Sree Vani Sanku, W/o. Sanku Krishna V. The Income Tax Officer, Ward-4(1), Hyderabad and The Principal Chief Commissioner Of Income Tax-Telangana and A.P, Hyderabad and The Central Board of Direct Taxes, Represented by its Chairman, Government of India and The National Faceless Assessment Center, income tax department new Delhi and The Union of India, Represented by its Secretary to Government, Department of Revenue, Ministry of Finance

WP/3120/2024

AI Insights

The case involves Sree Vani Sanku, the petitioner, challenging the orders passed by the Income Tax Authorities for the assessment year 2015-16. The petitioner argued that the assessment and subsequent notices were issued without jurisdiction and were violative of the principles of natural justice, as they were not conducted under the amended provisions of the Income Tax Act, 1961, which mandate faceless assessments. The respondents included various income tax authorities and the Union of India. The court's decision was influenced by a precedent set in a similar batch of writ petitions, where it was held that the procedural flaws in issuing notices under the un-amended provisions were not sustainable.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 795918 (HC-TELANGANA)
• Appeal Type: Others
• Pronouncement Date: 07-02-2024
• Assessment Year: misc
• Other Referred Cases: Ashi.sh Agarwal vs. Revenue
• Laws Referred To: Income Tax Act, 1961, Constitution of India
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: J V PRASAD
• Assessee Lawyers: THANNERU KUMAR
• Keywords: Faceless assessment; Income Tax; Jurisdiction; Natural Justice; Writ of Mandamus
• Section: 147; 148; 156; 226; 144(8); 148-A

Judgement Text

"[ 337e ] HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD (Special Original Jurisdiction) WEDNESDAY, THE SEVENTH 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: 3'120 OF 2024 Between: AND 1 2 Sree Vani Sanku, W/o. Sanku Krishna, aged about 67 years, Occ.Homemaker, R/o.MlG-ll BLOCK-9 FLAT-2, Baghlingampally, Hyderabad 50004, Telangana, lndia PAN CVDPS1587E Assessment Year 2015-'16 ..PETITIONER The lncome Tax Officer, Ward-4(1), Hyderabad Telangana State. The Principal Chief Commissioner Of lncome Tax-Telangana and A.P, Hyderabad, lT Towers AC Guards Masab Tank Hyderabad 500 028 Telangana The Central Board of Direct Taxes, Represented by its Chairman, Government of lndia Secretariat Buildings New Delhi- I 100 001 . The National Faceless Assessment Center, income tax department new Delhi Union Of lndia, Represented by its Secretary to Government Department of Revenue Ministry of Finance New Delhi - 1 10 001 The Union of lndia, Represented by its Secretary to Government, Department of Revenue, lvlinistry of Finance, New Delhi - 110 00'1 . J 4 q 6 ...RESPONDENTS Petition under Article 226 o'f the Constitution of lndia praying that in the circumstances stated in the affidavit filed therewrth, the High Court may be pleased to issue a Writ of Mandamus or any other appropriate Writ, Order, or Direction. declaring the order passed by the lncome Tax Authorities (National Faceless E-Assessment Centre completed the assessment UIS 147 r/w Section 144-8 of the Income Tax Act, 1961 vide DIN and Notice No.dated 29-12-2023 in ITBA/AST/S/14712023-2411059181725(1) for the assessment year 2015-16 determining the total income of Rs.57,00,3301 and the consequential notice under Sec.148 issued by Jurisdictional Assessing Officer, Ward-4(.1), Hyderabad instead of Faceless Assessing officer, as arbitrary, illegal, bad in law, without jurisdiction, void-ab-initio, violative of the principles of natural justice apart from being violative of Articles 1a 19(1)(g) and 265 of the constitution of lndia and sec. 14BA of the lncome Tax Act. 1961, and consequenfly set aside the same in the interests of justrce. 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 suspend the order Under section 147 rlw 144-8 of the lncome Tax Act, ',lg61 vide DIN & Notice No.dated 29-12-2023 in ITBA/AST/st147t2023-24t1059181725(1)for the assessment year 2015-16 determining the totar income of Rs.57,00,3301 and order and Demand notice u/s 156 of the lncome Tax act 'l g6i, vide DIN & Notice No : I TBtuAST I s I 1 56 12023-24t 1 sg 1 B 1 7 Bt (1) Dt:29 - 1 2-2023 for the assessment yeat 2015-16 notice Under Section 148-A, (b) Dt.24_03_2022, ITBA/AST/F/148A(SCNy2021-22t1041423068(1),,148 A(d) Dt:25-04-2022 in lrBA/AST/Fi148A12022-2311042847162(1) and notice under section i48 Dt:25.04-2o22 in lrBA/AST/st14B 1t2o22-23t1o42847234(1) for the Assessment Year 2015-16, pending disposal of the above Writ petition. Counsel for the Petitioner: SRI THANNERU CHAITANYA KUMAR counser for the Respona\"nJ5v pRAsAD (Sr. sc FoR tNcoME TAx) The Court made the following: ORDER THE HONOURABLE SRI JUSTICE P.SAM KOSHY AND THE HONOURABLE SRI JUSTICE N.TUKARAMJT WRIT PETITION No.312O OF 2o24 ORDER: (per Hon'ble Sri Justice P.SAM KOSHY) The instant Writ Petition has been filed by the petitioner under Article 226 of the Constitution of India seeking for the following relief: \"to issue a Writ of Mandamus or any other appropnate Wrtt Order or Directton dectaing the order passed bg the Income Tax Authoities (National Faceless E-Assessment Centre completed the assessment U/ S 147 r/ u Section 144 B of the Income Tax Act, 1961 uide DIN & Notice dated 29 12 2023 in ITBA/AST/ S/ 147/2023-24/ 1059181725(1) fo, the assessment gear 2015-16 determining the total income of Rs.57,00,330/ - and the con sequential notice under Sec. 148 issued bg Jurisdictional Assessing Ofiicer, Ward-4(l), Hgderabad instead of Faceless Assessing Officer, as arbitrary, illegal, bad in lau.t, uithout juisdiction, uoid ab- initio, uiolatiue of the pinciples of natural justice aport from being uiolotiue of Articles 1a, 19(1)(9) and 265 of the Constitution of India & Sec. 148A of the Income Tax Ac 1961, and consequently set aside the same in the interests of justice; and pass such other orders as this Hon'ble Court mag deem fit and proper\". 2. One of the contentions that the petitioner has raised 1n the present Writ Petition is that under the amended provisions of the Act which came into effect from Ol .O4.2021 , the respondents, while proceeding under Section 148 of the Act, were required to issue notice under 2 PSK,J & NTR,J W.P.No.372O oJ 2O24 Section l48A 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 marrner. 3. 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 wherein this Court disposed of the batch of writ petitions to the limited extent. 4. On the other hald, learned Standing Counsel for the respondent-Department does not dispute that the said objection was decided in the aJoresaid 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. 5. So far as this contention of the learned counsel for the respondent-Depa_rtment is concerned, this Bench, while disposing of said batch of writ petitions, had taken note of I ,7 3 PSK,J & NTR,J W.P.No.372O of 2024 the same at pa-ragraph Nos.37 & 38 which are reproduced herein under: \"37. The preliminary objection raised bg the petitioner is sustained and all these wit petitions stands allou.ted on this uery juisdictional issue. Since th.e impugned notices and orders ore getting quashed on the point of jurisdiction, u)e are not inclined to proceed further and decide the other issues raised by the petitioner uthich stands reserued to be raised and contended in an appr o p iote pro ceeding s. \" \"38. Since the Hon'ble Supreme Court had, in the case of Ashi.sh Agarutal, supra, as a one-time meosure exercising tlrc pouters under Article 142 of the Constitution of India, permitted the Reuenue to proceed under the substituted prouisions, and this Court ollouing the petitions onlg on tlrc procedural flau, the ight conferred on the Reuenue u.tould remain resented to proceed further if theg so want from the stage of the order of the Supreme Court in the case of Ashi-sh Agarutal, supra.\" 6. In view of the same, we are inclined to a-llow 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. 7 . As has been held by this Bench in the a-foresaid batch matters, the rights of the parties would stand reserved as is ( ( I I I ,, ) 4 PSK,J 6L NTR,J W.P.No.372O of 2024 envisaged at paragraph Nos.37 & 3g 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. To, 1 2 7 8 o TJ GJP 3 4 5 6 SD/.8. SARASWATHI ASSISTANT REGISTRAR //TRUE COPY// <- ,,. u'/ SECTION OFFICER The hcome Tax Officer, Ward-4(1), Hyderabad Telangana State. The Principal Chief Commissioner Of Income Tax-TelSngana and A.p, Hyderabad, lT Towers AC Guards Masab Tank Hyderab'ad SO0 028 Telangana The Chairman, The Central Board of Direct Taxes, Government of lndia Secretariat Buildings New Delhi- 1100 001. The National Faceless Assessment Center, income tax deoartment new Delhi T.he Se^cretary to.Gov_ernment Department of Revenue Miriistry of Finance Union Of lndia, New Delhi - 110 001 The Secretary to Government, The Union of lndia, Department of Revenue, Ministry of Finance, New Delhi - 1 '10 001 . One CC to Sri Thanneru Chaitanya Kumar, Advocate tOpUCl 9n\" 99 to Sri J V Prasad (Sr. SOfor tncome Tax) [OPUC] Two CD Copies q HIGH COURT DATED:0710212024 ORDER WP.No.3120 of 2024 ALLOWING THE WRIT PETITION WITHOUT COSTS. 0J@ g- tolzl*- k R o 0 E H 't I fl 7 'i C I o 15 14 M f B o o * * "