Sri Veerender Gujjeri V. Assessment Unit, National Faceless Assessment Centre, Income Tax Department, Ministry of Finance and The Income Tax Officer, Ward - 1

WP/5273/2024

AI Insights

The case involves Sri Veerender Gujjeri, the petitioner, challenging an order passed by the Income Tax Department under Sections 147 and 148 of the Income Tax Act for the assessment year 2016-17. The petitioner argued that the order was arbitrary, illegal, and void ab initio, violating several provisions of the Act and a circular issued by the CBDT. The main contention was that the reopening of the assessment was initiated by the Jurisdictional Assessing Officer without following the amended provisions that require a faceless procedure. The court referenced a similar case (WP.No.25903 of 2022 & batch) where it had previously ruled on the jurisdictional issue, leading to the quashing of the notices and orders in that case.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 690239 (HC-TELANGANA)
• Appeal Type: Others
• Pronouncement Date: 29-02-2024
• Assessment Year: misc
• Other Referred Cases: Ashish Agarwal case
• Laws Referred To: Article 226 of the Constitution of India, Section 147 of the Act, Section 148 of the Act, Section 148A of the Act, 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; Writ of Mandamus; Arbitrary and Illegal Order
• Section: 147; 148; 149; 148A; 151A; 226

Judgement Text

"HrcH couRT FoR THE srATE oF TELANGANA AT HyDERABoo[ \"'n ] (Special Original Jurisdiction) THURSDAY,THE TWENTY NINTH 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:, 5273 OF 2024 Between: Sri Veerender Gujjeri, S/o. Sri chandraiah Gujjeri, aoed about 53 vears.occ- Business 1-12-1, Vinayak Nagar, NizamaUaO ---SO jOO\"t. AND ...PETIT|ONER 1. Assessment U-nit, National Faceless Assessment Centre, lncome Tax Department, tVinistry..of Finance, Room No_ 4O1 , 2nd ftoor, -g_pr;p, Jawaharlal Nehru Stadium, Delhi - 110 003. 2. The lncome Tax Officer, Ward - 1, 6-2-1 56/3, Subhash Nagar, Nizamabad _ 503002. ...RESPONDENTS 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 wRlr oF MANDAMUS holding that the order passed by 1St Respondent u/s. 1 47 r.w.s 1448 of the Act, dt.17/02t2o24 with DrN No-|rBA/AST/st147t2023- 2411061075652(1) tor the Ay.2016-17, as arbitrary, illegal, bad in law, void ab initio, apart from being violative of provisions of section 1 4gA and section .149 of the Act and also contrary to the circular issued by CBDT and provisions of section-1 5'1A 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 1st Respondent u/s. 147 r.w.s 1448 of the Act, dt.17/02/2124 with DIN No- ITBA/AST/S/1 47 12023-241 1 06107 56s2(1 ) for the Ay.201 6-1 7 Counsel for the Petitioner: SRI A. V..RAGHU RAM Counsel forthe Respondents: M/s. SUNDARI R plSUpATl The court made the following: o*o=Jtt sc for lncome Tax Dept) THE HONOURABLE SRI JUSTICE P.SAM KOSHY AND THE HONOURABLE SRI JUSTICE N.TUI{ARAMJI WRIT PETITION No.5273 OF 2024 OR-DER:1per Hon'ble Si Justice P.SA.LI 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 instarrt Writ Petition has been filed bv 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 passed by l\"t Respondent under Section 147 read with Section 1448 of the Act, dated 17 /O2/2024 r.uth DIN No.ITBA/AST / S/ 147 I 2023-24 I 1061075652(1) for the A.Y- 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 sectionl5lA of the Act and consequently set aside the same...' 3. 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.O4.2O2l, the respondents, while proceeding under l / 2 PST,J&.IVTR,J W.P.No.5273 of 2O24 Section 148 of the Act, were required to issue notice under Section 148,{ and provide an opportunity of hear-ing to the assessee. As per the amended provision of law, the proceedings to be drawn are a-lso in a faceless manner. 4. Whereas, learned counsel for the petitioner contended that, in the instant case, reopening has been inidated 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 L4.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 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. 6. So far as this contention of the learned counsel for the respondent-Department is concerned, this Bench, while 3 PSIT,J & ATTR,J W.P.No.5273 oJ 2024 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 by the petitioner is sustained and all these uit petitions stands alLouted on this uery jurisdictional issue. Stnce the impugned notices and orders are getting quashed on the point of jurisdiction, we are not inclined to proceed further and decide the other issues raised bg the petitioner u.thich stands reserued to be raised and contended in. on app ropriate procee ding s.' \"38. Stnce the Hon'ble Supreme Court had, in the case of Ashish Agarutal, supra, as a one-time measure exercising the pouers under Article 142 of the Constitution of India, pennitted the Reuenue to proceed under the substituted prouisions, and this Court allouing the petitions only on the procedural Jlau, the ight conferred on the Reuenue u.nuld remain reserued to proceed further if theg so want from the stage of the order of the Supreme Court in the case of Ashish Aga nttal, supra.\" 7. 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. r 4 PSIr,J& /VfR J W.P.No.5273 oJ 2O24 8. As has been held by this Bench in the aforesaid batch matters, the right 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' 9. Consequently, miscellaneous petitions pending, if any shall stand closed. SD/. T. JAYASREE ASSTSTANT REGISTRAR //TRUE COPY// SECTl N OFFICER The Assessment Unit, National Faceless Assessment Centre, lncome Tax Department, Ministry of Finance, Room No. 4O1 ,2nd Floor, E-Ramp, Jawaharlal Nehru Stadium, Delhi - 1 10 003. The lncome Tax Officer, Ward - 1 ,6-2-15613, Subhash Nagar, Nizamabad - 503002. One CC to SRI. A. V. RAGHU RAlt4 ,Advocate [OPUC] One CC to M/d. SUNDARI R PISUPATI (Sr SC for lncome Tax Dept) [OPUC] Two CD Copies BIV GJP o To, 1 2 3 4 5 ,t HIGH COURT DATED:2910212024 .. i:, l .:' lu ,.-,.,^-l'r! i I ..,1 ORDER WP.No.5273 of 2024 ALLOWING THE WRITPETITION WITHOUT COSTS "