Kausalya Management Services and Structures Pvt Ltd V. Assistant Commissioner of Income Tax, Circle 1, Karimnagar and National Faceless Assessment Centre, Mayur Bhavan, Connaught Lane, Barakhhamba, New Delhi

WP/1305/2024

AI Insights

The case involves Kausalya Management Services and Structures Pvt Ltd, the petitioner, challenging the orders and notices issued by the Assistant Commissioner of Income Tax, Karimnagar, and the National Faceless Assessment Centre, under Section 148 of the Income Tax Act, 1961, for the assessment year 2015-16. The petitioner argued that the reopening of the assessment was not in compliance with the amended provisions of the Act, which came into effect from April 1, 2021, requiring faceless proceedings and an opportunity for the assessee to be heard. The respondents did not dispute the procedural flaws but contended that there were other objections raised by the petitioner that were not addressed. The court, referencing a previous batch of writ petitions, allowed the petition on the grounds of jurisdictional error, quashing the impugned notices and orders without addressing other issues.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 796235 (HC-TELANGANA)
• Appeal Type: Others
• Pronouncement Date: 12-01-2024
• Assessment Year: misc
• Other Referred Cases: Ashish Agrawal
• Laws Referred To: Income Tax Act, 1961, Constitution of India
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: BOKARO SAPNA REDDY
• Assessee Lawyers: KAILASH P S S
• Keywords: Assessment Year 2015-16; Faceless assessment; Income Tax; Jurisdictional issue; Writ of Certiorari
• Section: 148; 226; 148(d)

Judgement Text

"[ 3379 ] HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD (Special Original Jurisdiction) FRIDAY, THE TWELFTH DAY OF JANUARY TWO THOUSAND AND TWENTY FOUR PRESENT THE HONOURABLE SRIJUSTICE P.SAM KOSHY AND THE HONOURABLE SRI JUSTICE N.TUKARAMJI WRIT PETITION NO: 1305 OF 2024 Between: Kausalya Management Services and structures P!,t Ltd, Madhupala Enclave, Akbar Road, Bowenpally, Secunderabad- 500009. ...PETITIONER AND '1 . Assistant Commissioner of lncome Tax, Circle 1, Karimnagar, lncome Tax Office, Aayakar Bhavan, Near Natra.j Theatre, Karimnagar, Telangana- 505001. 2. National Faceless Assessment Centre, [ /ayur Bhavan, Connaught Lane, Barakhhamba, New Delhi, Delhi 3. National Faceless Assessment Centre, [Mayur Bhavan, Connaught Lane, Barakhhamba, New Delhi, Delhi- 1 1000 1 . ...RESPONDENTS Petition under Article 226 ol lhe 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 in the nature of a writ of certiorari, calling for records and quashing the order under section 14BA(d) of the lncome Tax Act, 196'l dated 05.04.2022 for the Assessment year 2015-2016 issued with DIN ITBA/ASTlFl148Al2O22- 2311042528035(1), and consequently set aside the notice under section 148 of the lT Act dated 06.04.2022 for AY 201 5-1 6 with D N ITBA/AST/S/1 48 1 I 2022-231 1 o42 583035( 1 ). lA NO: 2 OF 2024 Petition under Section '1 51 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 consequent to the issuance of notice under section 148 of the lT Act dated 06.04.2022 for assessment year 2O1S-16 lA NO: 1 OF 2024 Petition under section '1 51 cPC praying that in the circumstances slated in the affidavit filed in support of the petition, the High court may be pleased to dispense with the filing of the original order under section 14s A(d) of the lncome Tax Act, 1 961 dated 05.04.2022 for the Assessment year 2o1s-16 issued with DIN lrBA/AST/Fi148N2022-2311o42528o3s(1), and the notice under section 148 of the lr Act dated 06.04.2o22 for AY 2015-16 with DtN trBA/AST/s/i4B 1t2o22- 23t1042583035(1). Counsel for the Petitioner: SRI KAILASH NATH p.S.S Counsel forthe Respondents: M/s BOKARO SAPNA REDDY, Jr. SC FOR INCOME TAX The Court made the following: ORDER ' THE HONOURABLE SRI JUSTICE P.SAM KOSI{Y AND THE HONOURABLE SRI JUSTICE N.TTIXARAMJI WRIT PETITION No.13O5 OF 2o24 ORDER:1per Hon'ble Srt Justice P.SAM KOSHY) Heard Mr. Kailash Nath P.S.S, learned counsel for the petitioner and Ms. B.Sapna Reddy, learned Standing Counsel for Income.Tax appearing for the respondents. Perused the entire record. 2. The instant Writ Petition has been hled by the petitioner under Article 226 of the Constitution of India challenging the order issued under Section 148(d) of the Income Tax Act, 196 1 (for short, \"the Act\") bearing DIN No.ITBA/AS T /F I r48A/2022-23/ 1042528035 (1), dated O5.O4.2O22 passed by respondent No.1 for the assessment year 2015-16 and the consequent notice under Section 148 of the Act, dated 06.04.2022, bearing DIN No.ITBA/AST / s / r48-r / 2022-23 I 1042s8303s (1). 3. One of the contentions that the petitioner has raised in the present Writ Petition is that under the amended provisions of the Act which calne into effect from Ol.O4.2O2l, the respondents, while proceeding under 2 Section 148 of the Act, were required 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 faceless marlner. 4. Whereas, learned counsel for the petitioner contended that, in the instant case, reopening has been initiated by the Jurisdictional Assessing Officer. In support of his contention, he relied upon the recent judgment rendered by this very Bench in Wp.No.2S903 of 2022 & batch, dated 14.O9.2023 wherein this Court disposed of the batch of writ petitions to the limited extent. 5. On the other hand, learned Standing Counsel for the respondent-Department does not dispute that the said objection was decided in the aforesaid 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 writ petition. 6. So far as this contention of the learned counsel for the respondent-Department is concerned, this Bench, while / 3 disposing of said batch of writ petitions, had taken note of the same at paragraph Nos'37 & 38 which are reproduced herein under \"37. The preliminory objection raised bg tlrc petitioner is sustaiied and all these toit petitions stonds allowed on this uery jurisdictionol issue. Since the impugned notices and- orders are getting qtashed on the point of jurisdiction, u)e are not inclined to proceed further and -decid.e the other issues raised by tl'te petitioner uhich stands reserued to be raised and contended in an app rop iate P r o ceeding s. \" \"38. Since ttrc Hon'ble Supreme Court had, in the case of Ashish Aganaal, supral as a one-time -measure ixercising the pouters under Article 142 of the Constituiion of India, permitted the Reuenue to proceed under tLe substituted prouisions, and thi-s Court allotuing the petitions only on the procedural flau, tLe ight cinferred on the Reuenue would remain reserued ti proceid Turther if they so utant from the stage of the order of tie Supreme Court in the case of Ashish Agaru-tal, suPra.\" 0 t 7. In view of the sarne' 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' 8. As has been held by this Bench in the aforesaid batch matters, the rights of the parties would stand reserved as is 4 envis,ged at paragraph Nos.37 & 3g of the said order passed in the batch of writ petitions. No order as to costs. Consequently, miscellaleous petitions pending, if any, shall stand closed. //TRUE COPYII SD/. N.SRIHARI ASSTSTANIBEGISTRAR -b/ SECTION OFFICER To 1 Assistant Commissioner of lncome Tax, Circle 1, Karimnagar, lncome Tax Office, Aayakar Bhavan, Near Natraj Theatre, Karimnagar, Telangana- 505001. National Faceless Assessment Centre, Mayur Bhavan, Connaught Lane, Barakhhamba, New Delhi, Delhi- 110001. One CC to SRI KAILASH NATH P.S.S, Advocate [OPUC] One CC to SRI BOI(ARO SAPNA REDDY, Jr. SC FOR INCOME TAX loPUCl Two CD Copies 2 3 4 5 PSK. GJg f I t I HIGH COURT DATED:1210112024 ORDER WP.No.1305 of 2024 .J€ SPATci eP < ,:J 7 €. o 1Hf: SI4r e () 1 6 FEB 2il2+ .) ALLOWING THE WRIT PETITION WITHOUT GOSTS. *rf;F ( "