Rain Cements Limited. V. Union of India

WP/555/2026

AI Insights

Rain Cements Limited filed a writ petition against the Union of India and other respondents, challenging the inaction of the Deputy Commissioner of Income Tax (Respondent No.4) in not considering their rectification application under Section 154 of the Income Tax Act, 1961. The petitioner argued that the delay and failure to address their application were unreasonable and arbitrary, violating Articles 14, 19(1)(g), and 265 of the Constitution of India. The case was initially complicated by issues of limitation and non-service of prior intimation, which had been contested in various forums including the Income Tax Appellate Tribunal and the Commissioner of Income Tax (Appeals). However, the matter became moot with the subsequent rectification order issued by the Deputy Commissioner of Income Tax, leading to the disposal of the writ petition as infructuous.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 840676 (HC-TELANGANA)
• Appeal Type: Others
• Pronouncement Date: 18-02-2026
• Assessment Year: misc
• Other Referred Cases: Harshvardhan Chemicals and Minerals Ltd. v. Union of India [(2002) 256 ITR 767]
• Laws Referred To: Income Tax Act, 1961, Constitution of India, 1950
• Result in Favour of: Revenue
• Court: HIGH COURT
• Department Lawyers: N BHUJANGA RAO; BOKARO REDDY
• Assessee Lawyers: KAILASH P S S
• Keywords: Arbitrary action; Income Tax; Rectification Application; Writ of Mandamus; Unreasonable Delay
• Section: 154; 143(1); 14; 265; 19(1)(g)

Judgement Text

"[ 34881 IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD (Special Original Jurisdiction) WEDNESDAY, THE EIGHTEENTH DAY OF FEBRUARY TWO THOUSAND AND TWENTY SIX PRESENT THE HON'BLE THE CHIEF JUSTICE SRI APARESH KUMAR SINGH AND THE HON'BLE SRI JUSTICE G.M. MOHIUDDIN WRIT PETITION NO:555 OF 2026 Between: Rain Cements Limited., 34, Rain Center, Srinagar Colony, Hyderabad, Telangana - 500 073, Rep its Authorised Signatory, Mr. G. N. V. S. R. R. Kumar, CFO. ...PETITIONER AND 'l . Union of lndia, Rep. by its Secretary, Ministry of Finance, North Block, New Delhi - 1'10001. 2. lncome Tax Appellate Tribunal, A-Bench, Hyderabad. 3. The Commissioner of lncome Tax, Appeals, National Faceless Appeal Centre, New Delhi. 4. . The Deputy commissioner of lncome Tax Department, Circle - 3(1 ) 7rh Floor, Signature Towers, Opp. Botanical Garden, Kondapur, Hyderabad - 500 084. ...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 issue an appropriate writ or order or direction more in the nature of a writ of mandamus declaring the Respondent No.4's failure to consider the Petitioners rectification application under Section '154 of the lncome Tax Act, 1961 , (Annexure Pl hereto) as being unreasonable, arbitrary and in violation of the provisions of the lncome Tax Act, 1961 and Article 14, 19(1Xg) and 265 of the Constitution of lndia, 1950 and consequently direct Respondent No.4 to forthwith consider the Petitioner's rectification application under. Section 154 of the lncome TaxAct, 1961. Printed from counselvise.com lA NO: 1 OF 2025 Petitior 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 direct Respondent No.4 to forthwith consider the Petitioner's rectification application under Section 154 of the lncome Tax Act. 1g6'1. Counsel for the Petitioner: SRI KATLASH NATH p. S. S. Counsel for the Respondent No.1: SRI N. BHUJANGA RAO, DEPUTY SOLICITOR GENERAL OF INDIA counsel for the Respondents No.2 to 4: Ms. BoKARo sApNA REDDY, SENIOR S.C. FOR INCOME TAX The Court marde the following: ORDER Printed from counselvise.com IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD THE HON'BLE THE CHIEF JUSTICE SRI APARBSH KUMAR STNGH AND THE HON'BLE SRI JUSTICE G.M.MOHIUDDIN WRIT PBTITION No. 555 of 2026 DATED: 18.02.2026 Behveen: Rain Cements Lirnited Petitioner ANI) Union of India, Rep. by its Secretary, Ministry of Finance, Nerv Dclhi, and three othcrs ... Respondents ORDER: Sri Kailash Nath P S S, learned counsel appears for petitioner, virtually. Ms. Bokaro Sapna Reddy, learned Senior Standing Counsel for Income Tax Department appears for respondent Nos.2 to 4. 2. This Writ Petition is filed with the following prayer: \"For the aforesaid reasons, it is prayed that this Hon'ble Court may be pleased to issue an appropriate writ or order or direction more in the nature of a writ'of mandamus declaring the Respondent No.4's failure to consider the Petitioner's rectification application under Section 154 of the Income Tax Act, 1961, (Annexure Pl hereto) as being Printed from counselvise.com HCJ (AKrS, J) & GMM, J W.P.No.555 of 2026 unreasonable, arbitrary and in violation of the provisions of tlre Income Tax Act, 196l and Article 1a, l9(l)(g) and265 of the Constitution ol'fndia, 1950 and consequently direct Iiespondent No.4 to forthrvith consider the Petitioncr's rcctification application under Section I 54 ol the lnconre Tax Act, 1961.\" 3. C)n 08.01.2026, the rnatter was adjourned at the request of the learned counsel for the Revenue. Refbrence is made to the said order passed by this Court. The same reads as under: \"Mr. S.Ravi, leanred Senior Counsel rcpreserrting Mr. Kailash Nath P.S.S., leaned counsel, appears for rhc petitioner. Ms. Bokaro Sapna Reddv, learned Senior Standirrg Counsel for Inconre l'ax De paftntent. appears lor respondent Nos.2 to 4. Petitioncr contends that lectification application sent through ernail against the intirnation datcd 25.03.2016 under Section 143(l) of the lncomc Tax Act. l96l (hereinafter referred to as 'the Act') before the jurisdictional Assessing Officer on 16.06.2020 (Annexure- PI) has not yet been disposed of. Petitioner has taken a plea tlrat the intimation dated 25.03.2016 rvas never served upon the petitioner and uploaded only on the portal on 24.01.2020. lts appeal has been rejected by the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, New Delhi on 31.01 .2025 or.t the ground of Iimitation. The petitioner has also lost before the lnconre Tax Appellate Tribunal, \"A\" Benclr, IJyderabad and thereafter, preferred two separate I'fTAs before this Court 2 .t Printed from counselvise.com HCJ (AKrS, J) & GMM, J W.P.No.555 of 2026 vide ITTA Nos.24l and 246 of 2025, which have been admitted by order dated 30.12.2025. Learned Senior Counsel for the petitioner has also referred to Section 154(7) of the Act and a decision of the Ra.jasthan High Courl reported in the case of Harshvardhan Chemicals and Minerals Ltd. v. Union of India [(2002) 256 I'f R 767] on the point that. once the rectification application was filed rvithin time i.e., by exclusion of the COVID period the Assessing Officer was bound to dispose it ol'in a reasonable time. Petitioner has, however, not been able to explain as to why the petitioner has waited for fir,e years in approaching this Court. Learned Serrior Standing Counsel for Income Tax Departrnent is allolved three weeks' time to seek instructions. List the rnatter after threc rveeks.\" 4. Today, when the case has been taken up, the learned counsel for the Revenue has prodr\"rced before this Court a copy of Rectification order under Section 154 of the Income-tax Act, 1961, dated 30.01.2026. 'Ihe same is placed on record. 5. The learned counsel for the petitioner submits that in view of Rectification order under Section 154 of the Income-tax Act, 1961, dated 30.01 .2026, the instant Writ Petition may be disposed of as infructuous. 3 ? Printed from counselvise.com 4 HCJ (AKrS, J) & GMM, J W.P.No.555 of 2026 To Accordingly, the instant writ petition is disposed of as infruc:tuous. There shall be no order as to costs. I 4iscellaneous applications, if any pending, shall stand closecl SD/-K.BHAVANI SWAMY TANT REGISTRAR /TRUE COPYII SECTION OFFICER 1. One CC to SRl KAILASH NATH p. S S., Advocate tOpUCl 2' one c:c to SRr N. BHUJANGA RAo, Deputy soricitor Generar of rndia loPUCl 3. one cc to Ms. BoKARo sApNA REDDY, senior s.c. for rncome Tax IoPUCI 4. Two C[) Copies MP BS ?mcr. Printed from counselvise.com HIGH COURT DATED :18102t2026 THE S (-) 2 7 [i:8 2026 ORDER WP.No.555 of 2026 DISPOSING OF THE WRIT PETITION AS INFRUCTUOUS WITHOUT COSTS * * 74|:-l1-4 Printed from counselvise.com "