Smt. Swapna Gajjela V. Assessment Unit, National Faceless Assessment Centre, Income Tax Department, Ministry of Finance and The Income Tax Office, Ward '1', Warangal

WP/7404/2024

AI Insights

The case involves Smt. Swapna Gajjela, who filed a writ petition against the Assessment Unit, National Faceless Assessment Centre, and the Income Tax Office, Ward '1', Warangal. The petitioner challenged the orders passed for the Assessment Year 2017-18 under sections 147, 144, and 148 of the Income Tax Act, claiming they were arbitrary, illegal, and void ab initio. The main contention was that the respondents did not follow the amended procedural requirements introduced by the Finance Act, 2021, which mandates a faceless assessment and proper notice under Section 148A. The court referenced a similar batch of writ petitions (WP.No.25903 of 2022 & batch) where it was held that such procedural lapses invalidate the orders.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 688167 (HC-TELANGANA)
• Appeal Type: Others
• Pronouncement Date: 21-03-2024
• 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 r.w.s 1448 of the Act, Section 148A of the Act, Section 151A of the Act, Section 149 of the Act, Section 151A of the Act
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: VIJHAY K PUNNA
• Assessee Lawyers: A V RAGHURAM
• Keywords: Faceless assessment; Income Tax; Jurisdictional issue; Procedural Flaw; Writ of Mandamus
• Section: 147; 144; 149; 148A; 1448; 151A; 226

Judgement Text

"[ 337s ] HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD (Special Original Jurisdiction) THURSDAY, THE TWENTY FIRST DAY OF IVIARCH TWO THOUSAND AND TWENTY FOUR PRESENT THE HONOURABLE SRI JUSTICE P.SAM KOSHY AND THE HONOURABLE SRI JUSTICE N.TUKARAMJI WRIT PETITION NO: 7404 OF 2024 Between: Smt. Swapna Gajjela, W/o. Sri Ramakrishna Gajjela, aged about 41 years, Occ. Private Service, 15-1-307, Rangampet, Warangal - d06002. ...PETITIONER AND '1. Assessment Unit, National Faceless Assessment Centre. lncome Tax Department, Ministry of Financg Room No. 4O1, 2\"d Floor, E-Ramp, Jawaharlal Nehru Stadium, Delhi - 110 003. 2. The lncome Tax Officel Ward '1 , Warangal, 1-8-610, 3'd floor, Mayuri Complex, Opp TSNPDCL Bhawan, Nakkalagutta, Hanamkonda, Warangal ...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 WRIT OF MANDAMUS holding that the order passed by 1't Respondent u/s. 147 r.w.s. 144 r.w.s '1448 of the Act, dt.19.05.2023 with DtN No.|TBA/AST/1|147t2O23- 2411052974075(1) for the Ay.2017-18, as arbitrary, illegat, bad in law, void ab initio, apart from being violative of provisions of section '1 4BA and section 149 of the Act and also contrary to the circular issued by CBDT and provisions of section 1 51A of the Act, and consequently set aside the order passed by 1 st Respondent u/s. 147 r.w.s. 144 r.w.s 1448 of the Act, dt.19.05.2023 with DIN No.|TBA/AST/5114712023- 2411052974075(1) for the Ay.2017-18 and aI consequential proceedings pursuant thereto. IA NOi 1 0F 2024 PetitionunderSection,l5lCPCprayingthatinthecircumstancesstatedin 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.l.tRespondentu/s.147r.w.S.144r.w.S1448oftheAct,dt.,19.05.2023with DINNo.ITBA/AsTlst147t2o23-2411052974075(1)fortheAy.2017-18. Counsel for the Petitioner: SRI A' V' RAGHU RAM CounselfortheRespondents:SRIVIJHAYKPUNNA(SENIORSCFORITD) The Court made the following: ORDER THE HONOURABLE SRI WSTICE P.SAM KOSITY AND THE HONOURABLE SRI JUSTICE N.TUI{ARAMJI WRIT PETITION No.74O4 OF 2024 ORDER:/per Hon'ble Sri Justice P.SAM KOSHY) Heard Mr.A.V.Raghu Ram, learned counsel for the petitioner and Mr.Vijhay K Punna, learned Senior Standing Counsel for the Income Tax Department for respondents. Perused the material available on record. 2. The instant Writ Petition has been hled by the petitioner under Article 226 of the Constitution of India seeking for the following relief: \"to poss.on order or direction especiolly one in the noture of wRlT oF MANDAMUS holding thot the order possed by 7'( Respondent u/s 147 r.w.s. 744 r.w.s 7448 of the Act, dt.19.05.202i with DIN No. trBA/AsT/S/147/2023-24/705297407s(1) for the Ay.2017-18 os orbitrory, illegol, bod in low, void ob initio, oport from being violotive of provisions ol section 748A ond section 749 of the Act ond olso controry to the circulor issued by CBDT ond provisions of section 151A ol the Act and consequently set oside the otder possed by 1't Respondent u/s 147 r.w..s 744 r.w.s. 7448 of the Act, dt.79.05.2023 with DIN No |TBA/AST/S/147/2023-24/7052974075(1) for the Ay.2017-78 ond oll consequentiol proceedings pursuont thereto ond poss-.-\" 3. One of the contentions that the petitioner has raised in the present Writ Petition is that under the amended 2 provisions of the Act which caine into effect from Ol.O4.2O2l, 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.25903 of 2022 & batch, dated 14.09. 2023 whetein this Court disposed of the batch of writ petitions to the limited extent. 5. On the other hald, learned Standing Counsel for the respondent-Depa-rtment does not dispute that the said objection was decided in the aforesaid batch of Writ Petitions. However, he further contended ttrat apart from the aforesajd objection, there have been other various objections also which the petitioner has raised in the writ Petition-.--'-- I 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: I I \"37. The pretiminary objection raised by tlrc petitioner is sustained and alf these urit petitions stands allowed on this uery jurisdictional issue. Since the impugned notices and irders are getting quashed on ttrc point of juisdiction, u)e are not inclined to proceed further and -decide the other i.ssues raised bg tle petitioner uhich stands reserued. to be raised and contended in an approp iate p roce eding s. \" \"38. Since the Hon'ble Supreme Court had, in th'e case of Ashish Aganua supra' as a one-time ^medsure ixercising tie potuers under Article 142 of the Constituion of Ind.ia, pennitted the Reuenue to proceed under the iubstituted prouisions, and this Court attoruing the petitions onlg on the procedural flaut' the right inferrid on tlw Reuenue would remain reserued ti proceia Turther if tteg so utant from the stag-e of tLe oier of the Supieme Court in tle case of Ashish Agaru.tal, supra.\" 7. 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 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' 4 To, .Assessmentunit,Nationarls:slH:#'-Tl['.\"itfr\"rT',h'iElH:rl;: Department, Ministry qt lJ'frJini..'iiij oos. - ' Jawaharlal Nehru Stadtutt t ; Ii' t\" w \"nZnoal. 1 -8-61 0, 3'd floor, Mayuri ,gligrtr.*iffi[ffirt\"ffi ;#lEL:\"LEj3,#;:::;\"waranga g. As has beeobeld by this Bench in the aforesaid batch matters, the rights of the parties would stand 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' shatl stand closed' _ t-- SD/- C. PRAVEEN KUMA ASSISTANT REGIST //TRUE COPY// SECTION OF ER . Two CD Copies 1 2 J 4 5 TJ KKS HIGH COURT DATED:2110312024 ORDER WP.No.7404 of 2024 ALLOWING THE WRIT PETITION WITHOUT COSTS. R 1HE S ]rt ( J o U t o \"1 * 0E nu Zjl//4 STJAICHeO C- @,,r* Qao- "