Smt. Padma Naga Malleswari Mavuleti V. The Principal Commissioner of Income Tax-6

WP/1404/2023

AI Insights

The case involves Smt. Padma Naga Mafleswari Ma-vureti, who challenged an assessment order dated 28.12.2022 issued by the National Faceless Assessment Centre (NAFA) for the assessment year 2021-22. The petitioner argued that the order was arbitrary, illegal, and unsustainable as it lacked pecuniary jurisdiction and violated the principles of natural justice. The assessment treated the consideration from the sale of land as both long-term capital gains and business income, which the petitioner contested. The court found that the issues raised could be addressed in an appeal, as the assessment order is appealable under Section 246A of the Income Tax Act.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 753094 (HC-TELANGANA)
• Appeal Type: Others
• Pronouncement Date: 19-01-2023
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Revenue
• Court: HIGH COURT
• Department Lawyers: J V PRASAD
• Assessee Lawyers: C P RAMASWAMI
• Keywords: Natural Justice; Pecuniary Jurisdiction; Stay of recovery; Writ of Mandamus; Scrutiny Assessment Order
• Section: 143(3); 246A; 144B

Judgement Text

"I s311 I HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD (Special Original Jurisdiction) THURSDAY,THE NINETEENTH DAY OF JANUARY TWO THOUSAND AND TWENTY THREE PRESENT THE HONOURABLE THE CHIEF JUSTICE UJJAL BHUYAN AND THE HONOURABLE SRI JUSTICE N.TUKARAMJI WRIT PETITION NO: 1404 0F 2023 Between smt. Padma Naga Mafleswari Ma-vureti, wo.rate fiilavureti r ,4adhusudhana Raju. Aged 72.y^e-ars Occ. Housewife, nyo Unit-[i+. o;d;;;, Naandi Rurban li.ominyn_e, 148 and 149. Aziz_Nagar panchay\"i i,iJ Viilrg\", Vf \"iriOrJ lVandal. Ranga Reddy District -50002\"5 1. The Principal Commissioner ot ln#rD\" Tax-6, lT Towers, AC \"r::#::- Tank, Hyderabad-500004. 2. The Additionar/JoinvDeputy/Assistant commissioner of rncome Tax/ rncome - Tax Officer, National Fdcel'ess Assessmeni C\"nii\". b\"f ni 3 The Additional/ Joinu commissioner or tncome ia-i, irlnge -r o, rr rowers, . AC Guards, Masab Tank. Hyderabad_500b04. -\"' 4. The Income Tax Officer, Wid_10(1), lT Towers, AC Guards, Masab Tank, Hyderabad-500004. ...RESPONDENTS Petition under Articre 226 of the constitution of rndia praying that in the circumstances stated in the affidavit fired therewith, the High court may be pleased to issue a writ, order or direction, more particurarry one in the nature of writ of Mandamus decraring the impugned Scrutiny Assessment order dated 28'12.2022 in the case of petitioner for the Assessment year 2021-22 in DrN : ITBA/AST/S/143(3)/2022-23t1O483099Sj(1) passed by the 2nd respondenUNational Faceless Assessment Centre (known as ,NAFA,) as arbitrary, illegal and unsustainabre in raw as it is without pecuniary jurisdiction and against the basic principles of taxation, besides being in violation of principles of natural justice, and consequen y quash the same as unsustainable in law and further grant stay of recovery of the demand of over Rs.1.47 crore raised in the impugned assessment order and all penalty proceedings lA NO: 1 OF 202 Petition un ler Section 151 CPC praying that in the circumstances stated in the affidavrt fih rd in support oi the petition, the High Cour_ nray be pleased to Stay all further pr oceedings including the recovery and penalty proceedings for the Assessmenl''ear 2021-22 in consequences of the order daled.28.1Z.ZO22 in DIN -ITBAiAST Si143 (3)12022-2311048309981(1) passed by the 2nd respond ent/Natio ral Faceless Assessment Centre (known as'NAFA') Counsel for the F etitioner: SRl. C. P. RAMASWAMI Counsel for the F espondents: SRl. J .V. PRASAD (SC FOR INCOME TAX) The Court made I he following: ORDER THE HON'BLE THE CHIEF JUSTICE UJJAL BHUYAN AND WRIT PETITION No.14O4 of 2023 ORDER: (Per the Hon'bte the Chief Justice lJjjal Bhugon) Heard Mr. C.P.Ramaswami, learned counsel for the petitioner ancl Mr. J.V.Prasad, learned Stalding Counsel, Irrcome Tax [)epartment for the respondents. 2. Challcnge made in this writ petition is to the ass(-'ssment ordcr dated 28.12.2022 passed by the !\",t respondent r:nder Section 143(3) read with Section 1448 of ttre lncome Tax Act, 196 1 (briefly referred to hereinafter as 'thc Act') lor the assessment year 2027-22. 3. Learned counsel for the petitioner submits that ttrc asscssing authority had committed gross error in treating the consideration received from sale of land both as iong term capital gains as u,e1l as business income and if such a gross error ls permitted to stay on record, it will create serious dislocation in the assessment proceedings of similarly t' 4ituated, assessees THE HOl J',BLp QEI JUETI9E Ir.ltUKABAIvIdI I i - l{ i:.., , i.i trl r,/ .'i r-'l 4. Hr n,ever, rre are of the vie$ that the aboi.e contention of learned counsel for the petitioner,:ern verv r,r'ell be raised in z ppea1. The assessment order is an appealable one under Se< tion 246A of the Act. 6. Wr t Petition is accordingly disposed cl. However, there shall be ro order as to costs. 7. Mir cellaneous applications pendir-rg. if any, in this Writ Petition s )all stand closed. //TRUE COPY' SD/. N.SRIHARI ASS'lSi TAl,lT REGISTRAR ri :SEC:TION OFFICER To, 1. The Princ Tank, Hyc 2. The Addit Tax Office 3. The Addit AC Guard 4. The lncon Hyderaba 5. One CC tr 6. One CC t( 7. Two CD c oal Commissioner of lncome Tax-6, lT Tower;, .AC Guards, Masab erabad-500004. rnal/JoinUDeputy/Assistant Commissioner of lrrr:ome Tax/ lncome r, National Faceless Assessment Centre, Delir . rnal/ JoinV Commissioner of lncome Tax, Rarrge -10, lT Towers, ;, Masab Tank, Hyderabad-500004. e Tax Officer, Ward-10(1), lT Towers, AC Guarrls, lvlasab Tank, l-500004. SRl. C. P. RAMASWAIVI, Advocate [OPUC' SRI. J. V. PRASAD (SC FOR INCOME TAXI [OPUC] )pies SW B t/l I 5. Wt make it ciear that if the petitic,ner prefers appeal before the appellate authoritv against th<: aforesaid assessment or der within a period of 3O da-vs fro-l today, the same shall br' considered b-r' the appellate autltoritrr on its own merit. It rill also be open to the petitioner tc seek sta-r, of demand beforl thr: appropriate authority under Sr:ctio t.t 22O(61 of the Act. All contentions are kept open. H]GH COI.IRT DATED:1t 10112023 ORDER WP.No.14t14 of 2023 DISPOSIN 3 OF THE WRIT PETITION WITHOUT COSTS 1 ? 3 [iB 2[?3 ,2ffi> 'r v 7 I *e\" "