Mr. Nithin Kumar Chinthala V. The Income Tax Officer

WP/1974/2025

AI Insights

The case involves two writ petitions filed under Article 226 of the Constitution of India, challenging the assessment orders issued by the jurisdictional Assessing Officer (JAO) under the statutory faceless mechanism. The petitioners argued that the orders were passed without proper jurisdiction and sought interim relief to stay the recovery of disputed amounts pending the disposal of their appeals. The respondents, represented by the Income Tax Department, did not contest the grant of similar interim protection as previously provided in analogous cases. The High Court's decision focused on procedural fairness and the proper application of the faceless assessment mechanism.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 752627 (HC-HYDERABAD)
• Appeal Type: Others
• Pronouncement Date: 01-01-2025
• Assessment Year: misc
• Laws Referred To: Article 226 of the Constitution of India, Section 151 CPC, Section 14BA of the Income Tax Act 1961
• Result in Favour of: Partly Allowed
• Court: HIGH COURT
• Department Lawyers: BOKARO REDDY
• Assessee Lawyers: SRINARAYAN TOSHNIWAL; A V A KARTIKEYA
• Keywords: Assessment Order; Disputed Demand; Income Tax; Interim protection; Faceless Mechanism
• Section: 151; 226; 14BA

Judgement Text

"[344p fl I H|GH couRr'?T I+E:Itlii:::::-'^-^ (sPecii'oiiginal Jurisdictlon; Mo N D AY r H E Hu,SIffi t^xBw Jnfl\"\"?t ** u o*\" i1l :l( THE HONOURABLE THE ACTING CHIEF JUSTICE SUJOY PAUL THE HONOURABLE SMT JUSTICE RENUKAYARA PRESENT OS: 1974 1j It AND 1975 oF2025 4of WR 2025 ITP ETITloNN w.P. AND .197 No Between: . ^-..a ^^^.t 33 vears, Ur?c. M r N ithi n rt H ,\"; X )?T,3; :l:, l;';,y.j r?* \"3\"fl :? f BH',;Sfl ?i\" 33' [?fl?l' & ;'' ri::#\"P,tJ31?3?Ji,1.,n,\"\" , .....rrr,,,oi=* t. 2. 3 The lncome Tax Officer'.Ward 6(1)' Hyderabad' lT Towers' AC Guards' Masab rank, Hvd-eL9bao,;,0-!9 ??XJfl:#'ilXd, sisnature rowers' Sv No rhe tncome rax officer wil:o,'L:il;;\" opp d'otanicalGardens' 3g,l';t:il,T,'il^,:,,'#:{dtl,-'^'J::litifi::*;*X*'L:iffif t:ffi'Jil: : ;|:[',ff \" T3,, ]#l;\";' ;-i;;p' J awaha rrar N ehru Stad i u n': . HyJrflii;r'lt%Lo'i;\"'\"\"er or rncome.r'1---'l rr rowers' Ac Guards' - il;;i;k, Hvderabad - 500 004' Telansana' s. The Joint co*.tr.,il'\"i tnpp\"rll)..,'\" cimmissioner of lncome Tax (Appears),Natronar;;;\"#Appearcenrre'{l*I^[\",.f X':T.:^ffi 81'-- Chief Commissioner of income Tax (NaFAC)' D 110 001. 6. The Central Board of Direct Taxes' Represenled bv its Chairman' DepartmL:nt of Revenue, Ministry of Finance' Government of lndia' Secretariat Buildingti' New Delhi - 110 001 ' -....RESPoNDEUrs Petition|JnderArticle226oftheConstitutionoflndiaprayingthatini,he circumstances stated in the affidavit tiled therewith, the High C-AUrt may be ' il:\".i[T]? t;.?fj\"r\"* y#B ;S[,#:ffi ,\"1r,1d, r r ro we rs, A c G ua rd$, \"!:#s:,ri:Ii;itui:fr:l,T.\"ns3[?:d*rr,*:,,***,*,**#Wi ' I#-l',:l],:: i &\"fl TbT,sffi : i:,,ff8fl, r\"x-4, r r rowe rs, tr o G ua rds, 11,6 s,,, 6 'fr?i.3i*ili?,Hl:i:,i,ggf +:r.i[*fi .H[{*'mx,*;ffi il,li*; '#*#qill,f ffi,i'\"?,iff :k\",\"aJ:m.\"n,:i,H,f sJ.%ff !iBii,ffii* petition Underr Articlc )rA ^E tt- \"\"*ut'o*oin,',f, il:T,*; ;iiilfi 1,:.\", Jii :;';::\"\"\" or nd a p r av i n s,ha,,rr,,irhe Drecron decarns,j ::[IT*: Tfll;1J,,:il:: ;1l..#l: rolwardls(1)/HyolDr:manoru ofice/2024-25,dater Respondent vide F. ri9o. petitioner to pay 20p,:rcent of the dispuied o\"n' ot o' 2025, rr directi+6$:hs appeal of the petitic,nt Respondent here n, rc r ;\"'Hj_,:\"\" :##=: ::r\":il: :::illl -l; barred by rimitation, bac in raw, void-ao_initio, u,o,\"l]u - .17 ' as arbitrarv, i!{qqar, justice, aparr rrom beins vioralive or Arricres ,i:\";j,lL;':::i:::tPI\" Constitution of lndia and Sec 14BA of the lr consequentlv set-asidr:,n\".r-^ \"\"::\":, ^:1\" :'*'\" rax Act 196 1; tld the pet tioner,s appear r:,::n:\":;'ffiil :';::l\"il ?i,l]' ;,::\"ffi,:; justice. l.A.NO:1 oF 2025 Petition Under section 151 cPC praying that in the circumstarrr;es sta Ertliin the atfidavit filed in support of the petition, the High court may be pleased tQ.sray all further proceedings, including any recovery' eursual:]o l-'t t'oti '\" ffi the 1st Respondent' vide F' No lTOMardl5(1)/Hyd/DemandNrtice/zui{t dated 03.01'2025' in directing the Petitioner to pay 20% of the dis5ruted derrtand' ''lltr:lt ,1i,Ii it neased to ssue, :1: :jff:$;ilI,'J5\"Ti::j, :[:$;J tirection, dec-laring the order \"t-t^\"::l;',\"nr,\". 05.11.?024. in directing the No.. ITBA/RcV tFt17t2o24'25t107012s12e(1'' o\"\"lollo\".* tn\" app\"ar tr t'\" Petitioner to pay a t\" '*t 'n'00'000/-' pending disposal of the appeal ti1 petitioner berore the ',,, olo\"'nt\" iuthoritv 'i - jl,, :Iff\"ff*::L:\"\"',TJ\"; l:; ff :lni;*:: ; 1; j :'i::\"H.\".'\":'kii*l# j' * ,\"*- - ;:.il::;\"T:l:\"'i. j1'Ji:1\";i'T'Jffi ;;\"::::'::['j\":ffi r::: grant stay of recovery' J\"\"atg Oitp\"sal of the Petitioner's appeal before 'y t \" Appeuate Authority. Jerrv\" J i:: l1 l.A.NO:10F2025 that in the circumstances $tated Petition Under Section 151 CPC prayrng he High Court may be Pleasedto in the affidavit filed in support of the petition ' t including anY recovery' pursuant to the order PaESed No.. ITBA/RcvrntEoz+' stay all further Proceedings' vide DIN and Letter by the 1st ResPondent' he Petitioner to PaY a s'' m of 2511O7O12g129(1 )' dated 05.11.2024. in directing t the Petitioner before tfre 1st Rs. 29,00,0001, pending disposal of the aPPeal of for the AssessmenlYear Appellate Authority, i e the 5th ResPondent heretn' 2016 - 17, rending disPo sal of the above writ Petition' Counsel for the Petitioner : SRI SRINARAYAN TOSHNIWAL' aovocefe f,$n ini a.v.a.stvA KARTIKEYA Counsel for the Respondents : Ms' BOKARO SAPNA REDDY ('tr' SC FOCr;l INCOME TAX) w.P.NO: 1975 0F 2025 Between: \",lfl ;l%1i31.'.?3f;f E;F,ffi : \"\"'errrrffien i it1 tr i:r, Ms. Mounika Chintala,-D/o Late Mr' Ch' Bakaj G Plof No. 41 to 44, xavr Colony' Mahendra ifideraOaO - 50O 026, Telangana' ANO pending disposal of the appeal of the petitioner be ie, the 4th Resp.nde\", r,\"*i, ;\";::\"'::^\"l\"efore the 1st Apperiare Aurpprrry, disposat of the abc,ze *;t nutu'n' for the Assessn it petition; and to pass nent Year 2)16 ' 17, o{fo,rg s;iff;,i:J, lf ,ff ll,+.,,lE l^, _ I s R I NARA'A N ro s H N I wA L, A D vo cA rE'() R ,:,?ffi\"J l1I;\" *\".o\"ndenrs : Ms. BoKARo sApNA REDD' (Jr. sc FoR The Court made the following: ORDER il !l<+\" \" - { ,.:.::;: :-, -- .,/ TIIE IION'BLE THE ACTING CHIEF JUSTICE SUJOY PAUL AND TIIE IION'BLE SMT' JUSTICE RENUXAYARA NNos.1974 &1975 of 2o2s o (Per the Hon'ble the Acting Chief Justice) co ON ORDER , MM Sri Srinarayan Toshniwal' learned counsel represents Sri A.V.A. Siva Kartikeya' learned counsel for the petitioners and Ms' B. Sapna Reddy' Iearned Junior Standing Counsel for Income Tax DePartment, for the resPondents' Regard being had to the similitude of the questions involved' 3. It is an admitted fact between the parLies that the assessment orders are subject matter of challenge before the appellate authority wherein principal ground of the petitioners is that the J urisdictional Assessing Offrcer (JAO) has passed the orders '*'hereas it should have been passed as per the statutory faceless mcchanism ln a batch of writ petitions, ad interim protections havc beetl grantcd by this Court' these matters were analogously heard 4. karned counsel for the pctitioners submits that during the course of pendency of the petitioners' appears, r\"hcy may be given similar protection and the impugncd orders datccl 05' 1 1'2O24 and O3.01.2025 respectively' whereby Lhey were directed to deposit Rs.29,OO,00O/- in W'P'No '1974 of 2025 and 2Oo/o ol the disputed demand arnount in W'P No' 1975 ol 2O25' may be stal'cd- 5 2 Department. petitions, thi Lear;ted Junior Standing Counsel for lor the respondents fairly submits that i s Court has granted such interim protection Income Tax n similar writ 6. Consi,lering the aforesaid, the i. 05.rr.2024 in w.p.No. r9z4 of 2025 andoa.,-o\"*\"\"0 orders dared Ol.2O2S irr W.p.No. 1975 of 2O2S are set aside. Learned appellate au appears prefern:d by the petitioners expedidot*ot,* shalr decide the but shal not comper the petitioners to deposit iy on itr; own merits, considering the,ature of the case. the aforesaid amounts 7. Accordingly, these Writ petitions shnd disposed of without expressing any opinion on the merits of the cases. No @sts. Interloclltory a closed. rpplications, if any pending, shall also stand //TRUE COPYII SD/- T. JAYASREE ASSISTANT REGISTRAR To ' .._ r/ brcrION OFFICER 1 . The lncome Tax Jfficer lrc erabad Ward 6(1), Hyderabad - 500 004, Tetangana. IT Towers, AC Guards, Masab Tank, H 2. The lncome Ta)r (Jfficer, Ward 11(1), Hyderabad, Signature Torvers, Sy No 6(P) of Kondapur Sy No 6(P) of Kothaguda, Opp Botanical Gardens, Serilingampally itt4), Ranga Redd y District, Hyderabad - 500 OB,t Telangana Assessment Unit, lncome Tax Department, National e-Assessment Center, New Delhi, Roo rn No.. 40'1, 2nd Floor, E-Ramp, Jawaharlal Nehr-r Stad ium, Nerv Delhi -1100C3. 2 4 The Principal Commissioner of lncome Tax _ 1, lT Towers. AC Clrards, . t,ta,ab Tank HyJr-,rabad _ SOO OO+, iefa,ii\"n, ,' c I ne Jornt Comnissioner (Appeals) / the C6mmissioner c I Incomt_ Tax (Appeals), Natiorral Faceless Appeal Centre, O\"tf,,, .fn.orgh the principar Chiei Commissiorer of income Tax (NaFAC), Delhi, Norih Btock, New Delhi - 110 001. 6. The Central Boarc cf Direct Taxes, Represented by its Chairman Department of Revenue, Mlnistry of Finance, Government of India, Secretariat Buildings, Nerv Delhi - 110 C01 7. one cc to SRI / .V.A.SlvA KARTIKEYA, Advocate [OPUC] ; o;\" CC to tr,4s uOKARO SAPNA REDDY (Jr' SC FoR lNCot \"lE TAX) Advocate IOPUC] 9. Two CD CoPies SA 4/ GJP / HIGH COUR'r DATED:2ilA1nOZs COMMON ORDER WP.Nos.1974 AND 1975 of ZO2S WITHOUT COSiTS. // /,t S E H 1 ( t 14 o Y L .(. { ai i r/ r ffAg ru:5 i i DISPOSING OIT BOTH THE WRIT PETITIONS o f 1. \"/ i: I I r ' - ^,. '{.- j ). 'r' : /1 /,t t4 "