Laxmi Narayana Sarabu and Madhumita Tripathy V. Income Tax Officer, Ward 9(1), Hyderabad and Principal Commissioner of Income Tax -4, Hyderabad and Assessment Unit, Income Tax Department, National e-Assessment Center, New Delhi and Central Board of Direct Taxes, Represented by its Chairman

WP/12348/2023

AI Insights

The case involves multiple writ petitions filed by individuals challenging the assessment orders and notices issued by the Income Tax Department under various sections of the Income Tax Act, 1961, for the assessment years 2014-15 and 2015-16. The petitioners argued that the orders were arbitrary, illegal, and violated principles of natural justice and constitutional rights. The High Court examined the procedural adherence to the amended provisions of the Income Tax Act, which require notices to be issued and proceedings to be conducted in a faceless manner. The court found that the proceedings in question were not conducted in accordance with these amended provisions, leading to the quashing of the orders and notices.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 799762 (HC-TELANGANA)
• Appeal Type: Others
• Pronouncement Date: 07-11-2023
• Assessment Year: misc
• Other Referred Cases: Ashish Agarwal case
• Laws Referred To: Income Tax Act, 1961, Constitution of India
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: J V PRASAD; SUNDARI R PISUPATI
• Assessee Lawyers: A V A SIVA KARTIKEYA
• Keywords: Assessment Order; Income Tax; Legal Violation; Natural Justice; Writ of Mandamus
• Section: 147; 148; 144B; 148A; 265

Judgement Text

"[ 337e ] HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD (Special Original Jurisdiction) TUESDAY, THE SEVENTH DAY OF NOVEMBER TWO THOUSAND AND TWENTY THREE PRESENT THE HON'BLE SRI JUSTICE P.SAM KOSHY , AND THE HON'BLE SRI JUSTICE N. TUKARAMJI WRIT PETITION NO: 30883 AND 12348 0F 2023 wP NO.30883 0F 2023: Between: !t4l1.Laxq4-Qqr.gbu, Sio IVtr- Narayana.sarabu, aged 61 years, Occ.. Business, H.No.. 18-7-6071816tA. Danaiah Nalar, UppuguOa --SOO OS5-ietingi;a;;;;; AND 1. The lncome Tax officer,.ward 9(_r ), Hyderauad, rncome Tax Towers, AC Guards, ^ llasqb Tank, Hyderabad - 500 004, T6tangana.' 2. The Principal Commissioner _of lncome _Ta\"x -4, Hyderabad, Room No..21 1,2nd - Floor, A Block, l.T.TowersJ0-?-3, AC Guards, Hyderabad - SOO OO+, iefan'gina. 3. Assessment u.nit, Income Tax Department, Naiionar e-nssessmeni i\"nier. Nte* D91ry,^Bqom No.. 401 ; 2nd Floor, E-Ramp, Jawaharlat t tehru StaOiusr, tie* O\"i'ni - 1 10 003. Petition under Articte 226 of the Constitution of' tndia prryidtili;\"i\"\"=T;: circumstances stated in the affidavit filed therewith, the High court may be pleased to issue a writ of Mandamus or any other appropriate writ, order or Direction, declaring. a. the order passed u/s 14BA(d) of the lncome Tax Act, 1961, dated 06.04.2022, bearing DIN and Notice No.. TTBA/AST/F/1 4BN2o22- 2}t1o42s61}3g(1), by the 1st Respondent, for the Assessment year 2015 - 16; b. the notice issued u/s 148 of the lncome Tax Act, .1961, daled 06.04.2022, bearing DIN and Notice No. trBA/AST/s/i4B 1t2022-23t1o42s73140(1), by the 1st Respondent, for the Assessment Year 20'l S - 16, as arbitrary, illegal, bad in law, void-ab-initio, violative of the principles of natural justice, apart from being violatiVe of Articles 1a, 19(i Xg) and 265 of the constitution of lndia and sec 148A of the lncome Tax Act, 1961 , and consequenfly set aside the same in the interests of justice lA NO: 1 OF 2023 Petition under Section 15'1 CPC praying that in the circumstances stated in the affidavit filed in support of the petition, the High Court may oe pleased to stay all further proceedings, including any recovery, pursuant to the notice issued u/s 148 of the lncome Tax Act, 196'1 , dated 06.O4.2022, bearing t)lN and Notice No.. ITBA/AST/S/148-]12022-231104257314O(1), by the 1st Respondent, for the Assessment Year 2O15 - 16, pending disposal of the above Writ Petition Counsel for the Petitioner: SRI A. V. A. SIVA KARTIKEYA Counsel for Respondents: SRI J. V. PRASAD Sr. SC FOR INCOME TAX WP NO: 12348 OF 2023 Between: Ms. Madhumita Tripathy, W/o Mr. Sridhaba Mahapatra, aged 37 years, Occ.. Housewife, H.No. 8 LH, Flat 1402, Lanco Hills, Khajaguda, Manikonda S,O., Manikonda (Jagir), Hyderabad, K.V. Rangareddy District - 500 036, Telangana. ...PETITIONER AND '1 . Assessment Unit, lncome Tax Department, National e-Assessment Center, New Delhi, Room No.. 401, 2nd Floor, E-Ramp, Jawaharlal Nehru Stadium, New Delhi - 1 10 003. 2. The lncome Tax Officer, Ward 8(1), Hyderabad, 6th Floor, Signature Towers, Opp. Botanical Gardens, Kondapur, Hyderabad - 500 0B1,I.elangana. 3. The Principal Chief Commissioner of lncome Tax, Andhra Pradesh and Telangana, Hyderabad Room No..922,9th Floor, B Block, lT.Towers, 10-2-3, AC Guards, Hyderabad - 500 004, Telangana. 4. The Central Board of Direct Taxes, Represented by lts Chairman, Department of Revenue, Ministry of Finance, Government of lndia, Secretariat Buildings, New Delhi - 1 '10 001 . ...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 of Mandamus or any other appropriate Writ, Order cr Direction, declaring the Assessment Order passed by the 1st Respondent, u/s 147 rlw Sec. 1448 of the lncome Tax Act, 1961, dated 17.O4.2023, bearing DIN.. ITBA/ASTlsl14712023- 2411052115827(1), for the Assessment Year 2014 - 15. 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 1a, 19(1Xg) and 265 of the Constitution of lndia and Sec 148A of the lncome Tax Act, 1961 , and consequently set aside the same in the interests of justice lA NO: 1 OF 2023 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 any recovery, pursuant to the Assessment Order passed by the 1st Respondent, u/s 147 rlw Sec. 1448 of the lncome Tax Act, 1961 , dated 17.04.2023, bearing DlN.. ITBA/ASflsl14712023-2411052115827('1 ), for the Assessment Year 2O14 - '15, pending disposal of the above Writ Petition. and to pass lA NO: 2 OF 2023: Between: 1. Assessment Unit, lncome Tax Department, National e-Assessment Center, New Delhi, Room No.. 401 , 2nd Floor, E-Ramp, Jawaharlal Nehru Stadium, New Delhi - 1 10 003. 2. The lncome Tax Officer, Ward 8('l), Hyderabad, 6th Floor, Signature Towers, Opp. Botanical Gardens, Kondapur, Hyderabad - 500 08'1, Telangana. 3. The Principal Chief Commissioner of lncome Tax, Andhra Pradesh and Telangana, Hyderabad Room No..922,9th Floor, B Block, l.T.Towers, 10-2-3, AC Guards, Hyderabad - 500 004, Telangana. 4. The Central Board of Direct Taxes, Represented by its Chairman, Department of Revenue, Ministry of Finance, Government of lndia, Secretariat Buildings, New Delhi - 11o 001' ...pETrroNERS.RESpoNDENTs AND Ms. Madhumita Tripafhy, Wo Mr. Sridhaba Mahapatrb, aged 37 years. Occ.. Housewi{e; ,H.Noi B L.H, Fliat 1402, Lanco Hills, KhaJaguda, Manikonda S,O., Manikonda (Jdsir), Hyd'erabad, K.v. Ransareddy District;?ggjiSil?l3pf,?ifr._ 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 vacate the interim Order passed in W.P.No. 12348 ol 2023, dated 2810412023 and dismiss the Writ petition filed by the Writ Petitioner in the interest of Justice and pass Counsel for the Petitioner: SRI A. V. A. SIVA KARTIKEYA Counsel for Respondents: SMT. SUNDARI R PISUPATI (sR.sc FoR rNcoME TAX DEPARTMENT) The Court made the following: COMMON ORDER THE HON'BLE Szu JUSTICE P.SAM KOSHY AND THE HON'BLE SRT JUSTICE N.TUKARAMJI W.P. Nos. 30883 and 12348 of2o23 COMMON ORDER (per Hon'ble Sri Justice P.SA.tfi KOSHY) When these matters are taken up for hearing today', it has been informed by the parties that an identical writ petition i.e., W.P.no.30153 of 2023 has already been allowed and disposed of vide order dated 30.10.2023 2. In view of the fact that the identical matter has already been allowed by this Court, we are inclined to allow these rvrit petitions also, in terms of the order passed in W.P.No.30l 53 of 2023 decided on 30.10.2023 on similar terms. 3. As a sequel, miscellaneous applications pending if rrny in these writ petitions, shall stand closed. No order as to costs To, 1. 2. 3. SD/.B. SARASWATHI //rRUE coPY// ASSlsrubREGlsrRAR SECTION OFFICER The lncome Tax Officer, Ward 9( 1), Hyderabad, lncome Tax Towers, AC Guards, Masab Tank, Hyderabad - 500 004, Telangana. The Principal Commissioner of lncome Tax - 4, Hyderabad, Room No.. 211,2nd Fbor, A Block, l.T.Towers, 10-2-3, AC Guards, Hyderabad - 500 004, Telangana. Assessment Unit, lncome Tax Department, National e-Asserssment Center, New Delhi, Room No.. 401, 2nd Floor, E-Ramp, Jawaharlal Nehru Stadium, New Delhi - 110 003 The lncome Tax Officer, Ward B(1), Hyderabad, 6th Floor, !)ignature Towers, Qpp. Botanical Gardens, Kondapur, Hyderabad - 500 081, Telangana. The Principal Chief Commissioner of lncome Tax, Andhra Pradedh and Telangana, Hyderabad Room No.. S22,9th Floor, B Block, l.T.Towers, 10-2-3, AC Guards, Hyderabad - 500 004, Telangana. The Chairman, Central Board of Direct Taxes, Department of Revenue, Ministry of Finance, Government of lndia, Secretariat Buildings, New Delhi - 110 001 . One CC to Sri A V A Siva Kartikeya Advocate IOPUCI 9n\" 99 to Sri J V Prasa{(Sr SC FOR INCOME TAX) Advocate [OPUC] One CC to Smt. Sundari R. Pisupati, Advocate(OPUC) Two CD Copies 4 5 7. o 9. '10 MBC SB t ^-- a a HIGH COURT DATED: 0711112023 COMMON ORDER WP NO: 30883 AND 12348 OF 2023 BE:;TATc ,4 1 1 q () 1 7 D ( t 5 Niiv FSPATC 2021 t ALLOWING THE WRIT PETITION S WITHOUT COSTS ...) 'V r/ t 'r @ THE HON'BLE SRI JUSTICE P.SA.IU KOSHY AND THE HON'BLE SRI JUSTICE LAXMI NARAYANA ALISHETTY W.P. No.3O153 of 2O23 ORDER: (per Ilon'bLe Si Justic.e P.s'Att KOSHY) Heard Mr. A.V.A. Siva Kartikeya, learned counsel for the petitioner and Ms. B. Sapna Reddy, learned Junior Standing Counsel for Income Tax appearing for the respondents. pemsed the entire record. 2. The instant petition has been filed challenging the Assessment Order passed by respondent No.1 under section 148A(d) of the Income Tax Act, 1961 (hereinafter referred to as \"the Act,,) dated 25.04.2022 for the Assessment Year 20 18- 19. 3:... One of the bontentibns that the petilioner has raised in the present writ petition is that under the amended provisions of the Act which came into effect from O1.04.2021, the respondents while proceeding under 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 manner. Whereas, it has been contended by the petitioner that in the instant case, reopening has been initiated blz the Juridictional Assessing Qfficer. In respect of the.said objection that the petitioner had raised, he relied upon the recent batch of writ 2 petitions dccided by this very Bench on 14.t)9 .2023 vide W.P.No.259O3 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, lcarned counsel submits that apart from the aforesaid objection, there have been other various objections aLso which the petitioner has raised in the writ petition. 5. So far as this contention of the learned cortnsel for the Department is concerned, this Bench, while disposing of W.P.No.25903 of 2022 and batch had taken note of the same in a paragraph Nos.37 & 38 which is reproduced herein under: \"37. The preliminary objection raised by the petiti('ner rs sustained and all these writ petitions stands allowed on tlris very jurisdictional issue. Since the impugned notices and or(lers al'e getting quashed on the point ofjurisdiction, ive ar€ not incrined to proceed further and decide the other issues raised by the petitroncr which stands reserved to be raised and contendcd in an appropriate proceedings.\" 38. Since the Hon'ble Supreme Court had, in the case ol Ashish Agarwal, supra, as a one-time measure exercising the powers under Article 142 of tLre Constitution of tndia, permitled the Revenue to proceed under the substituted provisions, and this Court allowing the petitions only on the procedural flaw, tlLe right conferred on the Revenue would remain reserved to proceed further if they so want from the stage of the order of the Strpreme Court in the case of Ashish Agarwal, 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 the petitioner that th,: proceedings have not been drawn in accordance with the amended provision but under the unamended provision which is otherwise not sustainable. 3 As has been held by this Bench in the aforesaid batch matters, the right of the respondents would stand reserved as is envisaged in paragraph Nos.37 & 38 of the said batch. No order as to costs. 7 . Consequently, miscellaneous petitions pending, if any, shall stand closed. P.SAM KOSHY, J LAXMI NARAYANA ALISHETTY, J Dated: 30.1O.2023 aqs ,.. . !.- 4 THE HON'BLE SRI JUSTICE P.SAM KOSHY AND THE HON'BLE SRI JUSTICE LAXMI NARAYANA ALISHETTY W.P. No. 3O153 of 2023 Qter tlte Hon'ble Si Justice P.SAM KOSHY) Dated: 3O.lO.2023 aqs "