Padma Kamineni, Wio. Satyanarayana Murthy Kamineni V. The National Faceless Assessment Center, Income Tax Department, New Delhi, India and Income Tax Officer, Ward 3(1), Hyderabad and The Assessment Unit Income Tax Department, Ministry of Finance, Government of India, New Delhi

WP/5684/2024

AI Insights

The case involves Padma Kamineni, the petitioner, challenging the validity of notices and a reassessment order issued by the Income Tax Department under the unamended provisions of the Income Tax Act. The petitioner argued that the reassessment and the notices were issued without following the amended provisions that require faceless assessments and proper procedural safeguards. The court referenced a previous judgment in a similar batch of writ petitions where it was held that the proceedings under the unamended provisions were not sustainable. The court's decision to allow the writ petition was based on these precedents and the procedural flaws identified in the issuance of the notices and the reassessment order.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 799307 (HC-TELANGANA)
• Appeal Type: Others
• Pronouncement Date: 04-03-2024
• Assessment Year: misc
• Other Referred Cases: Ashish Agarwal vs. Revenue
• Laws Referred To: Article 226 of the Constitution of India, Section 148A(d) of the Income Tax Act, Section 148 of the Income Tax Act, Section 151 CPC
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: VIJHAY PUNNA
• Assessee Lawyers: M NAGA DEEPAK
• Keywords: Article 14 violation; Faceless assessment; Jurisdictional issue; Reassessment order; Writ of Mandamus
• Section: 148; 151; 148A(d)

Judgement Text

"[ 337e ] HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD (Special Original Jurisdiction) MONDAY, THE FOURTH DAY OF MARCH TWO THOUSAND AND TWENTY FOUR PRESENT THE HONOURABLE SRI JUSTICE P.SAM KOSHY AND THE HONOURABLE SRI JUSTICE N.TUKARAMJI WRIT PETITION NO: 5684 OF 2024 Between: Padma Kamineni, Wio. Satyanarayana Murthy Kamineni, Aged about 62 years, R/o.8-3-976/1 13, Flat No.1 Sri Sai Residency, Shalivahana Nagar, Sri Nagar Colony, Hyderabad - 500073. .....PETITIONER AND 1. The National Faceless Assessment Center, lncome{ax Department, New Delhi, lndia. 2. lncome Tax Officer, Ward 3(1), Hyderabad. 3. The Assessment Unit lncome Tax Department, Ministry of Finance, Government of lndia, New Delhi. .....RESPONDENTS Petition Under Article 226 oI 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, order or direction, more particularly rn the nature of writ of mandamus declaring order dated 27 -O4-2O22 under Section 148A(d) beaing DIN and Notice No. ITBA/AST/F/148412022-2311042875526(1), the consequent notice dated 27-04-2022 u/s. 148 bearing ITBA/AST/S/148 112022- 2311042879547(1 ) and the consequent reassessment order dated 3O-O1-2024 bearing DIN and Notice No. ITBA/AST/S/14712023-2411060261641(1) as being void, illegal, arbitrary, without jurisdiction, violate of Arlicle 14 of the Constitution of lndia and consequently set aside the same. I.A.N O:1 OF 2024 Petition Under Section 151 CPC praying that in in the affidavit filed in support of the petition' the High the circumstances stated Court maY be Pleased to pursuant to reassessment stay all further Proceedings including collection,of tax order dated 3O-O1-2O24 bearrng 2411060261641(1). DIN and Notice No. lTl3AiAST/S/14712023- Counsel for the Petitioner : M/s M'NAGA DEEPAK Counsel for the Respondents : SRI VIJHAY K' PUNNA (SENIOR SC FOR ITD) The Court made the following ORDER THE HONOURABLE SRI JUSTICE P.SAM KOSHY AND THE HONOURABLE SRI JUSTICE N.TUI{ARAIVIJI WRIT PETITION No.5684 OF 2o24 ORDER:/per Hon'ble Sri Justice P.SAM KOSHY) Heard Mr.M.Naga Deepak, learned counsel for the petitioner and Mr.Vijhay K. Punna, learned Senior Standing Counsel for the Income Tax Department for respondents. Perused the material available on record. 2. The instant Writ Petition has been filed by the petitioner under Articl e 226 of the Constitution of tndia seeking for the following relief: \"to issue o writ order or direction more porticulorly in the noture of writ of mondomus decloring order doted 27.U.2022 under section 148A(d) beoring Dl N ond Notice No.ITBA/AST/F/148A/2022-23/1042879526( 1 ) the consequent notice doted 27.U.2022 u/s 148 beoring tTBA/Asr/s/148_1/20222j/1U2879547(1) ond the consequent reossessment order doted 30.01.2024 beoinq OIN ond Notice No. tfBA/ASr/s/147/2o2j-24/10@261641(1) os being void, illegol, orbitrory, without jurisdiction, violote of Article 14 ol the Constitution of lndio ond consequently set dside the some in the interests ol iustice\". 3. One of the contentions that the petitioner has raised in the present Writ Petition is that under the amended 2 PSI(,J & MTR,J W,P.No,5684 of 2O24 provisions of the Act which came into effect from Ol .O4.2021 , 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 assessee. As per the amended provision of law, the proceedings to be drawn are also in a faceless manner. 4. 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 con tention, he relied upon the recent judgment rendered by this very Bench in WP.No.259O3 of 2022 & batch, dated 14.O9.2023 wherein this Court disposed of the batch ol writ petitions to the limited extent. 5. On the other hand, Iearned Standing Counsel for the respondent- Department does not dispute that the said objection was decided in the aforesaid batch of Writ Petitions. How,ever, 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 - 3 PS.K,J & JUTR,J W.P.No.56E4 ot2O24 6. So far as this contention of the learned counsel for the respondent-Department is concemed, this Bench, while disposing of said batch of writ petitions, had taken note of the same at paragraph Nos.37 & 38 which are reproduced herein under: \"37. Tle preliminory objection raised bg the petitioner is sustained and all these Lurit petitions stands ollowed on this uery jurisdictional issue. Since tle impugned notices and orders are getting quashed on tlrc point of jurisdiction, u)e are not inclined to proeed furtlrcr and decide tle otlrcr bsues raised bg the petitioner uhich stands reserued to be raised and contended in an ap p rop riate p ro ce eding s.' \"38. Since tLrc Hon'ble Supreme Court lud, in the ca-se of Ashish Agaruta supro, cts a one-time measure exerci.sing the powers und.er Article 142 of the Constitution of India, permitted the Reuenue to proceed under the substituted prouisions, and this Court allowing the petitions only on tLe proedural flaut, the ight confened on the Reuenue uould remain reserued to proceed further if they so want from tle stage of the order of the Supreme Court in the ca.se of Ashish Agaru.tal, supr0.\" 7. 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 proceedings have not been drawn in accordance with the amended provision but under the un-amended provision which is otherwise not sustainable I I 4 PSI(,J&,AMR,J W.P.No.5684 oJ 2O24 8. As has been held by this Bench in the aforesaid batch matters, the rights of the parties would stand reserved as is envisaged at paragraph Nos.37 & 38 of the said order pass€d in the batch of writ petitions. No order as to costs. Consequently, miscellaneous petitions pending, if any, shall stand closed. //TRUE COPY// 1. The National Faceless Assessment Cenler, lncome-tax Department, New Delhi, lndia. 2. The lncome Tax Officer, Ward 3(1 ), Hyderabad. 3. The Assessment Unit lncome Tax Department, N/inistry of Finance, Government of lndia, New Delhi 4. One CC to M/s M.Naga Deepak, Advocate [OPUC] 5. One CC to Sri Vijhay K.Punna (SENIOR SC FOR ITD) [OPUCI 6. Two CD Copies SD/. P. PADMANABHA REDPY ASSISTANT REGISTBAR V SECTION OFFICER To SA GJP s HIGH COURT DATED:0410312024 ORDER WP.No.5684 of 2024 ALLOWING THE W.P WITHOUT COSTS. o k 1 tlE s l-.{ r6 e ( ) 0 / ll AY 202{ z o . * €spArcHr! e .) tC) o * D t) I "