Mr. Venkata Krishna Murthy Gandam and Mr. Busireddy Narsimha Reddy V. The Income Tax Officer - Ward 7(1), Hyderabad and The Principal Chief Commissioner of Income Tax, Andhra Pradesh and Telangana and Assessment Unit, Income Tax Department, National e-Assessment Center, New Delhi

WP/30413/2023

AI Insights

The case involves two writ petitions filed by Mr. Venkata Krishna Murthy Gandam and Mr. Busireddy Narsimha Reddy against the Income Tax Department's actions concerning the reassessment notices and orders for the Assessment Years 2015-16 and 2016-17. The petitioners challenged the legality and procedural correctness of the notices and orders issued under sections 148A(d) and 148 of the Income Tax Act, 1961. The main contention was that the procedures followed were not in accordance with the amended provisions of the Act, which require a faceless assessment and an opportunity of hearing. The court, referencing a similar case (W.P.No.30153 of 2023), found in favor of the petitioners, allowing the writ petitions and setting aside the impugned notices and orders.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 797383 (HC-TELANGANA)
• Appeal Type: Others
• Pronouncement Date: 01-11-2023
• Assessment Year: misc
• Other Referred Cases: W.P.No.30153 of 2023, W.P.No.25(10) 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 KARTIKEYA
• Keywords: Assessment Year; Income Tax; Legal Violation; Natural Justice; Writ of Mandamus
• Section: 148; 148A(d); 265

Judgement Text

"[ 3386 I HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD (Special Original Jurisdiction) WEDNESDAY, THE FIRST DAY OF NOVET iIBER TWO THOUSAND AND TWENTY THREE PRESENT THE HONOURABLE SRI JUSTICE P.SAM KOSHY AND THE HONOURABLE SRI JUSTICE LAXMI NARAYANA ALISHETTY WRIT PETITION NOS: 30413 AND 30397 OF 2023 W.P.NO: 30413 OF 2023 Between [,4r. Venkata Krishna l 4urthy Gandam, S/o [VIr years, Occ. Business, R/o. H.No.14-1-535, Hyderabad - 500 035, Telangana. ...PETITIONERS AND 1. The lncome Tax Officer - Ward 7(1), Hyderabad, Signature Towers, Opp. Botanical Gardens, Kondapur - 500 084, Telangana. 2. The Principal Chief Commissioner of lncome Tax, Andhra Pradesh and Telangana, Hyderabad Room No.. 922,gth Floor,'B'Block, I.T.Towers, 10-2- 3, AC Guards, Hyderabad - 500 004, Telangana. 3. Assessment Unit, lncome Tax Department, National e-Assessment Center, New Delhi, Room No. 4O1 ,2nd Floor, E-Ramp, Jawaharlal Nehru Stadium, New Delhi - 'l '10 003, ...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 lvlandamus or any other appropriate Writ, Order or Direction, declaring. a. the order passed by the 1st Respondent, u/s 148A(d) of the lncome Tax Act, 196'1 , dated 05.05.2022, bearing DIN and Notice No.. ITBA/AST/F/148A12022-2311042947080(1), for the Assessment Year 2015 - 16, and b. the notice issued by the 1st Respondent, u/s 148 of the lncome Tax Act, 1961, dated 05.05.2022, bearing DIN and Notice No. ITBA/AST/S/148_112022- 2311042953035(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, 1 9(1 Xg) and 265 of the Constitution of lndia and Sec 'l 48A I rluthyalu tvlurthy, aged 47 Agapura, Begum Bazar, of the lncome Tax Act, 1961, and to consequenfly set aside the same in the interests of justrce. lA NO: 1 OF 2023 Petition under Sectron r 51 cpc praying that in the circumstances stated rn the affidavit filed rn support of the petition. the High court may be pleased to stay all further proceedings, incruding any recovery, pursuant to the notice issued by the 1st Respondent, uis 148 of the rncome Tax Act, 1961, dated 05.05.2022, bearing DIN and Notice No.. lrBA/AST stl48 1t2o22-23/1042gs3035(1), for the Assessment Year 2o15 - 16, pending disposar of the above writ petition, W.P.NO: 30397 OF 2023 Between: lvlr. Busireddy Narsimha Reddy, S/o IVr y9grs, Occ. Agriculturist, H.trto t-tO, Mahabubnagar - 509 301, Tetangana. Busireddy Burgupally Ram Reddy, aged 67 Village, Jadcherla, ...PETITIONER AND 'l . The lncome Tax Officer -Ward_1 , ^M-ahabubnagar, lncome Tax Office, DEO Office Road, Mahboobnagar - 509 001 , Telandarra. 2. The Principar_ chief commissioner of rncome iix, Andhra pradesh and Tel-alglna, Hyderabad Room No. g22,gth Ftoor,''B; eto.k, f.iio;;rilf O-Z- 3, AC Guards, Hyderabad - 500 004. Telanoana. 3 Assessment unit, rncome Tax Department, ationar e-Assessment center. New Delhr, Room No. 401 ,2nd Flbor, E_Ramp, La*af,arLf f.le[;; b;;;;, New Delhi - 1 10 003. ...RESPONDENTS Petition under Articre 226 of the constitution of lndia praying that in the circumstances stated in the affidavit filed therewith, the High courl may be pleased to issue a Writ of l rlandamus or any other appropriate Writ, Order or Direction, declaring. a. the order passed by the 1st Respondenl, u/s 14gA(d) of the lncome Tax Act, '1 961, dated 23.O3.2023, bearing DIN and Notice No.. |TBA/AST/F/148Ar2o22-23t1o51169998('1 ), for the Assessment yeat 2016 - 1r and b. the notice issued by the 1st Respondent, u/s 14g of the rncome Tax Act'1961, dated 23-03.2023, bearing DrN and Notice No.. ITBA/AST/s/148- 112022-2311o51 171960(1), for the Assessment year 2016 - 17 as arbitrary, iilegar, bad in law, void-ab-initio, viorative of the principres of naturar justice, apart from iI 7 being violative of Articles 14. 19(1)(9) and 265 of the Constitution of lndia and Sec 148A of the lncome Tax Act, 1961 , and to consequently set aside the same in the interests of justice. lA NO: 1 OF 2023 Petition under Seclton 151 CPC praying that in the circumstances stated in the affidavit filed ln 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 1st Respondent, u/s 148 of the lncome Tax Act, 1961, dated 23.03.2023, bearing DIN and Notice No. ITBA/AST/S/148-1/2022- 23/1051171960(1), for the Assessment Year 2016 - 17, pendinq disposal of the above Writ Petition. Counsel for the Petitioner ln Both: SRI A.V.A.SIVA KARTIKEYA Counsel for the Respondents ln Both: SRI J.V.PRASAD, Sr' SC FOR INCOME TAX The Court made the following: COMMON ORDER a I'HE HON'BLE SRI ,'TiSTICE P.SAM KOSHY 1 D TTIE IION'I}LE SRI JUS'I'ICE LAXMI NAIIAYANA ALISHETTY WRIT PETITION Nos.]10{13 and 30397 of 2023 Whcn thr' rnatter is taken up ibr hcaring loda . it has been infornrcd by the parties that an identical ririt petirion i.e., W.P.no.30l 5l of 2023 has alleadv been allorved and clisposed of vide order clatcd -l0. I 0.2023 2. [n view ol the fact that thc identical matter has alrcadv been allowed by this Courl, rvc arc rnclined to allow thcse writ petitions also, irr terrns of the order passed in W.P.No.l0 153 of l02i clecided on 30.10.2023 on similar ternrs 3. As a sequel, miscellaneotrs applications pending if any in these u,rit petitions, shall stand closed. No order as to costs To SD/.B. SARASWATHI ASSISTANT REGISt'RAR //TRUE COPY// O sEcTroN drrtceR The lncome Tax Officer - Ward 7(1), Hyderabad, Signature Towers, Opp. Botanical Gardens, Kondapur - 500 084, Telangana. The Principal Chief Commissioner of lncome Tax, Andhra Pradesh and Telangana, Hyderabad Room No. 922,91h Floor, 'B' Block, l.T.Towers, 10-2-3, AC GuardS, Hyderabad - 500 004, Telangana. Assessment Unit, lncome Tax Department, National e-Assessment Center, New Delhi, Room No. 401,2nd Floor, E-Ramp, Jawaharlal Nehru Stadium, New Delhi - 1 10 003 The lncome Tax Officer -Ward 1, Mahabubnagar, lncome Tax Office, DEO Office Road, lr.4ahboobnagar - 509 001, Telanglana. One CC to SRI A.V.A,SIVA KARTIKEYA, Advocate IOPUC,I One CC to SRI J V PRASAD, Sr SC FOR INCOME'TAX tOPUCl Two CD Copies (Along with a copy of the order, dated 30.10.2023, passed by this court in W.P.No.30153 of 2023 to this order) 2 3 4 5 6 7 ,tr b PSK GJP COMMON OR-DER:(per Llon hlt . r, .Jt.'trt.a P.5.1-tl KOSI|t t 1 HIGH COURT DATED:01 11112023 COMMON ORDER WP.Nos.30413 AND 30397 of 2023 ALLOWING THE WRIT PETITIONS WITHOUT COSTS. 2t21 F r e 1 a T 0 S N Y o -b s c o 1 t) * I * *9 e' '1 'r THE HON'BLE SRI JUSTICE P.SAM KOSHY AND THE HON'BLE SRI JUSTICE LAXMI NARAYANA ALISHETTY W.P. No. 30153 of 2O23 ORDER:1pcr Hott'btL.Si -tustice P.SAM KOSHY) 'Hcard Mr. A.V.A. Siva Kartikcy.r, Iearned counsel for the pctitioner and Ms. B. Sapna Reddy, lcarned Junior Standing Counsel for Income Tax appearing for the rcspondcnts- Perused the entire record. 2. The instant petition has been tilecl challenging the Assessrnent Order passed by respondent No. I under sectlon 148A(d) of the Income Tax Act, 196 1 (hereinafter referred to as \"the Act\") dated 25.04 .2022 for the Assessment Year 20la-19. 3. One of the contentions that the petitioner has raised in the present writ petition is that under the arnended provisions o[ the Act which came into effect from 01.04.2021, the respondents while proceeding under Section 148 of the Act were required to issue notice under Section I48A 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 instant case, reopening has been initiated by the Juridictional Assessing Officer. In respect of the said objection that the petitioner had raised, he relied upon the recent batch of writ 2 petllions ricc:idcd by this vetl. Bench on 14.Oq.2O)3 r,ide W ir.No.25(l()li ctf 2022 ar-rd batch to thc limited extenl. 1. L:irr rrcrl <:ounsel for thc f)cpartntent would not clrspute of l'ralurg clc cril< rl the said objectiorr in the aforesaicl l):ilclt ntatfers Houever, lcirrned counsel submits that apart fl-om lhe aforesaid ob.jcr:tion. lltr:r.r: havc been othcr various objections also which the pctitioncr hils r aised in the rvrit pe tition 5- So lrr. iLs this contcntion of the lcarned r.or.nscl lor the Dc l)ar rt lr1('n I IS W. [) No.2 5(]0.1 of 2022 and batch had taken note o[ thc sarnc in cor-rcerned. this Bcnch, while tlisposino of paragraph Nos..l7 & 38 which is rc1;roduced herein undcr '.17 .l'Jlc prelrrrirnary objcction raised by the pctrtron(jr is susr.iul((l ar)d all thcsc ,rit pctitrons stands allo ,ed oll lllrs vcn, juristlrrLional issuc. Sincc the intpugned notices and orrlcrs arc gcttrn!: rlrraslled on the poitlt ofjurisdiction, we are not irrclirred to prot ccrl further and decide thc otl.rer issues raised b1' the pelirlor)cr which slands reservcd to bc raised and contcndcd itr atr apl)r opfla te proccedings.\" 38. Sincc the Hon'ble Supreme Court had, in the case of Ashish Aganrirl, supra, as a one-time lneasure _exercising thc Powcrs under r r I rcle 142 of the Constltution of India, permi(ted the RcvenLrc to proceed under the substituted provisions, and this CoLtrt irll() ving the petitions only on the procedural flaw, th(: right cotr[crrtd on the Revenuc would rcmain reserved to ltrocccd furtlrcr rf lhey so want from the stage of the order of the Supr.eme Collrl rrr tlrc case ofAshish Agarwtrl, supra. 6. In vierv of the same, we are inclined to allow the present writ petition also on similar terms. Accordingly, the present Writ pctition stands allou'r:d on tl.rc objcction of the petitioner that thc proceedings have not becn drawn in accordance with the arnended provision but under the un:lrnended provision which is otherwise not sustainable. -7 3 As has been held by this Bench in the albresairl l)atch rnatters, the right ol the responclents would stand reservecl as is envisaged in paragraph Nos.37 & 38 of the said batch. No orrler as to costs. 7. Consequently, mtscellaneous petitions perrcling, ii any, shall stand closed. P.SAM KOSHY, J LAXMI NARAYANA ALISHETTY, J Dated: 30. lO.2023 aqs "