Wp/1404/2023 Of Smt. Padma Naga Malleswari Mavuleti v. The Principal Commissioner Of Income Tax-6

HIGH COURT FOR THE STATE OF TELANGANAAT HYDERABAD(Special Original Jurisdiction) THURSDAY,THE NINETEENTH DAY OF JANUARYTWO THOUSAND AND TWENTY THREE PRESENT THE HONOURABLE THE CHIEF JUSTICE UJJAL BHUYANANDTHE HONOURABLE SRI JUSTICE N.TUKARAMJIANDTHE HONOURABLE SRI JUSTICE N.TUKARAMJI WRIT PETITION NO: 1404 0F 2023 Between smt. Padma Naga Mafleswari Ma-vureti, wo.rate fiilavureti r\,4adhusudhanaRaju. Aged 72.y^e-ars Occ. Housewife, nyo Unit-[i+. o;d;;;, Naandi Rurbanli.ominyn_e, [148 ][and ][149. Aziz_Nagar panchay"i ]i,iJ Viilrg", Vf lVandal. Ranga Reddy District -50002"5"iriOrJ 1. The Principal Commissioner ot ln#rD" Tax-6, lT Towers, AC 2. The Additionar/JoinvDeputy/Assistant Tank, Hyderabad-500004.The Additionar/JoinvDeputy/Assistant Tank, Hyderabad-500004."r::#::-2. The Additionar/JoinvDeputy/Assistant Tank, Hyderabad-500004.The Additionar/JoinvDeputy/Assistant Tank, Hyderabad-500004."r::#::- "r::#::-2. The Additionar/JoinvDeputy/Assistant Tank, Hyderabad-500004.The Additionar/JoinvDeputy/Assistant Tank, Hyderabad-500004.commissioner of rncome Tax/ rncome 3 - - The Additional/ Joinu [[Tax Officer, National ]][[Fdcel'ess ]][[Assessmeni ]][[C"nii". ][b"f ][ni]] 3 - - The Additional/ Joinu [[Tax Officer, National ]][[Fdcel'ess ]]commissioner [[Assessmeni ]]or tncome tncome ia-i, irlnge [[C"nii". ][b"f ][ni]]ia-i, irlnge [[-"']][[b"f ][ni]]irlnge [[ni]]-r o, rr rowers,o, rr rowers,rr rowers,rowers, The Additional/ Joinu commissioner or tncome tncome ia-i, irlnge -r o, rr rowers,o, rr rowers,rr rowers,rowers,. [AC Guards, Masab ][Tank. ][Hyderabad_500b04. ][[-"']]4. The Income Tax Officer, Wid_10(1), lT Towers, AC Guards, Masab Tank,Hyderabad-500004.Hyderabad-500004. ...RESPONDENTS Petition under Articre 226 of the constitution of rndia praying that in thecircumstances stated in the affidavit fired therewith, the High court may bepleased to issue a writ, order or direction, more particurarry one in the nature ofwrit of Mandamus decraring the impugned Scrutiny Assessment order datedwrit of Mandamus decraring the impugned Scrutiny Assessment order dated28'12.2022 in the case of petitioner for the Assessment year 2021-22 in DrN :ITBA/AST/S/143(3)/2022-23t1O483099Sj(1) passed by the 2ndITBA/AST/S/143(3)/2022-23t1O483099Sj(1) passed by the 2ndrespondenUNational Faceless Assessment Centre (known as ,NAFA,) asarbitrary, illegal and unsustainabre in raw as it is without pecuniary jurisdictionand against the basic principles of taxation, besides being in violation ofand against the basic principles of taxation, besides being in violation ofprinciples of natural justice, and consequen y quash the same as unsustainablein law and further grant stay of recovery of the demand of over Rs.1.47 croreraised in the impugned assessment order and all penalty proceedingsin law and further grant stay of recovery of the demand of over Rs.1.47 croreraised in the impugned assessment order and all penalty proceedings lA NO: 1 OF 202 Petition un ler Section 151 CPC praying that in the circumstances statedin the affidavrt fih rd in support oi the petition, the High Cour_ nray be pleased toStay all further pr oceedings including the recovery and penalty proceedings forthe Assessmenl''ear 2021-22 in consequences of the order daled.28.1Z.ZO22 inDIN -ITBAiAST Si143 (3)12022-2311048309981(1) passed by the 2ndrespond ent/Natio ral Faceless Assessment Centre (known as'NAFA') Counsel for the F etitioner: SRl. C. P. RAMASWAMICounsel for the F espondents: SRl. J .V. PRASAD (SC FOR INCOME TAX)The Court made I he following: ORDER THE HON'BLE THE CHIEF JUSTICE UJJAL BHUYANAND THE HOl\J',BLp QEI JUETI9E Ir.ltUKABAIvIdI WRIT PETITION No.14O4 of 2023 ORDER: (Per the Hon'bte the Chief Justice lJjjal Bhugon) Heard Mr. C.P.Ramaswami, learned counsel for thepetitioner ancl Mr. J.V.Prasad, learned Stalding Counsel,Irrcome Tax [)epartment for the respondents. Counsel for the F etitioner: SRl. C. P. RAMASWAMICounsel for the F espondents: SRl. J .V. PRASAD (SC FOR INCOME TAX)The Court made I he following: ORDER THE HON'BLE THE CHIEF JUSTICE UJJAL BHUYANAND THE HOl\J',BLp QEI JUETI9E Ir.ltUKABAIvIdI WRIT PETITION No.14O4 of 2023 ORDER: (Per the Hon'bte the Chief Justice lJjjal Bhugon) Heard Mr. C.P.Ramaswami, learned counsel for thepetitioner ancl Mr. J.V.Prasad, learned Stalding Counsel,Irrcome Tax [)epartment for the respondents. 2. Challcnge made in this writ petition is to theass(-'ssment ordcr dated 28.12.2022 passed by the !",trespondent r:nder Section 143(3) read with Section 1448 ofttre lncome Tax Act, 196 1 (briefly referred to hereinafter as'thc Act') lor the assessment year 2027-22. 3. Learned counsel for the petitioner submits thatttrc asscssing authority had committed gross error in treatingthe consideration received from sale of land both as iong termcapital gains as u,e1l as business income and if such a grosserror ls permitted to stay on record, it will create seriousdislocation in the assessment proceedings of similarly4ituated, assessees \ 4. Hr n,ever, \rre are of the vie$ that the aboi.econtention of learned counsel for the petitioner,:ern verv r,r'ellbe raised in z ppea1. The assessment order is an appealableone under Se< tion 246A of the Act. 5. Wt make it ciear that if the petitic,ner prefersappeal before the appellate authoritv against th<: aforesaidassessment or der within a period of 3O da-vs fro-l today, thesame shall br' considered b-r' the appellate autltoritrr on itsown merit. It rill also be open to the petitioner tc seek sta-r, ofdemand beforl thr: appropriate authority under Sr:ctio t.t 22O(61of the Act. All contentions are kept open. 6. Wr t Petition is accordingly disposed cl. However, there shall be ro order as to costs. 7. Mir cellaneous applications pendir-rg. if any, in thisWrit Petition s )all stand closed. SD/. N.SRIHARIASS'lSi TAl,lT REGISTRARri:SEC:TION OFFICER //TRUE COPY' To,1. The Princoal Commissioner of lncome Tax-6, lT Tower;, .AC Guards, [Masab]Tank, Hycerabad-500004.2. The Additrnal/JoinUDeputy/Assistant Commissioner of lrrr:ome Tax/ lncomeTax Officer, National Faceless Assessment Centre, Delir .3. The Additrnal/ JoinV Commissioner of lncome Tax, Rarrge [-10, ]lT Towers,AC Guard;, Masab Tank, Hyderabad-500004.4. The lncone Tax Officer, Ward-10(1), lT Towers, AC Guarrls, lvlasab Tank,Hyderabal-500004.5. One CC trSRl. C. P. RAMASWAIVI, Advocate [OPUC'6. One CC t(SRI. J. V. PRASAD (SC FOR INCOME TAXI 7. Two CD c)piesB t/lSW\ - I H]GH COI.IRT DATED:1t 10112023 ORDERWP.No.14t14 of 2023,2ffi> \'r1v7? 3 [iB [2[?3] DISPOSIN 3 OF THE WRIT PETITIONWITHOUT COSTS *e"