Sreehari Wines V. Income Tax Officer, Ward 15(1) and Principal Commissioner Of Income Tax 4 and National Faceless Assessment Centre

WP/3938/2024

AI Insights

The case involves M/s Sreehari Wines, which filed a writ petition under Article 226 of the Constitution of India against the Income Tax Department officials, challenging an order and notice issued for the assessment year 2018-19. The petitioner argued that the order and notice were issued under the unamended provisions of the Income Tax Act, contrary to the requirements of the amended Act that came into effect on April 1, 2021. The respondents did not dispute the procedural flaws but contended that other objections raised by the petitioner needed consideration. The court referenced a previous batch of writ petitions where similar issues were addressed, leading to the decision to allow the current petition on procedural grounds.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 795510 (HC-TELANGANA)
• Appeal Type: Others
• Pronouncement Date: 15-02-2024
• Assessment Year: misc
• Other Referred Cases: Ashish Agarwal case
• Laws Referred To: Income Tax Act, Constitution of India
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: J V PRASAD
• Assessee Lawyers: MANMOHAN DUNDU
• Keywords: Faceless assessment; Income Tax; Mandamus; Natural Justice; Writ petition
• Section: 148; 148A(d); 226

Judgement Text

"IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD (Special Original Jurisdiction) THURSDAY, THE FIFTEENTH 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: 3938 0F 2024 t 337e I ...PETITIONER Between: M/s' sreehari w ines. 4-6-6.2.NACHARAM, H'DERABAD 500076,Terangana, Rep By. Partne(J. Nageswara Rao) AND 1 2 lncome Tax Officer. Ward 15(1 ), I T Tower, AC Guards, Masab Tank, Hyderabad - 500004. Principal Commissioner Of lncome Tax 4, 1Oth Floor, C-Block, l.T. Towers, 1 0-2-3, A.C. Guards, Hyderabad-500004 3. National Faceless Assessment Centre, The Assessment Unit, lncome Tax Department, Nationar Faceress AisdssmLnt'\"Gntre, Derhi, Ministrv of Finance, Room No. 4o1, 2nd Ftooi-Ei;;;, Jr\"*l[irur'iviih,il\"Silli;: Delhi-1 10003 4' Pr. commissioner of rncome Tax- 4, 1Oth Froor, c-Brock, r.T. Towers, 10-2-3, A.G. Guards, Hyderabad-500004. 5. The Assessment Unit, lncome Tax Department, National Faceless Assessment.Centre, Delhi. Ministry_of Flnanc-iRooin f.fo.'+ti-, ZnO Fffi, E: Ramp, Jawaharlal Nehru Stadium,belhi-1 iOOOb''-- ...RESPONDENTS Petition undei Articre 226 0f the constitution of lndia praying that in the circumstances stated in the affidavit fired therewith, the High court may be pleased to issue an appropriate writ, order or direction more particurarry one in the nature of writ of Mandamus, decraring the impugned order dt.23.04.2022 tor A.Y. 2018-19 passed u/s 148A(d) of the Act vide DtN No. |rBA/AST/Ft148N2022_ 2311042829414(1 )(Exhibit p-1 ) and the consequentiar notice u/s 148 dt. 23.04.2022 vide DrN No. |rEA/AST/sr14B-1/2022- 23r1o42830s14(1), issued by .,/ the JAO(1st respondeht) instead of FAo (3rd respondent),as void, iflegar, and contrary to the provisions of rncome-tax Act and contrary to the principres of Natural Justice. lA NO: 1 oF 2024 Petition under section 15'r cpc praying that in the circumstances stated in the affidavit filed in support of the petition, the High court may be preased to stay all further proceedings pursuant to the notice uls 14g dt. 23.o4.2022 vide DIN No. ITBA/AST tgt14B_1t2O22- 23t 1042830514(1)issued by the 1st Respondbnt(JAO)for A.y. 2018-lginstead of 3rd respondent(FAO), and may pass such other order(s) as the Hon'bre court deems fit and proper in the interests of substantial justice, as otherwise the petitioner wourd be put to irreparabre ross and severe injury. Counsel for the petitioner: SRI MANMOHAN DUNDU Counsel for the Respondents: SRI J.V.PRASAD (SC FOR INCOME TAX) The Court made the foflowing: ORDER I i I i *;, THE HONOURABLE SRI JUSTICE P.SAM KOSHY AND THE HONOURABLE SRI JUSTICE N.TUKARAMJI WRIT PETITION No. 393a oF 2024 ORDER:@erHon'ble Sri Justice P.SAM KOSHfl) The instant Writ Petition has been filed by the petitioner under Articl e 226 of the Constitution of India seeking for the following reliet \"...to issue an appropriate writ, order, or direction more particularly one in the nature of writ of mandamus declaring the impugned order, dated 23.04.2022 for A.Y. 2018-19 passed under Section l48A(d) of the Act, vide DIN No.ITBA/AST/ F /148A/ 2022-23/1O428294L4(tl and the consequential noLice under Section 148, dated 23.04.2022 vid,e DIN No.ITBA/AST/ S / 148_L /2022-23 / to4283os l4(l) issued by the JAO (1\"t respondent) instead of FAO 13'a respondent) as void, illegal, and contra-ry to the provisions of Income Tax Act and contrary to ttre kinciples of Natural Justice and pass.. .\" 2. One of the contentions that the petitioner has raised in the present Writ Petition is that under the amended provisions of tl.e Act which cEune into effect from 01.O4.2O2I, 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 2 PSK,J & NTR,J W.P.No.3938 oJ 2024 assessee, As per the amended provision of [aw, the proceedings to be drawn are also in a faceless manner. 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.259O3 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 hand, learned Standing 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. 5. So far as this contention of the leamed counsel for the respondent-Department is concerned, tltis Bench, while dispsing of said batch of writ petitions, had taken note of 3 PSI(,J&.t [rR,J W.P.No.3938 oJ 2O24 the same at paragraph Nos'37 & 38 which are reproduced herein under: \"37. TIE preliminary objection raised bg the petitioner ii \"\"ttirna and atltheie wit petitions stands alloued ';;br\" \";rA jurisdictionat issue' Since tLe impugted noties ani irders ore getting qtasled on the point of iiii.ii.\", we are notlncliied to proceed furtler and 'i\"Ji\"ii'.rt*r isszes raised bg the petitioner uhich .tii\" ,.\"\"-ed. to be rabed and contended in on appropiate Pro ceeding s. \" \"38. Sine the Hon'ble Supreme Court had' in tle case of Ashish Agarutal, supra' as a one-time -meosure Jxercbing tie pouters under Article 142 of the iiiidrii\"\" o7 tid;a, permitted the Reuenue to proceed \"ili ** iubstitu{ed prouisiotts, and this court it iirg ilo p\"tition\" only on tte proccdural flau' tle iru i\"f.o\"a on tle Reienue raould remain reserued tX ir.*ii inler if they so want from ttLe stag-e -of the lrilr-ii-ti supieme- Court in the case of Ashish Agarual, suPra.\" 6. In view of the same, 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' 7. As has been held by this Bench in the aforesaid batch matters, the rights of the parties would stand reserved as is 4 PSK,J & .l l:r&J W.P.No.3938 oJ 2O24 en dsaged at paragraph Nos.37 & 38 of the said order passed in the batch of writ petitions. No order as to costs. 8. Consequently, miscellaneous petitions pending, if any, shall stand closed. SD/.N. SRIHARI ASSISTA NT REGIS //TRUE COPY// SECTION OFFICER inr#ff#m;m+*,s*ffi ;rr*ffi:;nmm*ffil#*t*;#= BSK GJP w To, HIGH COURT DATED:1510212024 ORDER WP.No.3938 of 2024 ALLOWING THE WRIT PETITION WITHOUT COSTS qft.\" o s -(HI S14; o (J ( * c * ( 2J nn nu rl^TCHF-t) o &* "