Wp/11759/2024 Of M/S Gb Madhu Constructions v. Assessment Unit, Income Tax Department

HIGHURT FOR THE STATE OF TELANGANAAT HYDERABAD,(Special Original Jurisdiction)TUDAY, THE THIRTIETH DAY OF APRILTWO THOUSAND AND TWENTY FOURlPRESENTTH€JONOURABLE SRI JUSTICE SUJOY PAULANDTHE H)NOURABLE SRI JUSTICE N.TUKARAMJIWRIT PEJ.toN NOS:11729. 11730 AND 11759OF 2024 W.P.No.11729 ot 2024 Between:Mr. Syed Niyaz Ahmed, S/o. Mr. Ahmed Syed, Aged 67 [years, ]Occ.- Retired [State]Rt/o. H.No. 5-6-230, Mahboob Pura. Jagital, KarimnagarS8ffifT."#*ru1;ana. .....PETITIONER AND II 1. Assessment Un,1lncome Tax Department, National e-Assessment Center.New Delhi, Roorh No.- 4O1,2nd Floor, E-Ramp, Jawaharlal Nehru Stadium,New Delhi - 1 10 po3.New Delhi, Roorh No.- 4O1,2nd Floor, E-Ramp, Jawaharlal Nehru Stadium,New Delhi - 1 10 po3. I I2. The lncome TaxlOfficer, Ward - 1. Karimnagar, Income [Tax Office, ][Aayakar]Bhawan, Near Nhtraj Theatre, Karimnagar --5O5 0Ol , Telangana.Bhawan, Near Nhtraj Theatre, Karimnagar --5O5 0Ol , Telangana. I I3. The Principal Chlef Commissioner of lncome Tax, Andhra Pradesh andTelangana. Hyderabad, Room No.- 922,gth Floor, B Block. lT Towers, 10-2-3, A.C. Guards, Hyderabad - 50O 0O4, Telangana.Telangana. Hyderabad, Room No.- 922,gth Floor, B Block. lT Towers, 10-2-3, A.C. Guards, Hyderabad - 50O 0O4, Telangana. I .....RESPONDENTS l 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 of Mandamus or any other appropriate Writ, Order orDirection, declaring the order passed by the 1st Respondent, uls 147 r/w Sec.1448 ot the lncome Tax Act, 1961, dated O5lO3l2O24, bearing DIN and NoticeNo.- lTBtuASTlsl14712023-2411062048269(1), for the Assessment Year 2015 [-]16 as arbitrary, illegai, bad in law, void-ab-initio, violative of the [principles ]of natural justice, apart from being violative of Articles 1 4, 1 9(1 xg) and 26s of theConstitution of lndia ] and Sec 148A of the lncome Tax Act, 1 961 , andconsequently set asidd the same in the interests of justice. !.A.NO:1 OF 2024 Petition Under Section 151 cpc praying that in the circumstances stated inthe affidavit filed in support of the petition, the High court may be pleased to stayall further proceedings, including any recovery, pursuant to the order passed bythe 1st Respondent, u/s 147 rtw Sec. 1448 of the lncome Tax Act, 1961, datedO5.O3.2O24, bearinj DtN and Norice No.- |TBAiAST/S/141t2O23-2411062048269(1), 'lfoithe Assessment [year ]2015 - 16, pending disposat of theabove writ petition. i l lCounsel for the Petitioner : SRI A.V.A.SIVA KARTIKEYA Counsel for the Respdndents : Ms. B.SAPNA REDDY, COUNSELREPRESENTING SRI J.V.PRASAD, SC FOR INCOME TAX DEPARTMENT W.P.I{O:11730 OF 202.4 Between:Ms. Roshini Khanam, D/o. Mr. Jameel Mohammed Khan, Aged 38 years, Occ.House Wife, R/o. 12-4191M112, Hafez Baba Nagar, Hyderabad500 058,Telangana. .....PETITIONER AND 1 . Assessment Unil , lncome Tax Department, National e-Assessment Center.New Delhi, Roorh No. 4O1 ,2nd Floor, E-Ramp, Jawaharlal Nehru Stadium,New Delhi - 110 O03.New Delhi, Roorh No. 4O1 ,2nd Floor, E-Ramp, Jawaharlal Nehru Stadium,New Delhi - 110 O03. 2. The lncome TaxlOfftcer, Ward I9(1), [Hyderabad, ][LT-Towers, ]['10-2-3, ]ACGuards. Hyderabad - 500 004, Telangana.Guards. Hyderabad - 500 004, Telangana. I3. The Principal Chlef Commissionerof lncome Tax, Andhra Pradesh andTelangana. Hyddrabad Room No.922,9th Floor, B Block, LT.Towers, 1O-2-3,AC Guards, Ftydbrabad - 500 004,Telangana.Telangana. Hyddrabad Room No.922,9th Floor, B Block, LT.Towers, 1O-2-3,AC Guards, Ftydbrabad - 500 004,Telangana. .....RESPONDENTS Petition Under Afticle 226 of the Constitution of lndia praying that in thecircumstances statedn the affidavit filed therewith, the High Court may be 2. The lncome TaxlOfftcer, Ward I9(1), [Hyderabad, ][LT-Towers, ]['10-2-3, ]ACGuards. Hyderabad - 500 004, Telangana.Guards. Hyderabad - 500 004, Telangana. I3. The Principal Chlef Commissionerof lncome Tax, Andhra Pradesh andTelangana. Hyddrabad Room No.922,9th Floor, B Block, LT.Towers, 1O-2-3,AC Guards, Ftydbrabad - 500 004,Telangana.Telangana. Hyddrabad Room No.922,9th Floor, B Block, LT.Towers, 1O-2-3,AC Guards, Ftydbrabad - 500 004,Telangana. .....RESPONDENTS Petition Under Afticle 226 of the Constitution of lndia praying that in thecircumstances statedn the affidavit filed therewith, the High Court may be Ipleased to issue a Writ of lrrlandamus or any other appropriate Writ, Order orDirection, declaring ttiat the order passed by the 1st Respondent, uls 147 rlwSec. 144 r/w Sec. 14418of the lncome Tax Act, 1961, dated 1110312024, bearingIDIN and Notice No. ITBA/AST/S/14712O23-24t1062353174(1 ), for the AssessmentYear 2016 - 17, asw, void-ab-initio, violative of theprinciples of naturallative of A(icles 1a, 19(1 )(g) and265 of the Constithe lncome Tax Act, 1961, and toconsequently set aof [justice.] I.A.NO:1 OF 2024 Petition Underection 151 CPC praying that in the circumstances stated inthe affidavit filed in su port of the petition, the High Court may be pleased to stayall further proceedi, [including ]any recovery, [pursuant ]to the order passed bythe 1st Respondent,s 147 w Sec. 144 r/w Sec. 1448 of the lncome Tax ActI1961 , dated 11to3t2d24.bearing DIN and Notice No. ITBA/AST/S/14712O23-2411O623s317 4(1),the Assessment Year 201617, pending disposal of theabove writ petition Counsel for the Petner: SRI A.V.A.SIVA KARTIKEYA Counsel tor tte nesJnaents : SRI VIJHAY K.PUNNA, SC FOR INCOME TAXDEPARTMENT I W.P.NO:11759 OF 2024 Between: Ws GB Madhu Coctions, H.No.14-142, Miial Grlda, Malkalgiri, Hyderabad -50O 047, Telanganaepresented by its Partner, Mr. Gunti Balram, S/o. Mr. GuntiBalachiftiah- .....PETITIONER AND 1. Assessrnent Unlncome Tax Department,, National e-Assessment Center,New Delhi, Roorir No.401, 2nd Floor, E-Ramp, Jawahadal Nehru Stadium,New Delhi - 11O3New Delhi, Roorir No.401, 2nd Floor, E-Ramp, Jawahadal Nehru Stadium,New Delhi - 11O3 2. The lncome Taxfficer Ward 15 1 Hyderabad, lT Towers AC Guards MasabTank HyderaTank Hydera3. The Principalmtssioner Of lncome Tax 4, Hyderabad lT Towers ACGuards, Masab TankHyderabad.Guards, Masab TankHyderabad. .....RESPONDENTS Petition Una.r. Irlicle 226 of the Constitution of lndia praying that in thecircumstances stateo in the affidavit filed therewith, the High Court may beI pleased to issue a Wirit of Mandamus or any other appropriate Writ, Order orDirection, declaring thLorder passed by the 1st Respondent, uls 147 r/w Sec.144 rlw Sec. 1+48 of tLe lncome Tax Act, 196'1 , dated 1111212023, bearing DlN..ITBA/AST/S/147l20232411058623838(1), for the Assessment Year 2018 - 19, asarbitrary, illegal, badn law, void-ab-initio, violative of the principles of naturaljustice apart froming violative of Articles 1a, 19(1Xg) and 265 of theConstitution of lndiaand Sec. 148A of the lncome Tax Act, 1961, andconsequently set asidthe same in the interests of [justice.] |.A.NO:1 OF 2024 Petition Underection 151 CPC praying that in the circumstances stated inIthe affidavit filed in sufport of the petition, the High Court may be pleased to stayIall further proceedingd, including any recovery, pursuant to the notice issued bythe 1st Respondent, Js 147 rlw Sec. 144 r/r,^,,Sec. 1448 ot the lncome Tax Act,'1961, dated 11t12120)3,bearing DlN.. lTBAiASTtsl147t2O23-24/1053623838(1),for the Assessment [yJr ]2018 - 19, pending disposal of the above writ petition. I Counsel for the Petititner : SRI A.V.A.SIVA KARTIKEYA Counsel for the Resndents : SRI VIJHAY K.PUNNA, SC FOR INCOME TAXDEPARTMENT The Court made thelowing COMMON ORDER THE HONOURABLE SRI JUSTICE SUJOY PAULAND THE HONOURABLE SRI JUSTICE N. TUKARAMJI wRrT PEf,ITION ItOs. I 1729 11730 AND LtT59 0F 20.24 |.A.NO:1 OF 2024 Petition Underection 151 CPC praying that in the circumstances stated inIthe affidavit filed in sufport of the petition, the High Court may be pleased to stayIall further proceedingd, including any recovery, pursuant to the notice issued bythe 1st Respondent, Js 147 rlw Sec. 144 r/r,^,,Sec. 1448 ot the lncome Tax Act,'1961, dated 11t12120)3,bearing DlN.. lTBAiASTtsl147t2O23-24/1053623838(1),for the Assessment [yJr ]2018 - 19, pending disposal of the above writ petition. I Counsel for the Petititner : SRI A.V.A.SIVA KARTIKEYA Counsel for the Resndents : SRI VIJHAY K.PUNNA, SC FOR INCOME TAXDEPARTMENT The Court made thelowing COMMON ORDER THE HONOURABLE SRI JUSTICE SUJOY PAULAND THE HONOURABLE SRI JUSTICE N. TUKARAMJI wRrT PEf,ITION ItOs. I 1729 11730 AND LtT59 0F 20.24 COMMON ORDER: @er Hon,ble Justie suhg paut) Sri A.V.A. Siva Kartikeya, leamed counsel for the petitioner(s), Ms. B. Sapna Reddy, learned counsel representingSri J.V. Prasad, learned Standing Counsel for the respondents-Income Tax Department in W.P.Nos.1173O & 11759 of 2024 andSri Vijhay K Punna, learned Senior Standing appears for therespondents-Income Tax Department in W.P.No.Il729 of 2024. Regard being had to the similarity of the questionbeing had to the similarity of the questionhad to the similarity of the questionto the similarity of the questionsimilarity of the questionof the questionthe questionquestion 2.Regard being had to the similarity of the questionbeing had to the similarity of the questionhad to the similarity of the questionto the similarity of the questionsimilarity of the questionof the questionthe questionquestioninvolved, on the joint request of the parties, the matters areanalogously heard and decided by this common order. 3. It is common ground taken by the learned counsel for the petitioner(s) that in furtherance of Financ e Act, 2O2I, re-assessrnent process stood modifted but the respondents have nottaken care of it and therefore notices issued under Section 148of the Income Tax Act, 1961 cannot sustain judicial scrutiny.Since notices are bad in law, the consequential orders are alsobad in law. 4. During the course of hearing, learned counsel for theparties agreed that curtains on this issue are finally drawn by 2 2this Court in a batchof writ petitions, W.P.No.2S903 of 2022and other connected matters, decided by common order dated14.O9.2023. The parties agreed that this matter may be disposedof in terms of the Common Order dated 14.O9.2023. 5. This Court in the said order dated 14.09 .2023 inW.P.No.259O3 of 2022, held as under: "35. ln view of the aforesaid discussions, it is by now very clear thatthe procedure to be followed by the respondent-Department upontreating the notices issued for reassessment being under Section1.8A, the subsequent proceedings was mandatorily required to be1.8A, the subsequent proceedings was mandatorily required to beundertaken under the substituted provisions as laid down under theFinance Act, 2021. ln the absence of which, we are constrained lo holdthat the procedure adopted by the respondentoepartment is inFinance Act, 2021. ln the absence of which, we are constrained lo holdthat the procedure adopted by the respondentoepartment is incontrayention to the statute i.e. the Finance Act, 2021, at the firstinstance. Secondly, it is also in darect contravention to the directivesissued by the Hon'ble Supreme Court in the case of Ashish Agarwal,supra.instance. Secondly, it is also in darect contravention to the directivesissued by the Hon'ble Supreme Court in the case of Ashish Agarwal,supra. 36. For all the aforesaid reasons, the impugned notices issued and theproceedings drawn by the respondent-Oepartment is neither tenable,nor sustainable. The notices so issued and the procedure adoptedbeing p€r se illegal, deserves to be and are accordingly setproceedings drawn by the respondent-Oepartment is neither tenable,nor sustainable. The notices so issued and the procedure adoptedbeing p€r se illegal, deserves to be and are accordingly setaside/quashed. As a consequence, all the impugned orders gettingquashed, the consequenual orders passed by the respondentOepartment puEuant to the notices issued under Section 147 and 149would also get quashed and it is ordered accordingly. The reason weOepartment puEuant to the notices issued under Section 147 and 149would also get quashed and it is ordered accordingly. The reason wearc quashing the consequential order is on the principles that whenthe initiation of the proceedings itself was procedurally wrong, thesubsequent orders also gets nullified automatically.37. The preliminary obiection raised by the petitioner is sustained andsubsequent orders also gets nullified automatically.37. The preliminary obiection raised by the petitioner is sustained andall these writ petitions stands allowed on this very jurasdictional issue.Since the impugned notices and orders are getting quashed on thePoint [of ][jurisdiction, ][we ]are not inclined to [proceed ]further and decidethe other issues raised by the petitioner which stands reserved to beraised and contended in an appropriate proceedings.Point [of ][jurisdiction, ][we ]are not inclined to [proceed ]further and decidethe other issues raised by the petitioner which stands reserved to beraised and contended in an appropriate proceedings. 38. Since the Hon'ble Supreme Court had, in the case ot AshishAgarwal, supra, as a one-time measure exercising the po!,\/ers under Articte 142 of the Constkution of lndia, permitted the Revenue toproced under the substituted provisions, and this Court allowing thepetitions only on the procedural flaw, th€ right conferred on theRevenue would remain nesewed to proceed further if they so wantfrom the stage of the order of the Supreme Court in the case of AshishAgarwal, supra.39. No order as to costs." 6. In view of the consensus arrived, the impugned ShowCause notices and consequential orders passed in this batch ofwrit petitions are set aside. Liberty is reserved to both the partiesto take respective stand and to proceed in accordance with lawas per paragraph No.38 of the order dated 14.09.2023 inW.P.No.259O3 of 2022. 7. The writ petitions are a-llowed. No costs. Interlocutoryapplications, if any pending, shall also stand closed. SD/. P. PADMANABHAREDDYASSISTANT REGIETRARNSECTION OFFICER //TRUE COPY// To 1. The Assessment Unit, lncome Tax Department,, National e-AssessmentCenter, New Delhi, Room No.. 401, 2nd Floor, E-Ramp, Jawaharlal NehruStadium, New Delhi - 110 003.Center, New Delhi, Room No.. 401, 2nd Floor, E-Ramp, Jawaharlal NehruStadium, New Delhi - 110 003. 2. The lncome TaxjGfioer Ward 15 1 Hyderabad, lT Towers AC Guards MasabTank Hyderabad.Tank Hyderabad. 3. The Principal Commissioner Of lncorne Tax 4, Hyderabad lT Towers ACGuards, Masab Tank Hyderabad.Guards, Masab Tank Hyderabad. 4. The lncome TaxlOfficer, Ward 15(1), Hyderabad, IT Towers, AC Guards,Masab Tank, Hyderabad - 5O0 004, Telangana.Masab Tank, Hyderabad - 5O0 004, Telangana. 5. The Principal Cornmissioner of lncome Tax - 4, Hyderabad, lT Towers, ACGuards, Masab Tank, Hyderabad - 5O0 004, Telangana.Guards, Masab Tank, Hyderabad - 5O0 004, Telangana. 6. One CC to Sri A,;V.A.Siva Kartikeya, Advocate IOPUC] 7. One CC to SRI VIJHAY K.PUNNA, SC rcR INCOME TAX DEPART]VIENT[oPUCl ][oPUCl ] 8. One CC to SRI J.V.PRASAD, ]SC FOR INCOME TAX DEPARTMENT (oPrrc) 9. Two CD Copies SAKKS fr\& HIGH COURT DATED:30/04/ 024 Ij COMMON OR ER 11WP.Nos.11729l11730AND 11759 oI2024 ALLOWING THE WRIT PETITIONS WITHOUT COSTS. \",'I,nS-\7 A t;.1s'!0.ot\\\\JtEt'...