Vimalakar Reddy Eppa V. The Principal Commissioner of Income Tax, Hyderabad and Income Tax Officer Ward '15(1)', Income Tax Towers, Hyderabad

WP/19946/2023

AI Insights

The case involves a writ petition filed by Vimalakar Reddy Eppa challenging a notice issued by the Income Tax Officer under Section 148 of the Income Tax Act, 1961, for reopening his assessment for the Assessment Year 2019-20. The petitioner argued that the notice was based on incorrect and untrue reasons and was issued without following the due process of law, specifically without an order under Section 148A(d) before issuing the notice under Section 148. The respondents defended the issuance of the notice. However, the court found that due to recent amendments to the Income Tax Act, the notice should have been issued by the Faceless Authority and not the Jurisdictional Officer. This led to the quashing of the notice.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 796076 (HC-TELANGANA)
• Appeal Type: Others
• Pronouncement Date: 06-02-2024
• Assessment Year: misc
• Other Referred Cases: W.P.No.25903 of 2022
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: B SAPNA REDDY; J V PRASAD
• Assessee Lawyers: P SOMASEKHAR REDDY
• Keywords: Income Tax; Natural Justice; Notice Quash; Reassessment; Writ of Certiorari
• Section: 148; 151; 148A(d)

Judgement Text

"HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD (Special Original Jurisdiction) TUESDAY ,THE SIXTH DAY OF FEBRUARY TWO THOUSAND AND TWENTY FOUR PRESENT THE iloNoURABLE SRI JUSTICE P.SAM KOSHY AND THE HONOURABLE SRI JUSTICE N.TUKARAMJI WRIT PETITION NO: 19946 OF 2023 [ 337e ] 4 lncome Tax Masab Tank, Between: AND 1 2 Vimalakar Reddy Eppa, S/o. Chinnaiah Eppa Aged 44 yrs. R/o. Plot No. 41 52 Si Harsha Residency, Laxminagar Colony [ /ansoorabad R.R. District 500068, Telangana ...PETraoNER The Principal Commissioner of lncome Tax, Hyderabad Towers, Irlasab Tank, Hyderabad, Telangana -500004 lncome Tax Officer Ward '15(1), lncome Tax Towers, Hyderabad, Telangana- 500004 ...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 a nature of Writ of Certiorari to quash the notice issued by Respondent No. 2 AO dated 31- 03-2023 u/s 148 of the lncome Tax Act, 1961 thereby reopening the assessment of the Petitioner (PAN - AAYPE15994) for AY 2019-20, on the basis of incorrect and untrue reasons and also without following the due process of law, by not passing an order u/s 148A (d) of the Act, before issuing a notice u/s 148 of the lncome Tax Act, 1961 and also the issuance of Notice u/s. 14BA (b) of the lncome Tax Act, 1961 itself being illegal and arbitrary and in gross violation of the principles of natural justice lA NO: 1 OF 2023 Petition under Section 151 cPC praying that in the circumslances stated in the affidavit filed in support of the petition, the High court may be pleased to direct the Respondent Nos. 2 to stay the reassessment proceedings in the case of the Petitioner (PAN - AAypEt 5ggA) for Ay. 2019-20, in the interest of justice Counsel for the petitioner: SRt p. SOMA SHEKAR REDDY Counsel for the Respondents: M/s. B. SApNA REDDY REp sRt J. v. PRASAD (SC FOR TNCOME TAX) The Court made the following: ORDER THE HONOURABLE SRI JUSTICE P.SAM KOSHY AND THE HONOURABLE SRI JUSTICE N.TUI(ARAMJI WRIT PETITION No.19946 OF 2023 ORDER:1per Hon'bte Sri Justice P.SAM KOSHY) Heard Sri P. Soma Sekhar Reddy, learned counsel for the petitioner and Ms.B.Sapna Reddy, learned counsel representing Sri J.V.Prasad, learned Standing Counsel appearing for the respondents. 2. Challenge in the present Writ Petition is to the notice, dated 31.O3.2023, issued under Section 148 of the Income Ta-x Act, 196 1 3. A perusal of the record would reveal that the impugned notice has been issued by the Jurisdictional Officer for Ward No.15(1), Hyderabad. 4. During the course of hearing, it has been argued and accepted by the learned counsel appearing for both the sides that the impugned notice could not have been issued by the Jurisdictional Officer in the light of the amendment that was carried out to the Income Ta-x Act, which stood amended u'ith effect from 29.O3.2022 and the subsequent 2 PSK,J & MTR,J W.P.No.19946 o.f 2023 amendment and the notice ought to have been issued by the Faceless Authority. 5. This Court, in W.P.No.25903 of 2022 and batch allowed the Writ Petitions uide order, dated 14.09.2023 which is further being followed in other series of Writ Petitions of similar nature, a_11 of which, have been allowed on the sole ground that the notice could not have been issued by the Jurisdictional Authority 6. In the light of the aforesaid series of Writ petitions, which have been decided by this Court, the impugned notice, dated 31 .O3.2O23 (Annexure P- i), issued under Section 148 of the Income Tax Act, 1961 for the Assessment Year 2Ol9-20 also u'ould not be sustainable in the eye of law and the same, for similar terms as has been decided in W.P.No.25903 of 2022 and batch, deserves to be and is accordingly set-aside / quashed. The liberty protected on either side r.r.ould stald reserved in the instant case as weil. 3 PSI(,J & ]VTR,J W.P.No.19946 oJ 2023 7. Accordingly, this Writ Petition stands allowed. There shall be no order as to costs. Consequently, miscellaneous petitions pending, if any shall stand closed. SD/. P. PADMANABHA R ASSISTANT REGI //TRUE COPY// DDY RAR To, i !i I II The Principal Cominission Towers, Masab Tank, HYd The lncome Tax Officer W SECTION OFFICER er of lncome Tax, Hyderabad 4 lncome Tax erabad. Telanqana -500004 ard 1 5(1 1, lncdme Tax Towers, Masab Tank' 1 2 3 4 Hvderabad, Telangana- 500004 iri,\"\"\"b C i\"' s n r. pl -S o un s H E KA R R E D D Y' Ad v9 qa!9. Io- f gc. l. 5;; c6 io sni.l. v. Fnnsno, (sc FoR INCoME rAX) [oPUC] Two CD Copies BM GJP [b j 1 I I I j HIGH COURT DATED:0610212024 ORDER WP.No.19946 of 2023 ALLOWING THE WRITPETITION WITHOUT COSTS $-;qici (,.. 0 7 t4/,n ?0?4 * a- 0c o o 14 14: S E H 1 o k t' z o * I S C t -r-r ' * I ; { I ! I J "