AI Insights
The case involves the Medak Primary Agricultural Cooperative Credit Society Limited, which challenged the notices and orders issued by the Income Tax Department for the Assessment Year 2018-2019. The petitioner argued that the reassessment process was modified by the Finance Act, 2021, and the respondents failed to adhere to these modifications, rendering the notices and orders illegal. The High Court referenced a similar batch of writ petitions (W.P.No.25903 of 2022) decided on 14.09.2023, where it was held that the procedures adopted by the Income Tax Department were not in compliance with the statutory requirements post the Finance Act, 2021. The court's decision in this case followed the precedent set in the earlier judgment, leading to the quashing of the impugned notices and orders.
Appeal Details
Counselvise Citation
[2024] 140 COUNSELVISE.COM (IT) 803927 (HC-TELANGANA)
Assessee PAN
Bench
Appeal Number
CRN Number
Appellant
Respondent
Appeal Type
Others
Pronouncement Date
20-09-2024
Assessment Year
misc
Judgement Text
"[ 3411 ] HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD (Speciat Originat Jurisdiction) FRIDAY,THE TWENTIETH DAY OF SEPTEMBER TWO THOUSAND AND TWENTY FOUR PRESENT THE HONOURABLE SRI JUSTICE SUJOY PAUL AND THE HONOURABLE SRI JUSTICE NAMAVARAPU RAJESHWAR RAO WRIT PETITION NO: 256650F 2024 Between: Medak Primarv Aoriculturat Cooperative Credit Society Limited, A registered society estabtiShet under the TEiinga;tffib;r;;\"' docieties Aci \" -i964, having its principat ptace of businels at O.'frfo.'Z_alg, AudJIap;lty b.O.: lvledak - 5021 13, Tdtangana, Represented OV iii Cnaiiiran, Mr. Chitumuta Hanmanth Reddy. ...PETITIONER AND 1 2. 3 Union of lndia, Ministry of Finance, lncome Tax Department, New Delhi _ 100 011 The Offlce of Commissioner,..lncome-Tax Department, Ministry of Finance, Government of lndia, New Delhi - 1OO O.l 1 . Office of the lncome Tax Offlcer, Wardl Siddipet, lncome Tax Otfice, 8_1_22, 1st Floor. Subhash Road, Siddipet, tetangan5. so2iog. erso at. A_i_ia, ai-ti Floor. Krishna Reddv Chambeirs, uyOerEOio' noZO, -siaoip.l, i\"ir;g;;: 502103 The National Faceless Assessme-nt Cerrter, lncome Tax Department, Ministry of Finance, Government of India, New Delhi _ i00 O1 i. - - ...RESPONDENTS Petition under Arricre 226 of the constitution of rndia praying that in the circumstances stated in the affidavit fired therewith, the High court may be pleased to issue a writ or direction or order more particurarry in the nature of a writ of certiorari caling for the records and quashing the (1) rmpugned order dated 0610412022 bearing DrN and Notice No. 1TBNAS[EI14BN2)22- 2311042571009(1) for the Assessment year 2018 _ 2019, issued by the 3rdRespondent under Section j4gA(d) of the lncome Tax Act, 1961 (ii) lmpugned Notice dated 0610412022 bearing DIN and Notice No. lrBA/AST/s/148-112022-23ti042s73220(1) for the Assessment year 2018 - 2019. issued by the 3rd Respondent under section 14g of the rncome Tax Act. 4 l I - 1961 and consequently quashing the (iii) lmpugned Order dated 1610312024 bearing DIN and Notice No ITBA/AST/5114712023-24110627 6111)4(1) for the Assessment Year 2018 - 2019, issued by the Respondents under Section 147 read with Section 144 of the lncome Tax Act, 1961 as being illegal and in violation of applicable law and consequently setaside all conseq uent/s u bseq uent nottces/orders/pe nalties and further restrain the Respondents from making any assessment, reassessment or re-cc)mputation or otherwise proceeding against the Petitioner on the basis of the aforementioned lmpugned Order and Notice dated 06/0412022 and 1610312024 lA NO: 2 OF 2024 Petition under Section '151 CPC praying that in the circumslances stated in the affidavit filed in support of the petition, the High Court may he pleased to suspend all further proceedings pursuant to the Impugned Crder dated 1610312024 bearing DIN and Notice No ITBA/AST/S/147/2023' 2411062761194(1) for the Assessment Yeat 2018 - 2019, iss;ued by the Respondents under Section 147 rcad with Section 144 of lh|e lncome Tax Act, 1961, in the interest of justice lA NO: 3 OF 2024 Petitron under Section 15'1 CPC praying that in the circumstances stated rn the affidavit filed in support of the petition, the High Court may be pleased to stay the operation of lmpugned Order dated 16l03l2024beating Dll{ and Notice No. ITBtuAST/5114712023-2411062761'194('l ) for the Assessment Year 2018 - 2019, issued by the Respondents under Section 147 read with Sectirtn '144 of the lncome Tax Act, 1961 , in the interest of lustice Counsel for the Petitioner: SRl. MYTRI INDUKURU Counsel forthe Respondent No.1:SRl B. MUKHERJEE REP SRI GADI PRAVEEN KUMAR Dy. SOLICITOR GEN. OF INDIA Counsel for the Respondent Nos.2to4: Ms. B. SAPNA REDDY, Jr. SC FOR INCOME TAX DEI'ARTMENT The Court made the following: ORDER t THE HOI{OURABLE SRI JUSTICE SUJOY PAUL AND THE HONOURABLE SRI JUSTICE NAMAVARAPU RAJESIIWAR RAO WRIT PETITION No.25665 0F 2024 ORDER: (per Hon'ble Justice Sujog Paul) Heard Ms. Mytri Indukuru, learned counsel for the petitioner(s), Sri B. Mukherjee, learned counsel representing Sri Gadi Praveen Kumar, learned Deputy Solicitor General of India, for respondent No.1 and Ms. B. Sapna Reddy, learned Junior Standing Counsel for Income Tax Department, for respondent Nos.2 to 4. 2. The ground taken by the learned counsel for the petitioner(s) is that in furtheralce of Finance Act, 2021, re- assessment process stood modified but the respondents have not taken care of it and therefore, notice issued under Section 148 of the Income Tax Act, 1961 cannot sustain judicial scrutiny. Since notice is bad in law, the consequential orders are also bad in law. 3. During the course of hearing, learned counsel for the parties agreed that curtains on this issue are finally drawn by this Court in a batch of writ petitions, W.P.No.25903 of 2022 and other connected matters, decided by common order 2 dated 14.09.2023. The parties agreed that this matter Inay be disposed of in terms of the Common Order dated L1 .O9 .2023. 4. This Court in the said order dated 14.09-2023 in W.P.No.259O3 of 2022, held as under: \"35. In view of the aforesaid discussions, it is by now very clear that the ptocedure to be foltowed by the resPoDdent Department upon treating the [otices issued for reassessmen'l being under Sectiotr 148A, the subsequeDt proceediugs s/as, mandatorily required to be uldertaken uEder the substitutecl prowisions as laid down ufldet the Fiaarrce Act,2O2l. Ia th
Other Referred Cases
Ashish Agarwal
Laws Referred To
Income Tax Act, 1961, Finance Act, 2021
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