Narender Reddy Racharla V. The Income Tax Officer, Ward 1, Veerabhadra Nagar, New Bus Stand, Sangareddy, Telangana and The Principal Chief Commissioner of Income Tax, AP and TS, 10th Floor, C- Block, I.T. Towers, 10-2-3, A.C. Guards, Hyderabad-500004

WP/12685/2023

AI Insights

The case involves Narender Reddy Racharla, the petitioner, challenging the assessment order and notice issued by the Income Tax Officer and the Principal Chief Commissioner of Income Tax for the Assessment Year 2016-17. The petitioner argued that the proceedings were not conducted in accordance with the amended provisions of the Income Tax Act, which came into effect on April 1, 2021, requiring faceless assessments and proper hearings. The respondents did not dispute the procedural issues raised by the petitioner, which were similar to those in a batch of writ petitions decided by the same bench earlier. The court, referencing its previous decisions, allowed the writ petition on the grounds of procedural non-compliance, reserving the rights of the respondents to proceed further as per the Supreme Court's directions in the case of Ashish Agarwal.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 808271 (HC-TELANGANA)
• Appeal Type: Others
• Pronouncement Date: 03-11-2023
• Assessment Year: misc
• Other Referred Cases: Ashish Agarwal
• Laws Referred To: Income-tax Act
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: SUNDARI PISUPATI
• Assessee Lawyers: DUNDU MANMOHAN
• Keywords: Assessment Order; Faceless Proceedings; Income Tax; Natural Justice; Writ of Mandamus
• Section: 148; 148A(d)

Judgement Text

"[ 337e 1 Between: HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD (Special Original Jurisdiction) FRIDAY, THE THIRD DAY OF NOVEMBER TWO THOUSAND AND TWENTY THREE PRESENT THE HONOURABLE SRI JUSTICE P.SAM KOSHY AND THE HONOURABLE SRI JUSTICE N.TUKARAMJI WRIT PETITION NO: 12685 OF 2023 AND Narender Reddy Racharla, S/o. R. Mahiyal Reddy, Age 53 years, H.No. C1213, C Block, SBSV lnfra Avatar, R.C. Puram, Hyderabad - 5O2O32. ...PETITIONER 1. The lncome Tax Officer, Ward 1, Veerabhadra Nagar, New Bus Stand, Sangareddy, Telangana. 2. The Principal Chief Commissioner of lncome Tax, AP and TS, 1Oth Floor, C- Block, l.T. Towers, 10-2-3, A.C. Guards, Hyderabad-500004. ...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 may be pleased to amend to issue a writ, order or direction, more particularly one in the nature of Writ of Mandamus, declaring the impugned Order U/s. 148A (d) of the Act, dated 30.03.2023, passed by the 1st respondent for A.Y. 2016-17, vide Document ldentification No. (DlN) ITBA/AST/F/148N2O22-231'1O51684767(1), as well as lhe notice issued U/s. 148 of the Act, vide Document ldentification No. (DlN) ITBA/ASTlsl148_112022-2311051685123(1), as void, illegal, and contrary to the Provisions of lncome-tax Act and contrary to the Principles of Natural Justice, and consequently set-aside/quash the same. (Prayer is amended as per Court Order dated 03.11.2023 Vide lA.No.2 of 2O23 in WP.No.12685 oI 2023 / IA NO: 1 0F 2023 Petition under section 151 CPC praying that an the circumstances stated in the affidavit filed in support of the petition, the High court may be pleased to stay all further proceedings pursuant to the impugned order u/s 14BA(d) of the Act, dt. 30.03.2023, passed by the 1st respondent for A'Y' 2016-17, vide Document tdentification No.(DlN) ITBA/AST/F/148A12022-2311O51684767(1), and may pass such other orde(s) as the Hon'ble court deems fit and proper in the irlterests of substantial .iustice, as otherwise the Petitioner would be put to irreparable loss and severe rnlury lA NO: 3 OF 2023 Between: 1. The lncome Tax Officer, Ward 1, Veerabhadra Nagar, New Bus Stand, Sangareddy, Telangana. r irtpFrincin'jl Chief-Commissioner of lncome Tax, AP and TS, Hyderabad - iOtt fboilC-Block, l.T. Towers, 10-2-3, A.C. Guards' Hyderabad-tioo0o4' ...PETITIONERS/RESPONDENTS 1 & 2 AND Narender Reddy Racharla, S/o. R Mahiyal Redd.y, Agq 5-3 ye'ars' H'No' CniC, c Block, SBSV lnfra Avatar, R.C. Puram, Hyderabad - 502ct32' ...RESPONDENT/WRIT PETITlONER Petition under section 151 CPC praying that in the circumslances stated in the affidavit filed in support of the petition, the High court may be pleased to vacate the interim order passed in w.P. No. 12685 of 2023, dated 28.04.2023 and dismiss the writ petition filed by the writ Petitioner in the interest of Justice. Counsel for the Petitioner: SRI DUNDU MANMOHAN counsel forthe Respondents: M/s. SUNDARI R PISUPATI, SR.SC FOR INCOME TAX OEPARTMENT The Court made the following: ORDER THE HON'BLE SRI JUSTICE P'SAM KOSHY AND THE HON,BLE SRI JI'STICE N'TUKARAMJI W.P. No. L2685 of 2023 ORDER:1pet ao n'ble Si Justrce P'sAlI KosElI) FleardMr.DunduManmohan,learnedcounselforthepetitioner and Ms. Sundari R' Pisupathi' learned Senior Standing Counsel for Income Tax appearing for the respondents' Perused the entire record' 2. The instant petition has been hled challenging the Assessment Order passed by respondent No'1 under section 148A(d) of the Income Tax Act, 1961 (hereinafter referred to as \"the Act\") dated 30 'O3 '2023 for the Assessment Year 2016'17 ' 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 01'04'2021' the respondents while proceeding under Section under Secdon 148A and assessee. As Per the ame 148 of the Act were required to issue notice provide an opportunity of hearing to the nded 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 Offrcer' In respect of the said objection that the petitioner had raised' he relied upon the recent batch of writ petitions decided bY this very Bench on 14.O9.2Cl23 vide tch to the limited extent I W.P.No.259O3 of 2022an i 2 4 Learned counsel for the Departmcnt u'ould not disl:ute of having decided the said objection in thc aforesaid batch rnatters- However, Iearnecl counsel submits that apart from the albresaid objection, there have been other various objections also which the peLitioner 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.259O3 of 2022 and batch had taken note of the siame in paragraph Nos.37 & 38 which is reproduced herein under: \"37. The preliminary objection raised by the Petitioner is sustained and all these writ petrtions stands allowed on this very jurisdictiorurl issue. Since the impugned notices and orders are getting quashed on the point o[jurisdiction, we are not inclined to proceed further and decide the other issucs raised by the petitioner which stands reserved to be raised and contended in an appropriate proceedings.\" 38. Since the Honble Supreme Court had, in the case of Ashish Agarwal, supral as a one-time measure exercising the powers under Article 142 of lhe Constitution of India, permitted the Revenue to proceed under the substituted provisions, and this, Court allowrng the petitions only on the procedural flaw, the righl conferred on the Revenue ilould remain resened to proceed further if they so n'ant from the stage of tlle order of the Supremt' Court in lhc case of Ashish Agaru,al, 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 pror:eedings have not been drawn in accordance with the amended provi:;ion but under the unamended provision which is otherwise not susl.ainable . As has been held by this Bench in the aloresaid batch matr]ers, the t:' I // 3 right of the respondcnts would stand reserved as is envisaged in paragraph Nos.3T & 38 ol thc said batch, No order as to costs. 7. Consequently, miscellaneous petitions pending, if any, shall stand closed. SD/.MOHD.SANAULLAH ANFARI ./ ASSISTANT REGITRAR / //TRUE COPYT, .rY' SECTION OFFICER To 1. 2. 3. 4. 5. PSK. BS The lncome Tax Officer, Ward 1, Veerabhadra Nagar, New Bus Stand, Sangareddy, Telangana. The Principal Chief Commissioner of lncome Tax, AP and TS, 1Oth Floor, C- Block, l.T. Towers, 10-2-3, A.C. Guards, Hyderabad-500004. One CC to SRI DUNDU AiIANMOHAN, Advocale IOPUCI One CC to M/s. SUNDARI R PISUPATI, SR.SC FOR INCOME TAX DEPARTMENT [OPUC] Two CD Copies HIGH COURT DATED:0311112023 ORDER WP.No.12685 of 2023 ALLOWING THE WRIT PETITION WITHOUT COSTS. 1 46 srA 16, ( e J c o 0 6 I]E[ 2023 v o Og s p41CBs$ * * a5 . ttrp(s A.v "