Mr. Mohammed Nayiemuddin 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/817/2024

AI Insights

The case involves Mr. Mohammed Nayiemuddin, the petitioner, challenging the orders and notices issued by the Income Tax Department under Sections 148 and 148A(d) of the Income Tax Act, 1961, for the assessment year 2015-16. The petitioner argued that the notices were issued under the un-amended provisions of the Act, which is not sustainable as the amended provisions require the proceedings to be conducted in a faceless manner and provide an opportunity of hearing. The respondents, represented by the Income Tax Department, contested the petition. The court's decision was influenced by a previous judgment in a similar batch of writ petitions, where it was held that the proceedings must comply with the amended provisions of the law.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 676900 (HC-TELANGANA)
• Appeal Type: Others
• Pronouncement Date: 10-01-2024
• 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 Year 2015-16; Faceless Proceedings; Income Tax; Jurisdictional issue; Natural Justice; Writ of Mandamus
• Section: 148; 148A(d); 226

Judgement Text

"[ 3379 ] HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD (Special Original Jurisdiction) WEDNESDAY, THE TENTH 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: 817 OF 2024 Between: Mr. Mohammed Occ. Business, Telangana Nayiemuddin, S/o. IMohd Qamruddin, aged 51 years, H. No. 9-15-1 '1l, Khoja Colony, Nizamabad - 503 001, ...PETITIONER AND 1. Assessment Unit, lncome Tax Department, National e-Assessment Center, New Delhi, Room No-. 4O1 ,2' o Fioor, E-Ramp, Jawaharlal Nehru Stadium, New Delhi - 110 003. 2. The 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..922,91h 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 olher appropriate Writ, Order or Direction, declaring a.the order passed by the 2nd Respondent, u/s 148A(d) of the lncome Tax Act, 1961 , dated 07.04.2022, bearing DIN and Notice No.. ITBA/AST/F/148N2O22-2311O42635846(1), for the Assessment Year 2015 - 16. and b.the notice issued by the 2nd Respondent, u/s 148 of the lncome Tax Act, '1961, dated 07.O4.2O22, bearing DIN and Notice No.. ITBAiAST/S/148_112022- 2311042635884(1), for the Assessment Year 2015 - 16. as arbitrary, illegal, bad in law, void-ab-initio, violative of the principles of natural justice, apart from being viorative of Articres I a' 1 g( 1 xg) and 265 0f the constitution of rndia and sec 148A of the lncome Tax Act, .1961 , and to consequen,y set aside the same in the interests of justice. IA NO:10F 2024 Petition under Section 151 cpc praying that in the circumstances stated in the affidavit fired in support of the petition, the High court may be preased to stay all further proceedings, including any recovery, pursuant to the order passed by the 2nd Respondent u/s 14g of the lncome Tax Act, 1961, dated OT.O4.ZO22, bearing DIN and Notice No.. rrBA/AST/si14 8-112022-2311042635884(1), for the Assessment year 2O1S _ i6. pending disposal of tf,\" ,Ooru Writ petition. Counset for the petitioner: SRI A V A S|VA KART|KEYA Counsel for the Respondents: SUNDARI R plSUpATt (Sr SC for lncome Tax Dept) The Court made the following: ORDER r I I I i ! t THE HONOURABLE SRI JUSTICE P.SAM KOSITY AND THE HONOURABLE SRI JUSTICE N.TUI(ARAMJI WRIT PETITION No.817 OF 2024 ORDER:/per Hon'ble Si Justice P.SAM KOSHY) Heard Mr. A.V.A. Siva Kartikeya, learned counsel for the petitioner arrd Ms. Sundari R. Pisupati, learned Standing Counsel for Income Tax appearing for the respondents. Perused the entire record. 2. 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 lncome Tax Act, 196 I (for short, \"the Act\") bearing DIN No.lTBA/AST lF I r48Al2022-23/1042635846 (1), dated 07 .O4.2022 passed by respondent No.2 for the assessment year 2O15-16 and the consequent notice under Section 148 of the Act, dated 07.O4.2022, bearing DIN No.ITBA/AST / s / 148_t / 2o22-2s / 104263s884 (l). 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 carne into effect from Ol.O4.2O2l, the respondents, while proceeding under 2 Section 148 of the Act, were required to issue notice under Section l48A and prouide arr opportunity of hearing to the assessee. As per the amended prorrision of law, the proceedings to be drawn are also in a faceless marrner. 4. Whereas, learned counsel for the petitioner contended that, in the instant case, reopening 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.259O3 of 2022. & batch, dated 14.Og.2023 wherein this Court disposed of the batch of writ petitions to the limited extent. 5 respondent- Department objection was decided does not dispute that the said On the other hand, learned Staading Counsel for the in the aforesaid batch of Writ Petitions. However, he further contended that apart from the aforesaid objection, there have been other various objections arso which the petitioner has raised in the writ petition, 6. So far as this contention of the learned counsel for the respondent-Department is concerned, this Bench, while 3 I t I disposing of said batch of writ petitions, had taken note of the same at paragraph Nos.37 & 38 which are reproduced herein under: 37. Tfrc preliminary objection raised bg the petitioner is susfained and all these writ petitions stands alloued on this uery jurisdictional issue. Since tLe impugned notices and orders are getting quasled on tLe point of jurisdiction, u)e are not inclined to proceed furtLer and decide the ofher issues raised bg the petitioner which stands reserued to be raised and contended in an app ro p riate p roce e ding s. \" \"38. Since the Hon'ble Supreme Court had, in the case of Ashish Aganua| supra, as o one-time m.easure exercising tLrc pouers under Article 142 of the Constitution of India, permitted the Reuenue to proceed under the substituted prouisions, and this Court allowtng tLrc petitions onlg on the procedural Jlaut, the ight confened on the Reuenue uould remain reserued to proceed further if they so utant from the stage of the order of the Supreme Court in the case of Ashi.sh Agarwa| stipra.\" 7. [n vierv oi 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. 8. As has been held by this Bench in the aforesaid batch I I matters, the rights of the parties would stand reserved as is 4 envisaged at paragraph Nos.37 & 3g of the said order passed in the batch of writ petitions. No order as to costs. Consequently, miscellaneous petitions pending, if any, shall stand closed. //TRUE COPYII SD/- G. SIREESHA ASSrsrANr *.o,tl* SECTION OFFICER To, 1 2 . Asse:sment Unit, lncome.Tax Department, National e_Assessment Center, New Dethi, Room No.. 4o1, 2nd fioor, e-n'amp, liwanarrii r.rlh,'StJd il;i, New Delhi - 110 003. . The lncome Tax Officer - Wgrd_],- ifqnfrbad, lncome Tax Office, 6_2_156t3, Subhash Nagar, Nizamabad - 503 OO2. ftfanoanr- . r he Principar chief commissioner of rncome iax-Andhra pradesh and Telang^ana, Hyderabad R9o g1|o.. !2!, st, Frooi, ij's loct, r. i iow\"t] r O_Z_ 3, AC Guards, Hyderabad - 500 OO4. i;tanor;; ' - - . 9n\" 99 to Sri AV A Siva Kartikeyr, ndroZliJlOeucl . One CC to M/s. Sundari R pisupafi 1Sr 5C tor'inl6rE 1'r, Dept) tOpUC] . Two CD Copies 3 4 5 6 TJ GJP HIGH COURT ri DATED:1010112024 ORDER WP.No.817 ot 2024 ALLOWING THE WRIT PETITION WITHOUT COSTS. te STATI: o .,. 1q ttB 2t2[ q f c o '// ?fr "