Mr. Ahmed Mohammed V. Assessment Unit, National Faceless Assessment Department, Ministry of Finance and The Assistant Commissioner, Income Tax, Circle - 9(1)

WP/7641/2024

AI Insights

The case involves Mr. Ahmed Mohammed, the petitioner, challenging the order passed by the Income Tax Department under sections 147 and 144B of the Income Tax Act for the assessment year 2015-16. The petitioner argued that the order was arbitrary, illegal, and void ab initio, as it violated the provisions of sections 148A and 149, and was contrary to the circular issued by the CBDT. The main legal contention was that the reopening of the assessment was initiated under the unamended provisions of the law, whereas the amended provisions, which came into effect on April 1, 2021, required a different procedural approach including faceless assessments. The court referenced a previous judgment in a similar batch of writ petitions, which had addressed similar jurisdictional issues.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 798668 (HC-TELANGANA)
• Appeal Type: Others
• Pronouncement Date: 26-03-2024
• Assessment Year: misc
• Other Referred Cases: Ashish Agarwal
• Laws Referred To: Article 226 of the Constitution of India, Section 147 r.w.s 1448 of the Act, Section 148A and section 149 of the Act, Section 151A of the Act
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: J V PRASAD
• Assessee Lawyers: A V RAGHURAM
• Keywords: Faceless assessment; Income Tax; Jurisdictional issue; Procedural Flaw; Writ of Mandamus
• Section: 147; 149; 148A; 1448; 151A; 226

Judgement Text

"HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD (Special Original Jurisdiction) TUESDAY, THE TWENTY SIXTH DAY OF MARCH TWO THOUSAND AND TWENTY FOUR PRESENT THE HONOURABLE SRI JUSTICE P.SAM KOSHY AND THE HONOURABLE SRI JUSTICE N.TUKARAMJI WRIT PETITIO N No.7641 OF 2024 [ 337e ] Centre, lncome Tax 2nd Floor, E-Ramp, Between: lV1r. Ahmed fVlohammed, S/o. tVr. Mohammed Anwar, aged about 55 years, Occ' Business, 22-6-1028, Gulzar House, lranigalli, Hyderabad - 500002' ...PETITIONER AND I Assessment Unit, National Faceless Assessment Deparlment, Ivlinistry of Finonce, Room No. 401 , Jawaharlal Nehru Stadrum, Delhi - 1 10 003. 2. The Assistant Commissioner, lncome Tax, Circle - 9(1)' l.T. Towers, A-C' Guards. tvlasabtank, Hyderabad - 500004. ...RESPONDENTS petition urrder Article 226 of the constitulion of lndia praying that in the circumstances stated in the affidavrt filed therewith, the High court may be pleased to pass an order or direction, especially one in the nature of wRlT oF MANDAMUS holding that the order passed by 1St Respondent uis 147 r'w s 1448 of the Act, dt.11.03.2024 with DIN No. ITBtuAST/S/14712023- 2411062407163( 1 ) for the Ay.2015-16, as arbitrary, illegal, bad in law, void abinitio, apart from being violative of provisions of section '148A and section 149 of the Act and also contrary to the circular issued by GBDT and provisions of section 151A of the Act, and consequently set aside the order passed by 1't Respondent u/s. -147 r.w.Sl44BoftheACt'dl.11,o3.2024withDlNNo.lTBfuASTlsl147l2o23- 24110624071G3(1 ) for the Ay.2015-.16 and all consequential proceedings pursuant thereto 1v / 1 I 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, including any recovery, pursuant to the order passed by the 1st Respondent uts. 147 r.w.s '1448 of, the Act, d1.11.03.2024 with DIN No:ITBA/AST/S I 1 47 12023-241 1062407 1 6311 ) for the Ay.201 5-1 6. Counsel for the Petitioner: SRI A. V. RAGHU RAM Counsel forthe Respondents: SRI J. V. PRASAD, S.C. FOR INCOME TAX The Court made the following: ORDER 1 THE HONOURABLE SRI JUSTTCE P'SAITI KOSHY THE HONOURABLE SRI JUSTICE N'TUI{ARAMJI WRIT PETITION No.76410F 20.24 ORDER:(per Ho n'ble Si Justice P'SAM KOSHII) Heard Mr.A.V.Raghu Ram' learned counsel for the petitioner, Mr' J.V.Prasad, learned Standing Counsel for respondents. Perused the materia-l available on record' 2. The instant Writ Petition has been frled by the petitioner under Articl e 226 of the Constitution of India seeking for the following relief: 'to poss on order or direction especiotly one in the noture ol WRIT OF MANDAMU|hotdingthottheorderpossedbylstRespondentu/s147 r.w.s 7448 of the Act dt 11-03 2024 with DtN No: ITBNAST/S/147/2023 zi/loszaoi$s(t) fot the Av 2015'16 os orbitrory' illegol' bod in low' void ob initio, oport Jrom being violotive of provisi.ons .of sedion 7484 ond section 74g of the aa on-d olso controty to the circulor issued by iilof ona provisions oJ section 151A of the Act ond consequently set oside the order possed by lst Respondent u/s 747 r'w s 744-8 of the Act' dt 77-03_ 2024 with DtN No.ffBA)ASr/s/147/202324/1062407163(1) for the Ay.2075-16 ond oll consequentiol prcceedings pursuont thereto'' 3. One of the contentions that the petitioner has raised in the present Writ Petition is that under the amended of the Act which came into effect from AND provisions or.o4.2021, the respondents, while proceeding under 2 PSK,J & liJ?R,J W.P.No.7647 of 2024 Section 148 of the Act, were required to issue notice under Section 148A and provide an opportunity of hearing to the assessee. As per the amende.d provision of law, the proceedings to be drawn are also in a faceless manner. 4. Whereas, Iearned 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.25903 of 2022 &, batch, dated 14 .O9.2023 wherein this Court disposed of the batch of writ petitions to the limited extenr. 5. On the other hand, learned Standing Counsel for the respondent-Department 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. 6. So far as this contention of the learned counsel for the respondent-Department is concerned, this Bench. while ) \"1. PSI(,J & JUTR,J W.P.No.7647 of 2O24 disposing of said batch of writ petitions, had taken note of the same at paragraph Nos.37 & 38 which are reproduced herein under: 137. The preliminary objection raised bg the petitioner is sustained and all these u.tit petitions sfands allowed on this uery jurisdictional issue. Since the impugned notices and orders are getting quashed on t?e point of juisdictton, u)e are not inclined to proceed further and decide th.e other issues raised by the petitioner which stands reserued to be raised and antended in an appropiate p rocee ding s. \" \"38. Sine the Hon'ble Supreme Court had, in the case of Ashish Agarual, supra, as a one-time measlte exercbing tte pouers under Article 1a2 of tle Constitution of India, pennitted the Reuenue to proceed under the substituted prouisions, and this Court allowing the petitions only on the procedural flaw, the right anfened on the Reuenue would remain reserued to proceed further if theg so want from the stage of tle order of tle Supreme Court in the case of Ashish Aga rutal, supra.\" 7 . In view of the same, re are inclined to allow t]le 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. -r ( ( 4 PSK,J& MTR,J W.P.No.7647 of 2024 8. As has been held by this Bench in the aforesaid batch matters, the rights of the parties would stand reserved as is envisaged at paragraph Nos.37 & 38 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. SO/- K. VENKAIAH //TRUE COPY// ASSISTANT RE e V G,tgfRAR SECTION OFFICER 1. The Assessment Unit, National Faceless Assessment Centre, lncome Tax Deoartment, Ministry of Finance, Room No. 4O1 ' Znd Floor' E-Ramp' Jawaharlal Nehru Stadium, Delhi - 110 003 2. The Assistant Commissioner, lncome Tax, Circle - 9(1), I T' Towers' A C' Guards, Masabtank, Hyderabad - 500004. 3. One CC to SRI A. V. RAGHU RAM, Advocate [OPUC] 4. One CC to SRI J. V. PRASAD, S.C. for lncome Tax [OPUC] 5 Two CD Copies MP SB b i t ! i : I To, t HIGH COURT DATED:2610312024 ---:' 1g. S-l.rr 15 G;;15: ,^i i ' 6 ( Q v 'z o i) X 1 ltli\" 2[21 c L} t RDER WP.No.7641 of 2024 ALLOWING THE WRIT PETITION WITHOUT COSTS '.a) ...d- @** 'qrt "