Primary Agriculture Coop Credit Society Limited, Chandoor V. The Income Tax Officer, Ward - 1 and Assessment Unit, National Faceless Assessment Centre, Income Tax Department, Ministry of Finance

WP/149/2024

AI Insights

The case involves the Primary Agriculture Coop Credit Society Limited, represented by its CEO, Sri Yerraposani Bhumaiah, challenging the legality of orders and notices issued by the Income Tax Officer and the Assessment Unit of the National Faceless Assessment Centre. The petitioner argued that the orders were passed without adhering to the amended provisions of the Income Tax Act, which require notices to be issued in a faceless manner and provide an opportunity of hearing. The court referenced a similar case, W.P.No.34493 of 2023, where it had already ruled in favor of the petitioner on similar grounds.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 678534 (HC-TELANGANA)
• Appeal Type: Others
• Pronouncement Date: 04-01-2024
• Assessment Year: misc
• Other Referred Cases: W.P.No.34493 of 2023, WP.No.25903 of 2022 & batch
• Laws Referred To: Income Tax Act, 1961, Constitution of India
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: SUNDARI R PISUPATI
• Assessee Lawyers: A V RAGHURAM
• Keywords: Assessment Year 2016-17; Faceless assessment; Income Tax; Natural Justice; Writ of Mandamus
• Section: 148; 148A(d)

Judgement Text

"[ 3379 ] HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD (Special Original Jurisdiction) THURSDAY, THE FOURTH DAY OF JANUARY TWO THOUSAND AND TWENTY FOUR PRESENT THE HONOURABLE SRI JUSTICE P.SAM KOSHY ANO THE HONOURABLE SRI JUSTICE N.TUKARAMJI RIT TITION N :149OF N2 Between: Primary Agriculture Coop Credit Society Limited, Chandoor, 'l-8 Cfiandur (Village), Vami (Mandal), Nizamabad-503206. Rep. by its Chief Expcutive Officer, Sri Yerraposani Bhumaiah, S/o. Sri Yerraposani Chinna Sailu. ...PETITIONER AND 1. The lnmme Tax fficer, Ward - 1 , 6-2-15613, Subhash Nagar, Nizamabad - 503002. 2. Assessment Unit, National Faceless Assessment Centre, lncome Tax Department, Ministry of Finance, Room No.4Ol, 2nd Floor, E-Ramp, Jawaharlal Nehru stadium' Delhi-1 10003 ...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 1st Respondent u/s.148A(d) of the Act, dt.23.O3.2O23 with DIN and Notice Nlo. ITBA/AST/F/148N2O22- 2311051201654(1) and the notice daled 23.03.2023 issued under section 148 of the Act with DIN and Notice No.|TBA/AST/S/148 112022-2311051204239(1) tot the assessrnent yeat 2016-17, as being illegal, arbitrary and passed in gross violation of principles of natural justice without application of mind, and consequently set aside the same. IANO:1OF 2O24 Petition under Section 1 51 CPC praying that in the circumstances stated in the affidavit filed in support of the petition, the High Court may be pleased to suspend the operation of the notice issued by the Respondent u/s.148 of the Act, d1.23.03.2O23 for the assessment year 2016-17 with DIN and Notice No.ITBA/AST/S1148_112022-2311051204239(1)and att consequentiat proceedings thereto. Counsel for the Petitioner: SRI A.V.RAGHU RAM Counsel for the Respondents: SRI SUNDARI R PISUPATI, Sr SC for lncome Tax Dept The Court made the following: ORDER i/ -7 THE HON'BLE SRI WSTICE P.SAIVI KOSHY AND THE HOI{'BLE SRI JUSTICE N.TT'KARAMJI WRIT PETITION No.149 of 2o24 ORI)ER: /per I{o n'ble Si Justice P.SA.LI KOSHY) Today, when the matter is taken up for hearing, it has been informed by the parties that an identical writ petition i.e., W.P.No.34493 of 2023 has already been allowed and disposed of uide order dated 27.12.2023. 2. In view of the fact that the identical matter has already been allowed by this Court, this Writ Petition also stands allowed in terms of the order passed in W.P.No.34493 of 2023 decided on 27.72.2023 on similar terms. As a sequel, miscellaneous applications pending, if any, in this writ petition, shall stand closed. No order as to costs. SD/. MOHD. SANAULLAH ANSARI ASSISTANT REGIS //TRUE COPY// SECTI OFFICER 1 . The lncome Tax Officer, Ward - 1 , 6-2-1 56/3, Subhash Nagar, Nizamabad - 503002. 2. Assessment Unit, National Fac€less Assessment Centre, lncome Tax Department, Ministry of Finance, Room No. 4O1 ,2nd Floor, E-Ramp, Jawaharlal Nehru Stadium, Delhi - 110 003 3. One CC to SRI A.V.RAGHU RAM, Advocate [OPUC] 4. One CC to SRI SUNDARI R PISUPATI, Sr SC for lncorne Tax Dept [OPUC] 5. Two CD Copies (Along with a copy of the order, dated 27.12.2023, passd by this court in W.P.No.34493 of m23 to this order) To PSK. GJP .:i. HIGH COURT DATE D :04 10112024 ORDER WP.No.149 of 2024 /.'\" l/^ i,li ? r.. tl. '4. ' k E I ;$ ritl ..'' t\"' ttt ,,). ALLOWING THE WRIT PETITION WITHOUT COSTS. wv4 THE HONOURABLE SRI JUSTICE P.SAM KOSHY AND THE HONOURABLE SRI JUSTICE N.TUKARAMJI WRIT PETITION No.34493 0F 2023 QRpEB:perHon'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 challenging the order issued under Section 148A(d) of the Income Tax Act, 1961 (for short, \"the Act\") bearing DIN No.ITBA/AST /F /148A12022-23 / 1o428s2137 (t), dated 26.04.2022 passed by respondent No.l for the assessment year 2018-19 and the consequent notice under Section l4g of the Act, dated 26.04.2022, bearing DIN No.ITBA/AST / s / 148_t / 2022-23 / to428ss I 60 ( I ). 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 effect from OL.O4.2O2|, 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 2 PSK,J & NTR,J W.P.No.34493 of 2023 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 L4.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 aforesa.id 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 3 PSK,J & NTR,J W.P.No.34493 of 2O23 the same at paragraph Nos.37 & 38 which are reproduced he rein under: '37. The preliminary objection rabed bg the petitioner is sustained and all these writ petifdons sfands olloued on this uery juri-sdbtional issue. Since the impugned notices and orders are getting quashed on the point of jurisdbtion, uE are not inclined to proceed further and deci.de the other issues rai.sed by the petitianer which sfands reserued to be rai.sed and contended in an ap p rop riate p roce e ding s. \" \"38. Since the Hon'ble Supreme Court had, in the co.se of Ashi.sh Agaru-tal, supra, a.s a one-time measure exercising the pou.ters under Article 1 4 2 of the Constitution of Indin, permitted the Reuenue to proceed under the substituted proui.sions, and thi.s Court atlowing the petitions only on the procedural Jlaw, the right anfened on the Reuenue unuld remain reserued to proceed further if they so want from the stage of the order of the Supreme Court in the case of Ashi-s'h Agarwal, supra.\" 6. In view of the sarne, we are inclined to a-Ilow the present writ petition also on similar terms. Accordingly, the present Writ Petition stalds 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 aforesaid batch matters, the rights of the parties would stand reserved as is 4 PSK,J & NTR,J W.P.No.34493 of 2023 envisaged at paragraph Nos.37 & 38 of the said order passed in the batch of writ petitions. No order as to costs Consequently, miscellaleous petitions pending, if any, shall stand closed. P.SAM KOSHY, J N. TUKARAMJI, J Date: 27.12.2023 TJMR "