Mr. Rohit Pogula, Advocate V. National Faceless Assessment Centre, Income Tax Department, Ministry of Finance, Delhi and The Commissioner of Income Tax (Appeals), National Faceless Appeal Center, New Delhi and Union of India, Represented by its Secretary, Ministry of Finance, North Block, New Delhi

WP/25455/2022

AI Insights

The case involves a writ petition filed by the petitioner challenging an assessment order passed by the Income Tax Department, which disallowed the petitioner's claim of exemption and imposed a substantial tax liability. The petitioner argued that the appellate authority had not issued a notice of hearing for over a year, despite the filing of an appeal against the assessment order. The court considered the delay in the appellate process and the immediate financial impact on the petitioner due to the demand notices received from the assessing authority. The court's decision aimed to ensure a timely resolution of the appeal and provide the petitioner an opportunity to seek a stay on the demand.

• Counselvise Citation: [2022] 140 COUNSELVISE.COM (IT) 817225 (HC-HYDERABAD)
• Appeal Type: Others
• Pronouncement Date: 15-06-2022
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961, Constitution of India
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: K CHOUDARY; B MUKHERJEE
• Assessee Lawyers: B SRINIVAS
• Keywords: Appeal Delay; Assessment Order; Demand notice; Exemption Claim; Income Tax; Writ of Mandamus
• Section: 143(3); 10(23C)(vi); 1448; 220(6)

Judgement Text

"HrcHcouRrro*,]X5\"g,,lttt\"l\":'rtit}St}t'otHYDERABAD WEDNESDAY ,THE FIFTEENTH DlY. OF,JUNE rWO TUOUSNUD AND TWENTY TWO PRESENT THE HON'BLE SRI JUSTICE UJJAL BHUYAN THE HON,BLE **,,U,,L, SUREPALLI NANDA wRlTPETITI NNo: 25455 OF 2022 AND 1. 2 3 National Faceless Assessment Centre' lncome Tax DePartment' Ministry of Finance, Delhl. l:i::ga[:H,F?[]:B\"Jl::fl 'T\"'\"#'\"\"1:lt:H:'5::?'\"\"J]iloXouooooo l#u:*\"ffi :Tl35i.'Ji\",.TE IS,i; \"''[?u'i]'fi i8[F'i (+i'5l{8i'f ?'o' 4 500004. The Commissioner of lncome Tax (Appeals)' National Faceless Appeal Center, New Delhi Union of rndia, Represented by its Secretary, tr/inistry of Finance, North Block' 5 New Delhi \"'RESP.NDENTS PetitionunderArticle226ollheConstitutionoflndiaprayingthatinthe circumstances stated in the affidavit filed therewith' the High Court may be pleased to issue order, writ or direction more particularly one in the nature of Writ of Mandamus, declaring the impugned assessment order bearing DIN ITBA/AST/S/14 3(3 12021- 22t1032840562(1) dated OBtO5l2O21' passed bv the 15t Respondent as being void' illegal' arbitrary' without authority of law' violative ofArticlel4oftheConstitutionoflndiaandviolativeofprinciplesofnatural Between: IrIfff Lllltff tf il-\":I\"ifl,Fj$if,s,'\"'?'*liffi iliiili:hJJ:&il3 Authorized Signatory' l' narrrrarrr ^s.ruv v'v ..'ETIT.ONER iustice and also violative of provisions of lncome Tax Act' 1961 and consequently set aside the same ANO OF 2 1 Petition under Section 151 CPC PraYing that in the circumstances stated n the affidavit filed in suPport of the Petition, the High Court may be pleased to irect the Respondents not to take any coerclv e measures agalnst the Petitioner d DIN ITBA/AST/ s1143(3)12021' pursuant to the Assessmen t Order dated bearing 2211032840562(1) dated 0 8l}5t2o21 Passed bY the '1st ResPondent, Pending disposal of the Writ Petition, in the interest of justice' counser f or the Petitioner: SRr ?il{3lflt;3[ti[*' t' Counsel for the Respondent Nos'1 to 4: Ms'K'MAMATA CHOUDARY' SC for lT Counsel for the Respondent No'5: SRI N'RAJESHWAR RAO' Asst'Sol'General The Court made the following: ORDER THE HONOURABLE SRI JUSTICE UJJAL BHUYAN THE HONOURABLE MRS JUSTICE SUREPALLI NANDA WRIT PETITION No.25455 of2022 ORDER: (Per Hon'ble Sn Jusrice Ujjol Bhuyan) Heard Mr. B.Srinivas, learned Senior Counsel appearing on behalf of Mr. Rohit Pogula, learned counsel for the petitioner and Ms. K.Mamata Choudary, learned Standing Counsel for Income Tax Department for respondent Nos.1 to 4, whereas Mr' B.Mukherjee, learned counsel appearing on behalf of Mr' N'Rajeshwar Rao, learned Assistant Solicitor General of India appears for respondent No.5. 2. Petitioner is an assessee under the Income Tax Act, 196 1 (briefly referred to hereinafter as the 'Act')' For the assessment year 2018-19, l't respondent passed the assessment order dated 08.05.202 1 under Section 143(3) read with Section 1448 of the Act. While the petitioner declared total income at nil in the income tax return for the said assessment year, by the assessment order the assessing authority disallowed the claim of exemption of the petitioner ' - AND UB,J&SN,J W.P.No.25455 of 2022 under Section 10(23C)(vi) of the Act, whereafter income tax liability of Rs.20,28,35,724.O0 was fastened on the petitioner. 3. Against the aforesaid assessment order, petitioner preferred statutory appeal belore respondent No.4 orl 26.O5.202r. 4. Grievance expressed by the petitioner is that though more than one year has gone by, no notice of hearing has been issued by the appeliate authority. On the other hand, petitioner has been served with demand notices issued by the assessing authority 5. After hearing learned counsel for the parties and on due consideration, we are of the view that it would meet the ends of justice if a direction is issued to the appellate authority to hear and decide the appeal expeditiously. We are further of the view that petitioner wouid be at liberty to file application for stay before the assessing authority under Section 220(6) of the Act. 2 6. Accordingly, we issue the foliowing directions: UB, J& S]V, J W.P.No.25455 of 2O22 (i) Respondent No.4 shall hear the appeal preferred by the petitioner on26.05.2021 against the assessment order dated 08.05.2021 within a period of three (03) months from the date of receipt of a copy of this order' (ii) It would be open to the petitioner to file an application before the assessing authority under Section 22}(61of the Act for stay of demand' If such an application is filed within a period of four (04) weeks from today' assessing authority sha1l consider and decide the same within a period of four (04) weeks therea-fter in accordance with law' 3 This disposes of the Writ Petition' However' there shall be no order as to costs. 7 As a sequel, miscellaneous applications pending' B //TRUE COPY// SD/-G'SIREESHA ASSISTANT REGISTRAR .: SECTION OFFICER To, National Faceless Assessment Centre' lncome Tax Department' Ministry of Finance' *uff*t**n$:,'*ru,$frun*t+:,lii*rg,'mru. ali :g n $i' frfi [H'ffi\"H+i[\"rflT-t:i#rY3' u \", 1. 2. 3 4 5 6 7 8 I Two C.D. Copies One SPare CoPY NiIRC '*.s.}- I if any, in this Writ Petition, shall stand \"loTj: -- .a HIGH COURT DATE D : 1 510612022 ORDER WP.No.25455 of 2022 DISPOSING OF THE WRIT PETITION WITHOUT CO6TS 1 ;iE ST4 IS {iPA1c'dr.o t a( ) c 'J o^ 12 JUL 2122 i) 0 .J ./ ))(nlrz \" ' "