Kota Mandal Podupulakshmi Mutually Aided Cooperative Thrift Society Limited V. The Income Tax Officer, Ward - (1), Gudur and The Principal Commissioner of Income Tax, Tirupati and Assessment Unit Income Tax Department, National E-Assessment Center, New Delhi and The Commissioner of Income Tax Appeals, National Faceless Appeal Centre, Delhi and Union of India

WP/1804/2026

AI Insights

The case involves the Kota Mandal Podupulakshmi Mutually Aided Cooperative Thrift Society Limited, represented by its president, Mrs. G. Seshamma, challenging various orders issued by the Income Tax Department concerning the Assessment Year 2018-19. The petitioner contested the assessment order, penalty orders, and rectification order, arguing that these were issued in violation of legal provisions and principles of natural justice. The High Court's decision to set aside these orders was influenced by a similar case, Prameela Pasumarthi vs. CIT, which addressed the jurisdictional limitations of the Assessing Officer under the Income Tax Act.

• Counselvise Citation: [] 140 COUNSELVISE.COM (IT) 833006 (HC-ANDHRA_PRADESH)
• Appeal Type: Others
• Pronouncement Date: 27-01-2026
• Assessment Year: misc
• Other Referred Cases: Prameela Pasumarthi vs. CIT
• Laws Referred To: Income Tax Act, 1961, Constitution of India
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: Y N VIVEKANANDA
• Assessee Lawyers: A V A KARTIKEYA
• Keywords: Assessment Order; Income Tax; Natural Justice; Rectification Order; Violation of Articles; Writ of Mandamus
• Section: 147; 144; 250; 144B; 271AAC(1); 148A; 151A; 272A(1)(d); 226

Judgement Text

"APHC010026412026 IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI (Special Original Jurisdiction) [3529] TUESDAY, THE TWENTY SEVENTH DAY OF JANUARY TWO THOUSAND AND TWENTY SIX PRESENT THE HONOURABLE SRI JUSTICE R RAGHUNANDAN RAO THE HONOURABLE SRI JUSTICE T.C.D.SEKHAR WRIT PETITION NO: 1804/2026 Between: 1. KOTA MANDAL PODUPULAKSHMI MUTUALLY AIDED COOPERATIVE THRIFT SOCIETY LIMITED, R/O. MAHILA MANDALI BHAVAN OPPOSITE TO RTC BUS STAND, KOTA, NELLORE - 524 411, ANDHRA PRADESH. REPRESENTED BY ITS PRESIDENT, MRS. G. SESHAMMA W/O.GONUPALLI RAMASUBBAIAH. ...PETITIONER AND 1. THE INCOME TAX OFFICER, WARD - (1), GUDUR, INCOME TAX OFFICE, NARSINARAOPET, ROAD NO.1 GUDUR - 524 101, ANDHRA PRADESH. 2. THE PRINCIPAL COMMISSIONER OF INCOME TAX, TIRUPATI INCOME TAX OFFICE, KT ROAD, TIRUPATI- 517 501, ANDHRA PRADESH. 3. ASSESSMENT UNIT INCOME TAX DEPARTMENT, NATIONAL E- ASSESSMENT CENTER, NEW DELHI, ROOM NO. 401,2ND FLOOR, E-RAMP, JAWAHARLAL NEHRU STADIUM, NEW DELHI - 110 003. 4. THE COMMISSIONER OF INCOME TAX APPEALS, NATIONAL FACELESS APPEAL CENTRE, DELHI, THROUGH THE PRINCIPAL CHIEF COMMISSIONER OF INCOME TAX (NAFAC) DELHI, NORTH BLOCK, NEW DELHI - 110 001. 5. UNION OF INDIA, REPRESENTED BY ITS PRINCIPAL SECRETARY, GOVERNMENT OF INDIA, MINISTRY OF FINANCE, 3RD FLOOR, JEEVAN DEEP BUILDING, SANSAD MARG, NEW DELHI - 110 001. ...RESPONDENT(S): Printed from counselvise.com 2 RRR, J & TCDS, J W.P.No.1804 of 2026 Petition under Article 226 of the Constitution of India praying that in the circumstances stated in the affidavit filed therewith, the High Court may be pleased topleased to issue a Writ of Mandamus or any other appropriate Writ, Order or Direction, declaration that the Assessment Order passed by the 3rd Respondent, u/s 147 r/w/sa. 144 r/w/s 144B of the Income Tax Act, 1961, dated 03.02.2024, bearing DIN.ITBA/AST/S/147/2023-24/1060480597(1), for the Assessment Year 2018-19. b. consequential penalty orders passed by the 3rd Respondent, levying penalties u/s 271AAC(1) and 272A(1)(d) of the Income Tax Act, 1961 dated 21.08.2024 and 07.04.2025, bearing DIN.Nos ITBA/PNL/F/271 AAC(1 )/2024-25/1067822420(1) and ITBA/PNL/F/272A(1)(d)/2025-26/1075525140(1) respectively, for the Assessment Year 2018-19 and the order of the 4th Respondent dated 03.10.2025, vide DIN and Orderc. No. ITBA/NFAC/S/250/2025- 26/1081412667(1), passed u/s 250 of the Income Tax Act, 1961 d. the rectification order dated 29.10.2025, passed by the 1st Respondent, vide DIN and Order No. ITBA/REC/S/154_1/2025- 26/1082112321(1), rectifing the computation sheet and the demand payable for the Assessment Year 2018- 19. as arbitrary, illegal, barred by limitation, bad in law, void-ab-initio, violative of the principles of natural justice, apart from being violative of Articles 14 19(1)(g) and 265 of the Constitution of India and Sec 148A of the Income Tax Act, 1961, and consequently set aside the same in the interests of justice and to pass IA NO: 1 OF 2026 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 to stay all further proceedings, including any recovery, pursuant to the notice u/s 148 of the Act, dated 05.04.2022, bearing DIN & Notice No. ITBA/AST/S/148_1/2022-23/1042534612(1), pending disposal of the above Writ Petition; and to pass Counsel for the Petitioner: 1. A V A SIVA KARTIKEYA Counsel for the Respondent(S): 1. Y N VIVEKANANDA Printed from counselvise.com 3 RRR, J & TCDS, J W.P.No.1804 of 2026 The Court made the following Order: (per Hon’ble Sri Justice R. Raghunandan Rao) Heard Sri A.V.A. Siva Kartikeya, learned counsel for the petitioner and Sri Y. N. Vivekananda, learned Standing Counsel appearing for the respondents. 2. The petitioner herein had suffered an order of assessment, dated 03.02.2024, for the assessment year 2018-19. Aggrieved by the same, the petitioner has moved an appeal, which came to be allowed on 03.10.2025, setting aside the assessment order for fresh adjudication. Thereafter the Assessing Officer had passed an order of rectification, dated 29.10.2025. The petitioner has now approached this Court, by way of the present Writ Petition contending that the orders of assessment as well as the order of appeal would have to be set aside inasmuch as the said process had been undertaken by the jurisdictional Assessing Officer which is impermissible in view of the provisions of Section 151 A of the Income Tax Act, 1961, r/w the scheme formulated, by way of a notification, dated 29.03.2022. 3. This issue has been considered by a Division Bench of this Court, in the case of Prameela Pasumarthi vs. CIT1. The Division Bench, after considering the said issues, had, by its Judgment, dated 28.10.2025, had set aside the notices on the ground that the said notices are contrary to Section 151 A of the I.T. Act. 1 2025 SCC OnLine AP 4052 Printed from counselvise.com 4 RRR, J & TCDS, J W.P.No.1804 of 2026 4. Following the same, this Writ Petition is allowed, in terms of the Judgment passed in Prameela Pasumarthi (supra) and the impugned orders of assessment are hereby set aside. There shall be no order as to costs. As a sequel, pending miscellaneous applications, if any, shall stand closed. ________________________ R. RAGHUNANDAN RAO, J ________________ T.C.D. SEKHAR, J Date: 27.01.2026 MJA Printed from counselvise.com 5 RRR, J & TCDS, J W.P.No.1804 of 2026 177 THE HON’BLE SRI JUSTICE R RAGHUNANDAN RAO AND THE HON’BLE SRI JUSTICE T.C.D. SEKHAR WRIT PETITION NO: 1804/2026 (per Hon’ble Sri Justice R. Raghunandan Rao) 27.01.2026 MJA Printed from counselvise.com "