Ms. Madhavi Surabhi V. Union of India

WP/35232/2023

AI Insights

The case involves multiple writ petitions filed by different petitioners challenging the orders and notices issued by the Income Tax Department under Section 148A(d) and Section 148 of the Income Tax Act, 1961, for the assessment year 2015-16. The petitioners argued that the orders were passed without following the amended provisions of the Act, which require a faceless assessment and an opportunity for the assessee to be heard. The respondents, including the Union of India and various Income Tax authorities, defended the actions taken under the un-amended provisions. The court, referencing a previous decision, found in favor of the petitioners, leading to the quashing of the contested orders and notices.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 724449 (HC-TELANGANA)
• Appeal Type: Others
• Pronouncement Date: 02-01-2024
• Assessment Year: misc
• Other Referred Cases: W.P.No.34493 of 2023, WP.No.25903 of 2022 & batch, WP.No.34493 of 2023
• Laws Referred To: Income Tax Act, 1961, Constitution of India
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: GADI PRAVEEN KUMAR; J V PRASAD
• Assessee Lawyers: P SOMASHEKAR REDDY
• Keywords: Faceless assessment; Income Tax; Jurisdiction; Natural Justice; Writ of Mandamus
• Section: 148; 148A(d)

Judgement Text

"I [ 337e ] HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD (Special Original Jurisdiction) TUESDAY, THE SECOND DAY OF JANUARY TWO THOUSAND AND TWENTY FOUR PRESENT THE HON'BLE SRI JUSTICE P. SAM KOSHY AND THE HON'BLE SRI JUSTICE N. TUKARAMJI WRIT PETITION NO: 35123, 3s166. 35198 AND 35232 0F 2023 wP NO.35123 0F 2023: Between: Ms. Madhavi Surabhi, D/ o. Mr.V. Dayanand Rao, aged about 52 years, Rl/ o. 8-3-833/205, Plot No.205, Kamalapuri, Srinagar Colony, Hyderabad,Telangana - 500 073. PAN ASNPS3882R ...pE,,oNER AND 'l . Union of lndia, Ministry of Finance Rep. by its Secretary, 166-8 North Block, New Delhi - 110 001 2. lncome Tax Officer, Ward 3(1),1Oth Floor, lncome Tax Towers, AC Guards, iviasab Tank, Hyderabad - 500 004 3. The Principal Commissioner of lncome Tax-|, 1Oth Floor, lncome Tax Towers, AC Guards, Masab Tank, Hyderabad - 500 004 4. The National Faceless Assessment Centre, lncome Tax Department Ministry of Finance Govt. of lndia, New Delhi ...REspoNDENTs Petition under Article 2% of the Constitution of lndia praying that in the circumstances stated in the affidavit filed therewith, the High Court may be pleased to (i.) lssue a Writ, Order or Direction more particularly, one, in the nature of Writ of Mandamus, declaring the order passed by the Respondent No.2 in passing the Order daled 0510412022 uls. 148A(d) and Notice issued by the Respondent No.2under Section 148 of the lncome Tax Act, 1961 daled 05l04l2022as illegal, arbitrary, bad in law, void ab initio, violative of the principles of natural justice and being violative of Articles 14,19 and 265 ol the Constitution of lndia and consequently, (ii.)Set aside the Order daled 0510412022 uls. 148A(d) and Notice issued by the Respondent No.2 under Section 148 of the lncome Tax Act, 1961 dated 'l- 0510412022 calling for the return of income of the Petitioner for AY. 2015-16 and any consequent proceedings as lacking in jurisdiction, WP NO 35166 0F 2023 Between: AND 1. 2. 3. 4. Union of lndia, Ministry of Finance Rep. by its Secretary, 166-8 North Block, New Delhi - 1 10 001 . Asst Commissioner Of lncome Tax Circle 9(1), lncome Tax Towers, Masab Tank, Hyderabad, Telangana The Principal Commissioner of lncome Tax-|, lncome Tax Towers, Masab Tank, Hyderabad, Telangana - 500 004. The National Faceless Assessment Centre, lncome Tax Department Ministry of Finance Govt of lndia' New Delhi' ...RES''NDENT' Petition under Article 226 of lhe Constitution of lndia praying that in the circumstances stated in the affidavit filed therewith, the High Court may be pleased to. i. lssue a Writ, Order or Direction more particularly, one, in the nature of Writ of Mandamus, declaring the order passed by the Respondent No.2 in passing the Order dated 06.04.2022 ul s. 148A(d) and Notice issued by the Respondent No.2under Section 148 of the lncome Tax Act, 1961 dated '11.04.2022as illegal, arbitrary, bad in law, void ab initio, violative of the principles of natural justice and being violative of Articles 14,19 and 265 of . the Constitution of lndia and consequently, ii. Set aside the Order dated 06.04.2022 uls. 148A(d) and Notice issued by the Respondent No.2 under Section 148 of the lncome Tax Act, 1961 dated 11 .O4.2o22calling for the return of income of the Petitioner for AY. 201 5-16 and any consequent Broceedings as lacking in jurisdiction, WP NO: 35198 OF 2023 Between: Mr. Anjaneya Chary Ragipani, S/o. Mr. Markandeyulu Ragipani, aged about 58 years, Occ. Business, Rl/o. H.No, 21-7911 , Vivekananda Nagar Colony, Dilsukhnagar Hyderabad,Telangana - 500 060. PAN. AFEPR43, ?-?rr,r,o\"r* Mr. Rajendram Namani, S/o. Mr. Sankaraiah, aged about 67 years, 121 o. H.No. 511 355, Pochammakunta, NIM Nagar, Hanamkonda, Warangal, Telangana - 506 009 PAN' AMWPN1609C ...pErrroNER ) Union of lndia, Ministry of Finance Rep. by its Secretary, 166-8 North Block, New Delhi - 110 001 lncome Tax Officer, Ward 1, Warangal lncome Tax Office, D.No. '1-8-610, 3rd Floor, Mayuri Complex, Opp. TSNPDCL Bhavan, Nakkalagutta, Hanamkonda, Warangal, Telangana - 506 001 The Principal Commissioner of lncome Tax-|, lncome Tax Towers, Masab Tank, Hyderabad, Telangana - 500 004. The National Faceless Assessment Centre, lncome Tax Department Ministry of Finance Govt. of lndia, New Delhi ...REspoNDENTs Petition under Article 226 of tlle- Constitution of lndia praying that in the circumstances stated in the affidavit filed therewith, the High Court may be pleased to. lssue a Writ, Order or Direction more particularly, one, in the nature of Writ of Mandamus, declaring the order passed by the Respondent No.2 in passing the Order dated 26.04.2O22 uls. 148A(d) and Notice issued by the Respondent No.2under Section 148 of the lncorne Tax Act, 1961 dated 26.04.2o22as illegal, arbitrary, bad in law, void ab initio, violative of the principles of natural justice and being violative of Articles 14,19 and 265 of the Constitution of lndia and consequently set aside calling for the return of lncome of the petitioner for AY 2015-'16 and the Assesment order dated: 18-12-2023 and any consequent proceedings as lacking in jurisdiction the Order dated 26.04.2022 u/s. 148A(d) and Notice issued by the Respondent No.2under Section 148 of the lncome Tax Act, 1961 dated 26.04.2022. WP NO: 35232OF 2023 Between: AND 1 2 3 4 AND 1. 2. 3. 4. Ms. Madhavi Surabhi, Dio. Mr.V. Dayanand Rao, aged about 52 years, Rl/o. 8-3-833/205, Plot No.205, Kamalapuri, Srinagar Colony, Hyderabad, Telangana - 500 073. PAN. ASNPS3882R ...pETtIoNER Union of lndia, Ministry of Finance Rep. by its Secretary, 166-8 North Block, New Delhi - 110 0O1 . lncome Tax Officer, , Ward 3(1), 1Oth Floor, lnoome Tax Towers, AC Guards' Masab Tank, Hyderabad - 500 004 The Principal Commissioner of lncome Tax-|, 1Oth Floor, lncome Tax Towers, AC Guards, Masab Tank, Hyderabad - 500O04 The National Faceless Assessment Centre, lncome Tax Department Ministry of Finance Govt. of lndia, New Delhi.. ...RESpoNoENTs Petition under Artlcle 226 of the Constitution of lndia praying that in the circumstances stated in the affidavit filed therewith, the High Court may be pleased to. - tr i. lssue a Writ, Order or Direction more pa(icularly, one, in the nature of writ of Mandamus, decraring the order passed by the Respondent No.2 in passing the Order dated 23.03.2023 u/s. ,l4gA(d) and Notice issued by the Respondent No'2under Section 1 48 0f the rncome Tax Act, 1 961 dated 23.03.2023as iregar, arbitrary, bad in raw, void ab initio, viorative of the principres of naturar justice and being violative of Articres 14,1g and 265 of the constitution of rndia and consequently, ii. set aside the order dated 23.03-2023 ut s.14gA(d) and Notice issued by the Respondent Ng2 under section 148 of the rncome Tax Act, 1961 dated 23.O3.2023caring for the return of income of the petitioner for Ay. 2016-17 and any consequent proceedings as lacking in jurisdiction Counsel for the Petitioner: SRI p. SOMA SHEKAR REDDY (ln all the Writ Petitions) Counsel for Respondent No. 1: SRI GADI PRAVEEN KUMAR (tn all the writ Petitions) Dv' soLlclroR GEN' oF INDIA Counsel for Respondent Nos. 2 to 4: SRI J. V. PRASAO, (ln atl the writ Petitions) sENloR sc FoR lNcoM TAx The Court made the following: COMMON ORDER tl I Y '$ THT HON'BLE SRI JUSTICE P.SAM KOSIIY AND THE HON'BLE SRI JUSTICE N.TUKARAMJI W.P.Nos.35123 35166 35198 and,35232of2o23 COMMON ORDER: (per HotL'ble Si .Iustice P.S.AI[ KOSrfY/ When these matters are taken up for hearing today, it has been informed by the parties that an identical Writ Petition i.e., W.P.No.3449 3 of 2023 has already been allowed and disposed of uide order, dated 27.12.2023. 2. In view of the fact that the identical matter has already been allowed by this Court, u,e are inclined to allow these Writ Petitions in terms of the order passed in W.P.No.34493 of 2023 decided on 27.72.2023 on similar terms 3. As a sequel, miscellaneous applications pending if any in these Writ Petitions, shall stand closed. No order as to costs. SD/. G. SIREE HA ASSISTANT REGIS //TRUE COPY// SECTION OFFICER To, 5. 6. 7. 8. 9. 10 MBC '1. The Secrefary, Union of lndia, Ministry of Finance .166_8 North Block, New Delhi -110001 2 If:_ll:\"1,:g Tglofficgr, Ward 3(1 ),1Oth Ftoor, tncome Tax Towers, AC ^ gualds, Masab tank, Hyderabad _ 500 004 3. ThePrincipal commissi6ner of lncome Tax-|, 1Oth Floor, lncome Tax Towers, . AC Guards, Masab Tank, Hyderabad - 500 004 4. The National Faceress Assessment centre, rncome Tax Department Ministry of Finance Govt. of lndia, New Delhi Ttre Assistant-commissioner of rncome Tax circre 9(1), rncome Tax Towers, Masab T_ank, Hyderabad, Telangana lncomeTax Officer, Ward t, {q!q19q! tn_come Tax Office, D.No. 1_8-610, 3rd fi B?:,!l3,lyi3ru\"lll#1' SB% J,t N P Dc L B h a va n' t't a t tar a'g t'ti'' H il;kd il ;' One CC to Sri P Soma Shekar Reddv Advocate IOPUCI one cc to sri Gadi Praveen Kumar, beputy soti'citor e6nerar of rndia topucl Orte CC toSri J. V. Pras-ad, Sr. SC ior tncome faxi-Optjut (Alon^g_with a copy of Order dated 22.12.2023 in'W.p.N6.34493 of 2023) Two CD Copies GJP HIGH COURT DATED: 0210112024 4 ' -. i ! i'- : * Da: COMMON ORDER WP NO: 35123,351G6, 35198 AND 35232 OF ZOZ} ALLOWING THE WRIT PETITIONS WITHOUT COSTS bry ---w ,/. THE HONOURABLE SRI JUSTTCE P.SAM KOSHY AND THE HONOURABLE SRI JUSTICE N.TUI{ARAMJI WRIT PETITION No.3 4493 0F 2023 ORITER: (per Ho n'bte Si Justice P'SAIuI KOSHY) The instant Writ Petition has been liled by the petitioner under Articl e 226 of the Constitution of India challenging the order issued under Section 148A(d) of the Income Tax Act, 1961 (for short, \"the Act\") bearing DIN No.ITBA/AST /F / r48Al2022-231 1042852137 (1), dated 26.04.2022 passed by respondent No' 1 for the assessment year 2Ol8-L9 and the consequent notice under Section 148 of the Act, dated 26.04'2022, bearing DIN No.ITBA/AST ls I t48-r I 2022-23 I 104285s 160 (1)' 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 effect from Ol.O4.2O2l, the respondents, while proceeding under Section 148 of the Act, were required to issue notice under Section 148A and provide an opportunity of hearing to the -:-5 2 PSI(,J & fl:rR,J W.P.No,34493 o.f 2023 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 this very Bench in WP.No.25903 of 2022 & batch, dated 14.09 .2023 wherein this Court disposed of the batch of writ petitions to the limited extent. 4. On ttre other hand, learned Standing Counsel for the respondent-Department does not dispute that the said objection was decided in the a-foresaid batch of Writ Petitions. However, he further contended 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 respondent-Department is concerned, this Bench, while disposing of said batch of writ petitions, had taken note of 3 PSX,.,&.I flrR.J W.P.No.S449O o1 2ois the same at paragraph Nos.37 & 3g which are reproduced herein under: ilr_ *: preliminary objection raised bg the petitioner rs susfained and alt *Ese unt petitions sfands allou_ted on this uery jurtsdictionat issLe. 5,\"*- ti\"\"iffigr.a notices and orders are oetting quashed on the Loint of juisdtction, we are \"\"tl\"itiii ti i)Zi.-i r,f\"Xii \"\"o decide the other issues ,\"i\"\"i is ii\"ilirli\"\"I*n rn stands reserued to be raised. i\"a J\"i\"\"il\"i i\" \"\" approp iate procee din g s. \" \"3-8. Since the Hon'ble Supreme Court had, in the case t^!:!: Aganual, supra, as a one_time measure T.r:rng tLe potuers und.er Article ISZ -oi tn\" Constitution of India, permitted tfu n.r\"\"\".'io |/ou\"a under the substitutZd altgtaino lr* p\"rii\"i\" l\"ri'::';ff;,.:H,ji';\"::# right confened on the Reuenue would remain reserued. to proceed furlher if theg so want from the staqe of the o.rder of tLe supieme' c.\"; -;;' ;;\" i\"Zi'if'^\"!nirn Agarutal, supra.\" 6. In rriew 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 un-amended provision which is otherwise not sustainable, 7 ' As has been herd by this Bench in the aforesaid batch matters, the rights of the parties would stand reserved as is 4 PSK,J & NTR,J W.P.No.34493 of 2023 envisaged at paragraph Nos.37 & 38 of the said order passed in the batch of writ petitions. No order as to costs. Consequently, miscellaleous petitions pending, if any, shall stand closed. P.SAM KOSHY, J N. TT'KARAMJI, J Date: 27.12.2023 TJMR & "