Mr. Hari Mohan Reddy Vanga V. The Income Tax Officer - Ward 9(1), Hyderabad and The Principal Commissioner of Income Tax - 4, Hyderabad and Assessment Unit, Income Tax Department, National e-Assessment Center, New Delhi

WP/30153/2023

AI Insights

The case involves Mr. Hari Mohan Reddy Vanga, the petitioner, challenging the assessment orders and notices issued by the Income Tax Department for the Assessment Year 2018-19. The petitioner argued that the notices were issued under the unamended provisions of the Income Tax Act, 1961, which were not applicable as the amended provisions requiring faceless proceedings and issuance of notices under Section 148A had come into effect from April 1, 2021. The respondents did not dispute the procedural flaws noted in similar batch matters previously decided by the same bench. The court's decision was influenced by the need to adhere to the amended legal framework and the procedural requirements it stipulates.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 797385 (HC-TELANGANA)
• Appeal Type: Others
• Pronouncement Date: 30-10-2023
• 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: Assessment Order; Faceless Proceedings; Income Tax; Jurisdictional officer; Natural Justice; Writ of Mandamus
• Section: 148; 148A(d); 148A

Judgement Text

"HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD (Special Original Jurisdiction) MONDAY, THE THIRTIETH DAY OF OCTOBER TWO THOUSAND AND TWENTY THREE PRESENT THE HONOURABLE SRI JUSTICE P.SAM KOSHY AND THE HONOURABLE SRI JUSTICE LAXMI NARAYANA ALISHETTY WRIT PETITION NO: 30153 OF 2023 [ 33861 years, Ranga Between: Mr. Hari Mohan Reddy Vanga, S/o: Mr. Vanga Ram Reddy, Aged 54 Occ. Agriculturist, H.No.'1-'1 , Kharmanghat, Saroornagar Mandal, Reddy District - 500 004, Telangana. ...PETITIONER AND 1 2 The lncome Tax Officer - Ward 9(1 ), Hyderabad, lT Towers, AC Guards, Masab Tank, Hyderabad - 500 004, Telangana. The Principal Commissioner of lncome Tax - 4, Hyderabad, Room No. 2'l 1, 2nd Floor, A Block, l.T.Towers, '10-2-3, AC Guards, Hyderabad - 500 004, Telangana. 3. Assessment Unit, lncome Tax Department, National e-Assessment Center, New Delhi, Room No. 4O1 ,2nd Floor, E-Ramp, Jawaharlal Nehru Stadium, New Delhi - 1'10 003. ...RESPONDENTS Petition under Article 226 of the Constitution of India 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't Respondent, u/s 148A(d) ofthe lncome Tax Act, 1961, dated 2510412022, bearing DIN and Notice No. ITBA/AST/F/148N2022-2311O42839478(1), for the Assessment Year 2018 - 19' and b. the notice issued by the 1't Respondent, u/s 148 of the lncome Tax Act, '1961 , dated 25t04t2o22, bearing DIN and Notice No. ITBA/AST/S/148-112022- 23t1O42840174(1), for the Assessment Year 2018 - 19, as arbitrary, illegal, bad in law, void-ab-initio, violative of the principies of natural justice, apart from being violative of Articles 1a, 19(1)(g) and 265 of the constitution of lndia and sec '148A of the lncome Tax Act, 1961, and to consequenfly 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 notice issued by the 1\"t Respondent, u/s 148 of the lnc n e. Tax Act, 1961, dated 2SlO4l2O22, bearing DIN and Notice No. lrBA/AST/s/148_1tzo22-23t1042840114(1), fot the Assessment Year 2018 - 19, pending disposal of the above Writ petition. Counsel for the Petitioner: SRI A V A SIVA KARTIKEYA Counsel for the Respondents: MS. B. SAPNA REDDy (SC FOR TNCOME TAX) The Court made the following: ORDER THE HON'BLE SRI JUSTICE P.SAM KOSHY AND THE HON'BLE SRI JUSTICE LAXMI NARAYANA ALISHETTY W.P. No.3O153 of 2O23 ORDER:6er ao n'ble Si Justice P.SAM K0SHY) Heard Mr. A.V.A. Siva Kartikeya, learned counsel for the petitioner and Ms. B. Sapna Reddy, Iearned 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. 1 under section l4BA(d) of the Income Tax Act, 1961 (hereinafter referred to as \"the Act\") dated 25.04.2022 for the Assessment Year 2018-19. 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.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 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 --------=7 2 petitions (lecided by this very Bench on 14.Og.2O2g vide W.P.No.25903 of 2022 and batch to the limited exrent. 4. Learncd counsel for the Department would not dispute of batch matters. having decidcd the said objection in the aforesaid However, lcarned counsel submits that apart from the aforesaid objection, there have been olher various objections also which the petitioner has raised in the writ petition. 5. So far as this contention Department is concerned, this W.P.No.259O3 of 2022 and barch of the learned counsel for the Bench, while disposing of had taken note of the same in paragraph Nos.37 & 38 which is reproduced herein under \"37. The preliminary objection raised by the petitioner is 9u;ta.r1ed and. all these writ petitions stands allowed on this very jurisdictional issuc. Since the impugned notices and orders are getting quashed on the point ofjurisdiction, we are not inclined to proceed further and decide the other issues raised by the petitioner which stands reserved to be raised and contended in an appropriate proceed ings. \" 38. Since the Hon'ble Supreme Court had, in the case of Ashish Agarwal, supra, as a one-tjme measure exercising the powers under Article 142 of the Constitution of tndia, permittta 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 i[ they 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 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 unamended provision which is otherwiSe -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 1n paragraph Nos.37 & 38 of the said batch. No order as to costs 7 . Consequently, miscellaneous petitions pending, if any, shall stand closed //TRUE COPY// SDI K. VENKAIAH ASSISTANT REGIS/RAR q' SECTION OFFICER To, TJ GJP 1. The lncome Tax Officer - Ward 9(1),Xyderabad, lT Towers' AC Guards' Masab Tank, Hyderabad - 500 004, Telangana . . z. titFii\".ipai 'Ct,.mit=ionei of lncome 14 -a' Hvderabad' RoomNo' 21 1' ' iil Fb;;:\"Aelo;k, r.r.r;*eo, to-z-s, AC Guard's, Hvderabad - 500 004' Telangana. a. niseslment Unit, lncome Tax Department, National e-Assessment Center' \" iriilD;ii i; nooni rlo. +or,'ino rr'oor, E-Ramp, Jawaharlal Nehru stadium' New Delhi - 1 10 003. 4. ij;; cc i\" sri nV A Siva Kartikev-a,- Advocate.[oPqqf-. . -- 6. il; 66 io lrr\". a. sapna Reddv(Sb for lncome tax) [OPUC] 6. Two CD CoPies HIGH COURT DATED:3011012023 ORDER WP.No.30153 of 2023 ALLOWING THE WRIT PETITION WITHOUT COSTS. lATE AF 5 u ) 'rfl l-\" Lr ^ o r \" i- i: r-) I * rt i l l "