Kodali Seetha Rama Rao V. Union of India

WP/32694/2022

AI Insights

In this case, Kodali Seetha Rama Rao, the petitioner, challenged the order and subsequent notice issued by the Income Tax Officer under Section 148A(d) and Section 148 of the Income Tax Act, 1961, respectively, for the assessment year 2015-16. The petitioner argued that the orders were passed without following due procedure, violating Article 14 of the Constitution and principles of natural justice. The petitioner also cited a notification from the Central Board of Direct Taxes regarding the e-Assessment Scheme, which mandates a faceless and automated process for certain assessments. The respondents contended that the objections raised by the petitioner were not presented at the appropriate stage and that the challenge was delayed. The court, however, allowed the petitioner to present his objections to the Income Tax Officer, emphasizing the need for a fair hearing.

• Counselvise Citation: [2022] 140 COUNSELVISE.COM (IT) 721494 (HC-TELANGANA)
• Appeal Type: Others
• Pronouncement Date: 18-08-2022
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961, Article 226 of the Constitution of India, Article 14 of the Constitution of India
• Result in Favour of: Partly Allowed
• Court: HIGH COURT
• Department Lawyers: B YADAV; J V PRASAD
• Assessee Lawyers: K KUMAR
• Keywords: Assessment Year 2015-2016; E-assessment Scheme; Income Tax; Notice under section 148; Violation of natural justice; Writ of Mandamus
• Section: 148; 144B; 148A

Judgement Text

"HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD (SPecial Original Jurisdiction) THURSDAY, THE EIGHTEENTH DAY OF AUGUST TWO THOUSAND AND TWENTYTWO PRESENT THE HON'BLE THE CHIEF JUSTICE UJJAL BHUYAN AND THE HON'BLE SRI JUSTICE C.V. BHASKAR REDDY WRIT PETITION NO: 32694 OF 2022 Kodali Seetha Rama Rao' S/o Nageswara Rao,.Aged about. 45 years, occ. i\"ri\"r.jftrng, R\"iiO\"nt of H' ruo.Z aZin, Chirumarri Village, Chirumarri Mudigonda tv1-andal. Khammam 5071 58, Telangana. Between: AND 1 ,..PETITIONER 2 3 Union of lndia, Represented by its Secretary - Department of Revenue' tvlinistry of Finance, North Block, New Delhi - 110001 principal Chief Commissioner of lncome Tax, 1Oth Floor \"D\" Block lT Towers, A.C. Guards, Hyderabad 500004 lncome Tax Officer, Ward 1, Rajiv Chowk, Near Kinnersani Theatre, Khammam 507001 ...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 to issue a writ, order or Direction more particularly one in the nature of ,,writ of Mandamus\" declaring the action of 3rd Respondent in passing the order under clause (d) of section 148A of the lncome Tax Act, 1961 dated 22.04.2022 in Fite No. ITBA/AST/F/148N2O22-23t1042827223(1) (lmpugned order) duly assessing that Petitioner's case is a fit case for issuance of notice under section 148 of the Act for Assessment Year 2015-2016 and the consequent notice under section 148 0f the lncome Tax Act vide his file No.lTBA/ASr 15/148'112022- 231'1042827267(1), dated 22.O4.2022 without following due procedure as contemplated under the provisions of the lncome Tax Act, 1961 as being void, illegal, arbitrary, without authority of law, violative of Article 14 of the constitution of lndia and violative of principles of natural justice and also violative of provisions of lncome Tax Act, 196'1 . lA NO: 1 OF 022 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 collection of tax pursuant to the impugned order under clause (d) of section 14BA of the lncome Tax Act, 1961 dated 22.04.2022 in File No.ITBA/AST/F 1148A12022-2311042827223(1) passed by the 3rd Respondent and the consequent notice under Section 148 of the lncome Tax Act vide his file s.No.ITBA/AST/S/148_1/2022-2311042827267(1), dated 22.O4.2022, in the interest of justice. Counsel for the Petitioner: SRI K. VIJAY KUMAR Counsel for the Respondent No.1: Ms. B. KAVITHA YADAV' ASSISTANT SOLICITOR GENERAL Counsel for the Respondent Nos.2 & 3: Mr. J.V. PRASAD, S.C. FOR INCOME TAX The Court made the following: ORDER THE HON'BLE THE CHIEF JUSTICE UJJAL BHUYAN AND THE HON'BLE SRI JUSTICE C.V.BHASKAR REDDY WRIT PETITIOI'I No.32694 of 2022 ORDER: Per the Hon'bte the Chief JusLice uJjal Bhuaan) Heard Mr. K.Vrjay Kumar, learned counsel for the petitioner; Ms. B.Kavitha Yadav, leamed counsel appearing for respondent No. 1; and Mr. J.V.Prasad, learned counsel appearing for respondents No.2 and 3. 2. By filing this writ petition under Article 226 of the Constitution of India petitioner seeks quashing of the order dated 22.04.2022 passed by respondent No.3 under Section 148A(d) of the Income Tax Act, 196 1 (briefly, the Act' hereinafter) for the assessment year 2015- 16 as well as the consequential notice of even date issued under Section l48 of the Act. 3. Learned counsel for the petitioner submits that notice under Section 14BA(b) of the Act was issued to the petitioner on 21.03.2022 calhng upon the petitioner to file l response through the e-filing portal on or before 29.03.2022. On 29.03.2022, petitioner by way of e-mail, sought for adjournment of one month. Without adverting to the request of the petitioner, r'espondent No.3 passed the imptrgned order on 22.04.2022. Consequently, the notice under Section 148 of the Act was also issued on 22.O4.2022. 4. Learned counsel for the petitioner submits that the order dated 22.04.2022 was passed without giving due opportunity of hearing to the petitioner. That apart, he has referred to the notification dated 29.03.2022 issued by the Central Board of Direct Taxes (CBDT) making e-Assessment of Income Bscaping Assessment Scheme, 2022. As per clause 3 of the said notification, assessment, reassessment and recomputation under Section 147 of the Act as well as issuance of notice under Section 148 of the Act sha-ll be through automated allocation in accordance with the risk management strategr formuiated by the CBDT and in a faceless manner to the extent provided in Section l44B of the Act. He therefore submits that issuance of notice under Section 148 of the Act by rcspondent No.3 is illegal, being contrary to the aforesaid scheme. 5. Mr. J.V.Prasad, learned counsel for respondents No.2 and 3 submits that this objection was not raised by the petitioner before respondent No.3. That apart, notice under Section 148 of the Act was issued way back on 22.O4 .2022 and the challengc has been made after more than three months. 6. Be that as it may, we are of the view that since respondent No.3 has issued notice under Section 148 of the Act, it would be open to the petitioner to raise all available objections before respondent No.3, including the objection based on the notification dated 29.O3.2022. Le! the petitioner file the objections before respondent No.3 within fifteen days from today. As and when such objections are filed, respondent No.3 shall take an appropriate decision in accordalce with law after giving due opportunity of hearing to the petitioner, within a / I period of four r.r,eek s from the date of receipt of the objections filed b-\"- the petitioner 7 . This disposes ol the lvrit petition. Miscellaneous applications pending, if any, shall stald closed. However, there shall be no order as to costs. //TRUE COPY// SD/. T. SRINIVAS DEPUry REGIISTBAR I SECTION OFFICER To, MP GJP 1. The.Sec;retary. Departmentrcf Revenue, Ministry of Finance, Union of lndia, No(h Block, New Delhi - 1 10001 2. The Princip^al _chief commissioner of lncome Tax, 10TH Floor D Block lr ^ Towers, A.C. Guards, Hyderabad 500004 3. The lncome Tax officer, ward 1, Rajiv chowk, Near Kinnersani rheatre, Khammam 507001 1. 9ne CC to SRt K. VtJAy KUMAR, Advocate tOpUCI !. one cc to sMT. B. KAVITHA yAbAV, assstant sofi\"ito,. Generar topucr 9. 9n\" CC to Mr. J.V. PRASAD, S.C. for'lncomJiiiioiuci\"'rYrer Lvr vvr 7. Two CD Sopies. 8. One Spare Copy 'y , I I I HIGH COIURT DATED:1 810812022 ORDER -a (- l[ stP $[ WP.No.32694 of 2022 DISPOSING OF THE WRIT PETITION WITHOUT COSTS ital/ -r) "