Venkat Rao Paleti V. The Commissioner of Income Tax (Appeals), Income Tax Department, National Faceless Appeal Centre, Delhi and The Commissioner of Income Tax (Appeals), Hyderabad and The Income Tax Officer, Ward-2, Nizamabad and The Union of India, represented by its Secretary (Finance), Ministry of Finance, North Block, New Delhi and State Bank of India, represented by its Branch Manager

WP/17655/2023

AI Insights

The case involves Venkat Rao Paleti, the petitioner, who challenged the legality and validity of an appellate order dated 12.06.2023 passed by the first respondent, which upheld a best judgment assessment order from 14.11.2019 concerning the assessment year 2017-18. The petitioner also contested the action of the third respondent in issuing a notice under Section 226(3) of the Income Tax Act, 1961, which led to the attachment of his bank account. The High Court, after hearing the arguments, decided to dismiss the writ petition, directing the petitioner to pursue his grievances through the Income Tax Appellate Tribunal, where he had already filed an appeal.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 685143 (HC-TELANGANA)
• Appeal Type: Others
• Pronouncement Date: 10-07-2023
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Revenue
• Court: HIGH COURT
• Department Lawyers: P SUNDARI; GADI KUMAR; M REDDY
• Assessee Lawyers: G CHETTY
• Keywords: Bank Account Attachment; Best Judgment Assessment; Income Tax; Mandamus; Natural Justice; Writ petition
• Section: 144; 69A; 254; 226(3)

Judgement Text

"[ 3311 ] HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD (Special Original Jurisdiction) N4ONDAY, THE TENTH DAY OF JULY TWO THOUSAND AND TWENTY THREE PRESENT THE HONOURABLE THE CHIEF JUSTICE UJJAL BHUYAN AND THE HONOURABLE SRI JUSTICE N.TUKARAMJI WRIT PETITION NO: '17655 OF 2023 Between: Venkat Rao Paleti, S/o Krishna Rao, Aged 64 years, Occ Retired Govt' iurct 6r, R/o Flat No. 304, NR Residency, Kousalya -Colony, Bachepalle, Bachupdlly, Medchal-Malkajgiri District, Telangana - 500090. ..,PETITIONER AND 1. The Commissioner of lncome Tax (Appeals), lncome Tax Departm-ent, . . flrtionai iJceiess eppeat Centre 1NfAC1, Dethi, situated at North Block, New Delhi -110001. Z. ine Commissioner of lncome Tax (Appeals), Hyderabad - 5, Signature Towers, Kondapur, Hvderabad - 500084. e. fne f nibme fal O'tnc'er, W ard-2, Nizamabad, lncome Tax Office, 6-2-156/3' - SuOnasfr Nagar, Nizamabad, Nizamabad.qistrict, le]g.ngqna -.5-q30021 ^,-- +. ine union ofinoia, n\"p. by iis secretary (Finance), Ministry of Finance, North Block. New Delhi - 1 10001 . s. iil\" Strie-aani ot tnOia, H. No. 1-4-246, Main Road, Bodhan, Nizamabad District, Telangana, Represented by its Branch Manager' ...RESPONOENTS 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 pleasedtoissueanappropriateWrit,orderorDirection,moreparticularlyinthe nature of MANDAMUS holding that the impugned Appeal Order of the First Respondent, daled 1210612o23, in Appeal no. clT(A),Hyderabad-S/1065812019- 20,whichwasfiledagainsttheex-ParteBestJudgmentAssessmentorder, bearing order no. ITBA/AST/S/14412019-2011020397840(1), daled 1411112019' for the Assessment Year 2017-18 passed by the Third Respondent, and further the action of the Third Respondent in issuing Notice under s. 226(3) of the tncome Tax Act, 1961, vide Notice no. ITBA/RCV/S/226(3 112019' 2Ol1O24O}2O,3.I(1 t a ei 21l01i2O2O to the Fifth Respln(l€rt ilank attachrng the S.B. Account rO ll() 018204'l 5 of the Pelitioner as arbitrarv, cilprrcious. contrary to law, fat;ts, viol: li'\"e of the principles of natura justi:r: ard rllegal and consequently sct ra:; rle the said Appeal Order, Assessmeni J'der and S 226(3) Notice issued iry tlrr: T rird Respondent to the Fifth Resrondenl Bank lA NO: 1 OF 2023 Petition rnc,et Section 151 CPC praying that in the c r(;umstances stated in the affidavit frlel .r supporl of the petition, the High cour ntay be pleased to suspend the Notic,: t n,ier S. 226(3 ot the lncome Tax Act, 1l(11, 'tide Notice no' ITBA/RCV/S/22'6(.ii11'2)19-2Ot1024092064(1), dated 21lO1l','O)'O issued by the Third Respondent tr: ttre Fifth Respondent Bank attaching tlre s.tl. Account no. 30101820415 r:f tle :)e titioner. Counsel for the Counsel for the TAX Counsel for the SOLICITOR Counsel for the Petilioner: SRI G.NARENORA CHETTY Resl rondent Nos.1,2 & 3: M/s. P.SUNDARI' SC FOR INCOME Resl rondent No.4: SRI GADI PRAVEEII KUMAll, Dy. GENERAL OI: INDIA Resprordent No.5: SRI M. SRIKANTH REDD , liC FOR SBI The Court made the 'ollowing: ORDER THE HON'BLE THE CHIEF JUSTICE UJJAL BHUYAN AND JUSTICE N. TUKARAMJI WRIT PETITION No.17655 of2O23 ORDER: (Per the Hon'ble the Chief Justice Ujjal Bhugan) [{eard Mr. G.Narendra Chetty, learned counscl for the pctitioner; Ms. P. Sundari, lear^ed Standing Counsei, lncome 'l-ax l)epartment for respondent Nos. l, 2 and 3; Mr. Gadi Praveen Kurnar, learned Deputy Solicitor General of India for rcspondent No.4; and N4r. M.Srikanth Reddy, Iearned counscl for respondent No.S. 2. Bv Crinstitution filirrg this petition under Articl c 226 of |ne of India, petitioner has assailcd legalitl, and validity of the order dated t2.O6.2023 passed by the 1,, respondent and has also assailed the actron of the 3.a respondent in issuing not.icc under Section 226(3) of Lhe Income Tax Act, 196 I (bricfly rcferred to he reinafter as ,the Act') attaching the bank account of the petitioner maintained ',r,ith re-spondent No. S. Il( ' ;i. l ''l'R.l ) ) ttSi ctl )02-) i)i'ririoncr- is ;tt't :issessee uttcler th. Act. I'or thc :lsscssrncll. eirr 2017-lB. :r best judgment e s:;c)ssmenL ras passe( b 'l-e ll*l resportdcnt on 14.11.2019 rttrccr Scctior-t 144 of tl-rr: r .c , petition heLs Lr< cn filed -l 1 . ' ! ainst tlre aforesaid ordr:r darr d 1+ 1.1 2019, l)etitioner 1; -t:lerred allpcal llelore the 1'' res;rr'tl:lerit tlv the appellu te : '([er datcd 12 06.2023, l\"t resl)c 1d(]nt parth' zrllou,r:l' 2023 DISMISSING T {E WRIT PETITION WITHOUT COS TS. (5 li l' ,lll, ?tJA . '. t'l ':l C.1 ^a Gn r 'vt d -/::------\":- '- . -- rt't lt,r.'-' t/',1 ,' .' "