Mohammed Abdul B-1-2991114/A and Ranga Reddy Pathi and PACS Shamshabad and Raini Veqa V. Income Tax Officer, Ward '1 4( 1 )' and The Principal Chief Commissioner of Income Tax AP and TS and The Assessment Unit, Income Tax Department, National Faceless Assessment Centre and Central Board Of Direct Taxes and Union Of India

WP/1661/2024

AI Insights

The case involves multiple writ petitions filed by different petitioners challenging the orders and notices issued by the Income Tax Department under the Income Tax Act, 1961. The primary contention was that the orders were issued under the unamended provisions of the Act, which require a different procedural approach compared to the amended provisions that came into effect from April 1, 2021. The petitioners argued that the notices and orders were issued without following the mandatory procedural requirements, including the opportunity of hearing and faceless assessment as stipulated in the amended provisions. The court, referencing a similar batch of writ petitions it had previously decided, allowed the petitions on the grounds of jurisdictional errors in the issuance of the notices and orders.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 796231 (HC-TELANGANA)
• Appeal Type: Others
• Pronouncement Date: 24-01-2024
• Assessment Year: misc
• Other Referred Cases: W.P.No.34493 of 2023, WP.No.25903 of 2022
• Laws Referred To: Article 226 of the Constitution of India, Income-tax Act
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: J V PRASAD; GADI KUMAR
• Assessee Lawyers: DUNDU MANMOHAN; THANNERU CHAITANYA KUMAR
• Keywords: Faceless assessment; Income Tax; Natural Justice; Writ of Mandamus
• Section: 148; 148A(d); 151 CPC; 14BA(d)

Judgement Text

"HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD (SPecial Original Jurisdiction) WEDNESDAY, THE TWENTY FOURTH DAY OF JANUARY TWO THOUSAND AND TWENTY FOUR PRESENT THE HONOURABLE SRI JUSTICE P.SAM KOSHY AND THE HONOURABLE SRI JUSTICE N.TUKARAMJI WRIT PETITION NOs: 1661 1673 1675 and1727 OF 2024 WRIT PETITIO N NO: 1661 0F 2024 Between: Mohammed Abdul B-1-2991114/A, AL 500008. 9 vears. S/o Mohammed Sardar, T6lichowki, Hyderabad, Telangana Moid, Aged 5 HAMRA ColonY, ...PETITIONER AND 1 lncome Tax Officer, Ward '1 4( 1 ), lT Tower' AC Guards' Masab Tank' Hyderabad, Telangana - 500004 The Princioal Chief Commissioner of lncome Tax AP and TS' 1oth Floor' C- aioii, i.r. lowers, to-z-a, A.C Guards, Hvderabad-500004 3. The Assessment Unit, lncome Tax Department' National . Faceless \" nii\".trLni C\"ntt\", Oetni, H,/tinistrv of Finance, Room No' 4O1'2nd Floor' E- Rimp, Jawanarlal Nehru Stadium, Delhi-110003 ...RESPONDENTS 2 Petition under Article 226 of lhe constitution of lndia praying that in the circumstances stated in the affidavit filed therewith' the High Court may be pleasedtoissueawrit,orderordirection,moreparticularlyoneinthenatureof Writ of Mandamus, declaring the impugned order dt lTlO3l2O23 passed u/s 14BA(d)oftheActvideDlNNo.ITBA/ASTlFt14BN2o22.23l1050870054(,1)and theconsequentialnoticeu/s,l48dt.17to3t2o23videDlNNo.ITBA/AST/S/148 112022-2311050870229(1), for A.Y 2016-17' issued by the JAO(1st respondent) instead of FAO(3rd respondent), as void, illegal' and contrary to the provisions of lncome-tax Act and contrary to the Principles of Natural Justice' lA NO: 'f OF 2024 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 pursuant to the notice u/s 148 dt. 1710312023 of the Act vide ITBA/AST/S/1 4 B-] 12022-2311050870229( 1 ) issued by the 1 st Respondent(JAO) for A.Y. 2016-17 instead of 3rd respondent(FAO) and may pass such other order(s) as the Hon'ble court deems fit and proper in the interests of substantial justice, as otherwise the petitioner would be put to irreparable loss and severe injury. Counsel for the Petitioner: SRI DUNDU MANMOHAN Counsel for the Respondents: SRI J.V.PRASAD, SC FOR INCOME TAX WRIT PETITION NO: 1673 OF 2024 Between: Ranga Reddy Pathi, aged 70 years, S/o Linga Reddy Pathi, 35-5-28' Subash Road Laxmiriagar, BeSide Old Gramapanchayat, Hanamkonda, Telangana - 506009 ...PETITIONER AND 1 lncome Tax Officer, ard 2, Karimnagar, lncome Tax Office, Aayakar Bhavan, Near Natraj Theatre, Karimnagar, Andhra Pradesh, 505001 2. The Principal Chief Commissioner of lncome Tax, AP and TS, '1Oth Floor, C- Block, l.T. Towers, 10-2-3, A.C. Guards, Hyderabad-500004. 3. The Assessment Unit, lncome Tax Department, National Faceless Assessment Centre, Delhi, Ministry of Finance, Room No. 4O1 , 2nd Floor, E- Ramp, Jawaharlal Nehru Stadium, Delhi-1 10003 ...RESPONDENTS Petition under Article 226 of lhe Constitution of lndia praying that in the circumstances stated in the affidavit filed therewith, the High Court may be pleased to issue a writ, order or direction, more particularly one in the nalure of Writ of Mandamus, declaring the impugned order dt. 07.04.2022 for A.Y. 2015-16 passed u/s 148A(d) of the Act vide DIN No. ITBA/AST/F/148412022- 2311042617954('l ) and the consequential notice u/s 148 dt. 07.O4.2022 vide DIN No. ITBA/AST/S/148 112022-2311042646928(1), issued by the JAO(1st il tl il il l i ; I I respondent) instead of FAO(3rd respondent), as void' illegal, and contrary to the provisions of lncome-tax Act and contrary to the Principles of Natural Justice. lA NO: 1 OF 2024 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 pursuant to the notice u/s 148 dl. 07.04.2022 vide DIN No. tTBtuAST/S/148_112022- 23t1042646928(1 ) issued by the 1st Respondent(JAO) for A.Y. 2015-16 instead of 3rd respondent(FAo) and may pass such other order(s) as the Hon'ble Court deems fit and proper in the interests of substantial justice, as otherwise the petitioner would be put to irreparable loss and severe injury. Counsel for the Petitioner: SRI DUNDU MANMOHAN Counsel for the Respondents: SRI J.V.PRASAD, SC FOR INCOME TAX WRIT PETITION NO: 1675 OF 2024 Between: PACS Shamshabad, # B-72, Shamshabad, Rangareddy, Telangana - 501218 Represented by Secretary, Rachamallu Arjun. ...PETITIONER AND 1 lncome Tax Officer, Ward 8(1), Signature Towers' Sy' No' 6(P) of Kondapur' Opp. gotnicaLCardens, Sedihlam[ally, Hyderabad, Telangana - 500084' The Princioal Chief Commissioner of lncome Tax, AP and TS, 1oth Floor, C- Block, l.T. Towers, 10-2-3, A.C. Guards, Hyderabad-500004' TheAssessmentUnit,lncomeTaxDepartment,.Ng-tional.Faceless nsi\".s''iient Centie, Oetf,i, Ministry of Finance, Room No 4o1,Znd Floor' E- Ramp, Jawaharlal Nehru Stadium, Delhi-1 10003' ...RESPONDENTS 2 '1, 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, order or direction, more particularly one in the nature of writ of Mandamus, declaring the impugned order dt. 29.O3.2023 for A.Y. 2016-17 passedu/s148A(d)oftheActvideDlNNo'ITBA/AST/F/I48N2022. 2311051593190(1) and the consequential notice u/s 148 dt. 30.03.2023 vide DIN No. ITBA/AST/S/148-112O22-23t1051718483(1), issued bv the JAO(1st respondent) instead of FAO(3rd respondent), as void, illegal, and contrary to the provisions of lncometax Act and contrary to the Principles of Natural Justice. lA NO: 1 OF 2024 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 pursuant to the notice u/s 148 dt. 30.03.2023 vide DIN No. tTBtuAST/S/1 48 _1 t2022-231 1051 71 S4B3(1 ) issued by the 1 st Respondent(JAO) for A.Y. 2016-17 instead of 3rd responden(FAO), and may pass such other orde(s) as the Hon'ble court deems fit and proper in the interests of substantial justice, as otherwise the Petitioner would be put to irreparable loss and severe injury. Counsel for the Petitioner: SRI DUNDU MANMOHAN Counsel for the Respondents: SRI J.V.PRASAD, SC FOR INCOME TAX WRIT PETITION NO: 1727 OF 2024 Between: AND 1. 2. 3. 4. 5. Raiini Veqa, D/o. Mutyala Venkat Rao, Aged. 47 Yrs' Occ. Business, H.No 54iA, Ja-yalakshmi Nagar, Ramachandrapuram, Beeramguda, Medak, 502032. ...PETITIONER The lncome Tax Officer, Ward '1 , Sangareddy, Telangana State. The Principal Chief Commissioner Of lncome Tax Telangan, {F^^ll Hyderabad, lT Towers, AC Guards, Masab Tank, Hyderabad - 500028' Telangana. The Central Board Of Direct Taxes, Represented By lts Chairman, Department Of Revenue, Ministry Of F, Government of lndia, Secretariat Buildings, New Delhi The National Faceless Assessment Center, lncome Tax Department' New Delhi The Union Of lndia, Represented By lts Secretary To The Government, Department of Revenue, Ministry of Finance, New Delhi-1 10001 . ...RESPONDENTS Petition under Article 226 of the constitution of tndia praying that in the circumstances stated 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 Mandamus or any other appropriate writ, order, or Direction, declaring the order passed by the 4th respondent (National Faceless E- Assessment centre) completed the assessment U/S '1 47 r.w.s 144 read with section 144-B of the lncome Tax Act, 1961 vide DIN and Notice No.dated 13-12- 2023. tn DIN no ITBA /AST/Si1 47t2O23- 2411058712630(1)for the Assessment year 2018-19 determining the total income of Rs. 1,31,22,0391 as arbitrary, illegal, bad in law, without jurisdiction, 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 lndia and Sec. 14BA of the lncome Tax Act, '1961, and consequently set aside the same in the interests of justice' IA NO: 1 OF 2024 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 suspend the order Under U/s 147 r.w.s 144 rcad with section 144-8 o'f the lncome Tax Act, 1961 vide DIN and Notice tTBA/AST/S/1 47 12023-241 10587 1 2630(1 ) No.dated 13-12-2023., ln for the Assessment Year DIN no 2018-19 determining the total income of Rs.1 ,31 ,22,0391-, including any recovery, under order Demand notice u/s 156 0f the lncome Tax act 1961 , vide DIN and Notice No. |TBA/AST/Si1 5 6t2)23-24t 10587 12679(1 ) for the Assessment Year 201 8-1 9 and notice Under section 148-A, (d) D1.11-O4.2022, ITBA/AST/F1148-Al2O22- 23t1042691526(1)andnoticeundersectionl4SinDlNandNoticeNo. ITBA/AST/S/148_1t2022-23t1042700195(1) dated 11-04-2O22for the Assessment Year 2018-1 9, pending disposal of the above Writ Petition' Counsel for the Petitioner: SRI THANNERU CHAITANYA KUMAR Counsel for the Respondent No.l, 2 & 4: SRI J'V'PRASAD' SC FOR INCOME TAX Counsel for the Respondent No.3 & 5: SRI GADI PRAVEEN KUMAR' DEPUTY SOLICITOR GENERIAL OF INDIA The Court made the following: COMMON ORDER THE HON'BLE SRI JUSTICE P.SAM KOSI{Y AND THE HON'BLE SRI JUSTICE N.TUKARAMJI III.P.Nos. 1661 1673 1675 and L727 of2024 COMMON ORDER: (per Hon'ble Sn Justice P.SAM 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.34493 of 2023 has already been allowed and disposed of uide order, dated 27.12.2023 2. In view of the fact that the identical matter has already been allowed by this Court, we are inclined to allow these Writ Petitions in terms of the order passed in W.P.No.34493 of 2023 decided on 27.12.2023 on similar terms. 3. As a sequel, miscellaneous applications pending if any in these Writ Petitions, shall stand closed. No order as to costs. SD/- G. SIREESHA //TRUE GOPY// ASSISTANT REGJ}-RAR SECTION OFFICER 1. The Secretary to .The. Go_vernment, Department of Revenue, Ministry of Finance, New Delhi, Union Of lndia-11000i. 2. The lncome Tax Officer, Ward 14(1), lT Tower, AC Guards, Masab Tank, Hyderabad, Telangana - 500004. 3. The lncome Tax Officer, Ward 2, Karimnaqar, lncome Tax Office. Aavakar Bhavan, Near Natraj Theatre, Karimnagar, A-ndhra pradesh, SOSOOl: 4. The lncome Tax Officer, Ward 8(1), Signature Towers, Sy. No. 6(p) of fgl9gpur, Opp. Botnical Gardens,'sertingampaily, Hyderaba'd, Tetanjaia - 500084. To, 5. The lnmme Tax Officer, Ward 1, Sangar,eddy, Telanqana State' d. iiiE \"p?i.ii-p;t 'bhi;i-i.;ffiirsionei\"or lnipme rix relansan' 41q^1P \" Hfi\";6;;:lr lowers, AC Guards, Masab Tank' Hvderabad - 500028' Telangana. Z iie NJtional Faceless Assessment Center, lncome Tax Department, New Delhi. n iio 'princioal Chief Commissioner of lncome Tax AP and TS, '1Oth Floor, C- \" eioif , i.T. towers, '10-2-3, A'C. Guards, Hy{erabad-500004 s. i;;\"'A;;e#;i Unit,' lncome Tax - Department, National lgceless \" n'J!\"\"liii,-n] Ceiire, -oetni, tr71inistrv of Finance, Room No' 4o1,2nd Floor' E- Ramo. Jawaharlal Nehru Stadium, Delhi-l 10003 10.il;'-ifi;man, Centrat Board Of Direct Taxes, Department Of .Revenue' '\"'rr,ri.i.t., bf F. Govemment of lndia, Secretariat Buildings, New Delhi 11 il; ab io snt oUruOU MANMOHAN, Advocate [OPUC] ii.il; ca i; SRiiHnrurueRu cHAITANYA KUMAR, Advoca.te.[oPUC] i5.oil cc io snt J.V.PRASAD, SC FoR l Co-lyE.T.4x [oPUC] i; il; cc io sdt-cAoi Cnnveeru KUMAR, DEPUTY soLlclroR GENERIAL ' ' OFlruofn, High Court for the State of Telangana at Hyderabad [OPUC] 15.Two CD CoPies (Along with the copy of order dated 27.12.2023, in W'P'No'34493 ot 2023 BSR GJP g HIGH COURT DATED: 2410112024 COMMON ORDER WP.Nos.1661, 1673,1675 and 1727 of 2024 a ( O.c i,; STAI.6: .t :l C 1 5 tii 20?l .J' C) l: Dru, ALLOWING ALL THE WRIT PETITIONS, WITHOUT COSTS 0> v THE HONOURABLE SRI JUSTICE P.SAM KOSHY AND THE HONOURABLE SRI JUSTICE N.TUKARAMJI WRIT PETITION No.34493 OF 2023 ORDER:lper Hon'ble Si Justice P.SAM KOSHY) The instant Writ Petition has been frled by the petitioner under Article 226 of the Constitution of India challenging the order issued under Section 148A(d) of the Income Tax Act, i961 (for short, \"the Act\") bearing DIN No.ITBA/AST /F /148A/2022-23 / 7042852137 (1), dated 26.O4.2022 passed by respondent No.1 for the assessment year 2018-19 and the consequent notice under Section 148 of the Act, dated 26.04.2022, beari4g DIN No.ITBA/AST / S / 148_I / 2022-23 / 10428ss160 (1). 2. 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 2 PSK,J& MTR,J W.P.No.34493 of 2023 assessee. As per the amended provision of law' the proceedings to be drawn are also in a faceless manner' 3 . Whereas, learned counsel for the petitioner contended that, in the instant case, reopening has been initiated by the Jurisdictional Assessing Officer' In support of his contention, he relied upon the recent judgment rendered by this very Bench in WP'No'259O3 of 2022 &' batch, dated 14.09.2023 wherein this Court disposed of the batch of writ petitions to the limited extent' 4. On the other hand, learned Standing Counsel for. the respondent-Depa-rtment does not dispute that the said objection was decided in the aforesaid batch of Writ Petitions. However, he further contended 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 counsel for the respondent-Department is concerned, this Bench, while disposing of said batch of writ petitions, had taken note of 3 PSK,J& MTN,J W.P.No.34493 of 2O23 the same at paragraph Nos.37 & 38 which are reproduced herein under: \"37. The preliminary objection raised bg the petitioner is sustained and all these urit petitions stands alloued on this uery juisdictional issue. Since the impugned notices and orders are getting quashed on the point of juisdiction, we ore not inclined to proceed further and decide the other issues raised bg the petitioner which stands reserued to be raised and contended in an appropriate p roceeding s. \" \"38. Since the Hon'ble Supreme Court had, in th-e case of Ashish Aganua| supra, as a one-time meosure exercising the pou.ters under Article 142 of tLe Constitution of India, permitted the Reuenue to proceed under the substttuted prouisions, and this Court ollowing the petitions onlg on the procedural flaut, the right conferred on the Reuenue utould remain reserued to proceed further if theg so u.tant from the stage of the order 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 the petitioner. that the proceedings have not been drawn in accordance with the amended provision but under the un-amended provision which is otherwise not sustainable. 7. As has been held by this Bench in the aforesaid batch matters, the rights of the parties would stand reserved as is n 4 PSK,J & NTR,J W.P.No.34493 oJt 2O2S rir envisaged at paragraph Nos.37 & 3g of the said order passed in the batch of writ petitions. No order as to costs. Consequently, miscellaneous petitions pending, if any, shall stand closed. P.SAM KOSHY, J Date: 27.12.2023 TJMR N. TUKARAMJI, J "