Lakshmi Satyasri Nekkanti V. Office of The Income Tax Officer, Ward-6 (1) Hyderabad, Telangana State and The Principal Chief Commissioner of Income Tax - Telangana and A.P, Hyderabad and The Central Board of Direct Taxes, Represented by its Chairman and The National Faceless Assessment Center, Income Tax Department, New Delhi and The Union of India, Represented by its Secretary to the Government, Department of Revenue, Ministry of Finance, New Delhi

WP/6368/2024

AI Insights

The case involves Lakshmi Satyasri Nekkanti, the petitioner, challenging an assessment order for the Assessment Year 2015-16 passed by the Income Tax Authorities under Section 147 read with Section 144-B of the Income Tax Act, 1961. The petitioner argued that the reassessment was initiated under the unamended provisions of the Act, which is not sustainable. The court referenced a previous decision on similar grounds, where it was held that the proceedings must comply with the amended provisions that came into effect on 01.04.2021, requiring a notice under Section 148A and a faceless assessment process. The court allowed the writ petition, setting aside the assessment order and reserving the rights of the parties as per the previous decision.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 671615 (HC-TELANGANA)
• Appeal Type: Others
• Pronouncement Date: 12-03-2024
• Assessment Year: misc
• Other Referred Cases: Ashish Agarwal
• Laws Referred To: Income Tax Act, 1961, Constitution of India
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: VIJAY PUNNA; GADI KUMAR
• Assessee Lawyers: T CHAITANYA KUMAR
• Keywords: Faceless assessment; Income tax assessment; Jurisdiction; Natural Justice; Writ of Mandamus; Amended Provisions
• Section: 147; 148; 148A; 144(8)

Judgement Text

"[ 337e ] HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD (Special Original Jurisdiction) TUESDAY, THE TWELFTH DAY OF MARCH TWO THOUSAND AND TWENTY FOUR PRESENT THE HONOURABLE SRI JUSTICE P.SAM KOSHY AND THE HONOURABLE SRI JUSTICE N.TUKARAMJI WRIT PETITION NO: 6368 OF 2024 Between: Lakshmi Satyasri Nekkanti, D/o Chowda Occ. Business, R/o. 89 F3 Srinivas Nagar 500038, Telangana, lndia. Assessment Year: 2015-16 ry Co Raparla, Aged about 43 years, lony East, Ameerpet, Hyderabad ...PETITIONER Office of The lncome Tax Officer, Ward-6 (1) Hyderabad, Telangana Slate. The Principal Chief Commissioner of lncome Tax - Telangana and A.P, Hyderabad, lT Towers, AC Guards, Ivlasab Tank, Hyderabad - 500 028. Telangana. 3. The Central Board of Direct Taxes, Represented by its Chairman, Department of Revenue, tr,4inistry of Finance, Government of lndia, Secretariat Buildings, New Delhr - 1 10 00'1 . 4. The National Faceless Assessment Center, lncome Tax Depa(ment, New Delhi. 5. The Union of lndia, Represented by its Secretary to the Government, Department of Revenue, Nlinistry of Finance, New Delhi - 110 001 . ...RESPONDENTS Petition under Article 226 of the Constitution of lndia praying that in the circumstances staled in the affidavit filed therewith, the High Court may be pleased to issue an appropriate writ, order or direction more particularly one in the nature of Writ of l rlandamus or any other appropriate Writ, Order, or Direction, declaring the order passed by the lncome Tax Authorities (National Faceless E-Assessment Centre completed the assessment U/S S 147 r/w Section 144-8 of the lncome Tax Act, 1961 vide DIN and Notice No. dated AND 1 2 25107 t2O23 in ITBA/AST/S 1147 t2O23-2411060839495(1 ) for the assessment year 2015-16 determining the total income of Rs. 2,15,70,788/- as arbitrary, illegal, bad in law, without jurisdiction, void-ab-initio, violative of the principles of natural justiceapartfrombeingViolativeofArticlesl4,l9(1)(g)and265ofthe constitution of lndia and Sec. 148A of the lncome Tax Act, 1961 , and consequently set aside the same in the interests of justice' Counsel for the Petitioner: SRI T.CHAITANYA KUMAR counsel for the Respondent No.1 to 4: SRMJAY K'PUNNA, SC FOR lT Counsel forthe Respondent No.5: SRI GADI PRAVEEN KUMAR, DEPUTY SOLICITOR GENERIAL OF INDIA The Court made the following: ORDER t I E ! ! i l THE HONOURABLE SRI JUSTICE P.SAM KOSHY AND THE HONOURABLE SRI JUSTICE N.TUKARAMJI WRIT PETITION No.6368 0F 2024 ORDER:@er Hon'bte Si Justice P.SAM KOSHY) Heard Mr. T.Chaitanya Kumar, leamed counsel for the petitioner and Mr. Vijay K.Punna, learned Standing Counsel for Income Tax appearing for the respondents' Perused the entire record. 2. The instant Writ Petition has been frled challenging the Assessment Order passed by the Income Tax Authorities under Section 147 tead with Seclion L44-B of the Income Tax Act, 196 I (hereinafter referred to as \"the Act\") dated 25.O7.2023 for the Assessment Year 2015-16. 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 came into effect from Ol.O4.2O2l, the respondents, while proceeding under Section 148 of the Act, were required to issue notice under Section 148A and provide an opportunity of hearing to the assessee. As per the amended pro+*saon of Iaw, the f I I rl i ; 2 proceedings to be drawn are also in a faceless marrner. Whereas, it has been contended by the petitioner that in ttre instant case, reopening ha5 been initiated by the Jurisdictional Assessing Officer. In respect of the said objeition that the petitioner had raised, he relied upon the recent batch of writ petitions decided by this very Bench on 14.09.2023 vide W.P.No.25903 of 2022 and batch to the limited extent. 4. Learned counsel for the Department would not dispute of having decided the said objection in the aforesaid batch matters. However, learned counsel submits that apart from the aforesaid objection, there have been other various objections also which the petitioner has raised in tJ:e writ petition. 5. So far as this contention of the learned counsel for the respondent-Department is concerned, this Bench, while disposing of said batch of writ petitions, had taken note of the same at paragraph Nos.37 & 38 which are reproduced herein under: 3 \"37. TIE preltminary obiection raised bg tle petitioner is sustained and olt these tt'tit petitions stands alloued on this uery jurisdictional issue. Since tle impugned noties and orders are getting qtashed on tle point of jurisdiction, u)e are not inclined to'proeed further and -decide the other issues raised dg the petitioner uhich stands reseled to be raised and antended in an appropiate p roceeding s. \" i38. Sinn the Hon'ble Supreme Court had-, in tLe co.se of Ashish Aganaal, supro, as a one-time measure exerci.sing the pouers under Article 142 of the Constituiion of India, pennitted the Reuenue to protced under the substituted prouisions, and thi.s Court allouing ttrc petitions onlg on the procedural Jlau' t?e right confened on the Reuenue utould remain reserued to proceed further if they so want from th.e stoge of the ortler of the Supreme Court in the case of Ashish Agarutal, supra.\" 6. In view of the same, we are inclined to allow the present writ petition also on similar terms- Accordingly, the present Writ Petition stands allowed on the objection of tJre petitioner that the proceedings have not been drawn in accordance with the amended provision but under the un-amended provision rvhich is otherwise not sustainable' 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 said batch of w'rit petitions. No order as to I I 4 costs. Consequently, miscellaneous petitions pending, if any, shall stand closed. SD/= N. CHANDRA SEKHAR RAO ASSISTA NT REGIS R //TRUE COPY// SECTI OFFICER to'1. -n\" Otfice or The lncome Tax officer' Ward-6 (1) Hyderabad' Telangana State- 2 The Principal Chief Commissioner of' lncome T'Y - Telanoana and A'P' Hyderabad, rr ro*\"Isl'ii\"6i'iot' rtltut'b Tan-k-\" Hvderab-ad - 500 028' Telangana' 3. rhe chairman, central Board of -Dire\"t l?I9\"',;,D*ipsljllTii!i \"'{,\"i\"lZlX:: \"' H,iin'ittrv \"t Finance' Government of lndia' secr' 110001. 4. The National Faceless Assessment Center' lncome Tax Department' New Delhi. The Secretary to the.Government' -DeTartment of Revenue' Ministry of iil\"r\";;, t'l';;belhi, Union of lndia - 1 10 001 ' One CC to SRI T.CHAITANYA KUMAR Advocate [OPUCI One CC to SRI VIJAY K'PUNNA' SC FOR lT [OPUC] gP:^BT:-:nSlPlf\"IfiYHliJi'Yt'T;35?TI':':ii3:I?$ffi '*'oL Two CD CoPies 5 6 7 o BSR GJP HIGH COURT DATED: 1210312024 -I i{ i: l:; r-, o !):-- I Itri ORDER WP.No.6368 of 2024 ALLOWING THE WRIT PETITION, WITHOUT COSTS o ,.) 0 2 rttl' ,i:4 * --:..','.--. to "