Ramani Kondepudi V. Union of India

WP/5049/2024

AI Insights

The case involves Ramani Kondepudi, the petitioner, challenging the legality of the income tax orders and notices issued for the assessment year 2018-19. The petitioner argued that the orders were passed under the unamended provisions of the Income Tax Act, 1961, which do not comply with the requirements set by the amended provisions effective from April 1, 2021. The respondents included various authorities from the Ministry of Finance and the Income Tax Department. The court referenced a previous judgment in a similar batch of writ petitions (WP.No.25903 of 2022 & batch) where it was held that such proceedings must comply with the amended provisions, and any deviation renders the proceedings invalid.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 737401 (HC-TELANGANA)
• Appeal Type: Others
• Pronouncement Date: 27-02-2024
• 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: J V PRASAD
• Assessee Lawyers: P SOMASHEKAR REDDY
• Keywords: Faceless assessment; Income Tax; Jurisdiction; Natural Justice; Writ of Mandamus
• Section: 148; 148A(d); 226

Judgement Text

"[ 337s ] IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD (Special Original Jurisdiction) TUESDAY, THE TWENTY SEVENTH 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: 5049 OF 2024 Between: Ramani Kondepudi, Aged about 60 years- D/o. Alluri Subba Rao Fl/o. 1-1-52318, Gollonda X Roads Hyderabad Hyderabad 500008, PAN.ARGPK3866M ...PETITIONER AND 1. Union of lndia, Ministry of Finance Rep. by its Secretary, 166-8 North Block, New Delhi - 110 001. 2. lncome Tax Officer Ward 14(1), lT Towers, Masab Tank 3. The Principal Commissioner Of lncome Tax 2, Signature Towers, Opp. Botanical Gardens, Kondapur Serilingampally IVlandal, R.R. District, Hyderabad, Telangana 4. The National Faceless Assessment Centre, lncome Tax Department, Ministry of Finance, Govt. of lndia, New Delhi ...RESPONDENTS Petition under Article 226 of lhe Constitution of lndia praying that in the circumstances stated in the affidavit filed therewith, the High Court may be pleased to. iv. lssue a Writ, Order or Direction more particularly, one, in the nature of Writ of lvlandamus, declaring the order passed by the Respondent No.2 in passing the Order dated '1 1.04.2022 u/s. '148A(d) and Notice issued by the Respondent No.2 under Section 148 of the lncome Tax Act, 1961 dated 12.04.2022 as 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, i. Set aside the Order dated 11 .04.2022 u/s. 148A(d) and Notice issued by the Respondent No.2 under Section 148 of the Income Tax Act, '1961 dated 12.04.2022 calling for the return of income of the Petitioner for AY 2018-19 and any consequent proceedings as lacking in jurisdiction. Counsel for the Petitioner : M/s.P.Soma Shekar Reddy Counsel forthe Respondent No.1 : SC FOR CENTRAL GOVT. Counsel for Respondent Nos.2to4: SRI J.V.PRASAD, SC FOR INCOME TAX The Court made the following: ORDER I I I n THE HONOURABLE SRI JUSTICE P.SAM KOSITY AND THE HONOURABLE SRI WSTICE N.TUI(ARAMJI u/RIT PETITION No.5O49 OF 2o24 ORDER:1per Hon'ble Si Justice P,SAM KOSHY) The instant Writ Petition has been tiled bv the petitioner under Article 226 of the Constitu:ion of India seeking the following relief; \"...to issue writ, order, or direction more particularly one in the nature of writ of mandamus declaring the order, dated 11.O4.2022 passed by Respondent No.2 under Section 148A(d) and Notice issued by Respondent No.2 under Section 148 of the r.ncome Tax Act,196 1, dated 12.04.2022 as 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 India and consequently set-aside the Order, dated 11.O.+.2022 under Section 148A(d) and Notice issu:d by Respondent No.2 under Section 148 of the Income Tax Act, 196 1 , dated 12.04.2022 calling for the return of income of the Petitioner for A.Y. 20 18- 19 and any consequent proceedings as laclc ng in jurisdiction 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 effect from Ol .O4 .2021 , the respondents, while procee ling under Section 148 of the Act- wcra required to issue notice under 2 PSI(,J&J l:rR,J W.P.No.5O49 of 2024 Section 148-.{ 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 marrner. 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 judgrnent 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. 4. On the other hand, learned Standing Counsel for the respondent-Department does not dispute that the said 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. 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 I i- PSK,J & MTR,J W.P.l{tI.5O49 of 2O24 the same at paragraph Nos.37 & 38 which ale reproduced herein under: \"37. The preliminary objection raised bg the petittoner is sustained and all tLrcse uit petitions stands alloued on this uery juisdiction,zl issue. Since the impugned notices and orders are getting quastwd on the point of jurisdiction, u.te are not inclined to proceed further and decide the otLer issues ratsed by the petitioruer utlrich stands reserued to be raised and contendea' in on appropiate proceeding s. \" \"38. Since the Hon'ble Supreme Court L-nd, in tLrc case of Ashish Agartual, suprq, as a one-time measure exerci-sing the powers under Articl.e 142 of the Constitution of India, pennitted the Reuenue to proceed under the substituted prouisions, and this Court allou-ting the petitions onlg on the pr,ccedural flau, the right confened on the Reuenu,z uould remain reserued to proceed further if they so u)ant from the stage of the order of tLrc Supreme Court in the case of Ashish Agarutal, supra.' 6. In view of the sarne, we are inclined to allow the present writ petition also on similar terms. Accordingly, the present Writ Petition stands allowed on the ob-iection of the petitioner that the proceedings have not be,:n drawn in accordalce with the amended provision but under the un-amended n.ovision which is otherwise not sustainable. I t ---.-v a 4 PSr,J& ]y[R,J W.P.No.5O49 oJ 2024 7. As has been held by this Bench in the aforesaid batch matters, the right 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. 8. Consequently, miscellaneous petitions pending, if any shall stald closed SD/. V. HARI PRASAD ASSISTANT R GISTRAR //TRUE COPY// SECTION OFFICER r. fi. To l.TheSecretary,Unionoflndia,tt4inistryofFinance,l66-8NorthBlock'New Delhi - 1 10 00'1 : Z. ifre tncome Tax Officer Ward 14(1), lT Towers, lvlasab Tank 5. iiie i-ti\".ipal- Commissioner oi 'l'ncome Tax 2, Signature Towers' ^o-pp' - Botanical .Gardens, Kondapur Serilingampally [v1andal, R.R. UlStrlct, Hyderabad, Telangana a i6e Nationil Faceless Assessment Centre, lncome Tax Department, tVinistry of Frnance, Govt. of lndia, New Delhi S. One CC to'SRl P.Soma Shekar Reddy, Advocate [OPU-C-] - 6. O;; Cc io StanUing Counsel for Cential Government tOPUCl ^-. ^- 7. on; cc io SnL i vIpRASAD, sc for lncome Tax Department' [OPUC] B. Two CD Copies. BSK GJP I i i HIGH COURT DATED:2710212024 ORDER WP.No.5049 of 2024 ALLOWING THE WRIT PETITION WITHOUT COSTS oB t11c S14 r{: 2 ? ilArj 2024 t ) (( ( Z a A t * o5,seAtcueO LuE z't -bv l I ; i "