Primary Agriculture Co-Operative Society Limited, Rep. by-i!9 Secretary Jajala Snetai Sl'0 Chinnaiah Kalleda V. Office Of The Income Tax Officer Ward- 2, Karimnagar and The Principal Chief Commissioner of Income Tax - Telangana and The Central Board of Direct Taxes, Represented by its Chairman and The National Faceless Assessment Center, Income Tax Department and The Union of India, Represented by its Secretary to the Government, Department of Revenue, Ministry of Finance

WP/3791/2024

AI Insights

The case involves the Primary Agriculture Co-Operative Society Limited challenging the orders passed by the Income Tax Authorities under the National Faceless E-Assessment scheme for the assessment year 2018-19. The petitioner argued that the assessment order determining their income as Rs. 18,51,845 was arbitrary, illegal, and violated principles of natural justice and constitutional rights under Articles 14, 19(1)(g), and 265. The main legal contention was the improper application of the Income Tax Act's provisions, specifically the failure to adhere to the amended Section 148 which requires faceless proceedings and proper notice under Section 148A. The court's decision was influenced by a precedent set in a previous batch of writ petitions where similar jurisdictional issues were addressed.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 795768 (HC-TELANGANA)
• Appeal Type: Others
• Pronouncement Date: 14-02-2024
• Assessment Year: misc
• Other Referred Cases: Ashish Aganual
• Laws Referred To: Constitution of India, Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: SUNDARI PISUPATI; GADI KUMAR
• Assessee Lawyers: THANNERU KUMAR
• Keywords: Faceless assessment; Income tax assessment; Jurisdiction; Natural Justice; Void ab initio; Writ of Mandamus
• Section: 147; 148; 151; 148A; 265; 144(b); 226

Judgement Text

"[ 337e ] HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD (Special Original Jurisdiction) WEDNESDAY, THE FOURTEENTH DAY OF FEBRUARY TWO THOUSAND AND TWENTY FOUR PRESENT THE HONOURABLE SRI JUSTICE P.SAM KOSHY AND THE HONOURABLE SRt JUSTICE N.TUKARAMJI WRIT PETITIO N NO:3791 OF 2024 Between: Primary Agriculture Co- Operative Society Limited, Rep .by-i!9 Secretary Jajala Snetai Sl\"o Chinnaiah Kalleda Kalleda Vill and Jagityal lvldl Karimnagar Dist 505454, Telangana, Assessment Year201B- 19 ...'ET,T.ONER AND 1. Office Of The lncome Tax Officer Ward- 2, Karimnagar Telangana State' 2. The Principal Chief Commissioner of lncome Tax - Telangana 44^?' Hyderabail, lT Towers, AC Guards, IVlasab Tank, Hyderabad - 500 028' Telangana. 3. The C\"entral Board of Direct Taxes, Represented by its Chairman, Department of Revenue, Ministry of Finance, Government of lndia, Secretariat Buildings, New Delhi - 110 001 . 4. The National Faceless Assessment Center, lncome Tax Department, New Delhi. 5. The Union of lndia, Represented by its Secretary to the Government' Department of Revenub, tiilinistry of Finance, New Delhi - 'l 10 001 . ...RESPONDENTS Petition under Article 226 of the Constitution of India praying that in the circumslances stated in the affidavit filed therewith, the High Court may be 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 US 147 r/w Sectron 144- B of the lncome Tax Act, 1961 vide DIN and Notice No' dated l5- O1- 2024 in ITBA/AST/S/14712023- 2411059712312('l ) for the assessment year 2018' '19 determining the total income of Rs. 18,51,845 - as arbitrary, illegal, bad in law, without jurisdiction, void- ab- initio, violative of the principles of natural justice apart from being violative of Articles 1 ' 19(1)( g ) and 265 of the Constitutiorl of lndia and Sec. 14BA of the lncome Tax Act, '1961. and consequently set aside the same in the interests of Justice. lA NO: 1 OF 2024 Petition under Sectron 151 CPC praying that in the circumstances stated in the affidavit frled in support of the petition, the High Court may be pleased to suspend the order Under Section 144- B of the lncome Tax Act, '1961 vide DIN and Notice No dated 15- 01- 2024 in ITBA/AST/S/14712023- 2411059712312(1) for the assessment year 2018- 19 determining the total income of Rs. '18,51,8451 and order and Demand notice u/s 1 56 of the lncome Tax act 1961 , vide DIN and Notice No ITBA/AST/S/1 5612023- 2411059712357(1)Dt 15- 01- 2024fot the assessment year 2018- '19 notice Under Section 148- A, (b) Dt. 23- O3-2O22, |TBA/AST/F/'148A (SCNy2021- 22 11041376177(1), 148 A(d) Dt 07- 04- 2022 in ITBA/AST/F/148A12022- 2311042634945(1)and notice under section 148 Dt 07- 04- 2022 in ITBA/AST/S 1148 112022- 2311042646836 (1) for the Assessment Year 2018- 19, pending disposal of the above Writ Petition. Counsel for the Petitioner: SRI THANNERU CHAITANYA KUMAR Counsel for the Respondent Nos.1 TO 4: SRI SUNDARI R PISUPATI, Sr SC for lncome Tax Dept Counsel for the Respondent No.5: SRI GADI PRAVEEN KUMAR, Dy. SOLICITOR GENERAL OF INDIA The Court made the following: ORDER s THE HONOURABLE SRI JUSTTCE P.SAM KOSHY AND THE HONOURABLE SRI JUSTTCE N.TUKARAMJI WRIT PETITION No.3791 OF 2o24 ORDER:lper Hon'ble Si Justice P.SAM KOSHY) The instant Writ Petition has been filed by the petitioner under Articl e 226 of the Constitution of India seeking for the following relief: \"to i-ssue an appropiate writ order or direction more particularlg one in the nature of Writ of Mandamus declaing the order po-ssed bg the Income Tox Authoities National Faceless E Assessment Centre completed the ossessment US 147 r/u Section 144 B of the Income Tax Act 1961 uide DIN ond Notice No dated 15 Oi 2024 in ITBA/ AST/ S/ 147/2023 24/ 1059712312(1) for the ossessment year 2018 19 determining the total income of Rs.18,51,845/ - as arbitrary illegal bad in lau.t tuithout jurbdiction uoid ab initio uiolatiue of the principles of natural justice apaft from betng uiolatiue of Articles 14 191 g and 265 of the Constitution of India and Sec 148A of the Income Tox Act 1961 and consequentlA set oside the same in the interests of justice\". 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 came into effect from O | .O4 .2021 , the respondents, while proceeding under Section 148 of the Act, were required to issue notice under 1,Y' ...iii =-!__ \"-,r \" .tT+.F5{ 2 PSK,J& MTR,J W.P.No.3797 of 2O24 Section 14BA 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. 3. Whereas, learned counsel for the petitioner contended that, in the instant case, reopening has been initiated by the Jurisdictiona-l Assessing Offrcer. 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 was decided in the aforesaid batch of Writ Petitions. However, he further contended that apart from the aforesaid objection, there have been other various objections also which the petitioner has raised rn 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 3 PSK,J & NTR,J W.P.No.3791 o.f 2024 the same at paragraph Nos.37 & 38 which are reproduced herein under: 37. Tfie preliminary objection raised by tLrc petitrcner is sustoined and all these urit petifions sfonds allouted on this uery jurisdictional issue. Since th.e impugned notices and orders are getting quashed on the point of juri.sdiction, u)e are not inclined to proceed further and decide the other issues raised bg the petitioner uthich stands reserued to be raised and contended in an op p rop iate proce e ding s. \" \"38. Since the Hon'ble Supreme Court had, in the case of Ashish Aganual, supra, as a one-time measure exercising th.e pou.ters under Article 142 of the Constitution of India, permitted the Reuenue to proceed under the substituted prouisions, and this Court allouting the petitions only on the procedural Jlau, the ight confered on the Reuenue uould remoin reserued to proceed further if theg so uant from the stage of the order of the Supreme Court in tlrc case of Ashish Aganual, supra. \" 6. In view of the same, we a-re 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 7 . As has been held by this Bench in the aJoresaid batch I I matters, the rights of the parties would stand reserved as is =--- -.4:.:.a\"fr.:! 4 PSK,J & MTR,J W.P.No.3797 of 2O24 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/- K.SREERAMA MURTHY ASSISTANT REGISIRAR w SECTION OFFICER To 1. Office Of The lncome lax Oflicer Ward- 2' Kanmnagar Telanqana State 2. The Principal Chief co'iiition\"t oi lncome Tax - Telanoana= and A P' Hyderabad, lr rowers \"i'i;\"'\";;'t' it'i;tau ianrt Hvdera-bad - s00 028' Telanqana. 3. il;'ii;i;ran' Central Board of Direct Taxes' Department of Revenue' Ministry of Finance, \"o\"#'i\"\"ntiii'iii'ls\"i'\"t'iiat Buildings' New Delhi - o. +LgRT.\"rl Faceless Assessment center' lncome Tax Department' New . ?frIL\"\"r\",rrv to the Government' Unron of lndia' Department of Revenue' \" rrriin'i.t* oi Fifirn\"\", New Delhi - 1 10 001 6 one cC to sRl THANNifrJ inArr-nNV4 (u.y.Al' Advocate toPUCl 7 one cc to sRt suNronn'r'H Fisup; ir, sr_sb tgltncome lax-Dept IoPUCI 8. one cc to SRt cnor ph'nueeijiuiiAR, oy. sortctroR GENERAL oF rNDIA [OPUC] Two CD CoPies I PSK. G.IP $ i, I HIGH COURT DATED:1410212024 ORDER WP.No.3791 of 2024 ALLOWING THE WRIT PETITION WITHOUT COSTS. (Eo{.t *' t I lrin 'i'i; I --a "