The Primary Agrl. Co-op Socie 503201 and Nizamabad Ramulu Agricultural Cooperative Credit Society Limited V. The Assistant Commissioner of Income Tax, Circle - 1 and Assessment Unit, National Faceless Assessment Centre, Income Tax Department, Ministry of Finance

WP/33954/2023

AI Insights

The case involves multiple writ petitions filed by various agricultural cooperative societies against the Assistant Commissioner of Income Tax and the Assessment Unit, National Faceless Assessment Centre, challenging the legality of notices and orders issued for the assessment years 2015-16, 2016-17, and 2018-19. The petitions argued that the notices were issued in violation of the principles of natural justice and without proper application of mind, as they did not follow the amended procedural requirements of the Income Tax Act, 1961, which came into effect on April 1, 2021. The High Court's decision to allow the petitions was influenced by a precedent set in a similar case (W.P.No.30153 of 2023) and other batch matters, where it was held that the notices were issued without following the correct procedural requirements.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 796696 (HC-TELANGANA)
• Appeal Type: Others
• Pronouncement Date: 16-12-2023
• Assessment Year: misc
• Other Referred Cases: W.P.No.30153 of 2023, W.P.No.25903 of 2022
• Laws Referred To: Article 226 of the Constitution of India, Income Tax Act, 1961
• 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; Natural Justice; Writ of Mandamus
• Section: 148; 148A(d)

Judgement Text

"[ 3379 ] HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD (Special Original Jurisdiction) SATURDAY, THE SIXTEENTH DAY OF DECEMBER TWO THOUSAND AND TWENTY THREE PRESENT THE HONOURABLE SRI JUSTICE P.SAM KOSHY AND THE HONOURABLE SRI JUSTICE N.TUKARAMJI WRIT PETITION Nos. 33950 33954 33955 AND 34004 0F 2023 wRtT PETITION NO.33950 0F 2023 Between: The Primary Agrl. Co-op Socie 503201 . Rep., by its Secretary, Gangaram. Limited, Varni Village, Varni Mandal, Nizamabad - ri Daram Pedda Gangadhar, S/o. Sri Daram Pedda ty S ...PETITIONER AND 1. The Assistant Commissioner of lncome Tax, Circle - 1, 6-2-15613, Subhash Nagar, Nizamabad - 503002. 2. Assessment Unit, National Faceless Assessment Centre, lncome Tax Department, Ministry of Finance, Room No.401, 2* Floor, E-Ramp, Jawaharlal Nehru Stadium, Delhi - 110003. ...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 WRIT OF MANDAMUS holding that the order passed by 1't Respondent u/s.148A(d) of the Act, d1.29.O3.2O23 with DIN & Notice No.ITBtuAST/F1148N2O22- 23t1O51622386(1) and the notice dated 30.03.2023 issued under section 148 of the Act with DIN & Notice No:ITBA/AST/S1148-]12022-23/1051624160(1)for the 2 assessment year 2O16_11, as being illegal, arbitrary and passed in gross violation of principres of naturar justice without apprication of mind, and consequently set aside the same. IA NO: 10F 2 23 Petition under section 15'1 cpc praying that in the circumstances stated in the affidavit fired in support of the petition, the High court may be preased to suspend the operation of the notice issued by rhe Respondent u/s. 14g of the Act, dt.30.03.2023 for the i)Assessment yeat 2o16_1r with DIN and Notice No.ITBA/AST/Sl14B 1t2O22-23t1O5162416O(1) and ail consequentiat proceedings thereto. WRIT PETITION NO:33954 0F 2023 Between: ili,,,,##li,%H,.\":\"T,tIH*:ff ,,X8!lXl,iff.X#t#3i.3,[,f E:33: AND 1. The lncome Tax Officer 503002 ...PETITIONER , Ward - 1, 6-2-15613 Subhash Nagar, Nizamabad _ Assessment Unit, Nationql_ Faceles^s Assessment Ce4tre, lncome Tax uepartment, Ministrv of Finance, noom r,lt. ifii, z-..Fro\"il\"E:Fr;;; Jawahadat Nehru Srddium, oetni _l ro'do'i ...RESPONDENTS Petition under Article 226 0t the constitution of rndia praying that in the 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 WRIT OF MANDAMUS hording that the order passed by 1'r Respondent u/s.148A(d) of the Act, dt. 08.04.2022 with DtN & Notice No:|TBA/AST/F t14BAI2O22_ 2 i I -) 2311042667088( 1 ) ano the notice dated 12.o4.2022 issued under section 148 0f the Act with DrN & Notice No: ,rBA/AST/ 5r148-112022-23/1042717089(1) for the assessment year 2015-16, as being iregar, arbitrary and passed in gross vioration of principles of natural justice without application of aside the same. -._v !r,r,,v r( dup cauon of mind, and consequenfly set petition under section 151 cpc prayingthat in the 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, dt'12'04 2022 for the assessment year 2015-16 with DrN & Notice No. rrBA/ ASTrs/148-112022-23/10427170s9(1) and a, consequentiar proceedings thereto. IANo:1oF2023 Between: AND 1 . The lncome 503002. 2. Assessment Department. Jawaharlal N WRIT PETITION NO: 339550F 2023 I 3l#;:3\"1,y,#g?\"i,B;i\"',1ily*,,^81*?13!a:!id,;p,t67years, 8-17-1, S.N L ...PETITIONER Tax Officer, Ward - 1, 6-2-1S6t3, Subhash Nagar, Nizamabad - \"ffibd;j\"::tr#qi;fu fr '.i,.\"T.#,?sn,,Fi\"Jl\"\"fl R,Iil ...RESPONDENTS petition under Articre 2% of the constitution of rndia praying that in the circumstances stated in the affidavit fired therewith, the High court may be pleased to pass an order or direction, especia,y one in the nature of wRrr oF MANDAMUS hording that the order passed by Respondenr u/s.148A(d) of the Acr, dt' 07'o4 2022 with DrN & Notice No:,rBA/AST/F 1148A/2022-2311042636419(1) ,l ,/'/' and the notice dated 07.o4.2022 issued under section 14g of the Act with DIN and Notice No: ITBA/AST/S/1 48_1 12o22-23t 1 042636442(1) for the assessmenr year 2015-16, as being illegal, arbitrary and passed in gross violation of principles of natural iustice without application of mind and consequently set aside the same. lA NO: 1 OF 2023 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 suspend the operation of the notice issued by the Respondent u/s.14g of the Act, dt. 07.04.2022 for the assessment year 2o1s-16 with DIN & Notice No:lrBA/ Asrlsl148-112022-2311042636442(1) and all consequential proceedings thereto. WRIT PETITION NO: 34004 0F 2023 Between: Primary Ag Nizamabad Ramulu. riculturg^ _Cooperative Credit Society Limited., Jakora, Varni Mandal, - 503201. Rep., by its Secretary, Sri Ramakrishnaiah'Rajula, S/o. S; ...PETITIONER AND 1. 2 The Assistant Commissioner of lncome Tax, Circle - 1, 6-2-156t3, Subhash Nagar, Nizamabad - 503002. Assessment Unit, National Faceless Assessment Centre, lncome Tax o,9oa$m911. Ministry..of finqryu, BggT No 401, 2N rOor- e-namp- Jawaharlal Nehru Stadium, Dethi - 110 003 ...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 MANDAluus holding that the order passed by Respondent u/s.148A(d) of the Act, dt.29.03.2023 with DIN & Norice No:|rBA/AST/F t1 4 At2o22-23l1 051 622063(1 ) Z /-s and the notice dated 30.03.2023 issued under section 148 of the Act with DIN & Notice No:ITBtuAST/S/148_112022-2311051624114{1) for the assessment year 2O16-17, 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 2023 Petition under Section 15'l CPC praying that in the 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, dt.30.03.2023 for the assessment year 2016-17 wilh DIN and Notice No:ITBA/AST/S1148_112022-2311051624114(1) and all consequential proceedings thereto. Counsel for the Petitioner in all the Writ Petitions: SRI A. V. RAGHU RAM Counsel for the Respondents in all the Writ Petitions: SMT. SUNDARI R. PISUPATI, SENIOR STANDING COUNSEL FOR INCOME TAX DEPARTMENT The Court made the following: COMMON ORDER J 7 THE HONOURABLE SRI JUSTICE P.SAM KOSHY AND THE HONOURABLE SRI JUSTICE N.TUKARAMJI W.P.Nos.3395O 33954,33955 and 34OO4 of 2o23 COMMON ORDER (per Hon'ble Sri Justice P.SAM KOSfiy) When these matterr are taken up for hearing today, it has been informed by the parties that an identical Writ petition i.e., W.P.No.3O153 of 2023 has already been allowed and disposed of uide order, dated 3O.1O.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.3O lS3 of 2023 decided on 3O.1O.2O23 on similar 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 //TRUE COPY// ASSISTANT REGI?TRAR ,,t SECTION OFFICER To, 1. The Assistant Commissioner of lncome Tax, Circle - 1,6-2-15613, Subhash Nagar, Nizamabad - 503002. 2. The Assessment Unit, National Faceless Assessment Centre, lncome Tax Department, Ministry of Finance, Room No.401 , 2nd Floor, E-Ramp, Jawaharlal Nehru Stadium, Delhi. 3. One CC to SRI A. V. RAGHU RAM, Advocate [OPUCI 4. One CC to SRI SUNDARI R. PISUPATI, Senior Standing Counsel for lncome Tax Department [OPUC] 5. Two CD Copies Along with a copy of the Order dated 30.10.2023 in W.P.No.30153 ot 2023. MP GJ i^/ 7 I HIGH COURT DATED:1611212023 COMMON ORDER W.P.Nos.33950, 33954,33955 AND 34004OF 2023 ALLOWING THE WRIT PETITIONS WITHOUT COSTS \"{=^ ffo 1 1 JAI'J 2024 * €sparctr€o * 14 r(: S E H 1 o o 1 THE HON'BLE SRI JUSTICE P.SAM KOSTTY AND THE HON'BLE SRI JUSTICE LAXMI NARAYANA ALISHETTY W.P. No. 3O153 of 2O23 ORf,)ER: per Ho a'bte Si Justice P.SAM KOSHY) Heard Mr. A.V.A. Siva Kartikeya, learned counsel for the petitioner and Ms. B. Sapna Reddy, learned Junior Standing Counsel for Income Tax appearing for the respondents. Perused the entire record. 2. The instant petition has been filed chaltenging the Assessment Order passed by respondent No. 1 under section f48A(d) of the Income Tax Act, 1961 (hereinafter referred to as'the Act') dated 25.04.2022 for the Assessment Year 2Ol8-19. 3. One of the contentions that the petitioner has raised in the present writ petition is that under the amended provisions of the Act which came into effect from 01.04'2021, 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 are also in a faceless manner. Whereas, it has been contended by the petitioner that in the instant case, reopening has been initiated by the Juridictional Assessing Oflicer. In respect of the said objection that the petitioner had raised, he relied upon the recent batch of writ ) petitions decided by this very Bench on 14.O9 .2023 vide W.P.No.25903 of 2022 and batch to the limited extent. 4. lrarned counsel for the Department would not dispute of batch matters. having decided the said objection in the aforesaid However, learned counsel submits 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 Department is concerned, this Bench, while disposing of W.P.No.25903 of 2022 and batch had taken note of the same in paragraph Nos.37 & 38 which is reproduced herein under: \"37. The preliminary objection raised by the petitioner is sustained and all these writ petitions stands allowed on this very jurisdictional issue. Since the impugned notices and orders are getting quashed on the point ofjurisdiction, we are not inclined to proceed further and decide the other issues raised by the petitioner which stands reserved to be raised and contended in an appropriate proceedings.\" 38. Since the Hon'ble Supreme Court had, in the case of Ashish Agarwal, supra, as a one-time measUre exercising the powers under Article 142 of the Constitution of India, permitted the Revenue to proceed under the substituted provisions, and this Court allowing the petitions only on the procedural flaw, the right conferred on the Revenue would remain reserved to proceed further if they so want from the stage of the order of the Supreme Court in the case ofAshish Agarwal, 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 unamended provision which is otherwise not sustainable. As has been held by this Bench in the aforesaid batch matters, the right of the respondents would stand reserved as is envisaged in paragraph Nos.37 & 38 of the said batch. No order as to costs. 7 . Consequentiy, miscellaneous petitions pending, if any, shall stand closed. P.SAM KOSHY, J LAXMI NARAYANA ALISHETTY, J Dated: 30.lO.2023 aqs "