AI Insights
The case involves multiple writ petitions filed by various petitioners against the Income Tax Department, challenging the legality of reassessment notices and orders issued for different assessment years. The petitioners argued that the notices were arbitrary, illegal, and violated principles of natural justice and constitutional rights under Articles 14, 19(1)(g), and 265, as well as Section 148A of the Income Tax Act, 1961. The respondents, representing the Income Tax Department, defended the notices. However, the court, referencing a previous decision (W.P.No.25903 of 2022), found that the reassessment process followed was incorrect and did not adhere to the statutory requirements set by the Finance Act, 2021.
Appeal Details
Counselvise Citation
[2024] 140 COUNSELVISE.COM (IT) 798592 (HC-TELANGANA)
Assessee PAN
Bench
Appeal Number
CRN Number
Appellant
Respondent
Appeal Type
Others
Pronouncement Date
03-05-2024
Assessment Year
misc
Judgement Text
" [3403 ] HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD (Special Original Jurisdiction) FRIDAY, THE THIRD DAY OF MAY TWO THOUSAND AND TWENTY FOUR PRESENT THE HONOURABLE SRI JUSTICE SUJOY PAUL I AND THE HONOURABLE SRI JUSTICE N.TUKARAMJI WRIT PETITION NOS: 12975 12985 13023 & 130280F 2024 I W.P.NO: 12975 OF 2024 Between: 1. Assessment Unit, lncome Tax Department, National e-Assessment Center, New Delhi, Room No.. 401 ,2nd Floor, E-Ramp, Jawaharlal Nehru Stadium, New Delhi - 110 003. 2. The lncome TaxlOfficer, Ward 1, Khammam, lncome Tax Office, Rajeev Gunt, Rajiv ChoWk, Near Kinnerasani Theatre, Khammam - 507 001, Telangana I 3. The Principal Chief Commissioner of lncome Tax, Andhra Pradesh and Telangana, Hyderabad Room No.. 922,9th Floor, 'B' Block, l.T.Towers, 10-2- 3, AC Guards, Hyderabad - 500 004, Telangana. [ /r. Baskara Rab Gandam, S/o. Mr. Srirama Murlhy, aged 65 years, Occ.. Agriculturist, R/o. 3-58, Veerababu Street Kallur, Khammam District - 507 209, Telangana.l ...PETITIONER . AND ...RESPONDENTS Petition under Article 226 of the Constitution of lndia praying that in the circumstances statedfiin the affidavit filed therewith, the High Court may be pleased to issue \" ujliit or lv'landamus or any other appropriate Writ, Order or Direction, declaring tti{rt tn\" order passed by the 1st Responden t, uls 147 rlw Sec. 1448 ot tne tnC[me Tax Act, 1961, dated 27.03.2024, bearing DIN and .1. Notice No.. ITBA/AST/S/1 47 12023-241 1 063456491 (1 ), for the Assessment Year 2015 - 16, as arOltraf illegal, bad in law, void-ab-initio, viotative of the principles of natural justice, upjrt tro. being vio{ative of Articles 14, 1g(1)(g) and 265 of the Constitution ot tihia and Sec 148A of the lncome Tax Act, 1961, and to consequently set asidtthe same in the interests of justice. T fi lA NO: 1 OF 2024 Petition under Section 151 CPC praying that in the circumstances stated in the affidavit filed intsupport of the petition, the High Court rnay be pleased to stay all further proceedings, including any recovery, pursuant to the order passed by the .1 st Respondent, uls 147 r/w Sec. 1448 of the lncome Tax Act, 1961 , dated 27.O3.2024, bearing DIN and Notice No.. ITBA/AST/S/14712023- 2411063456491(1), for the Assessment Year 2015 - 16, pending disposal o{ the above Writ Petition. Counsel for the Petitioner: SRI A V A SIVA KARTIKEYA Counsel for the Respondents: SRI VIJHAY K PUNNA, SENIOR SC FOR ITD W.P.NO: 12985 OF 2024 Between: Mrs. Allada Usha Bala, W/o. Mr. Allada Srinivas Rao, aged 51 years, Occ. House Wife, H. No.. 16-3-211419, Hydernagar, Kukatpally - 5O0 072, Hyderabad, Telangana. ...PETITIONER i AND 1. The lncome TaxrOfficer, Ward 11('1 ), Hyderabad, Signature Towers, Opposite Botanical Gardens, Sy. No.. 6(P) of Kondapur, Sy. No.. 37(P) of Kothaguda, Serilingampally Mandal, Hyderabad - 500 084, Ranga Reddy District, Telangana. i 2. The Chief Commissioner of lncome Tax, Hyderabad, l.T.Towers, 10-2-3, AC Guards, Hyderabad - 500 004, Telangana. ...RESPONDENTS Petition under Article 226 of the Constitulion of lndia praying that in the circumstances stated lin the affidavit filed therewith, the High Court may be pleased to issue a Writ of Mandamus or any other appropriate Writ, Order or Direction, declaring. a the order passed by the 1st Respondent, u/s 148A(d)of the lncome Tax Act, 1961, dated 27.03.2024, bearing DIN and Notice No.. ITBA/AST/F/148A12023-2411063458922(1), for the Assessment Year 2017 - 18. and b the notice issudd by the 1st Respondent, u/s 148 of the lncome Tax Act, 1961, dated 30.03.2024, bearing DIN and Notice No.. ITBA/AST/S/148 112023- 2411063677814(1 ), for the Assessment Year 2017 - 18. as arbitrary, illegal, barred by time, bad in law, void-ab-initio. violative of the principles of natural justice, apart from being violative of Articles 1a, 19(1)(g) and 265 of the Constitution of India and Sec 14BA of the lncome Tax Act, 1961 , and to consequently set aside the same in the interests of 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 proceedingd, including any recovery, pursuant to the notice issued by the 1st Respondent, u/s 148 of the lncome Tax Act, 1961, dated 30.03.2024, bearing DIN and Notice No.. ITBA/AST/S/148 112023-2411063677814(1), for the Assessment Year 2017 - 18, pending disposal of the above Writ Petition. Counsel for the Petitioner: SRI A V A SIVA KARTIKEYA Counsel for the Respondents: M/s. J.SUNITHA, JUNIOR SC FOR M/s. SUNDARI R PISUPATI, Sr SC for lncome Tax Dept W.P.NO: 13023 OF 2024 Between: lMr. Trinath Teratipally, S/o. Mr. Srinivasulu Teratipally, aged 32 years, Occ.. Student, Presently residing at. Apt 202,3034 W Statesmanway, Franklin, Wl - 53132, USA Represented by his Power of Attorney holder and Father. [t/lr. Srinivasulu Teratipally S/o. Mr. Teratipally Tirupathaiah ...PETITIONER i aruo 1. Assessment Unit, lncome Tax Department, National e-Assessment Center, New Delhi, Room No.. 4O1,2nd Floor, E-Ramp, Jawaharlal Nehru Stadium, New Delhi - 110 003. 2. The lncome TaxlOfficer, Ward 2(1), Hyderabad, Signature Towers, Opposite Botanical Gardehs, Sy. No.. 6(P) of Kondapur, Sy. No.. 37(P) of Kothaguda, Serilingampally Mandal, Hyderabad - 500 084, Ranga Reddy District, Telangana. I 3. The Piincipal Chief Commissioner of lncome Tax, Andhra Pradesh and Telangana, Hyderabad Room No.. 922,gth Floor, 'B' Block, LT.Towers, 10-2- 3, AC Guards, Hyderabad - 500 004, Telangana. ...RES'.NDENTS Petition under Article 226 of the Constitution of lndia praying that in the circumstances stated iin the affidavit filed therewith, the High Court may be pleased to issue a Writ of Mandamus or any other appropriate Writ, Order or Direction, declaring that the order passed by the 1st Respondent, uls 147 r/w Sec. 1448 rlw Sec. 144 of ,the lncome Tax Act, 1961, dated 23.03.2024, bearing DIN and Notice No.. ITBA,/ASTlsl14712023-2411063266721(1), for the Assessment 't:. Counse Counse i Yeat 2O15 - 16, as arbitrary, illegal, bad in law, 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 '148A of the lncome Tax Act, 1961 , and to consequently set aside the same in the interests of 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! including any recovery, pursuant Io uls 147 r/w Sec. 1448 r/w Sec. 144 of the lncome Tax Act, '1961, dated 23.03.2024. bearing DIN and t Notice No.. ITBA/AST/S/14712023- 2411063266721(1), for the Assessment Year 2015 - 16: pending disiosal of the above Writ Petition. I for the Petiti6ner: SRI A V A SIVA KARTIKEYA I for the Respondents: M/s. J.SUNITHA, JUNIOR SC FOR M/s. SUNDARI g R PISUPATI, Sr SC for lncome Tax Dept I W.P.NO: 13028 OF 2024 Between: [ /s. Anusha Atakola, D/o. Mr. Gangadhar Atakola, aged 36 years, Occ Business, oJo.7-8312, Polasa, Jagtiyal - 505 529, Telangana. ...PETITIONER AND 1. Assessment Unit, lncome Tax Department, National e-Assessment Center, New Delhi, Room No-. 401 ,2nd Floor, E-Ramp, Jawaharlal Nehru Stadium, New Delhi - 110 003. 2. The lncome TaxiOfficer, Circle 1, Karimnagar, lncome Tax Office, Aayakar Bhavan, KarimnAgar - 505 00'1 , Telangana 3. The Principal Chief Commissioner of lncome Tax, Andhra Pradesh and Telangana, Hyderabad Room No.. S22,9lh Floor, 'B'Block, l.T.Towers, 10-2- 3, AC Guards, Hyderabad _ 500 004, Telangana. ...RES'.NDENTS Petition under Article 226 of the Constitution of lndia praying that in the circumstances staled rin the affidavit filed therewith, the High Court may be pleased to issue a Writ of lvlandamus or any other appropriate Writ. Order or Direction, declaring that the order passed by the 1st Respondent, uls 147 r/w Sec. 144 rlw Sec. 1448 of the lncome Tax Act, 196'l , dated 07.03.2024, bearing DIN and Notice No.. ITBA/ASTlsl14712023-2411062174667(1), for the Assessment ,/ Year 2015 - 16, as arbi illegal, bad in law, void-ab-initio, violative of the principles of natural justice, apart from being violative of Articles 14, 19(1 )(g) and I 265 of the Constitutioriiof lndia and Sec '148A of the lncome Tax Act .196'1 , and to consequently set aside the same in the interests of .justice trary 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 I all further proceedingd; including any recovery, pursuant to the order passed by the 1st Respondent, u7s 147 rlw Sec. 144 r/w Sec. 1448 of the lncome Tax Act. 1961. dated 07.03.2024, bearing DIN and Notice No.. ITBA/AST/S/14712023- I 241106217 4667(1 ), foi/ the Assessment Yeat 2015 - '16, pending disposal of the I I! Counsel for the Petiti6ner: SRI A V A SIVA KARTIKEYA Counsel for the Respbndents: M/s. J.SUNITHA, JUNIOR SC FOR M/s. SUNDARI R PISUPATI, Sr SC for Income Tax Dept The Court made the llowing: COMMON ORDER fr ,i I ili i THE HONOURABLE SRI JUSTICE SUJOY PAUL AND THE HONOURABLE SRI JUSTICE N. TUKARAMJI IrRIT PETITION NOs. 12975 L2985 13023 & 13028 0F 2024 COMMON ORDER: (per Hon'ble Justtce Sujog PauL) Sri A.V.A. Siva Kartikeya, learned counsel appears for the petitioner(s), Sri Vrjhay K Punna, learned Senior Standing Counsel appears for the respondents-Income Tax Department in W.P.No. 12975 of 2024 and Ms. J. Sunitha, learned Junior Standing Counsel represents Ms.Sundari R.Pisupati, learned Senior Standing Counsel for the respondents-Income Tax Department in W.P.Nos. 12985, 13023 & 13028 of 2024. 2. Regard being had to the similarity of the question involved, on the joint request of the parties, the matters are analogously heard and decided by this common order. 3. It is common ground taken by the learned counsel for the petitioner(s) that in furtherance of Finance Act, 2O2l, re- assessment process stood modified but the respondents have not taken care of it and therefore notices issued under Section 148 of the Income Tax Act, 196 I cannot sustain judicial scrutiny. Since notices are bad in law, the consequential orders are also bad in law. ,.7 ,-fl 2 4. 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 matter_s, decided by common order dated 14.O9.2023. The parties agreed that this matter may be disposed of in terms of the Common Order dated 14.O9.2023. 5 This Court in the said order dated 14.09.2023 in W.P.No.259O3 of 2022, held as under: \"35. ln view of the aforesaid discussions, it is by now very clear that the procedure to be followed by the respondent-Department upon treating the notices issued for reassessment being under Section 148A, the subsequent proceedings was mandatorily required to be undertaken under the substituted provisions as laid down under the Finance Act, 2021. ln the absence of which, we are constrained to hold that the procedure adopted by the respondent-Department is in contravention to the statute i.e- the Finance Acl, ZOZ1, at the first instance. Secondly, it is also in direct contravention to the directives issued by the Hon'ble Supreme Court in the case of Ashish Agarwal, supra. 36. For all the aforesaid reasons, the impugned notices issued and the proceedings drawn by the respondent-Oepartment is neither tenable, nor sustainable. The notices so issued and the procedure adopted being per se illegal, deserves to be and are accordingly set aside/quashed. As a consequence, all the impugned orders getting quashed, the consequential orders passed by the respondent Oepartment pursuant to the notices issued under Section 147 and 148 would also get quashed and it is ordered accordingly. The reason we are quashing the consequential order is on the principles that when the initiation of the proceedings itself was procedurally wrong, the subsequent orders also gets nullified automatically. 37. The preliminary objection raised by the petitioner is sustained and all these writ petitions stands allowed on this very jurisdictional issue. Since the impugned notices and orders are getting quashed on the point of iurisdiction, we are not inclined to proceed further and decide 7 3 the other issues raised by the petitioner which stands reserved to be raised and contended in an appropriate proceedings. 38. Since the Hon'ble Supreme Court had, in the case of Ashish Agarwal, supra, as a one-time measure exercising the powers under Anicle 142 of the Constitution of lndia, permitted the Revenue to proceed under the substituted provisions, and this Court allowing the petitions only on the procedural flaw, the right conferred on the Revenue would remain reserved to proceed further if they so want from the stage of the order of the Supreme Court in the case of Ashish Agarwal, supra. 39. No order as to costs.\" 6 In vierrr., of the consensus arrived, the impugned Show Cause notices and consequential orders passed in this batch of writ petitions are set aside. Liberty is reserved to both the parties to take respective stand and to proceed in accordance with law as per paragraph No.38 of the order dated 14.09.2023 in W.P.No.25903 of 2022 7. The writ petitions are allowed. No costs. Interlocutory applications, if any pending, shall also stand closed SD/-T.TIRUMALA DEVI ASSISTANT REGISTRAR //TRUE COPY// t,.' ty To SECTION OFFICER '1 . Assessment Unit, lncome Tax Department' National e-Assessment Center' New Delhi, Room No.. qdr '7\"JFi\"\"i' E-n\"p' Jawaharlal Nehru Stadium' New Delhi - '1 10 003. z Ti\" riJ\"*\" iairottlcer, Ward 1, Khammam' lncome Tax office' Raieev ' cr;i:'il;ilinlirt, r.r\"r'r'iinnet\"tini iheatre' Khammam - 507 001 ' Telanoana I 3 il5PYt;ipal Chief Commissioner of lncome-Tax' Andhra Pradesh and relanoana. Hvderabad R;;; Nl,;. 9)', sih Fbo'' 'B' Block' l'T Towers' 10-2- i. [C\"craiosl Hyderabad - 500 004' Telangana- - a iir;i\"J\",i\" i'ri'otri.\"r, ivu|-ii i(1): HrJ\"'\"nad' s.ionature rowers' opposite Botanicat Gardens, sv. r.r'ol'oipiti kb'iJrpur, sy. Nl-o.. 3Z(e) 9! Kothaguda' 3Eifii'idfi;rly rr,rlno'\"r,'iivo\"|a6io - soo oa+' R'ansa Reddv District' . +;5Lni:i\"omn issioner of lncome Tax, Hyderabad, r r.Towers, 10-2-3, AC - CuiO., Hyderabad - 500 004, Telangana . . .. 6. Assessment Unit, tncom! ili'oupi't\"'\"nt' National e-Assessment Center' New Delhi, Room No.. +or,T\"O Fi*i' E-n\"p' Jawaharlal Nehru Stadium' Nlot,r, I.)alhi - I 1n nn\" , 7. The lncome Tax Officer, Ward 2(1), Hyderabad, Signature Towers, Opposite Botanical Gardens, Sy. No. 6(P) of Kondapur, Sy. No.. 37(P ) of Kothaguda, Serilingamp ally Mandal, Hyderabad - 500 084, Ranga Redd y District, Telangana 8. The lncome Tax Officer, Circle 1, Karimnagar, lncome Tax Office, Aayakar Bhavan, Ka rimnagar - 505 001, Telanga na 9. One CC to SRI A.V.A.SIVA KARTTKE YA, Advocate [OPUC 10.One CC to SRI VIJHAY K PUNNA, SENIOR SC FOR ITD loPUCl 11. One CC to tr,//s SUNDART R,PtSUpATt, SENTOR SC FOR rTD [OPUC] 12.Two CD Copies rf PSK.r MR li l, f I I HIGH COURT DATED:0310512024 COMMON ORDER '1. rl i' I I I I WP.Nos.12975 12985,13023 & 13028 ot2024 t 1l i. l II l. .1, I I 6f rSa j: e _( {. C. S' ,. ,a L'1 U. / s \" C 4ctH * ALLOWING THE WRIT PETITIONS WITHOUT COSTS. I I l iI C) i i "
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Ashish Agarwal
Laws Referred To
Article 226 of the Constitution of India, Income Tax Act, 1961
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