Sri Srinivas Chittipolu V. Centre, Income Tax

WP/3612/2024

AI Insights

The case involves Sri Srinivas Chittipolu, the petitioner, challenging the orders passed by the Income Tax Department under sections 147, 144, and 144B of the Income Tax Act for the assessment year 2018-19. The petitioner argued that the orders were arbitrary, illegal, and void ab initio, violating various provisions of the Act and the circular issued by the CBDT. The main contention was that the reopening of the assessment was initiated by the Jurisdictional Assessing Officer without adhering to the amended procedural requirements that came into effect on April 1, 2021. The respondent's counsel acknowledged the procedural objections but argued that other objections raised by the petitioner were not addressed in the previous batch of writ petitions. The court, referencing its earlier decision in a similar batch of writ petitions, allowed the petition on the grounds of procedural non-compliance, specifically the failure to follow the amended provisions requiring faceless proceedings.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 690241 (HC-TELANGANA)
• Appeal Type: Others
• Pronouncement Date: 12-02-2024
• Assessment Year: misc
• Other Referred Cases: WP.No.25903 of 2022 & batch, Ashish Agarwal case
• Laws Referred To: Article 226 of the Constitution of India, Section 147 r.w.s. 144 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: J V PRASAD
• Assessee Lawyers: A V RAGHURAM
• Keywords: Faceless assessment; Income Tax; Jurisdictional issue; Procedural Law; Writ of Mandamus
• Section: 147; 144; 149; 144B; 148A; 151A; 226

Judgement Text

"[ 337e ] HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD (Special Originat Jurisdiction) MONDAY,THE TWELFTH 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: 3612 0F 2024 Between: Sri Srinivas Chittipolu, S/o. .Sri .Mattapally Chittipolu, aged about 55 years, 19-216, Reddy Colony, IVliryalguda, Nalgonda - SObZOi. ...PETITIONER AND 1 Centre, lncome Tax 2nd Floor, E-Ramp, r Rail Under Bridge, Nalgonda - ...RESPONDENTS Petition under Articre 226 of the constitution of rndia praying tnri, in\" circumstances stated in the affidavit fired therewith, the High court may be pleased to pass an order or direction, especially one in the nature of wRlr oF A/ANDAMUS holding that the order passed by 1st Respondenr u/s. .r47 r.w.s. 144 r.w.s144B of the Act, dt.29.o1 .2024 with DtN No.trBA/AST/s1147t2023- 2411060205406(1 ) for the Ay.2018-1 9, as arbitrary, illegat, bad in law, void ab initio, apart from being violative of provisions of section '14gA and section 149 of the Act and also contrary to the circurar issued by GBDT and provisions of section 151A of the Act, and consequenfly 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 proceedings, including any recovery, pursuant to the order passed by the 1't Respondent uls. 147 r.w.s. 144 r.w.s 1448 of the Act, dt.zg.o1 .2024 with Dl N No. ITBA/AST/S I 1 47 12O23-24t 1060205406( 1 ) for the Ay.2O1 8-1 9 Counsel for the Petitioner: SRl. A. V. RAGHU RAM Counsel for the Respondents: SR|_J. V. PRASAD (SC FOR INCOME TAX) The Court made the following: ORDER Assessment Unit, National Faceless A Department, Ministry of Finance, Room Jawaharlal Nehru Stadium, Delhi -110 003 The lncome Tax Officer, Ward - 1, Nea s08001. ssessment No. 401, 2 THE HONOURABLE SRT JUSTTCE P.SAM KOSHY AND THE HONOURABLE SRI JUSTICE N.TUKARAMJI WRIT PETITION N0.3612 0F 2024 ORDER:(per Ho n'bte Sri Justice P.SAM KOSH ) The instant Writ petition has been filed by the petltloner under Article 226 of the Constitution of India seeking for the following relief: \"to pass an order or direction especiallg one in the nature of WRIT OF MANDAMUS hold.ing that thi ord.er passed. bg lst Respondent u/s 147 r u.t s 744 r tu s144B of the Act dated.29.01.2o24 uith DIN No ITBA / AST / S- / t+z t ?.92s?1 / .106020s4o6 (1) for ttrc Ag 2O1B-19 o,s arbitrary iLlegal bad tn latu uoid ab initio apart from being uiolatiue if prouisions of section j48A and section 149 dthe ttct and also contrary to the ciratlar issued by CBDT ind_ prouisions of section 151A of the Act and. consequentlA set astde the same\" - 2. One of the contentions that the petitioner has raised in the present Writ petition is that under the arnended provisions of the Act which came into effect from Ol .O4.2021, the respondents, while proceeding under Section i48 of the Act, were required to issue notice under Section 14BA and provide an opportunity of hearing to the 2 PSK,J AL NTR,J W.P.No.3672 of 2024 assessee. As per the amended provision of law, the proceedings to be drawn are also in a faceless marlner. 3 . Whereas, Iearned 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.2S9O3 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 sard 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 learned counsel for the respondent-Department is concerned, this Bench, while disposing of said batch of writ petitions, had taken note of 3 PSK,J &, NTR,J W.P.No.3672 oJ 2024 the same at paragraph Nos.37 & 38 which are reproduced herein under: \"37. The preliminary objection raised by the petitioner is sustoined and all these u-trit petitions stands allowed on this uery jurisdictional issue. Since the impugned. ?ot:ces and orders ore getting quashed on the point of jurisdiction, u)e are not inclined to proceed further ond decide the other rssues raised bg the petitioner uthich sfands reserued to be raised and contend_ed. in an appropiate proceeding s. \" 38. Sirrce the Hon'ble Supreme Court had, in the case of Asltish Agarutol, supra, as a one-time measure exe-rcising the powers under Article 142 of the Constitution of India, permitted the Reuenue to proceed. under the substituted prouisions, and this Court allou,'ing the petitiorts onlg on the procedural Jtaw, the right confened on the Reuenue would remain reserued. to proceed further if they so utant from the stage of the order of the Supreme Court in tlLe case of Ashish Agarutal, supra.\" 6. ln vieu. of the same, re 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 a_foresaid batch matters, the rights of the parties would stald reserved as is 4 PSI<,J & NTR,J W.P.No.3672 of 2O24 envisaged at pa_ragraph 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/.V.KAVITHA ASSISTANT REqISTRAR CW SECTION OFFICER 1- The Assessment Unit, National Faceless Assessment Centre' lncome Tax Department, Ivlinistry of Finance, Room No. 401 , 2nd Floor, E-Ramp, Jawaharlal Nehru Stadium, Delhi -1 10 003 2. The lncome Tax Officer, Ward 1, Nalgonda, Near Rail under Bridge, Nalgonda 3. The lncome Tax Officer, Ward - 1, Near Rail Under Bridge' Nalgonda - 508001. 4. One CC to SRl. A. V. RAGHU RAM ,Advocate [OPUC] 5 One CC to SRl. J V. PRASAD (SC FOR INCOME TAX) [OPUC] 6. Two CD Copies BM GJP tLik ,TRUE COPY// To, HIGH COURT DATED:1210212024 ORDER WP.No.3612 of 2024 ALLOWING THE WRITPETITION WITHOUT COSTS i rE sTA f.c o o [ 2 APB 2024 i. .o= g-O * t DEsparc$ @grr\"rLr,rt* "