Syeda Asfa Banu, W/o. Khaja Salaman Ullah and Chandrasekhar Motukuri and Sukesh Laxman Kalva and Primary Agriculture Co-op Credit Society Limited Chandur, Rep. by its Chief Executive Officer, Sri Yerraposani Bhumaiah V. The Income Tax Officer, Ward - 5(1), Hyderabad and The Principal Chief Commissioner of Income Tax AP and TS and The Assessment Unit, Income Tax Department, National Faceless Assessment Centre, Delhi

WP/48/2024

AI Insights

The writ petitions filed by various petitioners challenged the orders and notices issued by the Income Tax Department under sections 148 and 148A(d) of the Income Tax Act, 1961, for the assessment year 2015-16. The main contention was that these were issued by the Jurisdictional Assessing Officer (JAO) instead of the Faceless Assessment Officer (FAO), as required under the amended provisions of the Act. The High Court, referencing a similar case (W.P.No.34493 of 2023), found that the proceedings were not in accordance with the amended law, which mandates faceless assessments and proper issuance of notices. Consequently, the court allowed the petitions, quashing the impugned orders and notices.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 796545 (HC-TELANGANA)
• Appeal Type: Others
• Pronouncement Date: 03-01-2024
• Assessment Year: misc
• Other Referred Cases: W.P.No.34493 of 2023
• Laws Referred To: Article 226 of the Constitution of India, Income Tax Act
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: J V PRASAD; SUNDARI R PISUPATI
• Assessee Lawyers: DUNDU MANMOHAN; A V RAGHURAM
• Keywords: Faceless assessment; Income Tax; Natural Justice; Writ of Mandamus
• Section: 148; 148A(d)

Judgement Text

"[ 337e ] HIGH COURT FOR THE STATE OF TELANGANA AT HYOERABAD (Special Original Jurisdiction) WEDNESDAY, THE THIRD DAY OF JANUARY TWO THOUSAND AND TWENTY FOUR PRESENT THE HON'BLE SRI JUSTICE P.SAM KOSHY AND THE HON'BLE SRI JUSTICE N.TUKARAMJI WRIT PETITION Nos.20, 22,48 and 101 OF 2024 WRIT PETITION No.20 OF 2024: Between: Syeda Asfa Banu, W/o. Khaja Salaman Ullah, aged about 32 years, H.No.5-5-318/2, Aged-about 32 years Patel Nagar Ek Minar, Masjid, Nampally, Hyderabad, Telangana- 500001, lndia. ...PETITIONER AND 1 The lncome Tax Officer, Ward - 5(1), Hyderabad, lT Towers, AC Guards, Masab Tank, Hyderabad, Telangana - 500004. 2. The Principal Chief Commissioner of lncome Tax AP and TS, 1Oh Floor, C- Block, l.T. Towers, 10-2-3, A.C. Guards, Hyderabad-500004. 3. The Assessment Unit, lncome Tax Department, National Faceless Assessment Centre, Delhi, Ministry of Finance, Room No. 4O1,2nd Floor, E- Ramp, Jawaharlal Nehru Stadium, Delhi-l 10003 ...RESPONDENTS Petition under Article 226 of lhe Constitution of lndia praying that in the circumstances stated in the affidavit filed therewith, the High Court may be pleased to issue a writ, order or direction, more particularly one in the nature of Writ of Mandamus, declaring the impugned order dt. 1910412022 passed u/s 14SA(d) of the Act vide DIN No. |TBAiAST|F|148N2022-2311042771O26(1) and the consequential notice u/s 148 d1.2110412O22 vide DIN No. ITBA/AST/S/148 1t2O22- 2311042796905(1), for A.Y. 2015-16, issued by the AO (1st respondent) 2 ,.,nstead of FAO(3rd respondent), as void, illegal, and contrary to the provisions of lncome{ax Act and contrary to the Principles of Natural Justice. lA NO: 1 OF 2024 Petition under section 1 5 1 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 pursuant to the notice u/s 148 dl. 21.o4.zo22 vide DIN No. ITBA/AST/S/148 112022-2311042796905(1) issued by the,lst Respondent(JAo) for A.Y. 2015-16 instead of 3rd respondent(FAO), and may pass such other order(s) as the Hon'ble cou( deems fit and proper in the interests of substantial justice, as otherwise the Petitioner would be put to irreparable loss and severe injury. Counsel for the Petitioner: SRI DUNDU MANMOHAN Counsel for the Respondents: SRI J. V. PRASAD, S.C. FOR INCOME TAX WRIT PETITION No.22 OF 2024 Between: Chandrasekhar Motukuri, # Flat No. 707, Daffodil Block, RDB Coconut grove, Dynamics Colony, Miyapur, Hyderabad - 500049. ...PETITIONER AND 1. The lncome Tax Officer, tNard - 12(1), Hyderabad, Aaykar Bhawan, Opp. LB Stadium, Basheerbagh, Hyderabad, Telarigana - 5OOO04. 2. The Principal Chief Commissioner of lncome Tax, Ap & TS, 1Oh Floor, C_ Block, l.T. Towers, '10-2-3, A.C. Guards, Hyderabad-500004. 3. The Assessment Unit, lncome Tax Department, National Faceless Assessment Centre, Delhi, Ministry of Finance, Room No. 4O1,2nd nooi,-E_ Ramp, Jawaharlal Nehru Stadium,-Delhi-.1 10003 ...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 issue a writ, order or direction, more particularly one in the nature of writ of Mandamus, declaring the impugned order dt. o7.o4.2o22 passed u/s 148A(d) of the Act vide DtN No. tTBAiAST/Ft14BN2o22-23t1042626o24(1) and J 1ie consequential notic.e uis 148 dt. 07 -O4.2O22 vide DIN No. ;TBA/AST/S/148-]t2122-23t1042630561(1), for A'Y. 20'l 5-16, issued by the JAo(1st respondent) instead of FA0(3rd respondent), as void, illegal, and contrary to the provisions of lncome-tax Act and contrary to the Principles of Natural Justice. IA 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 pursuant to the notice u/s 148 dt.O7.O4.2O22 vide DIN No. |TBA/AST/S/1 4 B _1 t2022-231 1042630561 ( 1 ) issued by the 1 st Respondent (JAO) for A.Y. 2015-16 instead of 3rd respondent(FAO)' Counsel for the Petitioner: SRI DUNDU MANMOHAN Counsel for the Respondents: SRI J. V. PRASAD' S.C' FOR INCOME TAX WRIT PETITIO N No.48 OF 2024 Between: Sukesh Laxman Kalva, Rep. by GPA Holder, Hari ]larvql Kalva S/o Prabhu Rao I\"iir-r. n\"\" O2 Years,'# Flat No. 308, H.No. 11-25-28, Third Floor, Jaganmatha i&;is, Fochammaidan, Warangal, Telangana- 506002' lndia' ...PETITIONER AND 1. The lncome Tax Officer, Ward - 1, Waranlal' lncome Tax Office, Mayuri - Complex, Hanamkonda, Warangal, Telangana - 506001' 2. The Principal Chief Commissioner of lncome Tax AP & TS, lor'Floor, C- - Block, l.T. Towers, 1O-2-3, A.C' Guards, Hyderabad-500004 3. The Assessrnent Unit, lncome Tax Department, National Faceless \" n.s\"\"irLni centre, oerfii, 'rrriin-iiirv oiFinanc'5, Room No. 4o1,2'r Floor, E- Ramp, Jawaharlal Nehru Stadium, Delhi-1 't0003 ...RESPONDENTS petition under Article 226 ot the constitution of lndia praying that in the circumstances stated in the affidavit filed therewith, the High court may be pleased to issue a writ, order or direction, more particularly one in the nature of writ of Mandamus, declaring the impugned order dt. 2410412022 passed u/s 4 r48A(d) of the Act vide DIN No ITBA/AST/F/1 48 A12022- 231 1042833309(1 ) and the consequential notice u/s 148 dt. 25tO4t2O22 vide DtN No. ITBA/AST/S/148_112022- 23t1O42834612(1), for A.y. 2015-16, issued by the JAO (1st respondent) instead of FAO (3rd respondent), as void, illegal, and contrary to the provisions of lncometax Act and contrary to the principles of Natural Justice, and pass lA NO:.l OF 2024 Petition under Section 1 51 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 pursuant to the notice u/s 148 dl.2sto4t2o22 vide DIN No. lrBA/AST/s/1 48 -1 12o22-23t 1 04283461 z(1 ) issued by the 1 st Respondent (3A0) for A.Y. 2015-16 instead of 3rd respondent (FAO), and may pass such other order(s) as the Hon'ble court deems fit and proper in the interests of substantial justice, as othenivise the Petitioner would be put to ineparable loss and severe injury. Counsel for the Petitioner: SRI DUNDU MANMOHAN Counsel for the Respondents: SRt J. V. PRASAD, S.C. FOR INCOME TAX WRIT PETITION No 1010F 2024 Between: Primary Agriculture co-op credit ^s^ojiety Limited chandoor, 1-8 chandur (Village), Vami (Mand€l), Nizamabad-503206. Rep., by its Chief Executive Officer, \"Sii Yerraposani Bhumaiah, S/o. Sri Yerraposani Chi-nna Sailu. AND ...PETITIONER Centre, lncome Tax 2nd Floor, E-Ramp, 1. The lncome Tax Officer, Ward - 1 , 6-2-156/3, Subhash Nagar, Nizamabad - 503002 2 Assessment Unit, National Faceless Assessment Department, Ministry of Finance, Room No.401, Jawaharlal Nehru Stadium, Delhi ...RESPONDENTS Petition under Articre 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 WRIT OF MANDAMUS holding that the order passed by 1st Respondent u/s.148A(d) of the Act, dt.08.04.2022 with DIN & Notice No: ITBAiAST/F/148N2O22- 2311042666767(1) and the notice dated 12.04.2022 issued under section 148 of the Act with DIN and Notice No.|TBA/ASTiS/148 112022-23110427'15865('l) for the assessment year 2015-16, as being illegal, arbitrary and passed in gross violation of principles of natural justice without application of mind, and consequently set aside the same. lA NO: 1 OF 2024 Petition under Section 1 51 CPC praying that in ttle circumstances stated in the affidavit filed in support of the petition, the High Court may be pleased to suspend the operation of the notice issued by the Respondent u/s. 148 of the Act, d1.12.04.2022 for the assessment year 2015-16 with DIN and Notice No.ITBA/AST/S1148_112022-2311042715865(1 ) and all consequential proceedings thereto. Counsel for the Petitioner: SRI A. V. RAGHU RAM Counsel for the Respondents: M/s. SUNDARI R. PISUPATI, SENIOR S.C. FOR INCOME TAX The Court made the following: COMMON ORDER THE HON'BLE SRI WSTICE P.SAM KOSI{Y AND THE HON'BLE SRI JUSTICE N.TUKARAMJI W.P.Nos.2O 22 48 and lOl of2024 COMMON ORDER (per Hon'ble Si Justice P.Serf I(OSHY,I When these matters are taken up for hearing today, it has been informed by the parties that an identical Writ Petition i.e., W.P.No.34493 of 2023 has already been allowed and disposed of uide order, dated 27.12.2023. 2. In view of the fact that the identical matter has already been allowed by this Court, we are inclined to allow these Writ Petitions in terms of the..order passed in W.P.No.34493 of 2023 decided on 27.12.2023 on simildr terms. 3. As a sequel, miscellaneous applications pending if any in these Writ Petitions, shall stand closed. No order as to costs. SD/- P. CH. NAGABHUSHAMBA ASSISTANT GI //TRUE COPY// SECTI N OFFICER To, 1. The lncome Tax Officer, Ward - 5(1), Hyderabad, lT Towers, AC Guards, Masab Tank, Hyderabad, Telangana - 500004. 2. The Principal Chief Commissioner of lncome Tax AP and TS, 10th Floor, C- Block, l.T. Towers, 10-2-3, A.C. Guards, Hyderabad-500004. 3. The Assessment Unit, lncome Tax Department, National . Faceless Assessment Centre, Delhi, Ministry of Finance, Room No. 4O1,2'P Floor, E- Ramp, Jawaharlal Nehru Stadium, Delhi-1 10003 4. The Income Tax Officer, Ward - 12(11, Hyderabad, Aaykar Bhawan, Opp. LB Stadium, Basheerbagh, Hyderabad, Telangana - 500004. 5. The lncome Tax Officer, Ward - 1, Warangal, lncome Tax Office, Mayuri Complex, Hanamkonda, Warangal, Telangana - 506001. l I 6. The lncome Tax Officer, Ward - 1, 6-2-15613, Subhash Nagar, Nizamabad - 503002. 7. One CC to SRI DUNDU MANMOHAN, Advocate [OPUC] 8. One CC to SRI J. V. PRASAD, S.C. for INCOME TAX [OPUC] 9. One CC to SRI A. V. RAGHU RAM, Advocate [OPUC] 10. One CC to M/s. SUNDARI R. PISUPATI, Senior S.C. for lncome Tax [OPUC] 11.Two CD Copies Along with a copy of the Order dated 27 .12.2023 in W.P.No.34493 ot 2O23. MP GJ l i f L.l 1 ( .1 HIGH COURT DATED:0310112024 g 51'r ; ; :> .i .- ': l: .,. : fi I I DER W.P.Nos.20,22,48 and 101 OF 2024 ALLOWING THE WRIT PETITIONS WITHOUT COSTS Gq(., \"w Gvr @ - r-:-7 THE HONOURABLE SRI JUSTICE P.SAM KOSITY i AIID THE HONOURABLE SRI WSTICE N.TUI{ARAMJI WRIT PETITION No.34493 OL2O23 ORDER:(pdr Hon'ble Si Justice P.SAM KOSHY) The instant Writ Petition has been filed by the petitioner under Articl e 226 of the Constitution of India challenging the order issued under Section 148A(d) of the Income Tax Act, 196 1 (for short, \"the Act\") bearing DIN No.ITBA/dST /F/ t48Al2022-23/ to42852r37 (1), dated i 26.04.202D passed by respondent No.1 for the assessment year 2O18 19 and the consequent notice under Section 148 of the Act, dated 26.04.2022, bearing DIN No.ITBA/AST / s I 148-r / 2022-23 / 10428ss160 (1). 2. Orre of the contentions that the petitioner has raised in the present Writ Petition is that under the amended I provisions of the Act which came into effect from Ol .O4.2021 , the respondents, while proceeding under section rJs of the Act, were required to issue notice under Section I 8A and provide an opportunity of hearing to the ) jr 3i+-'*--F-.- 2 PSK,J & fl:r&J W.P.No.34493 of 2023 assessee. As per the amended provision of law, 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 Jurisdictiona_l 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 14.09.2023 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 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.34493 of 2023 the same at paragraph Nos.37 & 38 which are reproduced herein under: \"37. The preliminary objection raised by tle petitioner is sustained and all these urit petitions stands ollotted on this uery juisdictional issue. Since the impugned notices and orders are getting quashed on the point of juisdiction, u.)e are not inclined to proceed furtLrcr and decide the other issues raised bg the petitioner uhich sfands reserued to be raised and contended in an appropiate proceeding s. \" \"38. Since the Hon'ble Supreme Court hnd, in the cose of Ashish Agaruta| supra, as a one-time measure exerciiing the pouers under Article 142 of the Constitution of India, permitted tlte Reuenue to proceed underl the substifitted prouisions, and this Court allowing tLrc petitions only on the procedural flaw, the right confened on the Reuenue utould remain reserued to proceed further if they so utant from the stage of the order. of the Supreme Court in th.e case of Ashi.sh Agarutal, 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 altowed on the objection of the petitioner that the proceedings have not been drawn in accordanca 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 PST,J&MTR,J W.P.No.34493 o:f 2023 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. P.SAM KOSITY, J N. TUKARAMJI, J Date: 27.12.2023 TJMR "