Primary Agricultural Co-Operative Society, Tadoor V. The National Faceless Assessment Center, Income-tax Department, New Delhi, India and Income Tax Officer, Ward 1, Mahabubnagar and The Assessment Unit, Income Tax Department, Ministry of Finance, Government of India

WP/4022/2024

AI Insights

The case involves the Primary Agricultural Co-Operative Society, Tadoor, which filed a writ petition against the National Faceless Assessment Center and other respondents, challenging the legality of reassessment proceedings initiated under the Income Tax Act. The petitioner argued that the reassessment was conducted without following the procedural requirements set out in the amended Section 148A, which mandates faceless proceedings and proper notice to the assessee. The respondents did not dispute the procedural flaws but raised other objections, which were not addressed due to the jurisdictional error being sufficient to quash the proceedings.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 799460 (HC-TELANGANA)
• Appeal Type: Others
• Pronouncement Date: 15-02-2024
• Assessment Year: misc
• Other Referred Cases: Ashish Aganual vs. Revenue
• Laws Referred To: Article 226 of the Constitution of India, Section 148 of the Income Tax Act, Section 148A of the Income Tax Act, Section 148A(d) of the Income Tax Act
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: J V PRASAD
• Assessee Lawyers: M NAGA DEEPAK
• Keywords: Arbitrary; Faceless assessment; Illegal; Jurisdiction; Notice; Reassessment proceedings; Void; Writ of Mandamus
• Section: 148; 148A(d); 148A; 226

Judgement Text

"1 [ 3379 ] IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD (Special Original Jurisdiction) THURSDAY, THE FIFTEENTH DAY OF FEBRUARY TWO THOUSAND AND TWENTY FOUR PRESENT THE HONOURABLE SRI JUSTICE P.SAM KOSHY AND THE HONOURABLE SRI JUSTICE N.TUKARAMJI WRIT PETITION NO:4022 OF 2024 Between: Primary Agricultural Co-Operative Society, Tadoor having its address at Divisional Co-Operative, Nagarkurdodi, Mahbubnagar -509209, represented by it, authorized signatory Mr. Yara Anjaneyulu, S/o. Y. Mallaiah(Aged about 61 years R/o. l-63, Tadoor. ...PETITIONER AND 1 The National Faceless Assessment Center, lncome-tax Department, New Delhi, lndia lncome Tax Officer, Ward 1, Mahabubnagar The Assessment Unit, lncome Tax Department Ministry of Finance, Government of lndia ...RESPONDENTS Petition under Article 226 of lhe Constitutron 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 parlicularly in the nalure of writ of mandamus declaring order dated 05-04-2023 under Section 14BA(d) bearing DIN and Notice No. ITBfuAST/F1148Al2O23-2411051876178(1 ). the consequent notice dated 05-04-2023 u/s. 148 bearing ITBA/AST/S/148 112023-2411051876178(1) and the consequent reassessment proceedings, as being void. illegal, arbitrary, without jurisdiction, violate of Article 14 of the Constitutron of lndia and consequently set aside the same. 2 J lA NO: 1 OF 2024 Petition under section 15i 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 pursuant to the notice dated 05-04-2023 uls. 149 bearing rTBA/AST/S/1.48 1I2023-24110s 1 8761 78(1 ). Counsel for the Petitioner : SRI M.NAGA DEEPAK Counsel for the Respondents: SRI J.V.PRASAD (SC FOR INCOME TAX) The Court made the following: ORDER THE HONOURABLE SRI JUSTICE P.SAM KOSHY AND THE HONOURABLE SRI WSTICE N.TUKARAMJI WRIT PEf,ITIONNo .40.22 0F 2024 ORDER:(per Hon'ble Si Justice P'SAM KOSHY) The instant Writ Petition has been filed by the petrtroner under Articl e 226 of the Constitution of India seeking for the fo[oJving relief: \". .. to issue a writ, order, or direction more oarticularly in the nafure of writ of mandamus ieclaring Lrder, dated 05 'O4 '2023 under Section la8A(d) -bearing DIN and Notice No'ITBA/AST/F/ r48Alio2g-24/ 1051876178(ll, the consequent notice, dated O5.O4 '2023 under Section 148 bearing No.ITBA/AST/ S / 148-t I 2023-24 I IO5 ra7 6 178{11 and the consequent reassessment nroceedinss as being void, illegal, arbitra5r, without iurisdictioln, violative of Article 14 of the 'Constitution of India and consequently set aside the same and Pass...\" 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 carne into eflect from Ol.O4.2O2l, the respondents, while proceeding under Section 148 of the Act, were required to issue notice under Section 148A ald provide an opportunity of hearing to the I l I t ! I i 2 PSK,J & ]YTR,J W.P.No.4O22 of 2024 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.O9.2023 wherein this Court disposed of the batch of writ petitions to the limited extent 4. On the other hand, learned Standing Counsel for the respondent Department does not dispute that the said objection ',vas decided in the a-foresaid batch of Writ Petitions. Ho'\"vever, he further contended that apart from the aforesaid objection, there have been other various objections atso l,,,h ich the petitioner has raised in the writ petrtron 5. So far as this contention of the learned counsel for the respondent- Department is concerned, this Bench, while dispsing of said batch of rvrit petitions, had taken note of 3 PSr(,J & MrA,J W.P.No.4O22 oJ 2O24 the same at paragraph Nos.37 & 38 which are reproduced herein under: \"37. TIE preliminary objection raised. bg tLrc petitioner is sustained and all these urit petitions stands allotued on this uery juisdictional issue. Since th.e impugned notices and orders are getting quashed on tLrc point of juisdiction, ute are not inclined to proceed furtLer and decide the other issues raised bg the petitioner uhich stands reserued to be raised and antended in an ap pr o p riate pro ceeding s. \" \"38. Since tle Hon'ble Supreme Court had, in tLrc case of Ashish Aga nual, supro, as a one-time measure exercising the powers under Article 142 of the Constitution of India, permitted tle Reuenue to proceed under the substituted proui.sions, and thi.s Court allouing the petitions onlg on tlw proedural flaut, the ight confened on the Reuenue uould remain reserued to proceed further if theg so want from the stage of the order of the Supreme Court in the case of Ashish Aganua| supra.' 6. In view of the same, we are inclined to aliow the present w'rit 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 accordalce with the amended provision but under the un-amended provision which is otherwise not sustainable- 7 . As has been held by this Bench in the aforesaid batch matters, the rights of the parties would stand reserved as is ( 4 PSK,J & N:TR,J W.P.No.4O22 oJ 2O24 To, envisaged at paragraph Nos'37 & 38 of the said order passed in the batch of writ petitions' No order as to costs' 8. Consequently, miscellaneous petitions pending' if any, shall stand closed ' t %'!silfrY'.==ti:\"HtR //rRuE coPY/' 'Ecnk;FFlcER The National Faceless Assessment Center' lncome-tax Department' New ?f;Ihi\"tii rax ofricer' ward 1 ' lVlahabubnasar - -' The Assessment unrt l\"#\"rnt'-i;; - Defartment Ministry of Finance' G\"*1x\",:\"1R1',fi o*1\"o1.r:?SA.n:\"\"'nl?tuo\",l)ropucl 5;; cc io snt l v PRnsr 1 2. J 4 5 6 Two CD CoPies BSK GJP rae 3 I HIGH COURT DATED:1510212024 ORDER WP.No.4O22 of 2024 ALLOWING THE WRIT PETITION WITHOUT COSTS (og lHE SI4 16: DrsoATcHLo 3, 06 tpn zrJu * * C6rlu,r-\"' "