Sree Hari Gode V. Assessment Unit, National Faceless Assessment Centre, Income Tax Department, Ministry of Finance and The Income Tax Officer, Ward - 17(1)

WP/5197/2024

AI Insights

The case involves a writ petition filed by Sree Hari Gode against the Income Tax Department, challenging an order for reassessment under sections 147 and 148 of the Income Tax Act, 1961, for the assessment year 2016-17. The petitioner argued that the reassessment was conducted without adhering to the amended provisions of the Act, which mandate a faceless procedure and an opportunity for the assessee to be heard. The respondents did not dispute the procedural requirements but argued that other objections raised by the petitioner were not addressed. The court referenced a previous judgment where similar procedural issues were resolved, leading to the quashing of the reassessment order in that case as well.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 805968 (HC-TELANGANA)
• Appeal Type: Others
• Pronouncement Date: 28-02-2024
• Assessment Year: misc
• Other Referred Cases: Ashish Agarwal
• Laws Referred To: Article 226 of the Constitution of India, Section 147 r.w.s 144B 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: SUNDARI R PISUPATI
• Assessee Lawyers: A V RAGHURAM
• Keywords: Faceless assessment; Income Tax; Jurisdictional issue; Procedural Flaw; Writ of Mandamus
• Section: 147; 149; 144B; 148A; 151A; 226

Judgement Text

"[ 337e 1 HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD (Special Original Jurisdiction) WEDNESDAY, THE TWENTY EIGHTH 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: 5197 OF 2024 Between: Sree Hari Gode, S/o. Gode Ramaiah, Age- 54 years, '1 -18, Madinaguda, VTC. Miyapur, PO. Miyapur, Serilingampally, Hyderabad - 500049. ...PETITIONER AND 'I - Assessment Unit, National Faceless Assessment Centre, lncome Tax Department, Ministry of Finance, Room No. 4O1,Znd Floor, E-Ramp, Jawaharlal Nehru Stadium, Delhi - 110 003. 2. The lncome Tax Officer, Ward - 17(1), Signature Towers, Opp. Botanical Gardens, Kondapur, Hyderabad - 500084. ...RES'ONDENTS 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 '1st Respondent uls. 147 r.w.s 1448 of the Act, dt.09.02.2024 with DIN No .ITBA/AST/5114712023- 2411060695443(1) for the Ay.2016-17, as arbitrary, illegal, bad in law, void ab initio, apart from being violative of provisions of section 148A and section 149 of the Act and also contrary ' to the circular issued by CBDT and provisions of section I 51A of the Act, and consequently set aside the same. 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 proceeding including any recovery, pursuant to the order passed by the 1st Respondent u/s. 147 r.w.s 148 of the Act d1.09.O2 2024 with DIN No ITBA/AST/S/1 4712023-2411060695443(1 ) for the Ay.201 6-1 7. Counsel for the Petitioner: SRI A.V.RAGHU RAM Counsel for the Respondents: M/s SUNDARI R.PISUPATI, Sr SC for lncome Tax Dept The Court made the following: ORDER THE HONOURABLE SRI JUSTICE P.SAM KOSITY AND THE HONOURABLE SRI JUSTICE N.TUKARAMJI WRIT PETITION No.5l97 OF 2o24 ORDER:/per Ho n'ble Si Justice P.SAM KOSIry Heard Mr.A.V.Raghu Ram, learned counsel for the petitioner and Ms.Sundari R. Pasupati, learned Senior Standing Counsel for the Income Tax Department for respondents. Perused the materia-l available on record. 2. The instant Writ Petition has been filed by the petitioner under Article 226 of the Constitution of India seeking for the following relief: \"to pass an order or direction especially one in the nature of WRIT OF MANDAMUS holding that the order po-ssed bg lst Respondent u/s 147 r u.t s 1448 of the Act dt 09 02 2024 utith DIN No ITBA/AST/S/ 147/2023 24/ 10606954431 for the Ag 2016-17 as arbitrary iltegol bad in law uoid ab initio opart from being uiolatiue of prouisions of section 148A and section 149 of the Act and also contrary to the circular issued bg CBDT ond prouisions of section 151A of the Act and consequentlg set aside the same\". 3- One of the contentions that the petitioner has raised in the present Writ Petition is that under the amended of the Act which carne into effect from i I provlslons 2 w PSI(,J & MTR,J W.P.No.S797 oJ 2O24 Ol .O4.2021, the respondents, while proceeding under Section 148 of the Act, were required 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 ma-nner. 4. Whereas, learned counsel for the petitioner contended that, in the instant case, reopening has been initiated by the Jurisdictional Assessing Ofhcer. In support of his contention, he relied upon the recent judgment 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. 5. On the other hand, learned Stalding Counsel for the respondent-Department does not 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 the writ petition. 3 PSK,J & NTR,J W.P.No.S797 o;f 2O24 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: \"37. The preliminary objection raised bg ttte petitioner is sustained and all these uLrit petitions stands allowed on this uery jurisdictional issue. Since the impugned notices and orders are getting quashed on tLte point of juisdiction, u)e are not inclined to proceed furtLLer and decide the other issues raised bg the petitioner uhich stands reserued to be raised and contended in an ap p rop riate p ro cee ding s. \" \"38. Since the Hon'ble Supreme Court had, in th.e case of Ashish Agarutal, supra, as a one-time measure exercising the pou.ters under Article 142 of tle Constitution of India, permitted the Reuenue to proceed under the substituted prouisions, and this Court allouing tLte petitions onlg on the procedural Jlaut, tLe ight conferred on the Reuenue would remain reserued to proceed further if theg so want from the stage of the order of the Supreme Court in the case of Ashish Agarutal, 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. t I I Fffi 4 PSI(,J&,MTR,J W.P.No.1197 oJ 2024 B. 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 & 38 of 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/. T. VIJAY KUMAR ASSISTANT REGISTRAR //TRUE COPY// v To SECTION OFFICER '1 . Assessment Unit, National Faceless Assessment Centre, lncome Tax Departmenl.lvlinistry of Finance, Room No. 4O1 , 2nd Flobr, E_Ramp, Jawaharlal Nehru Stadium, Delhi - .1 10 003. 2. The lncome Tax Officer,.WaF 1l(1), Signature Towers, Opp. Botanical Gardens, Kondapur, Hyderabad - 500084:. 3. One CC to SRI A.V RAGHU RAM, Advocare tOpUCI 4. One CC to SRI SUNDART R PtSUpATt, Sr SC for tn6ome Tax Dept [OpUC] 5. Two CD Copies PSK, KKS 4 I I HIGH COURT DATED:2810212024 ORDER WP.No.5197 of 2024 ! cR 1HE S 14n'{: 6. ( ), c,t ,) () 0 4 APB 2024 a {= t * PATCu€9 ALLOWING THE WRIT PETITION WITHOUT COSTS. @o{'* $D-.- Ao tq- "