Mr. Vijayender Reddy Naredla V. Union of India

WP/1888/2024

AI Insights

The case involves a writ petition filed by Yljgy.eryJgi Reddy Naredla challenging the legality of an order and notice issued by the Income Tax Officer, Karimnagar under Section 148 of the Income Tax Act, 1961. The petitioner argued that the proceedings were initiated under the unamended provisions of the Act, which is not sustainable post the amendment effective from April 1, 2021. The respondents included the Union of India, Ministry of Finance, and various income tax authorities. The court's decision was influenced by a previous judgment in a similar batch of writ petitions, which addressed the procedural flaws in the issuance of such notices.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 684992 (HC-TELANGANA)
• Appeal Type: Others
• Pronouncement Date: 29-01-2024
• Assessment Year: misc
• Other Referred Cases: Ashish Agarwal
• Laws Referred To: Income Tax Act, 1961, Constitution of India
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: GADI PRAVEEN KUMAR; SUNDARI R PISUPATI
• Assessee Lawyers: P SRIKANTH RAO
• Keywords: Faceless assessment; Income Tax; Jurisdiction; Writ of Mandamus
• Section: 148; 148A(d)

Judgement Text

"[ 337e ] IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD (Special Original Jurisdiction) MONDAY, THE TWENTY NINTH DAY OF JANUARY TWO THOUSAND AND TWENTY FOUR PRESENT THE HONOURABLE SRI JUSTICE P. SAM KOSHY AND THE HONOURABLE SRI JUSTICE N. TUKARAMJI WRIT PETITION NO: 1888 OF 2024 Between: 14 Yljgy.eryJgi Reddy Naredla, S/o. Linga Reddy aged about 56 years, R/o 20- 12511IB Huzurabad, Vidyanagar Karimnagar,-505468 pAN AIZpN j55OF AND ...PETTTTONER 1. !-.lnion of lndia, Ministry of Finance Rep. by its Secretary, 166- B North Block, New Delhi - 110 001. 2- lncome Tax Officer, V ard 2, Karimnagar Aaykar Bhavan, Near Natraj Theatre, Karimnagar Telangana. 500500'l 3. The Principal Commissionei of lncome Tax- ll, lT Towers, Ground Floor, A. G. Guards Hyderabad, 500004 4. The National Faceless Assessment Centre, lncome Tax Department Ministry of Finance Govt. of lndia, New Delhi. ...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 i. lssue a Writ, Order or Direction more particularly, one, in the nature of Writ of Mandamus, declaring the order passed by the Respondent No. 2 in passing the Order dated 07.04.2022 uls. 148A(d) and Notice issued by the Respondent No. 2 under Section 148 of the lncome Tax Act, 1 961 dated 07.04.2022 as illegal, arL,itrary, bad in law, void ab initio, and being violative of the provisions of lncome Tax Act 1961 and Articles 14,19 and 265 of the Constitution of India and consequently ii. Set aside the Order dated 07.04.2022 u/s. 14BA(d) and Notice issued by the Respondent No. 2 under Section 148 of the lncome Tax Act, 1961 dated 07.04.2022 calling for the return of income of the Petitioner for AY. 2015-16 and consequent proceedings as lacking in jurisdiction. Counsel for the Petitioner: SRI P. SRIKANTH RAO REPRESENTING FOR SRI P. SOMA SHEKAR REDDY Counsel for the Respondent No.1: SRI GADI PRAVEEN KUMAR, Dy. SOLICITOR GENERAL OF INDIA Counsel for the Respondent No.2 to 4: M/s. SUNDARI R. PISUPATI, SC FOR INCOME TAX The Court made the following: ORDER THE HONOURABLE SRI JUSTICE P.SAM KOSHY AND THE HONOURABLE SRI JUSTICE N.TUKARAMJI WRIT PETITION No.188a oF 2024 ORDER (per Hon'bLe Sri Justice P.SAM KOSHY) The instant Writ Petition has been filed bv the petitioner under Articl e 226 of the Constitution of India seeking for the following relief: \"to issue a Wit Order or Direction more pariicularlg one in the nature of Wit of Mandamus decLaring the ord_ei passed. bg the Respondent No 2 in passing the Ordei d.ated. 07.04.2022 u/s 148Ad and Notice issued bg the Respond.ent No 2 under Section 148 of the Incone Tax Act jg61 d_ated 07.04.2022 as illegal arbttrary bad in latu uoid ab initio and. being uiolatiue of the prouisions of Income 1,crx Act 1961 and. Articles 14 1 9 and 265 of the Constitution of India and consequently ii Set aside the Order dated_ 07.04.2022 u/s 148Ad and Notice issued by the Respond,ent No 2 und_er Section 148 of the Income Tax Act l96j dated 07.04.2022 calling for the returlr of income of the petitioner for Ay 2015_ 16 and consequent proceedings a-s lacking in juisd.iction\" - 2. One of the contentions that the petitioner has raised in the present Writ Petition is that under the amended provisions of the Act which carne into effect from Ol.O4.2O2l, the respondents, while proceeding under Section 148 of the Act, were required to issue notice under Section 148A ald provide an opportunity of hearing to the : I I - 2 PSK,J & NTR,J W.P.No.1888 of 2O24 assessee. As per the amended provision of law, the proceedings to be drawn are also in a faceless marner 3. Whereas, learned counsel for the petitioner contended that, in the instant case, reopening has been initiated by the Jurisdictional Assessing Officer. In support of his contention, he relied upon the recent judgment rendered by this very Bench in WP.No.259O3 of 2022 & batch, dated 14 .O9.2023 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 rarsed in the writ petition 5. So far as this contention of the Iearned counsel for the respondent-Department is concerned, this Bench, while disposing of said batch of writ petitions, had taken note of 3 PSK,J AL NTR,J W.P.No.7888 o.f 2024 the same at paragraph Nos.37 & 38 which are reproduced herein under: \"37. The preliminary objection raised bg the petitioner is sustained and oll these urit petitions stands alloued on this uery jurisdictional issue. Since the impugned notices and orders are getting quashed on tle point of juisdiction, u)e ore not inclined to proceed further and decide the other issues roised bg the petitioner uhich stands reserued to be raised and contended in an appropriate p rocee ding s. \" \"38. Since tlrc Hon'ble Supreme Court had, in the case of Ashish Agaruta| supra, as a one-time meosure exercising the pouers under Article 142 of the Constitution of India, permitted the Reuenue to proceed under the substituted prouisions, and this Court allouing the petitions only on the procedural J7aut, the right conferred on the Reuenue uould remoin reserued to proceed further if theg so u.tant from the stage of the order of the Supreme Court in the case of Ashish Aganual, supra.\" 6. In view of the same, we are inclined to a,llow the present writ petition also on similar terms. Accordingly, the present Writ Petition stands ailowed 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. 7. As has been held by this Bench in the aforesaid batch matters, the rights of the parties would stand reserved as is 4 PS.I(,J 6\" M[R,J W.P.No.7888 oJ 2024 envisaged at paragraph Nos.37 & 38 of the said order passed in the batch of writ petitions. No order as to costs. Consequently, miscellar-reous petitions pending, if any, shall stand closed SD/- N. CHANDRA SEKHAR o ASSISTANT REGIS RAR //TRUE COPY// SECTION OFFICER To, '1. The Secretary, Union of lndia, N/inistry of Finance 166- B North Block, New Delhi - 110 00'1 . 2. lncome Tax Officer, Ward 2, Karimnagar Aaykar Bhavan, Near Natraj Theatre, Karimnagar Telangana, 5005001 3. The Principal Commissioner of lncome Tax- ll, lT Towers, Ground Floor, A. G Guards Hyderabad, 500004 4. The National Faceless Assessment Centre, lncome Tax Department Ministry of Finance Govt- of lndia, New Delhi. 5. One CC to SRI P. SOI 1A SHEKAR REDDY, Advocate [OPUC] 6 One CC to SRI GADI PRAVEEN KUt ilAR, Dy. SOLICITOR GENERAL OF rNDrA [OPUC] 7. One CC to M/s SUNDARI R PISUPATI, SC FOR INCOME TAX [OPUC] L Two CD Copies BN GJP * HIGH COURT DATED:2910112024 ORDER WP.No.1888 of 2024 ALLOWING THE WRIT PETITION WITHOUT COSTS o o il t ilAfi i0?{ ,T -k oa--SlrArCH orr'e W -., i', j. . l "