Mr. Gangadhar Mara V. Assessment Unit, Income Tax Department, National e-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

WP/30731/2023

AI Insights

Mr. Gangadhar Mara, a retired government school teacher, filed a writ petition challenging the assessment order and the subsequent penalty imposed by the Income Tax Department for the Assessment Year 2015-16. The petitioner argued that the orders were passed without adhering to the amended provisions of the Income Tax Act, which require a faceless assessment process and an opportunity for the assessee to be heard. The court referenced a similar batch of writ petitions decided on September 14, 2023, where it was held that the proceedings must comply with the amended provisions. The court allowed the petition, setting aside the orders against the petitioner.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 810703 (HC-TELANGANA)
• Appeal Type: Others
• Pronouncement Date: 06-11-2023
• Assessment Year: misc
• Other Referred Cases: Ashish Agarwal case
• Laws Referred To: Income Tax Act, 1961, Constitution of India
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: B SAPNA REDDY
• Assessee Lawyers: A V A KARTIKEYA
• Keywords: Amended Provisions; Assessment Order; Faceless Proceedings; Jurisdiction; Natural Justice; Penalty; Writ of Mandamus
• Section: 147; 148; 271(1)(c); 144B; 148A; 265

Judgement Text

"[ 337e ] HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD (Special Original Jurisdiction) MONDAY, THE SIXTH DAY OF NOVEMBER TWO THOUSAND AND TWENTY THREE PRESENT THE HONOURABLE SRIJUSTICE P.SAM KOSHY AND THE HONOURABLE SRI JUSTICE N.TUKARAMJI WRIT PETITION NO: 30731 OF 2023 Between: Mr. Gangadhar Mara, Sio Mr. M.Mallaiah, aged 69 years, Occ.. Retired Government Residential School Teacher, H.No.2-139, Khanapur, Nizambad - 500 000' Telangana' ...pETrroNER AND 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 Tax Officer - Ward 1, Nizamabad, lncome Tax Officer, 6-2-15613, Subhash Nagar, Nizambad, Nizambad - 503 002, Telangana 3. The Principal Chief Commissioner of lncome Tax, Andhra Pradesh and Telangana, Hyderabad Room No. 922,91h Floor, 'B' Block, l.T,Towers, 10- 2' 3, AC Guards, Hyderabad - 500 004, Telangana ...RES,ONDENTS Petition under Article 226 ot 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 Assessment Order passed by the 1st Respondent, u/s 147 rlw Sec. 1448 of the lncome Tax Act, 1961, dated O2lO3l2O23, bearing DlN.. ITBA/AST/S/14712022-2311050339796(1), for the Assessment Year 2015 - 16, b. the consequential Order passed by the 1st Respondent, levying penalty u/s 271(1)(c) of the lncome Tax Act, 1961, dated 29.09.2023, bearing DlN. ITBA/PNL/Fi27 1 (1XC)12O23-241 1 056656321 (1 ), for the Assessment Year 201 5 - 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(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. lA NO: 1 OF 2023 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 ol the lncome Tax Act, 1961, dated 0210312023, bearing DIN.. ITBA/ASIlg147l2o22-23l1050339796(1), and the consequential Order passed by the 1st Respondent, levying penalty u/s 271(1)(c) of the lncome Tax Act, 1961, dated 2910912023, bearing DlN. ITBA/PNL/F/271(1)(C)12023-2411O5E656321(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: M/s. B.SAPNA REDDY, Jr. SC for lncome Tax Dept The Court made the following: ORDER THE HON'BLE SRI JUSTICE P.SAM KOSHY AND THE HON'BLE SRI JUSTICE N.TUKARAMJI W.P. No.30731 of 2023 ORI)ER: pe' ao n'ble Sri Justice p.SAM KOSHy/ Heard Mr. A.V.A. Siva Kartikeya, learned counsel for the petitioner and Ms. B. Sapna Reddy, learned Junior Standing Counsel for Income Tax appearing for the respondents. perused the entire record. 2. The instant petition has been filed challenging the Assessment Order passed by respondent No.l under section 147 rlw Section l44B of the Income Tax Act, 196r (hereinafter referred to as \"the Act\") dated 02.O3.2023 for the Assessment year 20 I S- 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 which came into effect from 01.04.2021, 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 manner. whereas, it has been contended by the petitioner that in the instant case, reopening has been initiated by the Juridictional Assessing officer. In respect of the said objection that the petitioner had raised, he relied upon the recent batch of writ 2 petitions decided by this very Bench on 14 'O9 2023 vide W.P.No.259O3 of 2022 and batch to the limited extent 4. karned counsel for the Department would nol dispute of having decided the said objection in the aforesaid batch matters' that aPart from the aforesaid However, learned counsel submits 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 concerned, this Bench, while disposing of 1S Department W.P.No.25903 of 2022 and batch had taken note of the same ln paragraph Nos.37 & 38 which is reproduced herein under \"37. The preliminary objection raised by the petitloner rs \"\"r\"oi..a and all theie writ petitions stands allowed on this very 'JJrcii\"\"\"r issue. Since the impugned notices and orders are i,ltit\"\" \"\"\"\"t \"a o.t th\" poi.,t of iurisdiction' we are not inclined to *:'::=-=\"\"ii;il;\"\"\"J- [.\"iJt ihe other issues raised. bv the ::ffi#..';'#:; #;:\";;;;.Jio u\"'oi\"'a and contendedrin an appropriate Proceedings \" 38. Since the Hon'ble Supreme Court had' in the case of Ashish ;;\"r*;i:-;;.\", as a one-time measure exercising the powers ffii\".-Lrr.r!' i 4i of ttre Constitution of India' .permitted the n\"r\"\"\". t. proceed under the substituted provisions' and this CirJ \"ff.*irie the petitions only on the procedural flaw' thc right c-onferred on the Revenue would remain reserved to proceed i,i.,t.. if ,t\"V so want from the stage of the order of the Supreme Court in the case of Ashish Agarwal, supra' 6. In view of the Same, we are inclined to allow the present wrrt 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 unamended provision which is otheru4se'not sustainable' 3 As has been held by this Bench in the aforesaid batch matters, the right of the respondents would stand reserved as is envisaged in paragraph Nos.37 & 38 of the said batch. No order as to costs. 7 . Consequently, miscellaneous petitions pending, if any, shall stand closed. To SD/. MOHD. SANAULLAH ANSARI ASSISTANT REGISTRAR ' //TRUE COPYII (S I SECTION OFFICER . Assessment Unit, lncome Tax Department, National e-Assessment center, iiilD;ii,i; i;il No. 4o1,2nd Flbor, E-Ramp, Jawaharlal Nehru Stadium' New Delhi - 1 10 003. . ff,e'f ncor\" Tai Officer - Ward 1 , Nizamabad, lncome Tax Officer' 6-2-1 56/3' S;b6;;h Mgar, Nizambad, Nizambad - 503 002' Telangana . ih; Pril\"i;;icrrief commiisioner of lncome.Tax,-Andhra Pradesh and i;il;;\"'ilr.ili;b\"d i;; No. szz, eth Floor,'B'Block, l'T'rowers' 't0- 2- 3, AC-Guards, Hyderabad - 500 004, Telangana' . ci# cc t\" sFit A.V.n.stvn KARTIKEYA, Advocate [oPUC] . il; cc i; M/;. sAPnAneoov, Jr sc for lncome Tax Dept [oPUc] . Two CD CoPies 1 2 4 5 6 PSK. GJP 3 HIGH COURT DATED:0611112023 ORDER WP.No.30731 ot 2023 ALLOWING THE WRIT PETITION WITHOUT COSTS. N0 J 2023 TA16 S e t{ 1 o I i * l)E c A rt T Y 1/> "