Smt. Navanilha Pentyala V. Assessment Unit, National Faceless Assessment Department, Ministry of Finance and The Income Tax Officer, Ward 10(1)

WP/6284/2024

AI Insights

The case involves Smt. Navanilha Pentyala, the petitioner, challenging the orders issued by the Income Tax Department under sections 147, 144, and 144B of the Income Tax Act for the assessment year 2018-19. The petitioner argued that the orders were arbitrary, illegal, and void ab initio, violating the provisions of sections 148A and 149 of the Act, as well as the circular issued by the CBDT. The main contention was that the reopening of the assessment was initiated by the Jurisdictional Assessing Officer without following the amended provisions that require a faceless procedure and an opportunity for the assessee to be heard. The respondents did not dispute the procedural flaws but highlighted other objections raised by the petitioner.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 690331 (HC-TELANGANA)
• Appeal Type: Others
• Pronouncement Date: 11-03-2024
• Assessment Year: misc
• Other Referred Cases: WP.No.25903 of 2022 & batch, dated 14.09.2023
• Laws Referred To: Article 226 of the Constitution of India, Section 147 r.w.s 144 t.w.s 144F of the Act, Section 148A and section 149 of the Act, Section 151A of the Act
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: VIJAY PUNNA
• Assessee Lawyers: A V RAM
• Keywords: Faceless assessment; Income Tax; Jurisdictional issue; Procedural Flaw; Writ of Mandamus
• Section: 147; 144; 149; 148A; 151A; 144F

Judgement Text

"HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD (Special Original Jurisdiction) I/ONDAY, THE ELEVENTH DAY OF ] 4ARCH TWO THOUSAND AND TWENTY FOUR PRESENT THE HONOURABLE SRI JUSTICE P.SAM KOSHY AND THE HONOURABLE SRI JUSTICE N.TUKARAMJI WRIT PETITION NO: 6284 OF 2024 [ 337e ] Centre, lncome Tax 2nd Floor, E-Ramp, Between: Smt. Navanilha Pentyala. W/o. Sri P. Bhavani Prasad, aged about 11 ye1,9' Occ. Housewife, SF-7. tvlunicipal No.7-31lSF7, Sai Nippani Enclave, Old Ivlalkajgiri, Hyderabad - 500047. ..PETITIONER AND 1 Assessment Unit, National Faceless Assessment Department, t ilinistry of Finance. Room No. 401 , Jawaharlal Nehru Stadium, Delhi 110 003. 2. The lncome Tax Officer, Ward 10(1), l.T. Towers, A.C' Guards, lVlasabtank, Hyderabad - 500004. ..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 wRlT oF IVIANDAIVUS holding that the order passed by 1st Respondent u/s. 147 r.w.s- 144 t.w.s 144F of the Act, dt.23.01 .2024 with DIN No. ITBA/AST/S/14712023- 2411060009566(1 ) for the Ay .2018-19, as arbitrary, illegal. bad in law, void ab initio, apart from being violative of provisions of section 148A and section .l49 of the Act ancl also contrary lo the crrcular issued by CBDT and provisions of section 15.1A of the Act, and consequently set aside the order passed by 1st Respondent uts. 147 r.w_s. 144 r.w.s 1448 of the Act, dt.23.O1.2024 with DIN No. ITBA/AST/S/147t2o23-2411o60009566(1) for the Ay 2018-19 and all consequential proceedings pursuant thereto. i , t I ; - / lA NO: 1 OF 2024 Petition 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 stay all further proceedings, including any recovery, pursuant to the order passed by the 1St Respondent uls. 147 r.w's. 144 r.uns ,144B of the ACt, dt.23.01.202:4 with DIN No. ITBA/AST/SI147t2023-24l1060009566(1) for the Ay 2018-19' Counsel for the Petitioner: SRI A.V.RAGHU RAM Counsel for the Respondents: SRI VIJAY K.PUNNA, Sr. SC FOR INCOME TAX The Court made the following: ORDER THE HONOURABLE SRI JUSTICE P.SAM KOSHY AND THE HONOURABLE SRI JUSTTCE N.TUKARAMJI WRIT PETITION No.6284 oF 2024 ORDER: (per Hon'bte Si Justice P-SAI$ KOS.HY) Heard Mr.A.V.Raghu Ram, learned counsel for the petitioner and Mr.Vijay K Punna, learned Senior Standing Counsel for respondents. Perused the material available on record. 2. The instant Writ Petition has been frled by the petitioner under Article 226 of the Constitution of India seeking for the follo\"ving relief: nto poss on order or direction especiolly one in the noture of WBIT OF MANDAMUS hotding thot the order possed by 151 Respondent u/s 747 r w s 144 r w s 1448 of the Act dt 23 01 2O24 with DIN No IT8A/A5I/5/147/202324/10600095661 for the Av 2078'19 os orbitrory itlegol bod in low void ob initio oport from being violotive of provisions of ,\"[tion u,n ond section 14g of the Act ond olso controry to the circulor issued by CBDT ond provisions of section 151A of the Act ond consequently set oside the order possed by li Respondent u/s 747 r w s 744 r w s 1448 ol the Act dt 2i 01 2024 with DIN No lT BA/AST/S/147/2023 24/10600095661 lor the Av 201819 ond all consequentiol proceedinqs pursuont thereto \" J One of the contentions that the petitioner has raised in the present Writ Petition is thal under the amended 2 PSX,J& MTR,J W.P.No.6284 of 2O24 provisions of the Act which carne into effect from Ol.O4 .2021 , the respondents, while proceeding under Section 148 of the Act, were requiyed to issue notice under 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. 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.25903 of 2022 & batch, dated 14.O9.2023 whereln 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 nor 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 in rhe writ petition. 3 PSK,J & NTR,J W.P.No.6284 of 2024 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 petifions, had taken note of the same at paragraph Nos.37 & 38 which are reproduced herein under: \"37. The prelimtnary objection roised bg the petitioner is sustained and oll these uit petitions stands alloued on this uery juisdictional issue. Since the impugned notiecs and orders ore getting quashed on the point of jurisdiction, u)e are not inclined to proceed furtLLer and decide the other issues raised by the petitioner uthich stands reserued to be raised and contended in on appropiate proceeding s. \" \"38. Since tlrc Hon'ble Supreme Court had, in the case of Ashish Agoru.tal, supra, os a one-time measure exercising the pou.ters under Article 142 of the Constitution of Indio, permitted the Reuenue to proceed under the substituted prouisions, and this Court allouing the petitions onlg on the procedural Jlaut, tle right confered on the Reuenue tuould remain reserued to proceed further if theg so toant from the stage of the order of the Supreme Couft in the case of Ashish Aganua| supra. \" 7. In view of the same, ,r/e are 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 u,hich is otherw'ise not sustainable. t a 4 To, PSK,J & NTR,J W.P,No.62a4 of 2O24 8. As has been held by this Bench in the aforesaid batch matters, the rights of the parties would stand reserved as is envisaged at paragraph Nos.37 L a, o, the said order passed in the batch of writ petitions. No order as to costs. Consequently, miscellaneous petitions pending, if any, shall stand closed. SD/. MOHD. SANAULLAH ANSARI ASSISTANT REGISTRAR //TRUE COPY// ,,;.> SECTION OFFICER The Assessment Unit, National Faceless Assessment Centre' lncorne Tax D;:\";ffi;;i Mini.l.v 'ot rinince Room No 401' 2nd Floor' E-Ramp' Jawaharlal Nehru Stidium, Delhi 110 003' The lncome Tax Officer, Ward 10(1 ), l T Towers' A C Guards' l/asabtank' Hyderabad - 500004. One CC to SRI A.V.RAGHU RAM' Advocate [OPUC] One CC to SRI VIJAY K.PUNNA, Sr' SC FOR INCON/E TAX [OPUC] Two CD CoPies x 1 2 3 4 5 BSR GJP t i /. HIGH COURT DATED: 1110312024 ' (.1<.' z u t'lAY 2021 .?r' ..:') Es,:/, ICr.' U ORDER WP.No.6284 of 2024 ALLOWING THE WRIT PETITION, WITHOUT COSTS "