Sri Chandrashekar Reddy Baddam V. Assessment Unit, National Faceless Assessment Department, Ministry of Finance and The Income Tax Officer, Ward 1, Nizamabad and The Income Tax Officer, Ward -1, Nizamabad

WP/5217/2024

AI Insights

The case involves Sri Chandrashekar Reddy Baddam, the petitioner, challenging an order passed by the Income Tax Officer under sections 147 and 148 of the Income Tax Act for the assessment year 2018-19. The petitioner argued that the order was arbitrary, illegal, and void ab initio, violating sections 148A and 149 of the Act, and contrary to the circular issued by the CBDT and provisions of section 151A. The main contention was that the reopening of the assessment was initiated under the un-amended provisions of the Act, which did not comply with the requirement for faceless assessment and proper notice as per the amended provisions effective from April 1, 2021. The court referenced a previous judgment where similar objections were sustained, leading to the quashing of the notices and orders on jurisdictional grounds.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 690289 (HC-TELANGANA)
• Appeal Type: Others
• Pronouncement Date: 28-02-2024
• Assessment Year: misc
• Other Referred Cases: Ashish Agarwal case
• Laws Referred To: Article 226 of the Constitution of India, Section 147 r.w.s 1448 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 PASUPATI
• Assessee Lawyers: A V RAM
• Keywords: Amended Provisions; Faceless assessment; Income Tax; Jurisdictional issue; Writ of Mandamus
• Section: 147; 149; 148A; 1448; 151A; 226

Judgement Text

"Between: Sri Chandrashekar Reddy Baddam, S/o. Sri Baddam Narsa Reddy-,.Aged about -70 years, 8-2-21Ot45t106, -Surya Mansion, Hasmathpet Road, Old Bowenpally' Secunderabad - 50001 1 . ...PETITIONER [ 337e ] IN THE 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: 5217 OF 2024 AND 1 Assessment Unit, National Faceless Assessment Department, Ministry of Finance, Room No. 401, Jawahadal Nehru Stadium, Delhi -'1 10 003. 2. The lncome Tax Officer, Ward 1 , Nizamabad, 6-2-15613' Subhash Nagar, Nizamabad 3. The lncome Tax Officer, Ward -1, 6-2-156/3, Subhash Nagar, Nizamabad - 503002. ...RESPONDENTS Petition under Article 226 of the constitutron 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 u/s.147 r.w.s 1448 of the Act, dt.12.o2.2024 with DIN No.ITBA/AST/S114712023-2411060790996(1) for the Ay.2018-19, 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 GBDT and provisions of section 151A of the Act, and consequently set asrde the same. Centre, lncome Tax 2nd Floor, E- amp, lA NO: 'l OF 2024 Petition under Section 151 CPC praying that in the crrcumstances stated in 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 1St Respondent uls. 147 r.w.s 1448 of the Act, dL12.O2.2O24 with DIN No. ITBA/AST/S I 1 47 12023-241 1060790996( I ) for the years 20 1 8-1 9 Counsel for the Petitioner : SRI A.V.RAGHU RAM counser for the Respono\"\"\",.,EI#[?ffi:H,iy:3]h, The Court made the following: ORDER THE HONOURABLE SRI JUSTICE P.SAM KOSITY AND THE HONOURABLE SRI JUSTICE N.TUKARAMJI WRIT PETITION No.5217 OF 2024 ORDER:(per l{on'ble Sri Justtce P.SAII KOSHY) 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 material available on record 2. The instant Writ Petition has bcen filed 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 WR|T OF MANDAMUS holding thot the order possed by 1st Respondent u/s 147 r.w.s. 7448 of the Act dt.12/02/2024 with DtN No ITBA/AST/S/147/202324/1060790996( 1) for the Ay 2018-19 os orbitrory illegal bod in low void ob initio oport from beinq viototive of provisions of section 748A ond section 749 of the Act ond olso controry to the circulor issued by CBDT ond provisions of section 151A of the Act ond consequently set oside the some\". 3. One of the contentions that the petitioner has raised in the present Writ Petition is that under the amended provisions of the Act rvh ich came into eflect from 2 PSI(,J & MTR,J W.P.No.5277 oJ 2O24 OI.O4 .2021 , 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 a-re 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 ol 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 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 aforesajd objection, there have been other various objections also which the petitioner has raised in the writ petition. 3 PSr(,J&.MrR,J w.P.No.5217 of 2024 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. TLE preliminary objection raised bg tLe petitioner is sustained and all ttese urit petitions stands allowed on this uery juri.sdictional issue. Since the impugned notices and orders are getting quaslrcd on the point of juisdiction, u)e are not inclined to proceed further and decide the otler issues raised bg the petitioner which stands reserved to be raised and contended in an appropiate proceeding s. \" \"38. Since the Hon'ble Supreme Court had, in the case of Ashish Agaruta supra, o.s a one time measure exercising the pouters under Article 142 of the Constitution of India, permitted the Reuenue to proceed under the substituted prouisions, and this Couft ollou.ting tlrc petitions onlg on the procedural Jlau, the right confened on th-e Reuenue would remain reserued to proceed further if tttey so want from the stage of the order of the Supreme Court in the case of Ashish Aganlal, 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 othernise not sustainable. 4 PSI(,J & JVTR,J W.P.No.5217 ol 2024 8. 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. //TRUE COPY// SD/.8. SARASWATHI ASSISTANT RECISTRAR t Ll-Y1''- SECTION OFFICER To, 1. ]he Assessment Unit, National Faceless Assessment Centre, lncome Tax ?-:pg,ll,qll, Ivlinistry. of Finance, Room No. 4o1 , znd Fro\"r,-E:-r.i, Jawahartat Nehru Stadium, Delhi -1 10 003. 2. The lncome Tax Officer, Ward 1, Nizamabad, 6-2-15613, Subhash Nagar, Nizama bad 3. The lncome Tax Officer, Ward -1, 6-2-15613, Subhash Nagar, Nizamabad _ 503002. 4 One CC to SRI A.V.RAGHU RAIrrl, Advocate. tOpUCl 5. One CC to St 4T SUNDARI R plSUpATl, (Sr SC'for lncome Tax Dept). loPUCl 6. Two CD Copies. BSK GJP 0Rt' HIGH COURT DATED:2810212024 ORDER WP.No.5217 of 2024 ALLOWING THE WRIT PETITION WITHOUT COSTS 0 3 APB 2024 o o PA t t DF c s T H r+ S H 1 I ( 2 6) @* +\" "