Mr. Davender Kumar Parakh and Mr. Venkata Subba Rao Karumanchi V. The Assistant Commissioner Of Income Tax, Circle 6(1), Hyderabad and The Principal Commissioner Of Income Tax '1 , Hyderabad and Assessment UnitJ, Income Tax Department, National e-Assessment Center, New Delhi

WP/1409/2024

AI Insights

The case involves two writ petitions filed by Mr. Davender Kumar Parakh and Mr. Venkata Subba Rao Karumanchi against the Assistant Commissioner of Income Tax and other officials, challenging the legality of notices and orders issued for the assessment years 2019-20 and 2016-17 respectively. The petitioners argued that the actions taken under the un-amended provisions of the Income Tax Act, 1961, violated principles of natural justice and were not in accordance with the amended provisions that require a faceless assessment and an opportunity of hearing. The court referenced a similar case, W.P.No.34493 of 2023, where it had previously allowed a writ petition on similar grounds, leading to the decision in this case.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 677135 (HC-TELANGANA)
• Appeal Type: Others
• Pronouncement Date: 22-01-2024
• Assessment Year: misc
• Other Referred Cases: W.P.No.34493 of 2023, WP.No.25903 of 2022 & batch, Ashish Agarwal vs. Revenue
• Laws Referred To: Income Tax Act, 1961, Constitution of India
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: J V PRASAD
• Assessee Lawyers: A V A KARTIKEYA
• Keywords: Assessment Year; Income Tax; Legal Proceedings; Natural Justice; Writ of Mandamus
• Section: 148; 148A(d); 265; 226; 14B

Judgement Text

"[ 337e ] HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD (Special Original Jurisdiction) IVONDAY,THE TWENTY SECOND DAY OF JANUARY TWO THOUSAND AND TWENTY FOUR PRESENT THE HONOURABLE SRIJUSTICE P.SAM KOSHY r, AND THE HONOURABLE SRI JUSTICE N.TUKARAMJI W.P.Nos: 1380 AND 14Og OF 2024 W.P.NO: 1380 OL2IA Between: Mr.Davender Kumar Parakh, S/o. tr/r. lvlaalchand Parakh, Aged 60 years, Occ. Business, H.No. 2- 21- 43, Plot No. 38, Venkat Reddy Colony, Sikh Village, Secunderabad - 500 003, Telangana ...'ET.T'ONER AND 1. The Assistant Commissioner Of lncome Tax, Circle 6(1), Hyderabad' lT Towers, 10- 2- 3, A.C. Guards, Masab Tank, Hyderabad - 500 004' Telangana. 2. The Principal Commissioner Of lncome Tax '1 , Hyderabad, lT, Towers, 10- 2- 3, A.C. Guards, Masab Tank, Hyderabad - 500 004, Telangana' 3. Assessment UnitJ,Income Tax Department, National e- Assessment Center, New Delhi, Room No. 401 ,2nd Floor, E- Ramp, Jawaharlal Nehru Stadium, New Delhi - 110 oo3 ...RESP.NDENTS 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 a. the order passed by the 1 st Respondent, u/s 14BA(d) of the lncome Tax Act, 1961, dated 25.04.2023, bearing DIN and Notice No. ITBA/AST/F/148A12023- 24t1052323861 (1), for the Assessment Year 2019 - 20 and b. the notice issued by the 1st Respondent, u/s 14B of the lncome Tax Act' 1961, dated 25.04.2023, bearing DIN and Notice No. ITBA/AST/S/148-112023- 24t1052324186(1), for the Assessment Year 2019 - 20 as arbitrary, illegal, bad in law, void- ab- initio, violative of the principles of natural justice, apart from being violative of Articles 14,,i 19(1Xg) and 265 of the constitution of lndia and Sec it 2 148A of the lncome Tax Act, 1961, and to consequently set aside the same in the interests of justice fA 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 notice issued bythe 1st Respondent, u/s 148 ofthe lncome Tax Act, 1961, dated 25.04.2023' bearing DIN and Notice No. ITBA/AST/S/148-1t2O23- 2411052324186(1), for the Assessment Year 2019''j 20, pending disposal of the above Writ Petition W.P. NO: 1409 OF 20 Between: I i il rl 241 Mr. Venkata Subba Rao Karumanchi, S/o Mr. K. Koteswara Rao, aged 59 years, Occ.- Agriculture, H. No.- Flat No.- 202, Plot No.- 146, Phase - 3, Kalyan Nagar, Hyderabad - 500 045, Telangana ...'ET'T'ONER AND 1. The lncome Tax Officer, Ward 3(1), Hyderabad, Signature Towers, Sy. .No - 6(P) of Kondapur, Sv. No.- 37(P) of Kolhaguda, Opposite Botanical Gardens, Sbrilingampally ManOal, Ranga Reddy District, Hyderabad - 500 084, Telangana. 2. The Piincipal Commissioner of lncome Tax, 1, Hyderabad, lT Towers ' 10-2-3, A.C. Guarils, Masab Tank, Hyderabad - 500 004, Telangana. 3. Assessment Unit,,.lncome Tlx Department, National e-Assessment Centre, New Delhi, Room No.- 401 , 2nd Fioor, E-Ramp, Jawaharlal Nehru Stadium, New Delhi - 1 10 003. lri ...RESPONDENTS Petition under Article 226 of the Constitution of lndia praying that in the circumstances stated ifl 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 3O.O3.2O23, bearing DIN and Notice No.- |TBA/AST/F/148A12O22-23t1O51708092(1), for the Assessment Year 2016 - 17 and b. the notice issued by the 1st Respondent, u/s 14B of the lncome Tax Act, 1961 , dated 30.03.2023, bearing DIN and Notice No.- ITBA/AST/S/148 -112022- 2311051708339(1), for the Assessment Year 2016 - 17 arbitrary, illegal, bad in law, void-ab-initio, violative of the principles of natural .iustice apart from being l 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 t : IANO:1OF 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 notice issued uis 143 of the lncome Tax Act, 1961, dated 3010312023, bearing DIN and Notice No.-ITBA/ASTtst148_1t2o22.23t1051708339(1),fortheAssessmentYear20,l6 - 17, pending disposal of the above Writ Petition counsel for the Petitioner in both the w.P.No's.: sRl A. v' A. slvA KARTIKEYA Counsel for the Respondents in both the W'P'No's: SRI J' V' PRASAD , (sc FoR INCOME TAX) The Court made the following: COMMON ORDER i ::l THE HON'BLE SRI JUSTICE P.SAM KOSHY AND THE HON'BLE SRI JUSTICE N.TUKARAMJI W.P.Nos.138O and 14O9 of2024 COMMON ORDER: 0)et Hon'ble Sri Justice P.SATI KosH]/) 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.I2.2O23 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/- MOHD. SANAU ASSISTAN LLAH ANSARI TRAR //TRUE COPYII r€E9s V SECTION OFFICER To, 1 The Assistant Commissioner Of lncome. Tax, Circle 6(1 )' Hyderab^ad' ^ i&\"d\"i6-''2--1, A.c. Guaids, Masab rank, Hvderabad - 500 00 IT 4, 2 3 4 5 6 Telanqana. i i[5'p?iiiilo\"r Conimissioner Of tncome Tax 't, Hyderabad, lT Towers, 10- 2- i:'A.b. 'c-;;As, Masao Tank, Hvderab4 - 50.0 004' Telansana' ih; A.;GA;ntrlunit, rnici|.n6 Tax Depadment' National e- Assessment c\"it\"i.\"riJir'ijirrni, C.i\"rii lro.-+oi 2nd'Floor, E- Ramp' Jawaharlal Nehru Stadium, New Delhi - 110 003 il;cCU sirL Aiv. A. slvA KARrI(EY.4r{qygcgte [ol^u-Q]^, . il;66 i\" sni. i.'u FnnSAo (sc FoR INCoME rAX) [oPUC] . Two CD CoPies (Aiong with a copy of this order W'P'NO 34493 oI 2023 to this order) s BM GJ 5 HIGH COURT DATED:2210112024 COMMON ORDER tI yt. STAI€ -irl'; t). : ; q WP.Nos.1380 AND 1409 OF 2024 1 E FEB 202[ ,,' i ALLOWING BOTH THE WRIT PETITIONS WITHOUT COSTS @)-. %9-- (\" r' D * ! THE HONOURABLE SRI JUSTICE P.SAM KOSHY AND THE HONOURABLE SRI JUSTICE N.TUKARAMJI WRIT PETITION No.34493 OF 2023 ORDER:per.Flon'ble Si Justice P.SAM KOSHY) The instant Writ Petition has been filed by the petitioner under Article 226 of the Constitution of India challenging the order issued under Section 148A(d) of the Income Tax Act, 1961 (for short, \"the Act\") bearing DIN No.ITBA/AST /F / L48A/2022-23 /ro42852t37 (1), dated 26.04.2022 passed by respondent No.1 for the assessment year 2Ol8-19 and the consequent notice under Section 148 of the Act, dated 26.04.2022, bearing DIN No.ITBA/AST / S / t48-I / 2o22-2s / ro428ss160 (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 carne 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 & NTR,J W.P.No.34493 of 2023 assessee. As per the amended provision of law, the proceedings to be d.rawn are also in a faceless ma-nner. 3. Whereas, Iearned counsel for the petitioner contended that, in the instant case, regpening 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 14.09.2023 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-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. 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 & NTR,J W.P.No.34493 oJ 2O23 the same at paragraph Nos.37 & 38 which are reproduced herein under: \"37. The preliminary objection raised bg the petitioner is sustained and atl these uit petitions stands allou'ted on this uery jurisdictronal issue. Since the impugned notices and o,rders are getting qtashed on the point of jurisdiction, u)e ore not inclined to proceed further and -decide th-e other issues raised by the petitioner uhich sfands reserued to be raised and contended in an ap p rop riate p ro cee ding s. \" \"38. Since the Hon'ble Supreme Court had, in the case of Ashish AgaruLa| stpra, as a one-time measure ixercising the pouers under Article 142 of the Constitution of India, permitted the Reuenue to proceed under the substituted prouisions, and this Court allouing the petitions onlg on the procedural Jlau, the ight conferred on the Reuenue utould remain reserued ti proceed further if theg so roant 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 / I 4 I n PSK, I Ab NTR' , W.P.No.34493 ol 2023 envisaged at paragraph Nos.37 & 38 of the said order passed in the batch of writ petitions. No qrder as to costs. Consequently, miscellaneous petitions pending, if any, shall stand closed. P.SAM KOSrrY, J N. TUI(ARAMJI, J Date'. 27.12.2023 TJMR I I "