Wp/12342/2024 Of Mullaguri Ranga Jyothi v. Income Tax Officer

HIGH COURT FOR THE STA(bpeclal Original A.T-H YDERA Jurisdiction)Ji DOF TELA NGANA[ [3403 ]] iiYS??:IiJii.,.^.,?S|,?,.,f I".I.TA" PRESENT THE HONOURABLE SRI JUSTICE SUJOY PAULrHE HoNouRA".. "A,*r?ar,"E [N.T,KARAMJT]WRITPETITtoNNOS:12342& 125620F2024 W.P .NO:12342oF2024 Between: ffi [{,ji:*:j#?t6..#ii,;s3t3At.4p.g,?,ix,"xtJf; Pvtios*o"ijugar, o*D "'PETlrloNER 1. Income Tax officer , , -, .|31[lvaerrouo a#T$ou(')' [Hvderabad' ] [Tower, ] [cuards, ]rvrasab; ?ri[rT;:?rti,Ffi,:frttri#,;jp1,*,fri,,H#,,: Assessment Centre IHamp, Jawaharlal Ne.; ?ri[rT;:?rti,Ffi,:frttri#,;jp1,*,fri,,H#,,: Assessment Centre IHamp, Jawaharlal Ne. ...RESPONDENTS Petition under Arttcle 226 of the Constitution of tndia praying that in thecircumstances stated in the affidavit filed therewith, the High Court may bepleased to issue an appropriate wnt order or direction more partrcularly one in thenature of writ of rvrandamus. decraring the Assessment order dt. 26t03/2024passed by the 3rd respondent u/s 147 r.w.s 144/1448 of the rncome{ax Act forA'y 2015-16 vide DrN No. rrBA,rAST/s r147 12023-24/1063395044( 1), which ispassed as a consequence of the order passed u/s 148A(d) dt.27 /o4r2022 vide DtNNo. ITBA/AST/F/148 N2022_23t 1042868835(1) and the notice u/s 148dt.2710412022 vide DtN No |TBA/AST/S t14B 1 t2o22_23t 1042869464(11 , issued bythe JAO(1st respondent) instead of FAO(3rd respondent), as void, i{tegat, andcontrary to the provisions of rncome-tax Act and contrary to the principres ofNatural Justice, apart from being barred by limitation. (:-/ lA NO: [2024] Petition [under Section ][151 ][CPC praying ][that in ][the circumstances stated ][in]the affidavit [fired ][in ][support of ][the ][petition, the High ][court ][may ][be ][pleased ][to ][stay]all further [proceedings pursuant ][to the ][Assessment ][Order ][Ct. ][26103/2024 passed]by the [3rd respondent u/s ][147 ][r'w ][s ][144!144}of ][the lncome-tax Act for ] [Y. ][2015-]16 vide [No. ] [114712O23-24t1O63395044(1)' ][and may pass ][such]other orde(s) [as ][the ][Honourable ][Court deems ][fit ][and ][proper ][in the ][lnterests ][of]substantial [justice, ][as otherwise the Petitioner would be put to irreparable loss ][and]severe [iniury.] Counsel [for the Petitroner: ] 'counsel [for the ][Responu"'il'J*I'vTliHai ][i ][puurun' sENloR ][sc ][FoR ][lrD] W.P.NO: [12562 OF 2024] Between: Samoath [Kumar Siflpurapu' ][S/o' ][Raghavarah' ][Aged about ][65 ][years' ][Occ:]*H rl" [o ][i ][ib ]["r#nt< ][cotoni ][Khammanr ][- ][s0/002]ffii#;; ...PETITIONER AND '1 ' The lncome Tax Officer, Ward-l, Khammam' Thealre [lnconre Tax ]Khammam'50/001[Offlce ][Raleev]cr"ni. arrl, Chowk, Near'Kinnerasanl cr"ni. arrl, Chowk, Near'Kinnerasanl , ' Yri".'ni-,Xlilr'i cti*r c"ilriliiJn"i [oi ][rn"orn" ][iax ][AP and ] [1oth ][Floor' ] Bi;;i ii"T"*"ti. lo-z-: AC Guards, Hvderabad:00004Bi;;i ii"T"*"ti. lo-z-: AC Guards, Hvderabad:00004' : nsieiimtnt iie Asiessment c"ntre, [nit, o"rni [lncome Tax Departrirent l"latronal Faceless]rrr,nisiry or'r'nantt Roonr No 401 2nd Floor' E-Ramp,JawaharlalNehrustadium [Delhr'110003 ]...RES'ONDENTSRamp,JawaharlalNehrustadium [Delhr'110003 ]...RES'ONDENTS PetitionunderArticle226oftheConstitutionoflndiaprayingthatinthecircumstances stated in the [affidavit ][filed ][therewith, ][the ][High ][court ][may ][be]pleased to issue an appropriate writ order or direction [more particularly one ][in ][the]nature of Writ of Mandamus, [declarinq ][the ][Assessment ][Order ][dt']11.01.2024passed by the 3rdrespondent uls [147 ][tw.s144l144B ][of ][the ][Income-tax]Act for A.Y. 2016-17 vide DIN No [ITBA,/ ] [114712023-]2411059630069(1),which is passed as a consequence [of ][the ][order ][passed ][u/s]14sA(d) dt 24 03 2023 vide DIN No ITBNAST|FI148N2022-2311051209402(1)and the norice u/s 148 dt.28.03 2023 vide DIN No rrBA ,ASTTS /148 112022- PetitionunderArticle226oftheConstitutionoflndiaprayingthatinthecircumstances stated in the [affidavit ][filed ][therewith, ][the ][High ][court ][may ][be]pleased to issue an appropriate writ order or direction [more particularly one ][in ][the]nature of Writ of Mandamus, [declarinq ][the ][Assessment ][Order ][dt']11.01.2024passed by the 3rdrespondent uls [147 ][tw.s144l144B ][of ][the ][Income-tax]Act for A.Y. 2016-17 vide DIN No [ITBA,/ ] [114712023-]2411059630069(1),which is passed as a consequence [of ][the ][order ][passed ][u/s]14sA(d) dt 24 03 2023 vide DIN No ITBNAST|FI148N2022-2311051209402(1)and the norice u/s 148 dt.28.03 2023 vide DIN No rrBA ,ASTTS /148 112022- 2311051445148(1), issued by the JAo(1st respondent) instead of FAO(3rdrespondent), that too contrary to the provrsrons of sec. 14g of the Act. as void.illegal, and contrary to the princtples of Natural Justice, apart from being barred bylimitation.Natural Justice, apart from being barred bylimitation. lA NO: 1 OF 2024 Petition under section rsl 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 pursuant to the Assessment Order dt. 11.01.2024 passedby the 3rd respondent uts r4l ( w s144t1448 of the rncome{ax Act for A y. 2016-the affidavit filed in support of the petition, the High Court may be pleased to stayall further proceedings pursuant to the Assessment Order dt. 11.01.2024 passedby the 3rd respondent uts r4l ( w s144t1448 of the rncome{ax Act for A y. 2016-17 vide DIN No. ITBA,/AST t5fi47 t2023-24/1059630069(1). Counsel for the Petitioner: SRt DUNDU MANMOHANCounsel for the Respondents: M/s. B.SAPNA REDDY FOR SRI J.V.PRASAD,SC FOR INCOME TAX The Court made the following: COMMON ORDER THE HONOURABLE SRI JUSTICE SUJOY PAULAND THE HONOURABLE SRT JUSTICE N. TUKARAMJI WRIT PETITIONNOs.12342 & 12562 0F 2024 COMMON ORDER: (per Hon'bte Justice Sujog paut) Sri Dundu Manmohan, learned counsel appears for thepetitioner(s), Sri Vij hay K punna, learned Senior StandingCounsel appears for the respondent(s)-Income Tax Departmentin W.P.No. 12342 of 2024 and Ms. B. Sapna Reddy, learnedcounsel representing Sri J.V. prasad, learned Standing Counselfor the respondent(s)-lncome Tax Department in W.p.No.12562of 2024. 2. Regard being had to the similarity of the questioninvolved, on the joint request o_f the parties, the matters areanalogously heard and decided b;, this common order. 3. It is common ground taken by the learned counsel forthe petitioner(s) that in furtherance of Financ e Act, 2021, re-assessment process stood modified but the respondents have nottaken care of it and therefore notices issued under Section 14gof the Income Tax Act, 196 I 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 ][the]parties agreed that curtains on this issue are finally [drawn ][by]this Court in a batch of writ petitions, [W.P.No.25903 ][of ][2022]and other connected matters, decided by [common ][order ][dated]14.O9.2023. The parties agreed that this matter [may ][be ][disposed]of in terms of the Common Order dated 14.09.2023' 5This Court in the said order dated 14.09-2023 [in]W.P.No.25903 of 2022, held as under: 4. During the course of hearing, learned [counsel ][for ][the]parties agreed that curtains on this issue are finally [drawn ][by]this Court in a batch of writ petitions, [W.P.No.25903 ][of ][2022]and other connected matters, decided by [common ][order ][dated]14.O9.2023. The parties agreed that this matter [may ][be ][disposed]of in terms of the Common Order dated 14.09.2023' 5This Court in the said order dated 14.09-2023 [in]W.P.No.25903 of 2022, held as under: "35. ln view of the aforesaid discussions, it [is by ][now ][Yery ][clear that]the procedure to be followed by the respondent-Department [upon]treating the notices issued for reassessment being under [Section]'rrl8A, the subsequent proceedings was mandatorily required to beundertaken under the substituted provisions as laid down under [the]Finance Act, 2021. ln the absence of which, we are constrained to [hold]that the procedure adopted by the respondent-Department is [in]contravention to the statute i.e. the Finance Acl, 2021, at the [first]inslance. Secondly, it is also in direct 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 ][the]proceedings drawn by the respondent-Department is neithel tenable,nor suslainable. The notices so issued and lhe procedure adoptedbeing per se illegal, deserves to be and are accordingly [set]aside/quashed. As a consequence, all the impugned orders [getting]quashed, the consequential orders passed by the respondentDepartment pursuant to the notices issued under Section 14/ and 148would also get quashed and it is ordered accordingly. The reason weare quashing the consequential order is on the principles lhat [when]the initiation of the proceedings itself was procedurally wrong, thesubsequent orders also gets nullified automatically.37. The preliminary objection raised by the petitioner is sustained andall these writ [petitions ]stands allowed on this very jurisdictional issue.Since the impugned notices and orders are getting quashed on thepoint of jurisdiction, we are not inclined to proceed further and decide the 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 of AshishAgarwal, supra, as a one-time measure exercising the powers underArticle 142 of the Constitution of lndia, permitted the Revenue toproceed under the substituted provisions, and this Court allowing thepetitions only on the procedural flaw, the right conferred on theRevenue would remain reserved to proceed further if they so wantfrom the stage of the order of the Supreme Court in the case of AshishAganaral, 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.3B of the order dated 14.09.2023 inW.P.No.259O3 of 2O22. 7. The writ petitions are allou,ed. No costs. Interlocutoryapplications, if any pending, shall also stand closed SD/-P. CH. NAGABHUSHAMBAASSISTANREGISTRARSECN OFFICER //TRUE COPY// To 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.3B of the order dated 14.09.2023 inW.P.No.259O3 of 2O22. 7. The writ petitions are allou,ed. No costs. Interlocutoryapplications, if any pending, shall also stand closed SD/-P. CH. NAGABHUSHAMBAASSISTANREGISTRARSECN OFFICER //TRUE COPY// To 1The lncome Tax Officer, Ward-'1, Khammam. lncome Tax Office, RajeevGunt, Rajiv Chowk, Near Kinnerasani Theatre. Khammam-507001.Gunt, Rajiv Chowk, Near Kinnerasani Theatre. Khammam-507001.2Income Tax Officer, Ward 6(1). Hyderabad. I T Tower, AC Guards, MasabTank, Hyderabad - 500004.Tank, Hyderabad - 500004.3The Principal Chief Commissioner of lncome Tax AP and TS, 1Oth Floor, C-Block, l.T. Towers, 10-2-3, A.C. Guards. Hyderabad-500004.Block, l.T. Towers, 10-2-3, A.C. Guards. Hyderabad-500004.4The Assessment Unit, Income Tax Department, National FacelessAssessment Cenke, Delhi, Ministry of Finance. Room No. 401,2nd Floor, E-Assessment Cenke, Delhi, Ministry of Finance. Room No. 401,2nd Floor, E-Ramp, Jawaharlal Nehru Stadium, Delhi,l 10003tOne CC to SRI DUNDU IVIANMOHAN, Advocate IOPUC]6One CC to SRI J.V.PRASAD, SC FOR ITD 7One CC to SRI VIJHAY K PUNNA, SENIOR SC FOR ITD IOPUC]8Two CD CopiesPSK.I,S(rtOne CC to SRI DUNDU IVIANMOHAN, Advocate IOPUC]6One CC to SRI J.V.PRASAD, SC FOR ITD 7One CC to SRI VIJHAY K PUNNA, SENIOR SC FOR ITD IOPUC]8Two CD CopiesPSK.I,S(r (r HIGH COURT DATED:0210512024 COMMON ORDER 1[uE ] [r][ (']WP.Nos.12342 & 12562 of 2024Y(,tIJ()1 3 0E[ [2li2{]cl'+oa, ALLOWING THE WRIT PETITIONSWITHOUT COSTS..tYAl1-)ur'l\ b Co.(^!)'