DEPARTMENT Counsel for the Respondent No.3: SRt GAD| PRAVEEN KUMAR, DEPUTY SOLICITOR GENERAL OF INTDA The Court made the following: ORDER ,l TIIE HOIIOURABLE SRI T,USTICE SUJOY PAUL TIIE HO OURABLESRIJUS AI{D TICE I{AMAVARAPU RAJESHWAR RAO ORDER: (per Hon,ble Justice Sujog paul) Heard Sri M.Naga Deepak, Ms. B.Sapna petitioner(s) and Standing Counsel respondents. 5s3 OF 2o24 Iearned counsel for the Reddy, learned Junior oNNo.23 for Income Tax Department, for the 2. The ground taken by the learned counsel for the petitioner(s) is that in furtherance of Finance Act, 2021, re_ assessment process stood modified but the respondents have not taken care of it and therefore notice issued under Section 148 ol the Income Tax Act, 1961 cannot sustain judicial scrutiny. Since notice is bad in law, the consequential orders 3. During the course of hearing, learned counsel for the parties agreed that curtains on this issue are finally draum by this Court in a batch of w.rit petitions, W.p.No.2 S9O3 of 2022 and other connected matters, decided by common order dated 14.09.2023. The parties agreed that this matter may be disposed of in terms of the Common Order d,ated, L4.O9.2O23. are also bad in lau.. : .l 7 4. This Court in the said order dated' 74'09'2023 W.P.No.259O 3 of 2022' held as under: 1n .35. I! view of the afotesaid discussioas' it is by rrow very \"Jtt -ah.a the procedure to be followed by the respoodent- Departmeat upoa treating tbe notices issued fo' leassessmelt lta-\"\"*t Sectioa 148A' the subsequeat proceedings was Eatrdatorily required to bc undertaken ntrder the substituted ,-i\"r\"r\" \"\" laid dos'n undet the Finaace Act' 2021' Itr the abseace of which' we are co'stfailed to hold that the procedute adoPted by tbe lespoqdert-Departmeit is i! coltraveBtio! to the statute i'e' the Filance Act' 2021' at the tirat instaDce' secordly' it is also io direct co[travetrtion to the directives issued by tbe llon'ble suPreme court in the case of Ashish Agareal' suPfa' 36. tror aU the aforeaaid teasoas' the impugoed notices issued alral the Proceedilgs drawo by the respoldeot-DepartEent is leither telable, nor sustainable' The notices so issued aud the ptocedute adopted beilg per se illegat' deserves to o: \"l' are accordilgly set aside/quashed' As a consequence' all the irapug,led orders gettiBg quashed' the consequential ordels p\"\"\"\"a fy the respoodeat Depaitment Pursuant to the 'lrotices lsaued uader sectiolr 147 aBd 148 would also get quashed and it is ordeteal accordingly' The reason we are quashing the colsequeltial otdet is on the principles that when the tlritiationofthePtoceedingsitsclfwasptocedurallywrong, the subsequelt oldels also gets aullilied automatically' 37. The prelitrinaty objectioo raised by the Petitioner is sust ised and all these srit Petitions steads auowed on this very jutisdictional issue' since the iopugned Dotices and orders ate gettittg quashed on the point ofjurisdictio[' we are [ot incllned to proceed further and decide the other issues raised by the petitiofler t[hich stands reserved to be raised ard cotrtended in a! apProPriate proceedings' 38. SiDce the Hon'ble SuPreme court had' in the- case of Ashish Agarwat, supta' as a one-time measure exercisint the powers under permitted the Article 742 R€veuue to of the constitution of India, proceed under the substituted prowisions, atld this Court allowing the petitions only on the pt'ocedura.l llaw, the right conferred orl the Revenue would 3 r€Eaio reserved to proceed further if they so walt from the stage of the order of the Suprerue Court ir the cqse of Ashish Aga.wal, supra. 39. No ordcr as to costs., 5. In view of the consensus arrived, the impugned Show Cause notice and consequentia-l orders passed in this writ petition aie set aside. Liberty is reserved to both the parties to take respective stand and to proceed in accordance with law as per paragraph No.3B of the order dated 14.09.2023 ln W.P.No.259O3 of 2022. 6. The Writ Petition is allowed. No costs' Interlocutory applications, if any pending, shall aiso stand closed' I 2 3 4 5 6 7 ,TRUE COPY// To, MP 1 .TheNationalFacelessAssessmentCenter,lncome{axDepartment'New Delhi, lndia . ihe lhcome Tax Officer, Ward 11 (1) Hyderabad . ii;; ft;;;rJnt Unii, tncome tax Dep'artment Government of lndia New Delhi . OnJCC to Sri M. Naga Deepak, Advocate loPUCl . il; 66 6 M;. B. surin, Cuoov SC for rax DeparthenttoPUCl . One CC to Sri Gadi p,,'\"\"i\"ri'lt\"'i ;\"pJv soiiCito' Geheral of tnoia[oPucl . Two CD CoPies YY J T i Sd/. N. SRIHARI ASSISTANT REGISTRAR SECTION OFFICER HIGH COURT DATED:2910812024 ORDER WP.No.235S3 of 2024 ALLOWING THE WRIT PETITION WITHOUT COSTS n cnpl4 Te, 14 0cr zut Dr. (J o A z 14 F-- H S 1 a o ( ,Soa1r,,.rri t I I 4 v,. "