Ram Prasad Varanasi V. Union of India

WP/7047/2024

AI Insights

The case involves R-am Prasad Varanasi, the petitioner, challenging the legality of the notices and orders issued by the Income Tax Department under Sections 148 and 148A(d) of the Income Tax Act, 1961, for the assessment year 2018-19. The petitioner argued that the proceedings were not conducted in accordance with the amended provisions of the Act, which require notices to be issued in a faceless manner and after providing an opportunity of hearing. The respondents, including the Union of India and various tax authorities, defended the actions taken under the un-amended provisions. The court referenced a previous judgment in a similar batch of writ petitions, which had allowed the petitions on jurisdictional grounds.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 722038 (HC-TELANGANA)
• Appeal Type: Others
• Pronouncement Date: 19-03-2024
• 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: B MUKERJEE; B SAPNA REDDY
• Assessee Lawyers: P SOMASHEKAR REDDY
• Keywords: Faceless assessment; Income Tax; Jurisdiction; Natural Justice; Writ of Mandamus
• Section: 148; 148A(d); 148A; 226

Judgement Text

"[ 337s ] HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD (Special Original Jurisdiction) TUESDAY, THE NINETEENTH DAY OF IMARCH TWO THOUSAND AND TWENTY FOUR PRESENT THE HONOURABLE SRI JUSTICE P.SAM KOSHY AND THE HONOURABLE SRI JUSTICE N.TUKARAMJI WRIT PETITION NO: 7047 OF 2024 Between: Counsel for the Petitioner: SRI P.SOMA SHEKAR REDDY Counsel for the Respondent No.1: SRI B.MUKERJEE FOR SRI GADI PRAVEEN KUMAR, Dy. SOLICITOR GEN. OF INDIA Counsel for the Respondent Nos.2 TO 4: M/s. B.SAPNA REDDY FOR SRI J.V.PRASAD, SENIOR SC FOR ITD The Court made the following: ORDER R-am Prasad Varanasi, S/o V.S.N Murthy aged about 39 years, R/o. H.No.4- 139, 1st Flool- _Qpp More Super [Iaiket, Chanda'nagar. Hyderabad, Telangana - 500050 AND ...PET|T|ONER 1. Unron of lndia, Ivlinistry of Finance Rep. by its Secretary, 166-8 North Block, New Delhi - I10 001 2. lncome Tax Officer, Ward 9(1), lT Towers, Masab tank Hyderabad, Telangana - 500004 3. The Principal Commissioner of lncome Tax- 4, Hyderabad lT Towers, Masab Tank, Hyderabad, Telangana - 500004 4. The National Faceless Assessment Centre, lncome Tax Department tr/inistry of Finance Govt. of lndia. New Delhi ...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 (i) lssue a Writ, Order or Direction more particularly, one, in the nature of Writ of Mandamus, declaring the order passed by the Respondent No.2 in passing the Order dated 251041.2022u1s. 14BA(d) and Notice issued by the Respondent No.2 under Section 148 of the lncome Tax Act, 1961 dated 2510412022as illegal, arbitrary, bad in law, void ab initio, violative of the principles of natural justice and being violative of Articles 14,19 and 265 of the Constitution of lndia and consequently, (ii) Set aside the Order dated 25t0412022uts. 148A(d) and Notice issued by the Respondent No.2 under Section 148 of the lncome Tax Act, '196'l dated 2510412022 calling for the return of income of the Petitioner for Ay 2018-19 and any consequent proceedings as lacking in jurisdiction. -7 THE HON'BLE SRI JUSTICE P.SAM KOSHY AND THE HON'BLE SRI JUSTICE N.TUI{ARAMJI V/RIT PETITION No.7O47 0F 2024 ORDER (per Hon'ble Si Justice P.SAM KOSIty) The instant Writ Petition has been frled bv the petitioner under Article 226 of the Constitution of India seeking for the following relief: \"...to Issue a Wit Order or Direction more particularlg one_ in the nature of Writ of Mandamus declaing tie order passed bg the Respondent No.2 in passiig the Order dated 25.04.2022 u/s 148 A(d) and Notice issued bg the Respondent No 2 under Section 14g of the Income Tax Act. 1961 dated 25.04.2022 as illegal, arbitrary, bad in low, uoid ab initio and being uiolatiue of the prouisions of Income Tax Act, 196 j and Artictes 14, 19 and 265 of the Constitution of India and consequentlA Set aside the Order dated 25.O4.2022 u/s 148A(d) and the Notice issued bg the Respond\"ent No.2 u/s 148 of the Income Tax Act, 1961 dated, 25.04.2022 call_i2O f9r the return of income of the petitioner for 4.Y.2O18-19 and any consequent proceedings as Iacking in jurisdiction, ond/ or pass.... 2. Heard Mr. P. Soma Shekar Reddy, learned counsel for the petitioner; Mr. B. Mukerjee, Iearned counsel representing Mr. Gadi praveen Kumar, learned Deputy Solicitor Genera-l of India, for respondent No. 1 and I 1'@ 2 Mrs. B. Sapna Reddy, learned counsel representing Mr. J.V. Prasad, Iearned Senior Standing Counsel for Income Tax for respondent Nos.2 to 4. Perused the record 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 .2021 , 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 provision 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 Jurisdictional 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 3 objection was decided in the a-foresaid 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 in the writ petition. 6. 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 the same at paragraph Nos.37 & 38 which are reproduced herein under: \"37. Tte preliminary objection raised by the petitioner is sustained and all these tuit petitions stands alloued on this uery jurisdictional issue. Since the impugned ryotices and orders are getting quashed on the point of juisdiction, tae are not inclined_ to proceed furtier and decide the other issues raised bg the petitioner which stands reserued to be raised and contended in an appropriate p ro ceeding s. \" ( ( \"38. Since the Hon'ble Supreme Court had, in the case of Ashish Agaruto| supra, as a one-time measure exerci.sing the potuers under Article 142 of the Constitution of India, pertnitted. the Reuenue to pioceed\" under the substih.tted prouisions, and. thii Court alloruing the petitions only on the protndural flata, the ight confened on the Reuenue would. remain resen.ed. to procee-d further if they so want from the stage of the order of the Supreme Court in tLe case oj e.hi\"h Aganual, supra.\" I I I li li i I I I 1 i w 4 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 a-llowed 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. 8. As has been held by this Bench in the aforesajd batch matters, the rights of the parties would stald 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 ciosed. It //TRUE COPY// SD/.A.V.S. PRASAD ASSISTANT REGISTRAR t;/ SECTION @FFICER To 1 2 J 4 The Secretary, Union of lndia, Ministry of Finance 166-8 North Block, New Delhi - 110 001 lncome Tax Officer, Ward 9('l), lT Towers, Masab tank Hyderabad, Telangana - 500004 fne pirncipat Commissioner of lncome Tax- 4, Hyderabad lT Towers, Masab Tank. Hvderabad, Telanqana - 500004 fne f.lationat Faceless Aisessment Centre, lncome Tax Department Ministry of Finance Govt. of lndia, New Delhi One CC to SRI P.Soma Shekar Reddy, Advocate [OPUCI o;; cc io Snr cnor PRAViENixut',iAn, ov. Soltctroh GEN. oF INDIA IOPUCI bne CC to SRI J V.PRASAD, SENIOR SC FOR ITD [OPUC] Two CD Copies /J/ \" ;f 5 7 8 PSK. BS HIGH COURT DATED:19103t2024 ORDER WP.No.7047 ot 2024 ALLOWING THE WRIT PETITTON WITHOUT COSTS. o ,J oR o ( e P, { T A c a r) + J o 14. 1 2w4 6 1HE Si4 AP8 "