MS Agarwal Foundries Private Limited V. Union of India and 2 others

WP/34347/2022

AI Insights

The case involves MS Agarwal Foundries Private Limited, which filed a writ petition against the Union of India and other income tax authorities, challenging the legality of a reassessment notice and order under the Income Tax Act, 1961, for the assessment year 2014-15. The petitioner argued that the notice and order were illegal, arbitrary, and contrary to the provisions of the Income Tax Act. The High Court, referencing a similar case (W.P.No.9509 of 2022), decided to allow the writ petition, setting aside the notice and order without costs.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 686035 (HC-TELANGANA)
• Appeal Type: Others
• Pronouncement Date: 13-12-2023
• Assessment Year: misc
• Other Referred Cases: W.P.No.9509 of 2022
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: B KAVITHA YADAV; J V PRASAD
• Assessee Lawyers: V ANEESH
• Keywords: Arbitrary; Illegal; Income Tax; Reassessment proceedings; Writ of Mandamus
• Section: 147; 148; 148 A (d)

Judgement Text

"[ 337e ] HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD (Special Original Jurisdiction) WEDNESDAY, THE THIRTEENTH DAY OF DECEMBER TWO THOUSAND AND TWENTY THREE PRESENT THE HONOURABLE SRI JUSTICE P.SAM KOSHY AND THE HONOURABLE SRI JUSTICE N.TUKARAMJI WRIT PETITION NO: 34347 OF 2022 Between: MS Agarwal Foundries Private Limited, Having its Registered Office at 5-4-83, Rama Toweis, 2nd Floor Tsk Chambers, Opp. Raniguni Bus Depot, M.G. Road, Secunderabad TG 500003 lN and Rep. by its Authorized Signatory [ ilr. Pawan Kumar Sharma ...PET',.NER AND 1. Union of lndia, Ministry of Finance, North Block, New Delhi Rep. by its Secretary, 2. Principal Commissioner of lncome Tax, Aayakar Bhavan, Basheerbagh, Hyderabad. 3. Office of the Asst. Commissioner of lncome Tax, DCIT, Circle 5(1), Room No. 344. D- Block, 3rd Floor, lT Tower, AC Guards, lulasab Tank, Hyderabad, Telangana - 500004' ...RES'.NDENTS Petition under Article 226 of lhe Constitution of lndra 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 writ, direction, or directions lo declare the order daled 2810712022 passed by the Respondent No. 3 under Sectron 148-A(d) of the lncome Tax Act, 1961 and the notice dated 2810712022 issued by the Respondent No. 3 under Section 148 of the lncome Tax Act, 1961 proposing to carry forward the reassessment proceedings against the Petitioner under Sections 147 & 148 of the lncome Tax Act, 196'1 pertaining to the Assessment Year 2O14-15, as illegal, arbitrary and contrary to the provisions of the lncome Tax Act and to set aside the same. lA NO: 1 OF 2022 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 grant stay of all further proceedings in pursuance to the order dated 2810712022 passed by the Respondent No. 3 under Section 148-A(d) of the lncome Tax Act, 1961 and the notice daled 28.O7.2O22 issued by the Respondent No. 3 under Section 148 of the lncome Tax Act, 1961 proposing to carry forward the reassessment proceedings under Sections 147 & 148 of the lncome Tax Act, 1961 lA NO: 2 OF 2022 Between: 1. Union of lndia, Ministry of Finance, North Block, New Delhi Rep. by its Secretary, 2. Principal Commissioner of lncome Tax, Aayakar Bhavan, Basheerbagh, Hyderabad. 3. Office of the Asst. Commissioner of lncome Tax, DCIT, Circle 5(1), Room No. 344, D-Block, 3'd Floor, lT Tower, AC Guards, Masab Tank,'Hyderabad, Telangana - 500004. ...PETITIONERS/RESPONDENT No.1 to 3 AND MS Agarwal Foundries Private Limited, Having its Registered Office at 5-4-83, Rama Towers, 2nd Floor Tsk Chambers, Opp. Ranigunj Bus Depot, M.G. Road, Secunderabad TG 500003 lN and Rep. by its Authorized Signatory Mr. Pawan Kumar Sharma ...RESPONDENT/WRIT PETITIONER 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 vacate the orders dated O2lOgl2O22 in W.P.No.34347 ot 2022, in the interest of justice. Counsel for the Petitioner: SRI V. ANEESH Counsel forthe Respondent No.1: SMT. B. KAVITHA YADAV, S.C. FOR CENTRAL GOVERNMENT Counsel for the Respondent Nos.2 & 3: SRI J.V. PRASAD, Sr. S.C. FOR INCOME TAX The Court made the following: ORDER To, NIP GJP THE HONOURABLE SRI JUSTICE P.SAM KOSHY AND THE HONOURABLE SRI JUSTICE N.TUNARAMJI WRIT PETITION No.34347 OF 2022 OR.DER: (per Hon'ble Si Justice P.SAM KOSHY) When the matter is taken up for hearing today, it has been informed by the parties that identical Writ Petitions i.e., W.P.Nos.9509 of 2022 and batch have already been allowed a-nd disposed of uide order, dated 19.O9.2023. 2. In view of the fact that the identical matters have already been allowed by this Court, we are inclined to allow this Writ Petition in terms of the order passed in W'P.No.95O9 of 2022 decided oo 19.O9.2023 on similar terms. 3. As a sequel, miscellaneous appLications pending if any in this Writ Petition, shall stand closed. No order as to costs. SD/. MOHD. SANAULLAH ANSARI ASSISTANT GIS R //TRUE COPY// SECTION OFFICER 1. The Secretary, Union of lndia, Ministry of Finance, North Block, New Delhi' 2. The Principal Commissioner of lncome Tax, Aayakar Bhavan, Basheerbagh' Hyderabad. 3. The Office of the Asst. Commissioner of lncome Tax, DCIT, Circle 5(1), Room - rlo. ea+ D- Block,3rd Floor, lT Tower, AC Guards, Masab Tank, Hyderabad, Telangana - 500004. 4 One CC to SRI V. ANEESH, Advocate [OPUC] 5. One CC to Smt. B.KAVITHA YADAV, S.C. for Central Government [OPUC] 6. One CC to SRI J.V. PRASAD, Sr. S.C- for lncome Tax [OPUC] 7. Two CD Copies Along with a copy of the Order dated 19.09.2023 in W.P.No 9509 of 2022 & Batch{jF\"- HIGH COURT DATED:1311212023 ORDER WP.No.34347 ol2O22 1 BE ST4 r.-c 3 0 JA|{ 2024 ( 4 J o ,J o - v a', * .S P.,,-f a !r 'o DE ALLOWING THE WRIT PETITION WITHOUT COSTS 1N THE HON'BLE SRI JUSTICE P.SAM KOSHY AND THE HON'BLE SRI JUSTICE LAXMI NARAYANA ALISHETTY WRIT PETITION Nos.9509 18133 1169l of2023 and 30891 of2022 COMMON ORDER:(pL,r Ilon'l e Sri Jtrsticc P.SAM KOSHY) Heard Mr.Manmohan Dundu,.leamed counsel for the petitioner in all these writ petitions and Mr.J.V.Prasad, leamed Senior Standing Counsel for the respondents. Perused the material on record. 2. It has been informcd that one of the preliminary objections raised by the petitioner has been recently answered by this Division Bench in W.P.No.25903 ol 2022 and batch which was decided vide order 14.09.2023 3. In view of the decision of this Division Bench in the aforesaid writ petitions, and since the prelirninary objection being the same, the impugned notice and the consequential orders stands set aside/quashed. However, the right of the Department would stand reserved as has been protected in the batch matters which were decided on 14.09.2023 in W.P.Nos.25903 of 2022 and batch. 4. Accordingly, thesc w'rit petitions are allowed. No order as to costs- 2 5. As a sequel, miscellaneous applications pending if any in these writ petitions, shall stand closed. No order as to costs. P.SAM KOSHY, J LAXMI NARAYANA ALISHETTY, J 19.o9.2023 Aqs/hfm "