Wp/12901/2024 Of Sri. Mandadi Raveendar Reddy v. Assistant Commissioner Of Income Tax

HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD(Special Original Jurisdiction) FRIDAY,THE THIRD DAY OF MAYTWO THOUSAND AND TWENTY FOUR PRESENT THE HONOURABLE SRI JUSTICE SUJOY PAULANDTHE HONOURABLE SRI JUSTICE N.TUKARAMJI WRIT PETITION NO: 12891 & 12901 OF 2024 WRIT PETITION NO: 12891 OF 2024 Between Smt. YARAIVADA YAMINI REDDY, D/o Ranga Reddy, Aged about 47 years,Occ. House wife, Plot NO. 10 11, Apuroopa Pragathi Nagar, Nizampet,Qutbullapur, Hyderabad - 500090, Telangana State. PAN No ...PETITIONER AND 'l . Assistant Commissioner of lncome Tax, Circle 1 1(1), Signature Towers,Sy.No.6(P) of Kondapur, Sy.37(P) of Kothaguda Opp. Botanical Gardens,Serlingampally (M),R.R.District, HYDERABAD, Telangana, 500084.Sy.No.6(P) of Kondapur, Sy.37(P) of Kothaguda Opp. Botanical Gardens,Serlingampally (M),R.R.District, HYDERABAD, Telangana, 500084. 2. Principal Chief Commissioner of lncome Tax, lncome Tax Towers, ACGuards,Masab Tank, Hyderabad-500004.Guards,Masab Tank, Hyderabad-500004. 3. The Assessment Unit, ERamp Jawaharlal Nehru Stadium deli 4. The Assessment Unit, lncome Tax Department National FacelessAssessment Centre Room No 401, 2nd Floor ERamp Jawaharlal NehruStadium Delhi 1'10003Assessment Centre Room No 401, 2nd Floor ERamp Jawaharlal NehruStadium Delhi 1'10003 5. The Assessment Unit, lncome Tax Department National FacelessAssessment Centre Room No 401, 2nd Floor ERamp Jawaharlal NehruStadium Delhi 110003.Assessment Centre Room No 401, 2nd Floor ERamp Jawaharlal NehruStadium Delhi 110003. ...RESPONDENTS Petition under Article 226 of the Constitution of lndia [praying ]that in thecircumstances stated [, ]in the affidavit filed therewith, the [High ]Court may bepleased to issue a writ, order or direction, more particularly one in the nature ofWrit of tvlandamus, declaring the rmpugned Order dt.28.'l [1.2023 passed ]uls 147R/w Section 1448 of the lncome Tax Act ['videDlN ]No. ITBA/ASTISI147I2O13- 2411058262077(1), by the 3rd respondent for A.Y. 2O15-16, [pursuant ]to the [order]u/s 148 A(d) dt. 03.04.2022 and notice issued u/s 148 dt.04.0.+.2022 [by the ] instead of FAO, as void, illegal, and contrary to the Provisions of lncome-tax [Act]and contrary to the Principles of Natural Justice. lA NO: 1 OF 2024 Petition under Section 151 CPC praying that in the circutrstances stated [in]the affidavit filed in support of the [petition, ]the High Court [may ][be ][pleased ][to ][stay]all the further proceedings initiated by the 3rdRespondent against the Petitioner,pursuant to the impugned order passed under section 147 Rlt,t Section 1448 ofthe Act, vide DIN and order no. |TBAiASTlsl147l2023-241105t262077 [(1), ]dated28 .11.2023 for the Assessment Year 2015-16 in PAN [till ]the [final]disposal of this writ petition. Counsel for the Petitioner : SRl. VENKATRAM REDDY MANTIJR Counsel for the Respondents: Ms J SUNITHA JUNIOR COUNSiEL REP.Ms. SUNDARI R PISUPATI,SENIOR SC FOR INCOME TAX DEPT WRIT PETITION NO: 12901 OF 2024 Between Sri. Mandadi Raveendar Reddy, S/o Malla Reddy, Aged about 64 [years,]Occ: Business, 44, Suryadaya Colony, L.B. Nagar, HyJerabad- 500074,Telangana State. PAN No. AKAPIT/202'1K ...PETITIONER AND 1. Assistant Commissioner of lncome Tax, Circle 9(1), Hydelabad, lncome TaxTowers, AC Guards, IVasab Tank, Hyderabad-500004.Towers, AC Guards, IVasab Tank, Hyderabad-500004. 2. Principal Chief Commissioner of lncome Tax lncome Tax Towers,, ACGuards,Masab Tank, Hyderabad-500004.Guards,Masab Tank, Hyderabad-500004. 3. The Assessment Unit, lncome Tax Department lrlational FacelessAssessment Centre Room No 401, 2nd Floor ERamp Jawaharlal NehruStadium Delhi 110003.Assessment Centre Room No 401, 2nd Floor ERamp Jawaharlal NehruStadium Delhi 110003. .,RESPONDENTS Between Sri. Mandadi Raveendar Reddy, S/o Malla Reddy, Aged about 64 [years,]Occ: Business, 44, Suryadaya Colony, L.B. Nagar, HyJerabad- 500074,Telangana State. PAN No. AKAPIT/202'1K ...PETITIONER AND 1. Assistant Commissioner of lncome Tax, Circle 9(1), Hydelabad, lncome TaxTowers, AC Guards, IVasab Tank, Hyderabad-500004.Towers, AC Guards, IVasab Tank, Hyderabad-500004. 2. Principal Chief Commissioner of lncome Tax lncome Tax Towers,, ACGuards,Masab Tank, Hyderabad-500004.Guards,Masab Tank, Hyderabad-500004. 3. The Assessment Unit, lncome Tax Department lrlational FacelessAssessment Centre Room No 401, 2nd Floor ERamp Jawaharlal NehruStadium Delhi 110003.Assessment Centre Room No 401, 2nd Floor ERamp Jawaharlal NehruStadium Delhi 110003. .,RESPONDENTS Petition under Article 226 of rhe constitution of lndia praying that in thecircumstances stated in the affidavit filed therewith, the High court may bepleased to issue a writ, order or direction, more particularly one in the nature ofwrit of Mandamus, declaring the impugned order dt.29.0'l .2024 passed uls 147R/w Section 1448 of the lncome Tax Act vide DtN No. |IBA/ASTts/14il2o23-writ of Mandamus, declaring the impugned order dt.29.0'l .2024 passed uls 147R/w Section 1448 of the lncome Tax Act vide DtN No. |IBA/ASTts/14il2o23-2411060208061 (t), by the 3rd respondent for A.y. 2016-17, pursuant to the orderu/s 148 A(d) dt. 21.03.2023 andnotice issued u/s i48 dt.24.03.2023 by the JAoinstead of FAo, as void, illegal, and contrary to the provisions of lncome-tax Actu/s 148 A(d) dt. 21.03.2023 andnotice issued u/s i48 dt.24.03.2023 by the JAoinstead of FAo, as void, illegal, and contrary to the provisions of lncome-tax Actand contrary to the Principles of Natural Justice. lA 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 the further proceedings initiated by the 3rdRespondent against the petitioner,pursuant to the impugned order passed under section 147 Rlw section 1448 ofthe affidavit filed in support of the petition, the High court may be pleased to stayall the further proceedings initiated by the 3rdRespondent against the petitioner,pursuant to the impugned order passed under section 147 Rlw section 1448 ofthe Act, vide DIN and order no. lrBAlASTtstl4Tt2oz3-24/106020806i (1), dated29.01 .2024 for the Assessment Year 20i6-12 in pAN AKAP^/2021K till the finaldisposal of this writ petition.disposal of this writ petition. Counsel for the Petitioner : SRl. VENKATRAM REDDy MANTUR Counsel forthe Respondents: Ms .B SAPNA REDDY REp. RI J V PRASAD, SC FOR INCOME TAX The Court made the following: COMMON ORDER THE HONOURABLE SRI JUSTICE SUJOY PAULANDTHE HONOURABLE SRI JUSTICE N. TUKITRAMJIlIIRIT PETITION NOs.1289I- & L29OL OF i:O24 COMMON ORDER: (per Hon'ble Justice Sujog Paut) Sri Venkatram Reddy Mantur, learned colrnsel appearsfor the petitioner(s), Ms. J. Sunitha, Iearned Junior StandingCounsel represents Ms.Sundari R.Pisupati, leiuned SeniorStanding Counsel for the respondents-Income Ta: Departmentin W.P.No.l2B9l of 2024 and Ms. B. Sapna Re,ddy, learnedcounsel represents Sri J.V. Prasad, learned Standing Counsel forthe respondents-lncome Tax Department in W.P.No.72901 of2024, Regard being had to the similarity had to the similarity to the similarity similarity of [['_he ]]question 2Regard being had to the similarity had to the similarity to the similarity similarity of [['_he ]]questioninvolved, on the joint request of the parties, the matters areanalogously heard and decided by this common ordr:r. COMMON ORDER: (per Hon'ble Justice Sujog Paut) Sri Venkatram Reddy Mantur, learned colrnsel appearsfor the petitioner(s), Ms. J. Sunitha, Iearned Junior StandingCounsel represents Ms.Sundari R.Pisupati, leiuned SeniorStanding Counsel for the respondents-Income Ta: Departmentin W.P.No.l2B9l of 2024 and Ms. B. Sapna Re,ddy, learnedcounsel represents Sri J.V. Prasad, learned Standing Counsel forthe respondents-lncome Tax Department in W.P.No.72901 of2024, Regard being had to the similarity had to the similarity to the similarity similarity of [['_he ]]question 2Regard being had to the similarity had to the similarity to the similarity similarity of [['_he ]]questioninvolved, on the joint request of the parties, the matters areanalogously heard and decided by this common ordr:r. 3. It is common is common common ground taken by the learnecl by the learnecl the learnecl learnecl coun sel forsel forforthe petitioner(s) that in furtherance of Finance Ar:t, 2021, reassessment process stood modified but the respondr:nts have nottaken care of it and therefore notices issued under Section 148of the Income Tax Act, 196 1 cannot sustain judic ial scrutiny.Since notices are bad in law, the consequential orclers are alsobad in law. It is common is common common ground taken by the learnecl by the learnecl the learnecl learnecl coun sel forsel forfor During the course of hearing, learned counsel for the 4 parties agreed that curtains on this issue are finally drau.,n bvthis Court in a batch of writ petitions, W.P.No.259O3 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 14.09.2023. 5This Court in the said order dated 14.09.2023 inW.P.No.25903 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 Section148A, 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 to holdthat the procedure adopted by the respondent-Department is incontravention to the statute i.e. the Finance Act,2021, at the firstinstance. 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 theproceedings drawn by the respondent-Department is neither tenable,nor sustainable. The notices so issued and the procedure adoptedbeing per se illegal, deserves to be and are accordingly setaside/quashed. As a consequence, all the impugned orders [getting]quashed, the consequential orders passed by the respondentDepartment pursuant to the notices issued under Section 147 and 148would also get quashed and it is ordered accordingly. The reason weare quashing the consequer*ial order is on the principles that whenthe initiation of the proceedings itself was procedurally wrong, thesubsequent orders also [gets ]nullified automatically.37. The preliminary objection raised by the petitioner is [sustained ][and]all 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 [be]raised and contended in an appropriate [proceedings.]38. Since the Hon'ble Supreme Cou( [had, ][in ][the ][case ][of ][Ashish]Agarwal, supra, as a one-time [measure ][exercising ][the ][powers ][under]Article 142 of the Constitution of lndia, [permitted ][the ][Revenue ][to]proceed under the substituted provisions, and this Court allowing [the]petitions only on the procedural flaw, the right conf(lrred [on ][the]Revenue would remain reserved to [proceed ][further ][if ][they ][so ][want]from the stage of the order of the [Supreme Court in the ][c.rse ][of Ashish]Agarwal, supra. 39. No order as to costs." In vien, of the consensus arrived, the impugned [Show] 6 Cause notices and consequential orders [passed ][in ][this ][batch ][of]writ petitions are set aside. Liberty is reserved to both [the parties]to take respective stand and to [proceed ]in [accordance \4'ith ][lal\r]as per paragraph No.3B of the order dated [14.09.2023 ][io]W.P.No.259O3 of 2022 The n,rit petitions are allowed. No cos-:s. Interlocutory 7 applications, if any pending, shall also stand [closred.] SD/- MOHD. ASSISTANT eDSECTION //TRUE To, ^ .- - joner of lncome Tax, circle 1 [1 ][(1 ]). [Signature ]G [Towers,]a rd [e ][n ][s]' t;llT&.' i f [[:'Jil:i ][t ]v : ii (:-i:'-"f 'll; +:*l'; ?J3[ff I serlinoampallv 0"rl,n1E]oiti""i'ivbEnnsnD] [Telanqana' ][500084']' t;llT&.' i f [[:'Jil:i ][t ]v : ii (:-i:'-"f 'll; +:*l'; ?J3[ff I serlinoampallv 0"rl,n1E]oiti""i'ivbEnnsnD] [Telanqana' ][500084']2. The [Princip'r ][cniettoi'ilttion"'of ][lncome ][i'i' ][into'nt ][Tax ][Towers ] ' Cr"tO.'ft'f Tank' [Hyderabad-500004 ]' ''sab ' Cr"tO.'ft'f Tank' [Hyderabad-500004 ]' ''sab 3. The [Assessment ][unit, ][En,.pl,*,r,arlal ][Nehru Stadium deli]ru* Deoartment [National ][Faceless]ru* Deoartment [National ][Faceless]4. The [Assessment ]["I;u'""i;;" ]'rtr"" ["+or ]Jawaharlal Nehruino rroor ERamp ino rroor ERamp ' Assessment [c"nu" ][Ho'o* ]. ?lT''Lo.""l:IJ:itt'"-' [lngom.e^- ][rax- ][Deoartment ][Nationar ][Faceress]Assessment [c"nt'"toirn"rtr"t"+ilt' ][zno ][FrJoi ][ERamp ][Jawaharlal ][Nehru]r u R' [Ad ][vo ][r; ][ate ][ro ] [u ][cl]Assessment [c"nt'"toirn"rtr"t"+ilt' ][zno ][FrJoi ][ERamp ][Jawaharlal ][Nehru]r u R' [Ad ][vo ][r; ][ate ][ro ] [u ][cl]. 3T:'33 [P"" ][! [l ][] ][$Pt-t*r ] [qR ][E^?: ]Y-YAN 7. one [cc ][to ][Ms. ][;iffi!,H''h''ffipnri ][ser'rron ][rlc ][ror ][lncome ][rax]DePt IOPUCI[ ][ ][[TAX DE:PARTIIENT' ]]7. one [cc ][to ][Ms. ][;iffi!,H''h''ffipnri ][ser'rron ][rlc ][ror ][lncome ][rax]DePt IOPUCI[ ][ ][[TAX DE:PARTIIENT' ]] DePt IOPUCI8. One [to ] [PRASAD' ] [ ][ ][[TAX DE:PARTIIENT' ]]9. Two [CoPies]9. Two [CoPies] HIGH COURT DATED:0 310512024 ORDER WP.No.12891 & 12901 ot 2024 ALLOWING THE WRIT PETITION'SWITHOUT COSTS G\yA, .rHE srAIec5v3 2l JUN 2o2lzaLItoSspatcrr go