Karachi Bakery Kukatpally V. Assessment Unit, National Faceless Assessment Centre, Income Tax Department and The Income Tax Officer, Ward - 2(1)

WP/3734/2024

AI Insights

The case involves Karachi Bakery Kukatpally, represented by its proprietor Sri Manoj Ramnani, challenging an order passed by the Income Tax Department under various sections of the Income Tax Act, 1961, for the assessment year 2018-19. The petitioner argued that the order was arbitrary, illegal, and violated several provisions of the Act, including the amended Section 148A and Section 149, as well as the circular issued by the CBDT. The primary legal contention was that the reopening of the assessment was not conducted in accordance with the amended provisions that came into effect on April 1, 2021, which require a faceless manner of proceeding and an opportunity for the assessee to be heard. The court referenced a previous judgment in WP.No.25903 of 2022 & batch, which had similar issues regarding jurisdiction and procedural adherence under the amended Act.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 690267 (HC-TELANGANA)
• Appeal Type: Others
• Pronouncement Date: 13-02-2024
• Assessment Year: misc
• Other Referred Cases: WP.No.25903 of 2022 & batch
• Laws Referred To: Income Tax Act, 1961, Constitution of India
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: SUNDARI R PISUPATI
• Assessee Lawyers: A V RAM
• Keywords: Amended Provisions; Faceless assessment; Income Tax; Jurisdiction; Writ of Mandamus
• Section: 147; 144; 149; 144B; 148A; 151A; 226

Judgement Text

"[ 337e ] IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD (Special Original Jurisdiction) TUESDAY, THE THIRTEENTH DAY OF FEBRUARY TWO THOUSAND AND TWENTY FOUR PRESENT THE HONOURABLE SRI JUSTICE P.SAM KOSHY THE HONOURABLE SRI JUSTICE N.TUKARAMJI WRIT PETITION NO: 3734 oF 2024 Between: l //s. Karachi Bakery Kukatpally,132, MCH Block 2, Hydernagar Village,Hyderabad - 5OOO72. Rep., by it6 Proprietor, Sri Manoj Ramnani S/o. Sri Ramesh Ramnani ...PETITIONER AND 1. Assessment Unit, National Faceless Assessment Centre, lncome Tax Department, IVlinistry of Finance, Room No. 401 , 2nd Floor, E- Ramp, Jawaharlal Nehru Stadium, Delhi - 110 003- 2. The lncome Tax Officer, Ward - 2(1 ), Signature Towers, Opp Botanical Gardens, Kondapur, Hyderabad - 500084. ...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 toto pass an order or direction, especially one in the nature of wRlT oF MANDAMUS holding that the order passed by 1St Respondent u/s' 147 r' w' s 144 r. w. s. 1448 of the Act, dt. 01 . 02. 2024 with DIN No ITBA/AST/S/14712023' 24t106O37Og24(1)for the Ay. 2O1B- 19, as arbitrary, illegal, bad in law, void ab initio, apart from being violative of provisions of section 1 48A and section 149 of the Act and also contrary to the circular issued by CBDT and provisions of section 15'1A of the Act, and consequently set aside the same. lA NO: 1 OF 2024 Petition under section 151 cpc praying that in the circumstances stated in the affidavit fited in support of the petition, the High court may be pleased to stay all further proceedings, incruding any recovery, pursuant to the order passed by the Ut Respondent u/s. 147 t. w. s 144 r. w. s. 1448 of the Act, dt. 01 .02.2024 with DIN No lrBA/AST/sr14712023- 2411060370924(1) for the Ay. 2018- 19. Counsel for the Petitioner : SRI A.V.RAGHU RAM counserrortheRespo\"r\"\",.,BT.,.r\"u[?fl::]:,irr,rf\"li, The Court made the following: ORDER () THE HONOURABLE SRI JUSTICE P.SAM KOSHY AND THE HONOURABLE SRI JUSTICE N.TUI{ARAMJI WRIT PETITIoN No.3734 OF 2o24 ORDER:lper Hon'ble Sri Justice P-SAM KOSHY) The instant Writ Petition has been hled by the petitioner under Articl e 226 of the Constitution of India seeking for the following relief: \"...to pass an order, or direction especially one in the nature of writ of mandamus holding that the order passed by l't Respondent under Section 147 read with bection 144 read with Section l44B of the Income Tax Act, 1961, dated 01.O2.2024 with DIN No.ITBA/AST/ Slt47 12023-24 lto6o37o924(rl for the A'Y' 2or8-t9 as arbitrary, illegal, bad in law void ab initio, apart from being violative of provisions of Section 148A and section 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 same and pass\"'\" 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 carne into effect from OL.O4.2O2I, the respondents, while proceeding under Section 148 of the Act, were requfued to issue notice under Section 1484, and provide an opportunity of hearing to the assessee. As per the amended provision of law, the proceedings to be drawn are also in a facele5O manner' .. 2 PSI(,J& nl:TR,J W.P.No.3734 oJ2O24 3. Whereas, learned counsel for the petitioner contended that, in the instant case, reopening has been initiated by the Jurisdictional Assessing Off,rcer. 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, learned Starrding Counsel for the respondent-Department does not dispute that the said objection was decided in the a_foresaid batch of Writ Petitions. However, he further contended that apart from the aforesaid objection, there have been other various objections also which the petitioner has raised in the rnrit petition. 5. So far as this contention of the learned counsel for the respondent-Department is concerned, this Bench, while dispsing of said batch of writ petitions, had taken note of the same at paragraph Nos.37 & 38 which are reproduced herein under: 3 PSI(,J& MTR,J W.P.No.3734 ol 2024 \"37. The preliminary objection raised by tle petitioner is sustaiied and allttrcse utit petitions stands alloued on this uery juri.sdictional issue' Since the impugned notices ani irder\" are getting quashed on tle point of yri,sdiction, u)e are not inclined to proceed further and \"decide the other i.ssues raised bg tte petitioner rtlhich stands reserued to be raised and contended in an appr opiate Pro ce e ding s. \" '38. Since the Hon'ble Supreme Court had' in tLe case of Ashi.sh Agarttal, supra, as o one-time -measure ixerci-sing tie pouers under Article 142 of the Constituion of tidia, permitted tlre Reuenue to proceed under the substitutbd prouisions, and this Court allou,ting the petitions onlg on th'e pro-cedura.l flau' tLte ,ight .i\"f\"nia on the Reienue ttould remain resented ti p-ceia Turther if theg so utant from the stag^e 3f tLrc oi., of the Supieme Court in the case of Ashish Agarutal, supra.\" 6. In view of the sarne' we are inclined to a1low 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 aforesaid 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' 1}. 4 PSr,J& lYrR.J W.P.No.JZ34 of 2Oi4 pending, if 1 8. Consequently, miscellaneous petitions any, shall stand closed. To SD/. G. SIREES A ASSISTANT REGIST R //TRUE COPY// SECTION OFFICER 1. The Assessment Unit, National Faceless Assessment Centre, lncome Tax Department, Ministry of Finance, Room No. 4O1 , 2nd Floor, E- Ramp, Jawaharlal Nehru Stadium, Delhi - 1 '10 003. 2. The lncome Tax Officer, Ward - 2(1), Signature Towers, Opp Botanical Gardens, Kondapur, Hyderabad - 500084. 3. One CC to SRI A.V.RAGHU RAM, Advocate. [OPUC] 4. One CC to SRI SUNDARI.R.PISUPATI, (Sr SC for lncome Tax Dept). [OPUC] 5. Two CD Copies. BSK GJP A 2 HIGH COURT DATED:1 310212024 ORDER WP.No.3734 of 2024 ALLOWING THE WRIT PETITION WITHOUT COSTS HE STA r4r s v 2 Api 702{ C} z .a+ t h Dtgp4.1q;vt cO $vt-- (ar r @u{* ,a "