Mr. Elati Ravinder Reddy, S/o Vr. E. Ramchandra Reddy V. Assessment Unit, Income Tax Department, National Faceless Assessment Center, New Delhi and The Income Tax Officer - Ward 1, Nizamabad and The Principal Chief Commissioner of Income Tax, Andhra Pradesh and Telangana, Hyderabad and The Central Board of Direct Taxes, Represented by its Chairman

WP/431/2024

AI Insights

The case involves a writ petition filed by Mr. Elati Ravinder Reddy challenging the assessment order issued by the Income Tax Department for the Assessment Year 2015-16. The petitioner argued that the assessment order was arbitrary, illegal, and violated principles of natural justice, among other legal provisions. The main contention was that the proceedings were not conducted as per the amended Section 148A of the Income Tax Act, which mandates a faceless assessment process and an opportunity for the assessee to be heard. The court referenced a previous decision on similar grounds, leading to the allowance of the writ petition and setting aside the assessment order.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 796532 (HC-TELANGANA)
• Appeal Type: Others
• Pronouncement Date: 08-01-2024
• 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 KARTIKEYA
• Keywords: Assessment Order; Faceless assessment; Natural Justice; Writ of Mandamus; Violation of Constitutional Rights
• Section: 147; 148; 144B; 148A; 265; 226

Judgement Text

"[ 337e ] HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD (Special Original Jurisdiction) MONDAY ,THE EIGHTH DAY OF JANUARY TWO THOUSAND AND TWENTY FOUR PRESENT THE HONOURABLE SRI JUSTICE P.SAM KOSHY AND THE HONOURABLE SRI JUSTICE N.TUKARAMJI Between: y, Aged 59 years, lWadi, Nizamabad ...PETITIONER AND 1. Assessment Unit, lncome Tax Department, National Faceless Assessment Center, New Delhi, Room No. 4O1, 2nd Floor, E-Ramp, Jawaharlal Nehru Stadium, New Delhi - 110 003. 2. The lncome Tax Officer - Ward 1, Nizamabad, lncome Tax Office, 6-2-15613, Subhash Nagar; Nizamabad - 503 002, Telangana. 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. 4. The Central Board of Direct Taxes, Represented by its Chairman, Department of Revenue, Ministry of Finance, Government of lndia, Secretariat Buildings, New Delhi - '1 10 001. ,..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 other appropriate Writ, Order or Direction, declaring the Assessment Order passed by the 1st Respondent, uis 147 rlw Sec. 1448 of the lncome Tax Act, 1961 , dated 2610512023, bearing DlN.. ITBA/AST/S/14712023-2411053211122(1), for the Assessment Year2015 - 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(1)(g) and 265 of the Constitution of lndia and Sec 148A of the lncome Tax Act, 1961, and consequently set aside the same in the inlerests of justice Mr. Elati Ravinder Reddy, S/o [Vr. E. Ramchandra Redd Occ. Business, H.No. 5-7-101 and 102, Main Road, Khalee - 503 001, Telangana. I WRIT PETITION NO: 431 OF 2024 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 Assessment Order passed by the 1st Respondent, uls 147 r/w Sec. 1448 of the lncome Tax Act, 1961, dated 2610512023, bearing DlN. ITBA/AST/S/14712023- 241105321 1 122(1), for the Assessment. Year 201 5 - 1 6, pending disposal of the above Writ Petition Counsel for the Petitioner: SRl. A. V. A. SIVA KARTIKEYA Counsel for the Respondents: M/s. SUNDARI R. PISUPATI (SC for lncome Tax Dept) The Court made the following: ORDER THE HONOURABLE SRI JUSTICE P.SAM KOSI{Y AND THE HONOURABLE SRI WSTICE N.TIIKARAMJI WRIT PETITION No.431 OF 2o24 ORDER:1per Hon'ble Sn Justice P.SAXI KOSHY) Heard Mr. A.V.A. Siva Kartikeya, learned counsel for the petitioner ard Ms. Sundari R. Pisupati, learned Standing Counsel for Income Tax appearing for the respondents. Perused the entire record. the Assessment Order passed bv respondent No.1 under Section I47 read w'ith Section l44B of the Income Tax Act, 1961 (hereinafter referred to as \"the Act\") dated 26.O5.2O23 for the Assessment Year 2O 15- 16 3. One of the contentions that the petitioner has raised in the present Writ Petition is that under the amended provisions of the Act rvhich came into effect from Ol.O4 .2O21 , the respondents, u'hile proceeding under Section 148 of the Act, w'ere required to issue notice under Section 148A and provide an opportunity' of hearing to the assessee. As per the amended provision of law, the 2. The instant Writ Petition has been filed challenging 2 proceedings to be drawn are also in a faceless manner. Whereas, it has been contended by the petitioner that in the instant case, reopening has been initiated by the Jurisdictional Assessing Officer. In respect of the said objection that the petitioner had raised, he relied upon the recent batch of writ petitions decided by this very Bench on 14.09.2023 vide W.P.No.25903 of 2022 and balch to the limited extent. 4. Learned counsel for the Department u ould not dispute of having decided the said objection in the aforesaid batch matters. However, learned counsel submits 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, w'hile disposing of said batch of wdt petitions, had taken note of the same at paragraph Nos.37 & 38 rvhich are reproduced herein under: 3 '37. The preliminary objection raised by th-e petitioner is sustained and all these wit petifions sfands allowed on this uery jurisdictional issue. Since the impugned nottces and orders are getting qtashed on the point of juisdiction, u)e are not inclined to proceed furttter and decide tLe other bsues raised bg the petitioner uhich stands reserued to be raised and contended in an appropiate proceeding s. \" \"38. Since ttte Hon'ble Supreme Court had, in the case of Ashish Agarutal, suprd, os a one-time measure exerci.sing tLe pouters under Article 142 of the Constihttion of India, pennitted the Reuenue to proceed under ttte substituted prouisions, and this Court allouing the petitions onlg on the procedural Jlau, the right confered on the Reuenue u.tould remain reserued to proceed further if they so uant from the stage of the order of the Supreme Court in the case of Ashish Agarutal, supra.\" 6. In view of the sarne, we a-re inclined to allow the present writ petition a,lso on similar terms. Accordingly, the present Writ Petition stands allor,ved on the objection of the petitioner that the proceedings have not been drawn in un-arnended provision rvhich is othenr.'ise not sustainable. As has been held by this Bench in the aforesaid batch matters, the rights of the parties would stand reserved as is envisaged at pa-ragraph Nos.37 & 38 of the said order I I passed in the said batch of ',r-rit petitions. No order as to - ./ I accordance with the amended provision but under the I 4 COStS. Consequently, miscellaneous petitions pending, if any, shall stand closed. SD/. K. VENKAIAH ASSISTANT RE ISTRAR. //TRUE COPY// SECTION FICER 1. The As-sessment Unit, lncome Tax Department, National Faceless Assessment Center, New Delhi, Room No. 4O1 , 2nd Floor, E-Ramp, Jawaharlal Nehru Stadium, New Delhi - 110 003. 2. fhe lncome Tax Officer - Ward 1, Nizamabad, lncome Tax Office, 6-2-156/3, Subhash Nagar, Nizamabad - 503 002, Telangana. 3. The Principal Chief Commissioner of lncome Tax, Andhra Pradesh and Telangana, Hyderabad Room No. 922, 9th Floor,'B' Block, LT.Towers, 10-2- 3, AC Guards, Hyderabad - 500 004, Telangana. 4. The Chairman, Central Board of Direct Taxes, Depa(ment of Revenue, Ministry of Finance, Government of India, Secretariat Buildings, New Delhi - 110 001. 5. One CC to SRl. A. V. A. SIVA KARTIKEYA, Advocate tOPUCi 6 One CC to M/s. SUNDARI R PISUPATI, ( SC for lncome Tax Dept) TOPUCI 7. Two CD Copies BIU GJP To, HIGH COURT DATED:0810112024 ORDER WP.No.431 ot 2024 ALLOWING THE WRITPETITION WITHOUT COSTS STATE tr o L. rJ 9 its ls[ .qi .^;;/ I t ;l I t ) I "