M/S. Garagaparru Women Mutually Aided Co-Op Thrift and Credit Soc Limited V. Assessment Unit, Income Tax Department, National E-Assessment Center, New Delhi and The Income Tax Officer, Ward 1, Bhimavaram and The Principal Commissioner of Income Tax1, Visakhapatnam and Union of India, represented by its Principal Secretary, Government of India, Ministry of Finance and The Bank Manager, Union Bank of India, Garagaparru Branch

WP/34935/2025

AI Insights

The case involves M/S. Garagaparru Women Mutually Aided Co-Op Thrift and Credit Soc Limited, represented by Mrs. Byrraju Varalakshmi, challenging the assessment order and penalties imposed by the Income Tax Department for the Assessment Year 2018-19. The petitioner argued that the orders were issued without proper jurisdiction and violated fundamental rights and procedural laws. The High Court referenced a similar case to determine that the assessing officer had no jurisdiction to issue the impugned orders outside the prescribed faceless mechanism, leading to the allowance of the writ petition.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 824319 (HC-ANDHRA_PRADESH)
• Appeal Type: Others
• Pronouncement Date: 24-12-2025
• Assessment Year: misc
• Other Referred Cases: Smt. Parameela Pasumarthi Vs. The Deputy Commissioner of Income Tax Circle-II, Vijayawada and another
• Laws Referred To: Income Tax Act, 1961, Constitution of India
• Result in Favour of: Others
• Court: HIGH COURT
• Assessee Lawyers: A V A KARTIKEYA
• Keywords: Assessment Order; E-assessment Scheme; Faceless assessment; Income Tax; Natural Justice
• Section: 147; 148; 144; 270A; 144B; 271AAC(1); 148A; 272A(1)(d); 226; 226(3)

Judgement Text

"1 APHC010672022025 IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI (Special Original Jurisdiction) [3563] WEDNESDAY,THE TWENTY FOURTH DAY OF DECEMBER TWO THOUSAND AND TWENTY FIVE PRESENT THE HONOURABLE SRI JUSTICE BATTU DEVANAND THE HONOURABLE SRI JUSTICE T MALLIKARJUNA RAO WRIT PETITION NO: 34935/2025 Between: 1. M/S. GARAGAPARRU WOMEN MUTUALLY AIDED CO- OP THRIFT AND CREDIT SOC LIMITED,, 9-50 GARAGAPARRU POST, GANDHI NAGAR, PALAKODERU MANDAL, WEST GODAVARI DISTRICT- 534186, ANDHRA PRADESH. REPRESENTED BY ITS AUTHORISED DESIGNATORY, MRS. BYRRAJU VARALAKSHMI, D/O. BYRRAJU SRINIVASA RAJU, AGED 50 YEARS, OCC. BUSINESS, R/O. 9-50, GANDHI NAGAR, GARAGAPARRU PORT, PALAKODERU MANDAL, WEST GODAVARI DISTRICT- 534186, ANDHRA PRADESH. ...PETITIONER AND 1. 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. 2. THE INCOME TAX OFFICER, WARD 1, BHIMAVARAM, INCOME TAX OFFICE, J.P. ROAD, SIVARAOPET, BHIMAVARAM- 534186, ANDHRA PRADESH. 3. THE PRINCIPAL COMMISSIONER OF INCOME TAX1, VISAKHAPATNAM AAYAKAR BHAVAN, DABA GARDENS, VISAKHAPATNAM- 530020, ANDHRA PRADESH 4. UNION OF INDIA, REPRESENTED BY ITS PRINCIPAL SECRETARY, GOVERNMENT OF INDIA, MINISTRY OF FINANCE, 3RD FLOOR, Printed from counselvise.com 2 JEEVAN DEEP BUILDING, SANSAD MARG, NEW DELHI - 110 001. 5. THE BANK MANAGER, UNION BANK OF INDIA, GARAGAPARRU BRANCH, SIVARAOPET, BHIMAVARAM. ...RESPONDENT(S): 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 to issue a declaration that. a. the Assessment Order passed by the 1st Respondent, u/s 147 r.w.s 144 read with s. 144B of the Income Tax Act, 1961, dated 29.02.2024, bearing DIN and Notice No. ITBA/AST/S/147/2023- 24/1061745757 for the Assessment Year 2018-19 b. the consequential penalties passed by the 1st Respondent, u/s 271AAC(1), 272A(1)(d) and 270A of the Income Tax Act, 1961, dated 22.07.2024, 22.07.2024 and 25.07.2024 bearing DIN No.'s. ITBA/PNL/F/271 AAC(1 )/2024- 25/1066909953 ITBA/PNL/F/272A(1)(d)/2024-25/1066890762 ITBA/PNUF/270A/2024-25/1067016238(1) respectively for the Assessment Year 2018 -19 and c. The notice u/s. 226(3) of the Act, 1961, issued by the 2nd Respondent to the 5th Respondent Bank (not served on the Petitioner till date), attaching the bank account of the Petitioner. for the alleged dues of the Assessment Year 2018-19. as arbitrary, illegal, 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 to consequently set aside the same in the interests of justice. and to pass IA NO: 1 OF 2025 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 order passed by the 2nd Respondent, u/s 148 of the Income Tax Act, 1961, dated 06.04.2022, bearing DIN and Notice No.; ITBA/AST/S/148_1/2022- 23/1042561967(1), for the Assessment Year 2018 - 19, pending disposal of the above Writ Petition; and pass IA NO: 2 OF 2025 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 suspend the notice issued by the 2nd Respondent, u/s. 226(3) of the Income Tax Act, 1961, to the 5th Respondent, i.e., the banker of the Printed from counselvise.com 3 Petitioner, vide DIN & Notice No.: ITBA/RCV/S/226(3)_1/2024- 25/1070070259(1), for the alleged dues of Petitioner, for the Assessment Year 2018-19, pending disposal of the above Writ Petition; and pass Counsel for the Petitioner: 1. A V A SIVA KARTIKEYA Counsel for the Respondent(S): 1. The Court made the following: Printed from counselvise.com 4 THE HON’BLE SRI JUSTICE BATTU DEVANAND & THE HONOURABLE SRI JUSTICE T. MALLIKARJUNA RAO WRIT PETITION No.34935 of 2025 ORDER:(Per Hon’ble Sri Justice Battu Devanand) This Writ Petition is filed under Article 226 of the Constitution of India seeking the following relief: “…to declare that the Assessment Order passed by the 1st Respondent, u/s 147 r.w.s 144 read with section 144B of the Income Tax Act, 1961, dated 29.02.2024, bearing DIN and Notice No. ITBA/AST/S/147/2023-24/1061745757 for the Assessment Year 2018-19 and the consequential penalties passed by the 1st Respondent, u/s 271AAC(1), 272A(1)(d) and 270-A of the Income Tax Act, 1961, dated 22.07.2024, 22.07.2024 and 25.07.2024 bearing DIN No.'s.ITBA/ PNL/ F/ 271AAC(1) /2024- 25/1066909953, ITBA/ PNL/ F/ 272A(1) (d)/2024- 25/1066890762,ITBA/PNL/F/270A/2024-25/ 1067016238 (1) respectively for the Assessment Year 2018-19 and the notice u/s.226(3) of the Act, 1961, issued by the 2nd Respondent to the 5th Respondent Bank (not served on the Petitioner till date), attaching the bank account of the Petitioner for the alleged dues of the Assessment Year 2018-19 as arbitrary, illegal, 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 Section 148-A of the Income Tax Act, 1961, and to consequently set aside the same in the interests of justice and to pass.…” Printed from counselvise.com 5 2) Heard the learned counsel for the petitioner and Sri Anup Koushik Karavadi, learned Standing Counsel appearing for the Income Tax Department. 3) Perused the record. 4) The issue raised in the present Writ Petition is the subject matter in the case of Smt. Parameela Pasumarthi Vs. The Deputy Commissioner of Income Tax Circle-II, Vijayawada and another wherein this Court allowed W.P.No.14681 of 2023 and batch and held as herein under: “Considering the background in notifying the (E-Assessment Scheme of Income Escaping Assessment Scheme, 2022) notified by the Government of India on 29.03.2022, and in the light of the decisions of various High Courts stated supra and upon careful consideration of the contentions raised by the learned counsel appearing on either side, we hold that the impugned notices and orders which have been issued by the Jurisdictional Assessing Officer, or outside the faceless mechanism as provided under the provisions of Section 144 (b) read with Section 151 A and the “E-Assessment Scheme of Income Escaping Assessment Scheme, 2022” notified by the Government of India on 29.03.2022 under Section 151 A, is bad and illegal. It is made clear that the Jurisdictional Assessing Officer (“JAO”) had no jurisdiction to issue the impugned orders/notices.” Printed from counselvise.com 6 5) Since the issue is covered by the order of this Court, dated 28.10.2025 in W.P.No.14681 of 2023 and batch, this Writ Petition is allowed in terms of the said order. 6) There shall be no order as to costs. 7) Consequently, miscellaneous applications, pending if any, shall stand closed. Registry to append a copy of the order in W.P.No.14681 of 2023 and batch, to this order. __________________________ JUSTICE BATTU DEVANAND ____________________________ JUSTICE T.MALLIKARJUNA RAO Dated: 24.12.2025 TM Printed from counselvise.com 7 THE HON’BLE SRI JUSTICE BATTU DEVANAND & THE HONOURABLE SRI JUSTICE T. MALLIKARJUNA RAO WRIT PETITION No.34935 of 2025 Dated: 24.12.2025 TM Printed from counselvise.com "