Mr. Srinivas Reddy Mudiganti V. The Assistant Commissioner of Income Tax, Circle 1, Karimnagar and The Principal Chief Commissioner of Income Tax, Andhra Pradesh and Telangana, Hyderabad and Assessment Unit, Income Tax Department, National e-Assessment Center, New Delhi

WP/33269/2023

AI Insights

The case involves Mr. Srinivas Reddy Mudiganti, the petitioner, challenging the orders and notices issued by the Income Tax Department under sections 148A(d) and 148 of the Income Tax Act, 1961, for the Assessment Year 2015-16. The petitioner argued that these were arbitrary, illegal, and violative of natural justice and various constitutional provisions. The High Court's decision was influenced by a similar case previously decided, where it was held that the proceedings were not in accordance with the amended provisions of the law, which require notices to be issued in a faceless manner and provide an opportunity of hearing to the assessee.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 796861 (HC-TELANGANA)
• Appeal Type: Others
• Pronouncement Date: 08-12-2023
• Assessment Year: misc
• Other Referred Cases: W.P.No.30153 of 2023, W.P.No.25903 of 2022
• Laws Referred To: Income Tax Act, 1961, Constitution of India
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: J V PRASAD
• Assessee Lawyers: A V A SIVA KARTIKEYA
• Keywords: Assessment Year 2015-16; Income Tax; Natural Justice; Void ab initio; Writ of Mandamus
• Section: 148; 148A(d); 1484

Judgement Text

"[ 337e ] HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD (Special Original Jurisdiction) FRIDAY, THE EIGHTH DAY OF DECEMBER TWO THOUSAND AND TWENTY THREE PRESENT THE HONOURABLE SRI JUSTICE P.SAM KOSHY AND THE HONOURABLE SRI JUSTICE N.TUKARAMJI WR|T PETITION NO: 33269 OF 2023 Between: Mr. Srinivas Reddy lvludiganti, S/o [vlr. Venkat Reddy tr4udiganti, aged 55 years, Occ ; Agriculturist, H.No.8-78/1, Gattubuthkur, Gangadhara Mandal, Karimnagar District - 5O5 445, Telangana. .....PETITIONER AND 1 . The Assistant Commissioner of lncome Tax, Circle 1 , Karimnagar, lncome Tax Office, Aayakar Bhavan, Near Natraj Theatre, Karimnagar - 505 001 , Telangana. 2. The Principal Chief Commissioner of lncome Tax, Andhra Pradesh and Telangana, Hyderabad, Room No.. 922,gth Floor, 'B'Block, lT Towers, 10-2- 3, A.C. Guards, Hyderabad - 500 004, Telangana. 3. Assessment Unit, lncome Tax Department, National e-Assessment Center, New Delhi, Room No.401, 2nd Floor, E-Ramp, Jawaharlal Nehru Stadium, New Delhi - 110 003. .....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 other appropriate Writ, Order or Direction, declaring. a- the order passed by the 1't Respondent, u/s 148A(d) of the lncome Tax Act, 1961, dated 05-04-2022, bearing DIN and Notice No. ITBA/AST/F/148A12022-2311042524291(1), for the Assessment Year 2015 - 16 and b. the notice issued by the 1't Respondent, uls 148 of the lncome Tax Act, 1961, dated 06-04-2022, bearing DIN and Notice No. ITBA/AST/Si148_112022' 2311042587293( 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 violative of Articles 14, 19(1Xg) and 265 of the Constitution of lndia and Sec 1484 of the lncome Tax Act, 1 961 , and to consequently set aside the same in the interests of justice. |.A.NO:1 OF 2023 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 notice issued by the 1\"t Respondent, u/s 148 of the lncome Tax Act, 1961, dated 06.O4.2022, bearing DIN and Notice No.. ITBA/AST/S/148_112022- 2311042587293(1), for the Assessment Yeat 2O15 - 16, pending disposal of the above writ petition. Counsel for the Petitioner : SRI A.V.A.SIVA KARTIKEYA Counsel for the Respondents : SRI J.V.PRASAD (SC FOR INCOME TAX) The Court made the following ORDER THE HONOURABLE SRI JUSTICE P.SAM KOSHY AND THE HONOURABLE SRT JUSTICE N.TUKARAMJI WRIT PETITION No.33269 OF 2023 ORDER (per Hon'ble Sn Jrrsticc P.SAM KOSHY) When the matter is taken up for hearing todal', it has be€n informed by the parties that an identical Writ Petition i.e., W.P.No.30153 of 2023 has already been allo'\"r'ed and disposed of uide order, dated 30. 10.2023. 2. In view of the fact that the identical matter has already been allowed by this Court, s'e are inclined to allorv this Writ Petition in terms of the order passed in W.P.No.30153 ol 2023 decided on 30.1O.2023 on similar terms. 3. As a sequel, miscellaneous applications pending if any in this //TRUE COPY// SECTION OFFICER To 1. The Assistant Commissioner of lncome Tax, Circle 1, Karimnagar, lncome Tax Office, Aayakar Bhavan, Near Natraj Theatre, Karimnagar - 505 001, Telangana. 2. The Principal Chief Commissioner of lncome Tax, Andhra Pradesh and Telangana, Hyderabad, Room No.. 922,9th Floor, 'B' Block, lT Towers, '10-2- 3, A.C. Guards, Hyderabad - 500 004. Telangana. 3. The Assessment Unit, lncome Tax Department, National e-Assessment Center, New Delhi, Room No.. 40 1, 2nd Floor, E-Ramp, Jawaharlal Nehru Stadium, New Delhi - 110 003, 4. One CC to Sri A.V.A.Siva Kartikeya, Advocate [OPUCI 5. One CC to Sri J.V.Prasad (SC FOR INCOME TAX) [OPUC] 6. Two CD Copies (Along with a copy of the order, dated 30-'10-2023, passed by this Court in WP.No.30153 of 2Q23 to this order) SA GJP Pt- Writ Petition, shall stand closed. No order as to costs. SD/- K. VENKAIAH ASSISTANT REGISTh,AR HIGH COURT DATED:0811212023 ORDER WP.No.33269 of 2023 ALLO 'ING THE W.P /ITI{OTJ'f COS'TS. g .d^ 0 5 JAN 202{ * T4 rc- S F- H 1 ( c) z i ) o E * t) T A. X,* THE HON'BLE SRI JUSTICE P.SAM KOSHY AND THE HON'BLE SRI JUSTICE LAXMI NARAYANA ALISHETTY W.P. No. 3O153 of 2O23 ORDER:1per rro n'ble Si JLLstice P-SAM KOSHY) Heard Mr. A.V.A. Siva Kartikeya, learned counsel for the petitioner and Ms. B. Sapna Reddy, learned Junior Standing Counsel for Income Tax appearing for the respondents. Perused the entire record. 2. The instant petition has been flled challenging the Assessment Order passed by respondent No.1 under section 14BA(d) of the Income Tax Act, 196 I (hereinafter referred to as \"the Act\") dated 25.04 .2022 for the Assessment Year 20 18- 19. 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 came into effect from 01.04.2O2 l, the respondents while proceeding under Section 148 of the Act rvere required to issue notice under Section 148,4, 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. Whereas, it has been contended by the petitioner that in the instalt case, reopening has been initiated by the Juridictional Assessing Ofhcer. [n respect of the said objection that the petitioner had raised, he relied upon the recent batch of writ 2 petitions decided by this very Bench on 14.Ot) .2023 vide W.P.No.259O3 of 2022 and batch to the limited extent. 4. Learned counsel for the Department would not dispute of having decided the said objection in the aforesaid batch matters. However, learned counsel submits 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 Department is concerned, this Bench, while disposing of W. P.No.25903 of 2022 and batch had taken note of the same in paragraph Nos.37 & 38 which is reproduced herein under: ''37. Thc preliminary objection raised by the petiti()ner rs sustained and all these writ petitions stands allowed on this very lurisdictional issuc. Since the impugned notices and orders are getting quashed on thc point ofjurisdiction, we are not inclined to proceed further and decide the other issues raised by the petitioner which stands reserved to be raised and contended in nn appropriate proceedings.\" 38. Since the Hon'ble Supreme Court had, in the case ol Ashish Aganval, supra, as a one-time measure exercising the powers under Article 142 of the Constitution of India, permitted the Revenue to proceed under the substituted provisions, and this Court allowing the petitions only on ttre procedural flaw. the right conferred on the Revenue would remain reserved to procecd further if they so want from the stage of the order of the Supremc Court in the case ofAshish Agarwal, supra. 6. [n 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 unamended provision which is otherwise not sustainable. 3 As has been held by this Bench in the aforesaid batch matters, the right of the respondents would stand reserved as is envisaged in paragraph Nos.37 & 38 of the said batch. No order as to costs. 7. Consequently, miscellaneous petitions pending, if any, shall stand closed. P.SAM KOSHY, J LAXMI NARAYANA ALISHETTY, J Dated: 30. 10.2O23 aqs 4 THE HON'BLE SRI JUSTICE P.SAM KOSHY AND THE HON'BLE SRI JUSTICE LAXMI NARAYANA ALISHETTY W.P. No. 3O153 of 2O23 par the Hon'bLe Sri Justice P.SAM KOSHY) Dated: 30.10.2023 aqs "