Mr. Sathish Manohar Gaddam V. Assessment Unit, Income Tax Department, National e-Assessment Center, New Delhi and The Income Tax Officer Ward 1(1), Hyderabad and The Principal Chief Commissioner Of Income Tax, Andhra Pradesh And Telangana, Hyderabad

WP/4274/2024

AI Insights

The case involves Mr. Sathish Manohar Gaddam, 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 arbitrary, illegal, and violated various constitutional and statutory provisions, including Articles 14, 19(1)(g), and 265 of the Constitution of India, and Section 148A of the Income Tax Act, 1961. The main contention was that the reassessment was initiated under the old provisions of the Act, despite the amendments effective from April 1, 2021, which require a faceless procedure and a prior notice under Section 148A. The court's decision was influenced by a similar judgment in a batch of writ petitions where the procedural flaws were acknowledged and the notices were quashed on jurisdictional grounds.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 690369 (HC-TELANGANA)
• Appeal Type: Others
• Pronouncement Date: 19-02-2024
• 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: B SAPNA REDDY
• Assessee Lawyers: A V A KARTIKEYA
• Keywords: Faceless Proceedings; Income tax assessment; Natural Justice; Violation of Constitution; Writ of Mandamus
• Section: 147; 148; 144; 14; 148A; 265; 226; 19(1)(g)

Judgement Text

"HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD (Special Original Jurisdiction) MONDAY, THE NINETEENTH DAY OF FEBRUARY TWO THOUSAND AND TWENTY FOUR PRESENT THE HONOURABLE SRI JUSTICE P.SAM KOSHY AND THE HONOURABLE SRI JUSTICE N.TUKARAMJI WRIT PETITION NO: 4274 0F 2024 [ 337e ] ...PETITIONER Between: Mr. Sathish Manohar_Gaddam, S/o. tVlark John Gaddam, aged 52 years, occ. Advocare, Fro. prot .No._9o sanleevJ socierv, Mahendra riirrslEr.t Marredpally, Secunderabad - 500 026. AND 1. 2 3 Assessment Unit, lncome Tax Department, National e-Assessment Center, New Dethi. Room No. 4O1 ,2\"d Ftbor, E-Rim[, liwa[aaat Nenru StaJium,' New Delhi - 110 003. The lncome Tax Officer WaIq t(l), Hyderabad, t.T.Towers, 1o_2_3, AC Guards, Hyderabad - 500 OO4, feldng6na fhe Principal Chief Commissioner Of lncome Tax, Andhra pradesh And Telangjrna, Hyderabad, Roo11fl9. 92!, g,, f bor,'A Btoct, t.t foweri, i O_Z_ 3, AC Guards, Hyderabad - 500 004, Telangana ' - ...RESPONDENTS Petition under Article 226 of rhe constitution of rndia praying that in the circumstances stated in the affidavit filed therewith, the High court may be pleased to issue writ of Mandamus or any other appropriate writ, order or Direction, declaring that the Assessment order passed by the .r'r Respondent, u/s 147 rlw Sec. 144 r/w Sec. 1448 of the lncome Tax Act, .1961, dated 1O.O1 .2024, bearing DlN,. lrBA/ASr,Sl147l2o23-24l1o59s7tg1}( 1), for the Assessment year 2o15 - 16, as arbitrary, irregar, bad in raw, void-ab-initio, barred by rimitatron, violative of the principles of natural justice, apart from being violative of Articles 14, 19(1)(g) and 265 of the Constitution of tndia and Sec j4BA of the lncome Tax Act, 196'1 , and to 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 the Order passed by the lst Respondent, u/s 141 rtw Sec. 144 r/w sec. 1448 of the lncome Tax Act, '1961, dated 10.o1.2024, bearing DtN.. |IBA/ASTlst14il2o23-24/1059577988(1), for the Assessment Year 2o1s - 16, pending disposal of the above writ petition. Counsel for the Petitioner: SRI A V A SIVA KARTIKEYA counsel for the Respondents: M/S. B. sApNA REDDy(sc FoR rNcoME TAx) The Court made the following: ORDER THE HONOURABLE SRI JUSTICE P.SAM KOSHY AND THE HONOURABLE SRI JUSTICE N.TUKARAMJT WRIT PETITION No.4274 OF 2024 ORDER:1per Hon'bLe Sri Justice P. SAJtI KOSHY) The instant Writ Petition has been filed by the petitioner under Article 226 of the Constitution of India seeking for the following relief: \"to issue wit of Mandamus or ang oth.er appropiate Wit Order or Direction declaing that the Assessment Order passed- bg the lst Respondent u/ s 147 r/ u.t Sec 744 r/u Sec 1448 of the Income Tax Act 1961 dated 1O 01 2024 beoring DIN I'|BA/ AST/ S/ 147/202324/ 1059577988(1) fo, the Assessmenl Yeor 2O 15 16 as arbitrary illegal bad in lau uoid ab initio barred bg limttatton uiolatiue of tLrc principles of natural justice opart from betng uiolatiue of Articles 14 1919 and 265 o[ the Constihttion of India and Sec 148A of the lncome Tox Act 1961 and to consequentlg set aside the same in the interests of justice\". 2. One of the contentions that the petitioner has raised in the present Writ Petition is that under the amended provisions of the Act which came into eflect from Ot .O4.2O21, the respondents, while proceeding unde r Section 148 of the Act, were required to issue notice uncler Section 148A and provide an opportunity of hearing to the 2 PS.I(,J dr, JyrR,J W.P.No.4274 of 2024 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 rhis very Bench in Wp.No.25903 of 2022 & batch, dated 14.09.2023 wherein this Court disposed of the batch of u'rit petitions to the limited extent. 4. On the other hand, learned Standing Counsel for the respondent-Department does not dispute that the said objection was decided in the aloresaid batch of Writ Petitions. However, he further contended that apart from the aroresaid 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-Depa-rtment is concerned, this Bench, while disposing o[ said batch of writ petitions, had taken note of 3 t I PSr(,J&.iiiTR,J W.P,No.4274 of 2024 the same at paragraph Nos.37 & 38 which are reproduced herein under \"37. TLE preliminary objection raised bg tLte petittoner is sustained and all these urit petitions stands alloued on this uery juisdictional issue. Stnce tLe impugned notices and orders are getting quashed on the point of jurisdiction, u)e are not inclined to proceed furtLer and decide the other issues raised by the petitioner uhich sfcnds reserued to be raised and contended iru an op p ro p riate pro ce eding s. \" \"38. Since tLrc Hon'ble Supreme Court hod, in tLe case of Ashish Agarutal, supra, as a one-time measure exerci-sing tLe pou.ters under Article 142 of the Constitution of India, permitted tLe Reuenue to proceed under the substituted prouisions, and this Court allouing the petitions only on the proedural J7aut, the right conferred on the Reuenue uould remain reserued to proceed further if theg so uant from the stage of the order of the Supreme Court in the case of Ashish Agaru.tal, 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 ln accordance with the amended provision but under the un-amended provision which is otherwise not sustainable 7. As has been held by this Bench in the aforesaid batch matters, the rights of the parties would stand reserved as is 4 PS6J&jYrR,J W.P.No.4274 of 2O24 envisaged at paragraph Nos.37 & 38 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 COPY// SD/. T. VIJAY KUMAR ASSISTANT REGISTRAR SEC I To, FFICER 1 Assessment Unit, lncome Tax p_epartment, National e_Assessment Center, New Dethi, Room No. 4o1 2nd Ftoor, E_R;;;.'iri,rirrrrr Nehru Stadium, New Delhi - 110 003. The lncome Tax Officer Ward 1j(1), Hyderabad, l.T.Towers, 10-2_3, AC 9y\"r!q, HydeFbad - 500 004, firihgj\"a''-\"\" I he Principal Chief Commissioner Ofincome Tax, Andhra pradesh And Tetangana. Hvderabad. Room No. szz, bih FroJi,'e'iiL.r, t.T.Towers, .10_2_ 3, AC Guards, Hyderabad _ soo oo+. ibra;;;;\" \" \"',' 9n\" 99 to Sri AV n siva Kirt*eyj, njrJBli\"\"topucl one CC to M/s. B. Saona aeooy, (5b r*'r\"\"\".-\"'i6lrii1oeuc1 Two CD Copies 2 4 5 6 TJ GJP J * HIGH COURT DATED:1910212024 ORDER WP.No.4274 of 2024 ALLOWING THE WRIT PETITION WITHOUT COSTS. ilE s 14 r€ ( ( q lo io 2 3 l'1AB 2[?4 jl t * DEspa-rc$9O {' e * "