Mathi Srinivasulu Reddy V. Union of India, Rep by Secretary (Finance) Ministry of Finance, New Delhi and The Income Tax Officer - Ward 14(1), Hyderabad and The Principal Chief Commissioner of Income Tax, Andhra Pradesh and Telangana and Assessment Unit, Income Tax Department, National e-Assessment Center, New Delhi

WP/21852/2024

AI Insights

The case involves Mathi Srinivasulu Reddy, the petitioner, who challenged the assessment and penalty orders issued by the Income Tax Department under Sections 147 and 144 of the Income Tax Act, 1961. The petitioner argued that the notices for reassessment were issued beyond the prescribed period of limitation, as the income that allegedly escaped assessment was around Rs.20 lakhs, which is below the threshold for reopening assessments under Section 149(1)(b) of the Act. The respondents contended that the writ petition was not maintainable as the petitioner had an adequate alternative remedy under the statutory appeal provisions. The court decided not to delve into the merits of the income computation due to the availability of an alternative remedy and dismissed the writ petition, advising the petitioner to pursue the appeal process.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 801754 (HC-AMARAVATI)
• Appeal Type: Others
• Pronouncement Date: 01-10-2024
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: HIGH COURT
• Department Lawyers: PASALA RAO; VIJAY PUNNA
• Assessee Lawyers: MALLAVOLU
• Keywords: Assessment Order; Income Tax; Limitation; Penalty order; Reassessment; Writ of Mandamus
• Section: 147; 144; 151; 148A(b); 149(1)(b); 226

Judgement Text

"IN THE HIGH COURT OF ANDHRA PRADESH :: AMARAVATI (Special Original Jurisdiction) TUESDAY, THE FIRST DAY OF OCTOBER TWO THOUSAND AND TWENTY FOUr\" PRESENT THE HONOURABLE SRI JUSTICE G.NARENDAR AND THE HONOURABLE SMT JUSTICE KIRANMAYEE MANDAVA WRIT PETITION NO: 21852 OF 2024 Between: Mathi Srinivasulu Reddy, S/o late Math! Basavapunna Reddy, aged about 55 years, R/o.D.No.26-104/33, B.No-126/1, Balram Nagar, Street No.1, near Sri Venkateswara Swamy Temple Malkajgiri, Hyderabad.Telanga na- 500 047 ...PETITIONER^ AND 1. Union of India, Rep by Secretary (Finance) Ministry of Finance, New Delhi 2. The Income Tax Officer - Ward 14(1), Hyderabad, Income Tax Towers, A C, Guards, Masab Tank, Hyderabad - 500 004, Telangana 3. The Principal Chief Commissioner of Income Tax, Andhra Pradesh and Telangana, Room No. 922„ 9th Floor, 'B' Block, I.T.Towers, 10-2-3, AC Guards, Hyderabad - 500 004, 4. Assessment Unit, Income Tax Department, National e-Assessment Center, New Delhi Room No. 401,2nd Floor Ramp Jawaharlal Nehru Stadium, New Delhi 110 003. ...RESPONDENTS. Petition under Article 226 of the Constitution of India praying that in the circumstances stated in the affidavit filed therewith, the High Court be pleased to issue an appropriate writ, order or direction, i particularly, one in the nature of Writ of Mandamus a. tb declare that the ^ may more ■r r i action of the respondents in issuing Assessment Order ITBA/AST/S/147/2023-24/1062118032(1) dated 06.03.2024, Penalty Order ITBA/PNL/F/271F/2024- 25/1068262548 (1) dated 02.09.2024 and all consequential orders/notices as illegal, arbitrary and barred by time b. Consequently to quash the Assessment Order ITBA/AST/S/147/2023- 24/1062118032(1) ITBA/PNL/F/271F/2024-25/1068262548 (1) dated 02.09.2024 and all consequential orders/notices. lA NO: 1 OF 2024 dated 06.03.2024, Penalty Order 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 grant stay of all further proceedings in pursuance of the Assessment Order ITBA/AST/S/147/2023-24/1062118032(1) 06.03.2024, Penalty Order ITBA/PNL/F/27 IF/2024- 25/1068262548 (1) dated 02.09.2024 and all consequential orders/notices pending disposal of the above writ petition. ^ dated Counsel for the Petitioner: M/s. MALLAVOLU NIKITHA Counsel for the Respondent Nos.1 & 4: SRI PASALA PONNA RAO, - DEPUTY SOLICITOR GENERAL OF INDIA Counsel for the Respondent Nos.2 & 3: SRI VIJAY KUMAR PUNNA, SC, FOR IT The Court made the following: ORDER 4 IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI THE HONOURABLE SRI JUSTICE G.NARENDAR THE HONOURABLE SMT JUSTICE KIRANMAYEE MANDAVA WRIT PETITION NO: 21852 of 2024 ORDER: {per Hon’ble Smt. Justice Kiranmayee Mandava) The writ petition is directed against the order of assessment passed under Section 147 r/w Section 144 of Income Tax Act, 1961 (for short ‘the Act’). It is contended by the petitioner that he is a retired person from service and deposited his retiral benefits in the State Bank of India and Andhra Bank. It is further stated that the amounts thus deposited were converted into FDRs and on maturity of the said FDRs, the amount was redeposited into his bank accounts. The notices under the provisions of Section 148A(b) of the Act were issued on the pretext that there were deposits in the bank accounts and as the petitioner did not file his returns of income. Heard Ms. M.Nikitha, learned counsel for the petitioner and 2. Sri Vijay Kumar Punna, learned senior Standing Counsel for Income Tax Department. It is contended by Ms. M.Nikitha, the learned counsel for the petitioner that the issuance of notice under Section 148 of the Act is barred by 3. limitation in as much as the income chargeable to tax that has escaped 2 assessment is around Rs.20 lakhs. Therefore, contends that in terms of the provisions of Section 149(1 )(b) of the Act, the respondents have no jurisdiction to reopen the assessment as the issuance of notice under Section 148 of the Act for reassessment is beyond the prescribed period of limitation, prays for set aside of the assessment. Per contra Sri Vijay Kumar Punna, learned Counsel for Income Tax 4. Department submits that by passing the remedy of appeal to the Commissioner of Income Tax (Appeals) as provided under the statute, the petitioner has approached the Court by way of writ petition, which is not maintainable. Thus prays for dismissal of the writ petition. 5. Considered the rival submissions. The income chargeable to tax. that has escaped assessment as per the order of assessment is Rs.69,30,023/-. However, it is Rs.20,88,000/- according to the petitioner. Without going into the merits of computation of income chargeable to tax that has escaped assessment or the additions to the income made in the assessment order, which involves the recording of the finding of facts and adjudication, since an adequate alternative remedy of appeal is provided under the statute, we deem it appropriate to grant liberty to the petitioner to avail the alternative remedy of appeal before the commissioner of Income Tax (Appeals) within fifteen days from the date of receipt of the order in the writ petition, by raising ail the issues including the one raised in the present writ petition. If an appeal is filed within the above 3 mentioned period of fifteen days, the learned Commissioner of Income Tax (Appeals) shall pass appropriate orders on the appeal in accordance with the law. Pending disposal of the appeal the demand raised in the case is suspended subject to payment of 15% of the demand raised, after giving credit to the amount, if any, paid in respect of the subject demand, within a period of two weeks from the date of receipt of the order. 6. The writ petition is accordingly disposed of. There shall be no order 7. as to costs. As a sequel, pending interlocutory applications, if any, shall stand closed. Sd/- M.RAMESH BABU DEPUTY REGISTRAR //TRUE COPY// d secWntd^ficer To, 1. The Secretary (Finance) Ministry of Finance, Union of India, New Delhi 2. The Income Tax Officer - Ward 14(1), Hyderabad, Income Tax Towers, A C,Guards, Masab Tank, Hyderabad - 500 004, Telangana 3. The Principal Chief Commissioner of Income Tax, Andhra Pradesh and Telangana, Room No. 922,, 9th Floor, 'B' Block, I.T.Towers, 10-2-3, AC Guards, Hyderabad - 500 004, 4. Assessment Unit, Income Tax Department, National e-Assessment Center, New Delhi Room No. 401,2nd Floor Ramp Jawaharlal Nehru Stadium, New Delhi 110 003. 5. One CC to M/s. Mallavolu Nikitha, Advocate [OPUC] 6. One CC to Sri Pasala Ponna Rao, Deputy Solicitor General of Irfdia, High Court of A.P. [OPUC] 7. One CC to Sri Vijay Kumar Punna, SC for IT[OPUC]^ 8. Three CD Copies. ssb $ HIGH COURT DATED:01/10/2024 ORDER ^^ANDH^ WP.No.21852 of 2024 X 21, OCT M.*! S Current Section pAT '' DISPOSING OF THE W.P. WITHOUT COSTS "