Pranathi Vedere V. Assessment Unit, National Faceless Assessment Centre, Income Tax Department, Ministry of Finance and The Income Tax Officer, Ward 4(1), Hyderabad

WP/5620/2024

AI Insights

The case involves Pranathi Vedere, the petitioner, challenging an order from the Income Tax Department concerning the assessment year 2018-19. The petitioner argued that the order was arbitrary, illegal, and violated several provisions of the Income Tax Act, including sections 148A, 149, and 151A, as well as a CBDT circular. The main legal contention was that the reopening of the assessment was initiated by the Jurisdictional Assessing Officer without following the amended procedural requirements that mandate a faceless assessment and issuance of notice under Section 148A. The court referenced a previous judgment in a similar batch of writ petitions (WP.No.25903 of 2022 & batch) to support its decision.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 799309 (HC-TELANGANA)
• Appeal Type: Others
• Pronouncement Date: 04-03-2024
• Assessment Year: misc
• Other Referred Cases: WP.No.25903 of 2022 & batch, dated 14.09.2023
• Laws Referred To: Article 226 of the Constitution of India, Section 147 r.w.s 1448 of the Act, Section 148A and Section 149 of the Act, Section 151A of the Act
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: VIJHAY PUNNA
• Assessee Lawyers: A V RAGHURAM
• Keywords: Arbitrary; CBDT Circular; Faceless assessment; Illegal; Income Tax; Violation of provisions; Void ab initio; Writ of Mandamus
• Section: 147; 149; 148A; 1448; 151A; 226

Judgement Text

"[ 337e J IN THE 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: 5620 oF 2024 Between: Pranathi Vedere, D/o. Sri Krishna Reddy Arrabothu, aged about 55 years, 3-6-131t1 , Street No.18, Himayath Nagar, Hyderab-ad - 500029. - ...PETtTIONER(S) AND 1. Assessment Unit, National Faceless Assessment Centre, lncome Tax Department, Ministry of Finance, Room No. 4O1 ,2nd Floor, E-Ramp, Jawaharlal Nehru Stadium, Delhi -1 10 003. 2. The lncome Tax Officer, Ward 4(1), Hyderabad, t.T. Towers, A.C. Guards, Masab Tank, Hyderabad ...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 pleased to pass an order or direction, especially one in the nature of WRIT OF MANDAMUS holding that the order passed by lSt Respondent u/s. 147 r.w.s 1448 of the Act, dl.08lo2l2o24 with DIN No.ITBA/AST/St14712023- 2411060641387('l)for the Ay.2018-19, as arbitrary, illegal, bad in taw, void ab initio, apart from being violative of provisions of section 1 48A and section 149 of the Act and also contrary to lhe circular issued by CBDT and provisions of section '151A of the Act, and consequently set aside the same. lA NO: 1 OF 2024 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 stay all further proceedings, including any recovery, pursuant to the order passed by the 1st. Respondent uls. 147 r.w.s 1448 of the Act, dl.OB.O2.2O24 with DIN No. ITBtuAST/S I 1 47 I 2023 -24 I 106064 1 3S7( 1 ) for the Ay. 20 1 8- 1 9. Counsel for the Petitioner: SRI A.V.RAGHU RAM Counsel for the Respondents: SRI VIJHAY K pUNNA (SENIOR SC FOR ITO) The Court made the following: ORDER THE HONOURABLE SRI JUSTICE P.SAM KOSTTY AND THE HONOURABLE SRI JUSTICE N.TUKARAMJI WRIT PETITION No.562O OF 2024 ORI)ER:(per Ho n'ble Si Justice P.SAM KOSHY) Heard Mr.A.V.Raghu Ram, 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 lndia seeking for the following relief: \"to poss on order or direction especiolly one in the noture ol wRlT oF MANDAMUS hotding thot the otder possed by 1st Respondent u/s 747 r w s 7448 of the Act dt 08/02/2024 with DtN No TTBNAST/S/147/2023- 24/1060641387(1) for the Ay 2078-79 os orbitiorv, illegol, bod in low, void ob initio, oport Irom being violotive of provisions oI section 7484 ond section 749 of the Act ond olso contrary to the circulor issued by CBDT ond provisions ol section 151A oJ the Act ond con*quently set oside 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 of the Act which carne into effect from I provisions 2 PSI(,J & MTR,J W.P.No.562O of 2024 Ol.O4.2O2l, the respondents, while proceeding under Section 148 of the Act, were required to issue notice under Section 148.A and provide an opportunity of hearing to the assessee. As per the amended pror.ision 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 Jurisdictiona-l Assessing Officer. In support of his contention, 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 of writ petitions to the limited extent. 5. On the other hand, learned Standing Counsel for the respondent-Department does not dispute that the said objection was decided in the aforesaid batch of Writ Petitions. However, he further contended that apart from the aforesajd objection, there have been other various objections also which the petitioner has raised in the writ petition. PSK,J & NTR'J W.P.No.562O oJ 2O24 6. So far as this contention of the leamed counsel for the respondent-Depa-rtment is concerned' this Bench' while disposing of said batch of writ petitions' had taken note of the same at paragraph Nos'37 & 38 which are reproduced 3 herein under: \"37. The preliminary objection raised bA 'the\"petitioner issustained'^a't/'i!t\"2\"*iipZti'tion' 'o'n^dsaltoued on this u\"'g Jul.\"a'it7o:;;;J'' 5i'nse the'imPugned noties and \"'*\" iiJ'\"iitili q\"'\"r*a o1t!1 ooint of iurisdiction' -t '*'^Zi'7'\"i#i to p''oe\"d'further and ' deade the otter i\"\";:: \"'#;t us il? oelt:t::er u'thich stands reseruta to*'aZ'i\"it.,a i\"a iontended in an ii pii a\"t\" P r o ce e dins s'' ,3g. Since tle Hon'ble Supreme Court had' in the case i a\"n*n aoo'*o,i)\"'i'a i', \"oiif;\"TXr*\".fiG \"tr##i-:ffhff;'';;;ti;d lte Reuenue to pioceed und.ertle\",a\"ti)tZi.prouisions,and.'.thisCourt altouins tne p,;tnioiiZnti'in ttu procedurol flaw' tlP riaht confened \"';;:\"7;:'\";;e wiutd remain reserved ti oroceed fuat*';;'\";;;\"\"1i'nt 7'o* tte 'stase of the oier of tto suplJ#o ii\"' i\" the ca'se of Ashish Agantal, suPra'\" I I 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 rn accordance with the amended Provision but under the un-amended provision which is otherwise not sustainable' 4 PSI(,J&.MrR,J w.P.No.562O ol2024 8. As has been held by this Bench in the aJoresaid 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 batch of writ petitions. No order as to costs. Consequently, miscellaneous petitions pending, if any, shall stand closed. //TRUE COPY// SD/- G. SIREESHA ASSISTANT REFISTRAR Ih.-.--- 6rplcen To, SECTION 1. The Assessment unit, Nationar Faceless Assessment centre, rncome Tax Department. Ministrv of Finance, noom ruo.-aOi, ZrJ Fl\"\"i,'--d:iiril; Jawaharlal Nehru St;dium, Delhi -1 1O OO1. '- 2. The lncome Tax Officer, Ward a(1), Hyderabad, l.T. Towers, A.C. Guards, Masab Tank, Hvderabad 9 9n\" CC to SRt h.V.RAGH_U RAM, Advocate. tOpUCl 4. One CC to SRt VtJHAy K PUNNA, lSerurOn S-C r-Oft tTD). topucl 5. Two CD Copies. BSK GJP j HIGH COURT DATED:0410312024 ORDER WP.No.5620 ot 2024 ALLOWING THE WRIT PETITION WITHOUT COSTS 1 HE SIar€ R o 1 i3 06 APfl 2024 a ! * * D€SPATC 60 @q'\" qd= I "