SOURCE HUB V. The Assistant Unit, Income Tax Department, Ministry of Finance, Government of India, New Delhi and The Income Tax Officer, Ward 11(1), Range, Hyderabad and The Grievance Redressal Committee, 9th Floor, C-Block, Income Tax Towers, A.C. Guards, Hyderabad - 500 004 and The Union of India, Rep. by its Principal Secretary, Ministry of Finance, 4th Floor, A-Wing, Shastri Bhawan, New Delhi 110001

WP/1860/2023

AI Insights

The case involves SOURCE HUB, represented by its partner Sri Satish Kumar Mantri, who filed a writ petition against various respondents including the Income Tax Department and the Union of India. The petitioner challenged the assessment order dated 22.12.2022 under Section 143(3) read with Section 144R of the Income Tax Act, 1961, which assessed the petitioner's income for the year 2021-2022 significantly higher than declared. The petitioner argued that the order was passed without considering their request for additional time to file objections, thus violating principles of natural justice and constitutional rights under Articles 14, 19(1)(g), 21, and 265. The court found that the petitioner was given sufficient opportunities to respond and that the assessment order is appealable under Section 246A of the Act.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 821589 (HC-TELANGANA)
• Appeal Type: Others
• Pronouncement Date: 21-06-2023
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961, Constitution of India
• Result in Favour of: Revenue
• Court: HIGH COURT
• Department Lawyers: J PRASAD; B MUKHERJEE
• Assessee Lawyers: R NAIK
• Keywords: Assessment Order; Income Tax; Natural Justice; Violation of Constitutional Rights; Writ of Mandamus
• Section: 148; 143(3); 142(1); 143(2); 265; 226; 144R

Judgement Text

"[ 3311 I HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD (Special Original Jurisdiction) WEDNESDAY, THE TWENTY FIRST DAY OF JUNE TWO THOUSAND AND TWENTY THREE PRESENT THE HONOURABLE THE CHIEF JUSTICE UJJAL BHUYAN AND THE HONOURABLE SRI JUSTICE N.TUKARAMJI WRIT PETITION NO: 1860 OF 2023 Between: SOURCE HUB, 4-41-12401N111,2nd Floor, Taj Mahal Hotel Lane, Abids, Hyderabad - 500001, Telangana State. Rep. by its Partner Sri. Satish Kumar Mantri, S/o. Suryakanth Mantri, Aged about 42 Years. ...PETITIONER AND 1. The Assistant Unit, lncome Tax Department, Ministry of Finance, Government of lndia, New Delhi. 2. The lncome Tax Officer, Ward 11(1), Range, Hyderabad. 3. The Grievance Redressal Committee, 9th Floor, C-Block, lncome Tax Towers, A.C. Guards, Hyderabad - 500 004. 4. The Union of lndia, Rep. by its Principal Secretary , Ministry of Finance, 4th Floor, A-Wing, Shastri Bhawan, New Delhi 1 10001 . ...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 issue an appropriate writ, order or direction particularly in the nature of Writ of MANDAMUS declaring the action of the 'l st respondent in not considering the letter dated 15-12-2022 seeking one week time to file the objections and passing the impugned order on 27 -12-2022 as illegal, arbitrary, unjust, improper, unfair, without authority of law and jurisdiction and violative of principles of natural justice, contrary to the lncome Tax 1961 , violative of article 14, 19(1Xg), 21 and 265 of the Constitution of lndia and consequently to set aside the same lA NO: 1 OF 202a', Petition urde Sectron 151 CPC praying that in the ci curnstances stated in the affidavil filr:d rr, sLtrr.a of the petition, the High Cot rl mey be pleased to grant stay of th3 ;Cllection of the disputed tax or Rs. g 3,3:2,6651 pending disposal of the, wrrt .ertition Counsel for the F'el ti,rner: SRI R. RAMESH NAIK FOli SRI M V J K KUMAR Counsel for the Fle: p,)ndent Nos.1 to 3: SRI J V PRASAD, l;(:: FC)R INCOME TAX DEPT Counsel for the Fe: condent No.4: SRI B. MUKHERJEE FOll l;Rl c. PRAVEEN KUMAR DEPUTY S()LICITOR GENERAL OF INDIA The Court made the following: ORDER THE HON'BLE THE CHIEF JUSTICE UJJAL BHTIYAN AND THE HON'BLE SRI JUSTICE N. TUKARAMJI WRIT PETITION No.186O of 2o23 ORDEB: (Pet the Hon'bie the Chtef Justice Ujjal Bhugarl) Heard Mr. R.Ramesh Naik, learned counsel representing Mr. M.V.J.K.Kumar, learned counsel for the petitioner and Mr. J.V.Prasad, learned Standing Counsel for Income Tax Department appearing for respondents No. I to 3. We have also heard Mr. B.Mukherjee, learned counsel representing Mr. Gadi Praveen Kumar., learned Deputy Solicitor General of India for respondent No.4. 2. By filing this petition under Article 226 of the Constitution ol India petitioner has assailed legality and validity of the assessment order dated 22.12.2022 passed by respondent No.1 under Section 143(3) read with Section L44R of the [ncome Tax Act, 1961 (briefly, ,the Act' hereinafter) for the assessment yeau. 2O2I-2O22. 2 3. Petitior r::' before us is an assesse() tLntlt:r the Act carryinp ott t r,:: business of online sales of hornt: 'tppliant:es etc. Follr''r rt rg return of income filed on | ) A2 2022 d.eclaring to al income of Rs' 19,74,35O 0C, ar;sessment proceedings ' rere carried out by rt:spor d:nt No' 1 whereaf[er t1re irnpugnecl order of assessnettt rl ls passed determining lhe assessable income of the pe:itioner at Rs.2,50 58,6 )r ).00. It may be mentioncc that the impugnr:c1 or 1(. r $ras preceded by a draft € ssesrirrlent orcler as is tl-tc r cluirement under Section 1'148 c I the Act whereafter t- rrlice was issued to the petilionel ils to why certain va riz [' cns as indicated in the c rait ztl;se ssment order sh ottld r ot be made. 4. Clraller gr: to the impugned order of aq