Mr. Bheemgopal Rao Vulishe V. The Assistant Commissioner of Income Tax, Circle 2, Karimnagar and The Principal Chief Commissioner of Income Tax, Andhra Pradesh and Telangana and Assessment Unit, Income Tax Department, National e-Assessment Center, New Delhi

WP/5235/2024

AI Insights

The case involves Mr. Bheemgopal Rao Vulishe, a retired government employee, who filed a writ petition against the Assistant Commissioner of Income Tax and other officials, challenging an order for the Assessment Year 2015-16. The petitioner argued that the order was arbitrary, illegal, and violated various provisions of the Constitution and the Income Tax Act, including being barred by limitation and not adhering to the principles of natural justice. The court examined whether the order was issued under the correct legal framework, particularly focusing on the amendments to the Income Tax Act that came into effect on April 1, 2021, which require a faceless assessment and proper notice under Section 148A.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 812509 (HC-TELANGANA)
• Appeal Type: Others
• Pronouncement Date: 28-02-2024
• Assessment Year: misc
• Other Referred Cases: Ashish Agarwal
• Laws Referred To: Income Tax Act, 1961, Constitution of India
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: SUNDARI R PISUPATI
• Assessee Lawyers: A V A SIVA KARTIKEYA
• Keywords: Assessment Year 2015-16; Income Tax; Limitation; Natural Justice; Void ab initio; Writ of Mandamus
• Section: 147; 148; 144; 14; 148A; 265; 226; 19(1)(g)

Judgement Text

"[ 3379 ] HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD (Special Original Jurisdiction) WEDNESDAY, THE TWENTY EIGHTH DAY OF FEBRUARY TWO IHOUSAND AND TWENTY FOUR PRESENT THE HONOURABLE SRI JUSTICE P.SAM KOSHY AND THE HONOURABLE SRI JUSTICE N.TUKARAMJI WRIT PETITION NO: 5235 OF 2024 Between: Mr. Bheemgopal Rao Vulishe, S/o. Mr. V. Bhagvantha R19' .aO-ed 7.4 .y.ears, Occ : Retired Go''Teinment Employee, Rl/o.4-1-1'10, Karimnagar Club Road, Karimnagar - 505 001 , Telangana. .....PETITIONER AND 'I . The Assistant Commissioner of lncome Tax, Circle 2, Karimnagar, lncome Tax Office, Aaykar Bhawan, Near Natraj Theatre - 505 001 , Karimnagar, Telangana. 2. The Principal Chief Commissioner of lncome Tax, Andhra Pradesh and Telangand, Hyderabad Room No.922,91h Floor, B Block, l. T. Towers, 10-2- 3, ACGuards, Hyderabad - 500 004, Telangana. 3- Assessment Unit, lncome Tax. Department, National e- Assessment Center' New Delhi, Room No. 4O1 ,2\"o Floor, E- Rarnp, Jawaharlal Nehru Stadium' New Delhi - 110 003. .....RESPONDENTS 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 of Mandamus or any other appropriate Writ, Order or Direction, declaring that the order passed by the 1\"t Respondent, uls 147 rlw Sec. 144 r/w Sec. 1448 oI the lncome Tax Act, 1961 , dated 12.02.2024' bearing DIN and Notice No. ITBA/ AST/S/14712023- 2411060828794(1), for the Assessment Year 2015 - 16 as arbitrary, illegal, barred by limitation, bad in law, void- ab- initio, violative of the principles of natural justice, apart from being violative of Articles 14, 19(1Xg) 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. I.A.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 order passed by the 1st Respondent, u/s 147 rlw Sec. 144 r/w Sec. 1448 of the lncome Tax Act, '1961, dated 12.02.2024, bearing DIN and Notice No. ITBA/AST/S/14712023' 24t1060828794(1), for the Assessment Year 2015 - 16, pending disposal of the above writ petition. Counsel for the Petitioner : SRI A.V.A.SIVA KARTIKEYA Counsel for the Respondents : Ms SUNDARI R.PISUPATI (SENIOR SC FOR INCOME TAX DEPT) The Court made the following ORDER THE HONOURABLE SRI JUSTICE P.SAM KOSHY AND THE HONOURABLE SRI JUSTICE N.TUKARAMJI WRIT PETITION No.5235 OF 2o24 ORDER:lper IIo n'ble Sn Justice P.SAM KOSHY) Heard Mr.A.V.A.Siva Kartikeya, learned counsel for the petitioner and Ms.Sundari R. Pasupati, learned Senior Standing Counsel for the Income Tax Department for respondents. Perused the material available on record. 2. The instant Writ Petition has been filed by the petitioner under Article 226 of the Constitution of India seeking for the following relief: 'to issue a Writ of Mandamus or anA other appropriate Writ Ord.er or Direction declaring that the order possed by the lst Respondent u/s 147 r/ut Sec 144 r/w Sec 1448 of the Incom.e Tax Act 7961 dated 12/02/2024 beaing DIN and Notice No ITBA/ AST/S/ 147/2023 24/ 1060828794(1) for the Assessment Year 2O15 16 os arbitrory iltegal baned bg limitation bad in Lau uoid ab initio uiolatiue of the principles of natural justice apart from being uiolatiue of Articles 14 19(1)(g) and 265 of the Constitution of India and Sec 148A of th.e Income Tax Act 1961 and to conseELentlA set oside the same in tfle interests of iustice and to pa,ss such other order or orders as this Honble Court maA deems fit just ond proper in th-e ciratm.stances of the case\". 2 PSK,J& Iur&J W.P.No.5235 of 2024 3. 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 .O4.2021 , 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 assessee. As per the amended provision of law, the proceedings to be drawn are also in a faceless marlner. 4. 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.O9.2023 wherein this Court disposed of the batch of writ petitions to the limited extent. 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 othel various 3 PSK,J & NTR,J W.P.No,5235 oJ 2O24 objections also which the petitioner has raised in the writ petition. 6. So far as this contention of the lea_rned counsel for the respondent-Department is concerned, this Bench, while disposing of said batch of writ petitions, had taken note of the same at pa-ragraph Nos.37 & 38 which are reproduced herein under: \"37. The preliminary objection raised by thE petitioner is sustained and all these utrit petitions stands allowed on this uery jurisdictional issue. Since the tmpugned notices and. orders are getting quashed on the point of jurtsdiction, u)e are not inclined to proceed furtlrcr and- decide the other issues raised bg the petitioner uhtch stands reserued to be raised and contended_ tn an app rop riate p ro ceeding s. \" \"38. Since the Hon'ble Supreme Court had, in tlrc case of Ashish Agaru-tal, supra, as a one-ttme mea.sure exercising tLte pouers under Article 142 of the Constihttion of India, permitted the Reuenue to proceed under tlrc substituted prouisions, and this Court allouing tle petitions onlg on the procedural flaw, tle right confened on the Reuenue would remain reserued to proceed further if ttteg so utont from ttrc stage of the order of the Supreme Court in tle case of Ashish Aganaa| supra. \" I I 7. In view of the siune, 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 4 PS.[(,J & ]YTR,J W.P.No.5235 of 2024 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. 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. SD/. G. SIREESHA ASSISTANT REGISTRAR ,TRUE COPYII To SA KKS SECTION OFFICER 1. The Assistant Commissioner of lncome Tax, Circle 2, Karimnagar, lncome Tax Office, Aaykar Bhawan, Near Natraj Theatre - 505 001 , Kaiimnagar, Telangana. 2. The Principal Chief Commissioner of lncome Tax, Andhra pradesh and Telangana, Hyderabad Room No. 922,gth Floor, B Block, l. T. Towers, 10- 2- 3, AC Guards, Hyderabad - 500 004, Telangana. 3. The Assessment Unit, lncome Tax Department, National e- Assessment Center, New Delhi, Room No. 401, 2nd Floor, E- Rarnp, Jawaharlal Nehru Stadium, New Delhi - 1 10 003. 4. One CC to Sri A.V.A.Siva Kartikeya, Advocate tOpUCl 5. One CC to Ms. Sundari R Pisupati (Sr SC for tntome tax Dept) [OpUC] 6. Two CD Copies s I n I HIGH COURT DATED:2810212024 ORDER WP.No.5235 of 2024 ALLOWING THE W.P WITHOUT COSTS. @-r,'' 0 3 APn 202{ A t o \"6+ z a 14: S E T B A 1 I o ( o o e J cO PAT t s H c W "