Mr. Ashok Reddy Damera V. Assessment Unit, Income Tax Department, National E-Assessment Center, New Delhi and The Assistant Commissioner of Income Tax, Circle - 1, Karimnagar and The Principal Chief Commissioner of Income Tax, Andhra Pradesh and Telangana

WP/3713/2024

AI Insights

Mr. Ashok Reddy Damera, a government school teacher, filed a writ petition under Article 226 of the Constitution of India against the Income Tax Department, challenging an order for the Assessment Year 2016-17. The order was issued under Section 147 read with Section 144B of the Income Tax Act, 1961, and was claimed to be arbitrary, illegal, and violative of natural justice and constitutional rights. The petitioner argued that the reopening of the assessment was not in compliance with the amended provisions of Section 148A, which mandates a faceless procedure and an opportunity for the assessee to be heard. The court referenced a previous judgment where similar procedural issues were addressed, leading to the allowance of the writ petition on jurisdictional grounds.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 799464 (HC-TELANGANA)
• Appeal Type: Others
• Pronouncement Date: 13-02-2024
• Assessment Year: misc
• Other Referred Cases: Ashish Agarwal vs. Revenue
• Laws Referred To: Income Tax Act, 1961, Constitution of India
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: SUNDAR SUPATI
• Assessee Lawyers: A V A SIVA KARTIKEYA
• Keywords: Assessment Year 2016-17; Faceless Proceedings; Income Tax; Jurisdictional issue; Natural Justice; Writ of Mandamus
• Section: 147; 148A; 1448; 265; 226

Judgement Text

"IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD (Special Original Jurisdiction) TUESDAY, THE THIRTEENTH DAY OF FEBRUARY TWO THOUSAND AND TWENTY FOUR PRESENT THE HONOURABLE SRI JUSTICE P.SAM KOSHY THE HONOURABLE SRI JUSTICE N.TUKARAMJI WRIT PETITION NO: 3713 OF 2024 [ 337s ] ...PETITIONER Mr. Ashok Reddy Damera, S/o [rr'lr. Ram Raji Reddy Damera, Aged 58 years, Occ. Government School Teacher, Rl/o. Arnakonda Village, Choppadandi Mandal, Karimnagar - 505 41 5, Telangana- Between: AND 1. Assessment Unit, lncome Tax Department, National E-Assessment Center, New Delhi, Room No. 4O1 , Znd Floor, E-Ramp, Jawaharlal Nehru Stadium, New Delhi - 1'10 003. 2. The Assistant Commissioner of lncome Tax, Circle - 1, Karimnagar, lncome Tax Office, Aaykar Bhawan, Near Natra.l Theatre, Karimnagar - 505 001, Telangana. 3. The Principal Chief Commissroner of lncome Tax, Andhra Pradesh and Telangana, Hycerabad, Room No.922,gth Floor, B Block, l.T.Towers, 10-2-3, AC Guards, Hyderabad - 500 004, Telangana. ...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 of Mandamus or any olher appropriate Writ, Order or Direction, declaring, the Order passed by the 1 st Respondent, u/s 147 r/w Sec. 1448 of the lncome Tax Act, 196'l , daled 2811212023, bearing DlN.. ITBA/ASTiS/14712023-2411059150566(1), for the Assessment Year 2016 - 17, as arbitrary, illegal, bad in law, void-a b-initio, violative of the principles of natural justice apart from being violative of Artictes 14. 19(1)(9) and 265 of the 1 1 lA NO: 1 OF 2024 , - ^.^+^-r , Petition under Section 151 CPC praying that in the circumstances stated in the affidavit fireo in support of the petition, the High court may be pleased to stay alr further proceedings, including any recovery, pursuant to the order passed by the 1st Respondent' u/s Ut rlw Sec' 1448 of the lncome Tax Act' 1961' dated 28112t2O23, bearing DlN\" |TBAJASrf;;l147l2O23'24/1059150566(1)' for the Constitution of lndia and Sec' 148A of the lncome Tax Act' 1 961 ' and consequentlY set aside the same Assessment Yeat 2016 - 17 ' Counsel for the Petitioner : M/s'A'V'A'SIVA KARTIKEYA c o u n se r ro r the Re s po na\" nt.',$r#i:? ffi:} :'i,t:$Jl,, The Court made the following: ORDER t THE HONOURABLE SRI JUSTICE P.SAM KOSHY AND THE HONOURABLE SRI WSTICE N.TT'KARAMJI WRIT PETITION No.3713 OF 2o24 ORDER:(per Hon'ble Sri Justice P.SAM KOSHY) The instant Writ Petition has been filed by the petitioner under Article 226 of the Constitution of India seeking for the follgwing relief: \"...to issue a writ of mandamus, or any other appropriate writ, order, or direction declaring the Order passed by the lst Respondent under Section 147 read with Section 7448 of the Income Tax Act, 1961 dated 28/12/2023 bearrng DIN ITBA/ASTlSll47/ 2023-24 /1059150566(1) for the Assessment Year 2016-17 as arbitrary, illegal, bad in law, void ab initio, violative of tJle principles of natural justice, apart from being violative of Articles la, 19(1)(9) and 265 of the Constitution of India ald Section l48A of the lncome Tax Act, 1961 and consequently set aside the same in the interests ofjustice and to pass...\" 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, tJle 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 & ]YTR,J W.P.No.3773 oJ 2024 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 Stalding 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 apa-rt 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 dispsing of said batch of writ petitions, had taken note of 3 PSr,J&.lYrR,J W.P.No.3773 oJ 2O24 the same at paragraph Nos.37 & 38 which are reprduced herein under: \"37. TIE preliminary objection raised bg tte petitioner is sustaiied and alt these writ pefitions stands alloued on this uery jurisdictional issue. Since tle impugned notices ani irders are getting quasLLed on the point of juisdiction, u)e are not inclined to proceed further and 'decide the other issues raised bg the petitioner uhich stand.s resenrcd to b raised and contended in an appropiate Proeeding s. \" \"38. Sinrr the Hon'ble Supreme Court hod, in the cose of Ashish Agaruta supra, as a one-time meosure ixercbing ttre powers under Article 142 of the Con stituion of India, permitted the Reuenue to proceed under tle substituted prouisions' and this Court allouing tle petitions onlg on tte procedural Jlau, the agfu cinferid on th.e Reuenue would remain reserued ti proceia Turtter if theg so uont from the stage of the oie, of tle Supreme Court in the cose of Ashish Aganua stPra.\" 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 otherw'ise not sustainable' 7 . As has been held by this Bench in the aforesaid batch matters, the rights of the pa-rties r'\"'ould stand reserved as is I I I 4 PSI(,J 66 nIrR,J W.P.No.?773 of 2O24 envisaged at paragraph Nos.37 & 38 of the said order passed in the batch of writ petitions. No order as to costs. 8. Consequently, miscellaneous petitions pending, if To, any,. shall stand closed. o'\",'iil-roof55iiXA //TRUE COPY/I <,.' V SECTION OFFICER The Assessment Unit, lncome Tax Department, National e_Assessment Center, New Delhi, Room No. 401 , 2nd Floor, E-Ramp, .lawanalal t tenru Stadium, New Delhi - 110 003. The Assistant Commissioner o.f lncome Tax, Circle - 1, Karimnagar, lncome Tax Office, Aaykar Bhawan, Near Natraj Theatre, Karimnagar \"_ SOS OOf , Telangana. The Principat Chief Commissioner of lncome Tax, Andhra pradesh and le^fa1Oana, Hycerabad, Room-No. g22,9lh Floor, B Biock, l.T.Tower\", f O-i_A, AC G_uards, Hyderabad - 500 004, Telangana. One CC to SRI A.V.A.SIVA KART|KEYA, Advocate. IOPUCI One CC to SRI SUNDART R P|SUPAT|, (Sr SC for tntome Tax Dept). tOpUCl Two CD Copies. 1 2 3 4 5 6 BSK GJP HIGH COURT DATED:1 310212024 ORDER WP.No.3713 of 2024 ALLOWING THE WRIT PETITION WITHOUT COSTS J 3 2B l,lAR 202[ HE STATs (-') 1 ( t 9 a -t! I oSsparctl I 3 >@^ "