Mr. Janardhan Reddy Billa V. Assessment Unit, Income Tax Department, National e-Assessment Centre, New Delhi and The Income Tax Officer, Ward 1, Warangal and The Principal Chief Commissioner Of Income Tax, Andhra Pradesh And Telangana, Hyderabad

WP/1204/2024

AI Insights

The case involves Mr. Janardhan Reddy Billa, the petitioner, challenging an assessment order issued by the Income Tax Department for the Assessment Year 2015-16. The petitioner argued that the order was passed in violation of the amended provisions of the Income Tax Act, which came into effect on April 1, 2021, requiring faceless proceedings and an opportunity for the assessee to be heard. The respondents did not dispute the procedural flaws noted in similar previous cases. The court's decision was influenced by its earlier rulings on similar jurisdictional issues, leading to the quashing of the assessment order.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 692012 (HC-TELANGANA)
• Appeal Type: Others
• Pronouncement Date: 12-01-2024
• 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: J V PRASAD
• Assessee Lawyers: A V A SIVA KARTIKEYA
• Keywords: Assessment Order; Faceless Proceedings; Income Tax; Jurisdictional issue; Natural Justice; Writ of Mandamus
• Section: 147; 148; 144; 144B; 226; 14BA

Judgement Text

"[ 337e ] IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD (Special Original Jurisdiction) FRIDAY, THE TWELFTH DAY OF JANUARY TWO THOUSAND AND TWENTY FOUR PRESENT THE HONOURABLE SRI JUSTICE P. SAM KOSHY AND THE HONOURABLE SRI JUSTICE N. TUKARAMJI WRIT PETITION NO: 1204 OF 2024 Between: Mr. Janardhan Reddy Billa, S/o lrilr. Joga Reddy Billa, aged 65 years, Occ. Salaried Employee, H. No, 2-7-107, Exices Colony, Hanamkonda, Warangal - 505 001 , Telangana. ,.PETITIONER AND 1 Assessment Unit, lncome Tax Department, National e-Assessment Centre, New Delhi, Room No, 4O1 ,2nd Floor, E-Ramp, Jawaharlal Nehru Stadium, New Delhi - 110 003. 2. The lncome Tax Officer, Ward 1, Warangal, lncome Tax Officer, D. No. 1-B- 610, 3rd Floor, Mayuri Complex, Opp. TSNPDCL Bhawan, Nakkalagutta, Hanamkonda, Warangal - 505 001 , 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 ,.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 1st Respondent, uls 147 rlw Sec. '144 r/w Sec. 1448 of the lncome Tax Act, 1961, dated 30.09.2023, bearing DIN and Notice No, ITBA/AST/S/14712023-24110566816S9(1), for the Assessment Year 2015 - 16, arbitrary, illegal, bad in law, void-ab-initio, violative of the principles of natural justice apart f rom being violative of Articles 14, 19(1Xg) 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. 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 order passed by the 1st Respondent, u/s 147 rlw Sec. 144 r/w Sec- 1448 of the lncome Tax Act, 1961, dated 30.09.2023, bearing DIN and Notice No, ITBA/AST/S/14712023- 2411056681699(1), for the Assessment Year 2O15 - 16, pending disposal of the above Writ Petition. Counsel for the Petitioner: SRI A.V.A. SIVA KARTIKEYA Counsel for the Respondents: SRI J.V. PRASAD (Sr. SC FOR INCOME TAX) The Court made the following: ORDER THE HONOURABLE SRI JUSTICE P.SAM KOSI{Y AND THE HONOURABLE SRI JUSTICE N.TUKARAMJI WRIT PETITION No.12O4 OF 2024 ORDER: (per Hon'bLe Sri Justice P.SAM KOSHY) Heard Mr. A.V.A. Siva Kartikeya, learned counsel for the petitioner and Mr. J.V.Prasad, learned Standing Counsel for Income Tax appearing for the respondents. Perused the entire record 2. The instant Writ Petition has been Iiled challenging the Assessment Order passed by respondent No.l under Section 147 read with Sections 1.44 and l44B of the Income Tax Act, 1961 (hereinaJter referred to as \"the Act\") dated 30.O9.2023 for the Assessment Year 2015-16. 3. One of the contentions that the petitioner has raised 1n 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 14BA and provide an opportunity of hearing to the assessee. As per the amendea p.JlJo.t of law, the I 2 proceedings to be drawn are a-lso 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 Ofhcer. 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 batch to the limited extent. 4. Learned counsel for the Department would 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, while disposing of said batch of writ petitions, had taken note of the same at paragraph Nos.37 & 38 which are reproduced herein under: I t \"37. The preliminary objection raised by the petitioner is sustained and all these u-trit petitions stands alloued on this uery jurisdictional issue. Since tle impugned notices and orders are getting quashed on the point of jurkdiction, u)e ore not inclined to proceed further and decid,e the other issues raised bg the petitioner uthich stands reserued to be raised and contended in an appropiate proceeding s. \" \"38. Since the Hon'ble Supreme Court had, in the case of Ashi-sh Agaruta| supra, as o one-time measure exercising the pou.ters under Article 142 of the Constitution of India, permitted tte Reuenue to proceed under the substituted prouisions, and this Court allouing the petitions onlg on the procedural flaut, the right confered on the Reuenue u.tould remain reserued to proceed furtLer if theg so want 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. As has been held by this Bench in the a-foresaid 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 said batch of writ petitions. No order as to ..,.r.r, 4 To, COStS. Consequently, miscellaneous petitions pending, if any, shall stand closed. SD/. K. AMMAJI ASSISTANT REGISTRAR //TRUE COPY// SECTION OFFICER '1 . Assessment Unit, lncome Tax Department, National e-Assessment Centre, New Dethi, Room No, 4O1 ,2nd Floor, E-Ramp, Jawaharlal Nehru Stadium, New Delhi - 110 003. 2. The lncome Tax Officer, Ward '1 , Warangal, Income Tax Officer, D. No. 1-B- 610,3rd Floor, Mayuri Complex, Opp. TSNPDCL Bhawan, Nakkalagufta, Hanamkonda, Warangal - 505 001 , Telangana. 3. 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 4. One CC to SRI A.V.A. SIVA KARTIKEYA, Advocate [OPUCI 5. One CC to SRI J.V. PRASAD (Sr. SC FOR INCOIVE TAX) [OPUC] 6. Two CD Copies BN GJP HIGH COURT DATED:1210112024 ORDER WP.No.1204 of 2024 ALLOWING THE WRIT PETITION WITHOUT COSTS HE Sr4 14: 1 o 7 c J 17 rEB i.s74 z o I ; it) , r'CrirD L @or', Qsw I r "