Palle Veeranjaneya Swamy V. Office of The Income Tax Officer

WP/6346/2024

AI Insights

The case involves Palle Veeranjaneya Swamy, the petitioner, challenging an assessment order for the Assessment Year 2015-16 issued by the Income Tax Authorities. The order was contested on grounds that it was arbitrary, illegal, and violated principles of natural justice, among other legal provisions. The petitioner argued that the reassessment was initiated under the unamended provisions of the Income Tax Act, despite the law being amended to require faceless proceedings and specific procedural safeguards. The court referenced a batch of similar writ petitions decided on September 14, 2023, where it was held that such procedural requirements must be adhered to, leading to the quashing of the assessment orders in those cases as well.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 694062 (HC-TELANGANA)
• Appeal Type: Others
• Pronouncement Date: 12-03-2024
• Assessment Year: misc
• Other Referred Cases: Ashish Agarwal
• Laws Referred To: Income Tax Act, 1961, Constitution of India
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: SUNDARI PISUPATI; CADI KUMAR
• Assessee Lawyers: THANNERU KUMAR
• Keywords: Faceless assessment; Income tax assessment; Jurisdictional challenge; Natural justice violation; Writ of Mandamus
• Section: 147; 148; 148A; 265; 226; 144(8); 14BA

Judgement Text

"[ 3379 ] HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD (Special Original Jurisdiction) TUESDAY ,THE TWELFTH DAY OF MARCH TWO THOUSAND AND TWENTY FOUR PRESENT THE HONOURABLE SRI JUSTICE P.SAM KOSHY AND THE HONOURABLE SRI JUSTICE N.TUKARAMJI WRIT PET]TION NO: 6346 OF 2024 Between: AND Palle VeeranjaneYa SwamY, Occupation. Business, Rl/O. Ramagundam, Karimanagr, Assessment Year. 201 5- 16 S/o. Palle Ranqaiah Aged About 53 Years 5-6-133 Fcl X Road, Ntpc Jyothi Nagar Telangana, lndia PAN. AHHPP0672K ...PETITIONER 1. office of The lncome Tax officer, w ard-Z Karimnagar, Telangana State. . ^ Z. ifrJ principal Chief Commissioner Of lncome Tax Telangana 41d ^1P' - iii\"rrriilllr lo*\"rt, AC Guards, Masab Tank, Hvderabad - 500 028' Telanoana. 3. il; L;\"ial Board of Direct Taxes' Represented PY .lts Chairman' -' DeDartment of Revenue, Ministry of F, Government ol lndla, secrelanal Buildinqs, New Delhi +. T[ir-r.rjt,i,\"al Faceless Assessment Center, lncome Tax Department' New Delhi S. if''\" Union Of lndia, Represented By lts Secretary- To The Government' \" Oepartrent Of Revenue' itlinistry of Finance, New Delhi ...RESPONDENTS Petition under Article 226 of the constitution of lndia praying that in the circumstancesstatedintheaffidavitfiledtherewith,theHlghCourtmaybe pleased to issue an appropriate writ, order or direction more particularly one in the nature of writ of Mandamus declaring the order passed by the lncome Tax Authorities (National Faceless E-Assessment centre completed the assessment UtS147r/wSection144-8olthelncomeTaxAct'lg6lvideDlNandNoticeNo' dated 17-02-2024 in ITBtuAST/Si147t2O23-2411061076574(1) for the assessment year 2015-16 determining the total income of Rs' 53'29'850/- as arbitrary,illegal,badinlaw,withoutjurisdiction,Void-ab.initio,violativeofthe principles of natural justice apart from being violative of Articles 14, 19(1Xg) and z 265 of the Constitution of lndia and Sec. 'l4BA of the lncome Tax Act, .1 961, and consequently set aside the same in the interests of justice Counsel for the Petitioner: SRl. THANNERU CHA|TANYA KUMAR Counsel forthe Respondent Nos. 1to4: M/s. SUNDARI R plSUpATl (Sr SC for lncome Tax Dept) counse! for the Respondent No.5: SRI cADl PRAVEEN KUMAR, DY. SOLILCITOR GENERAL OF INDIA The Court made the following: ORDER THE HONOURABLE SRI JUSTICE P.SAM KOSHY AND THE HONOURABLE SRI JUSTICE N.TUI{ARAMJI UIRIT PETITION No.6346 OF 2o24 ORDER:(per Hon'ble Si Justice P.SAM KOSHY) Heard Mr. T. Chaitanya Kumar, learned counsel for the petitioner and Ms. Sundari K.Pisupati, learned Standing Counsel for Income Tax appearing for the respondents. Perused the entire record. 2. The instant Writ Petition has been filed challenging the Assessment Order passed by the Income Tax Authorities under Section 147 read with Section 144-8 of the Income Tax Act, 196 1 (hereinafter referred to as 'the Act\") dated 17.O2.2O24 for the Assessment Year 2015-16. 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 carne 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 assessee. As per the amended provisiurr-'of law, the 2 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 Jurisdictional Assessing Officer. In respect of the said objection that the petitioner had raised, he relied upon the recent batch ofwrit petitions decided by this very Bench on L4.O9.2O23 vide W.P.No.2S9O3 of 2022 and batch to the limited extent. 4. l,earned counsel for the Department would not dispute of having decided the said objection in the aforesaid batch matters. However, learned counsel submits 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 ttre same at paragraph Nos.37 & 3g which are reproduced herein under: 3 I I 37. The preliminary obiection ratsed bA the petitioner is sustoined and oll these wit petitions stands allowed on this uery juisdictional issue. Since the impugned noties and orders are getting quashed on the point of juisdiction, we are not inclined to proceed further and decide the other issues raised by th.e petitioner uhich stands reserued to be raised and urxended in an appropiote pro ceeding s. \" o38. Sine the Hon'bl,e Supreme Court had, in the case of Ashish Agarutal, supro, as a one-time measure exercising tte pouers under Article 142 of the Constittttion of India, permitted the Reuenue to proeed under tle substituted prouisions, and this Court altowing tle petitions only on the proedural flau, tLe ight confened on the Reuenue would remoin reserued to proceed furtler if theg so utant from the stage of tLrc order of the Supreme Court in tle case of Ashish Agarutal, supra.\" 6. In view of the sarn€, 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 ttrat the proceedings have not been drawn in accordarce with the amended provision but under the un-amended provision which is otherwise not sustainable. 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 passed in the said batch of wr--it petitions. No order as to ? { t 4 costs. Consequently, miscellaneous petitions pending, if any, shall stand closed. //TRUE COPY// SD/- C. PRAVEEN KUMAR ASSISTANT REGISTRAR ^t) C+1\"'- SECTION OFFICER To, 1. The Office of The lncome Tax Officer, ward-2{arimnagar, Telangana state. i. iil; Fiin\"ipi cnlei Commissioner of lncome Tax.relansana {9^{p.^ - nvidrlui[, rrlo*.t., AC Guards, Masab Tank, Hyderabad - 500 028' Telanoana. 3. il;C6i;l Board of Direct Taxes, Represented By lts.Chairman: . -,-. -.DeoartmentofRevenue,MinistryofF,Governmentoflndla,Secretarlat Buildinqs, New Delhi 4. i[; N;ik;\"ai Faceless Assessment center, lncome Tax Department, New Delhi S. ii\"'b.\"r.tary to the Government, Union Of lndia, Department Of Revenue' lvtinistrv of Finance, New Delhi 6 6;; i6i;'sni.lnnrlr'leCu cHntrRruvn KUMAR, AdvocSte t-oPUCJ^^. .^ ;. 6n; cc io rtrlt. suNDAi{ R PisupArt (s1 sc !o1 lncome Tax Dept) [o^P-uc] s. O;; CC io SNI.ONOI PiAVEEN KUMAR, DY' SOLICITOR GENERAL OF rNDIA [OPUC] 9. Two CD CoPies BM KKS a HIGH COURT DATED: 1 2 10312024 ORDER WP.No.6346 of 2024 ALLOWING THE WRITPETITION WITHOUT COSTS o * 1HE S i ,t l ({ ( f c r .t o 2 3 APB zoa * of .SPATCHpO v(.\" "