Mr. Ramarao Madhavarapu V. Union of India

WP/3073/2024

AI Insights

The case involves Mr. Ramarao Madha, who filed a writ petition against the Union of India and other respondents challenging the legality of the income tax notices and orders issued for the assessment year 2018-19. The petitioner argued that the orders were passed under the un-amended provisions of the Income Tax Act, 1961, which was not in compliance with the amended provisions that require faceless proceedings and an opportunity for the assessee to be heard. The respondents included various officials from the Income Tax Department. The court's decision was influenced by a previous judgment in a similar batch of writ petitions, which addressed the procedural flaws in the issuance of such notices and orders.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 685016 (HC-TELANGANA)
• Appeal Type: Others
• Pronouncement Date: 06-02-2024
• 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: C PRAVEEN KUMAR
• Assessee Lawyers: P SOMASHEKAR REDDY
• Keywords: Faceless Proceedings; Income Tax; Jurisdiction; Natural Justice; Writ of Mandamus
• Section: 148; 148A(d); 226

Judgement Text

"I lr \"I ll [337e ] HIGH TU Between: Mr. Ramarao Madha years, RYo.H.No.1-76 PAN. AJ1PM7296B. AND 1. Union of lndia Petition Under circumstances statec URT FOR THE STATE OF TELANGANA AT HYDERABAD (Special Original Jurisdiction) THE THE J\"li I ESDAY, THE SIXTH DAY OF FEBRUARY TWO THOUSAND AND TWENTY FOUR PRESENT OURABLE SRI JUSTICE P.SAM KOSHY AND A .....RESPONDENTS icle 226 of the Constitution of lndia praying that in the the affidavit filed therewith, the High Court may be iH HONOURABLE SRI JUSTICE N.TUKARAMJI I nt*,r PErroN No: 3073 oF 2oz4 rn lJrr, S/o. Mr.Satyan atayanaMadhavarapu, aged about 55 ffi:::::: ::::::::ii:: : Block, New Delhi { 1 10 001 . 2. Assistant Corntrnls.ion\"r. of lncome Tax,, Circle - 1, Karimnagar Aaykar Bhavan, Near Natraj Theatre, Karimnagar, Telangana - 500 5001. lt 3. The Principal Commissioner of lncome Tax-2, l.T Towers, Ground Floor, A.C Guards Hyderabad, 500004. 4. The Nation.t fLclte\"= Assessment Centre lncome Tax Department, Ministry of Finance Govt. of lndia, New Delhi. pleased to issue , WlitJbro\", or Direction more particularly, one, in the nature of Writ of Mandamus, LJbt\"ring the order passed by the Respondent No.2 in passing the order aLtlh oz-o+-.2o22 uts. 148A(d) and Notice issued by the Respondent No.2 lnUer Section 1+e of the lncome Tax Act, 1961 dated 07-04-2022 aslitt8gal, arbitrary, bad in law, void ab initio, violative of the t,r principles of natural fustice and being violative of Articles 14,'19 and 265 of the Constitution of lndia Jni \"onr\"qr\"ntly. iii. Set aside the Order dated 07 -04-2022 u/s. 148A(d) and Not lncome Tax Act, 196! 1 {, rce issued by the Respondent No.2 under Section 14g of the hated 07-04-2022 calling for the return of income of the Petitioner for A.y. )OlAaS and any consequent proceedings as lacking in jurisdiction. lli counset ,o.,n\" ,\",,rt$\"r : SRt p.SoMA SHEKAR REDDY gly11tlg!f 1Jil\"\", No.1 : SRr cADt eRAVEEN KUMAR, DEpuw SOLICITOR GEN. OFIINDIA counser ror tne nespolulirt Nos.2 to 4 : M/s p.suNDARI, sc FoR rNcoME TAx The Court made the l\",lo*,\"n ORDER , j i I 1 THE HONOURABLE SRI JUSTTCE P.SAM KOSHY AND THE HONOURABLE SRI JUSTICE N.TUKARAMJI WRIT PETITION No.3O73 OF 2024 ORDER:@er Hon'ble Sri Justice P.SAM KOSHY) The instant Writ Petition has been filed bv the petitioner under Article 226 of the Constitution of India seeking the following relief; \"...to issue a Writ, Order, or Direction more particularly one in the nature of Writ of Maldamus declaring the order passed by the Respondent No.2 in passing the Order, dated 07.04.2022 under Section I48A(d) and Notice issued by the Respondent No.2 under Section 148 of the Income Tax Act, 1961 dated 07,O4,2022 as illegal, arbitrary, bad in iaw, vord ab lnitio, violative of the principles of natural justice and being violative of Articles 14, 19 and 265 of the Constitution of India and consequently Set aside the Order, dated 07.O4.2O22 under section 148A(d) and Notice issued by the Respondent No.2 under Section 148 of the Income Tax Act, 196 1 dated 07 .O4 .2022 calling for the return of income of the Petitioner for A.Y 2018-19 ald any consequent proceedings as lacking in jurisdiction and to pass...\" 2. One of the contentions that the petitioner has raised in the present Writ Petilion is that under the amended provisions of the Act which came into effect from Ol.O4.2O2I, the respondents, while proceeding under Section 148 of the Act, were required to issue notice under TE 2 PSK,J & NTR,J W.P.No.3O73 of 2024 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' 3. 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'25903 of 2022 &' batch, dated 14.Og.2023 wherein this Court disposed of the batch of writ petitions to the limited extent' 4 On the other hand, learned Standing Counsel for the respondent-DePartment objection was decided does not disPute that the said in the aforesaid batch of Writ Petitions. However, he further contended 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 dlSp-qsing of said batch of writ petitions' had taken note of 3 PSK,J& JUTR,J W.P.No.3O73 oJ 2O24 the same at paragraph Nos.37 & 38 which are reproduced herein under: \"37. Tlrc preliminary objection raised bg the petitioner is sustained and all these tuit petttions stands allouted on this uery juisdictional issue. Since the impugned notices and orders are getting quashed on the point of juisdiction, we are not inclined to proceed further and decide the other issues raise d bg th.e petitioner tuhich stands reserued to be raised and contended in an appropiate proceeding s. \" \"38. Since the Hon'ble Supreme Court tnd, in the case of Ashish Agarual, supra, as a one-time measure exercising the pouers under Arttcle 142 of the Constitution of India, pennitted the Reuenue to proceed under the substituted prouisions, and this Court allouing the petitions onlg on ttre procedural flaw, th-e ight conferred on the Reuenue uould remain reserued to proceed furtlrcr if theg so want from the stage of the order of the Supreme Court in the case of Ashish Aganual, 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. I I I I 4 PSIT,J & NflTR,J W.P.No.3O73 of 2O24 7 . As has been held by this Bench in the a-foresaid batch matters, the right of the parties would stand reserved as is envisaged at paragraph Nos.37 & 38 of the said order passed in the batch of writ petitions. No order as to costs. 8. Consequently, miscellaneous petitions pending, if any sha1l stand closed. To Ji 1 I t I SD/- P. CH. NAGABHUSHAMBA ASSISTANT REGISTRAR //TRUE COPY// sEcTlo OFFICER Jnion of lndia, tVinistry of Finance, 166-8 North Block, New .Strndari, SC FOR INCOME TAX (OPUC) il' l 1 2 3 4 5 r) 7 8 . The Secretary, One CC to M/ Two CD Copi Delhi - 110 001J { Assistant Comn isbioner of lncome Tax, Circle - 1, Karimnagar Aaykar Bhavan, Near Natraj Theatre, Karimnagar, Telangana - 500 5001. The Principal Cbnlmissioner of lncome f ax-2, l.f Towers, Ground Floor' A.C Guards Hyderabad, 500004. The Natiohal Fdcdless Assessment Centre lncome Tax Department, Ministry of Finance Govi. of lndia, New Delhi. One CC to Sri. p,Soma Shekar Reddy, Advocate [OPUC] One CC to Sri dadi Praveen Kumar, Dy. Solicitor General of lndia [OPUC] sP eA' SA GJ $ I ; I I I i 1 ?l'; LrrL E HIGH COURT DATED:06/02/ ORDER WP.No.3073 4 I L n I ,$ , il. I A ft 1 0 li ALLowrNo ,ll *., ill' TS. il il il 111 ,l { li 1. or, aot WITH ro9 [90?' t: I f\"-* "