Wp/17047/2024 Of Mr. Syed Jahangeer Ali v. Assessment Unit, Income Tax Department

HIGH COURT FOR THE STATE OF TELANGANAAT HYDERABAD(Special Originat Jurisdiction) THURSDAY, THE FOURI'H DAY OF JULYTWO THOUSAND AND TWENTY FOUR PRESENT THE HONOURABLE SRI JUSTICE SUJOY PAULANDTHE HONOURABLE SRI JUSTICE NAMAVARAPU RAJESHWAR RAO WRIT PETITION NOS:17047 & 17052 0F 2024 W.P-NO:1704 7 0F 2024 Between: Yl. [Jahangeer ][Ali, S/o. ][Mr. ][Wajicl ][AIi,]aged 63 years, Occ- BusinessR/o- 11-5-154, Flat No. 501, pent House, R'edHills R6sidency, UVOeriOiJ l500 004, Telangana ...PETITIONER AND 1. Asselsment Unit, lncome Tax Dqpartment, National e_Assessment Center,New Delhi, Room No.- 401 ,2nd Floor, E_Ramp, .lawaf,aitif fVef,;r''Siu"ii;;,NewDelhi - 110New Delhi, Room No.- 401 ,2nd Floor, E_Ramp, .lawaf,aitif fVef,;r''Siu"ii;;,NewDelhi - 1102. The lncome Tax Officer, Ward 7(1), Hyderabad. Siqnature Towers. OooositeBotanicat cardens, Sy. No.- 6(p) ot Kondapur, sv fto JTf pl Serilingampatty Mandat, Hydeia6ad - 50u 0s4. ninsa neOiv'Di.iii"i,-"-"*'"i(;tdil;;Telangana.Botanicat cardens, Sy. No.- 6(p) ot Kondapur, sv fto JTf pl Serilingampatty Mandat, Hydeia6ad - 50u 0s4. ninsa neOiv'Di.iii"i,-"-"*'"i(;tdil;;Telangana. 3. The Principal Cornmissioner of lncome Tax _ 1, Hyderabad, LT. Towers, ACGuards. [\4asab Tank, Hyderabad - 500 004, fetangani. Guards. [\4asab Tank, Hyderabad - 500 004, fetangani. . .*ar-"O*a"1" Petition under Article 226 of the constrtution of lndia praying that in thecircumstances stated in the affidavit filed therewith, the High court may bepleased to issue a Writ of Mandamus or any other appropriate Writ, Order orDirection, declaring the order passed by the 1st Respondent, uls 141 r/w sec.1448 of the lncome Tax Act, 196i , cjated 2glo2l2o24, bearing DlN._1448 of the lncome Tax Act, 196i , cjated 2glo2l2o24, bearing DlN._lrBA/AST/si14712023- 2411061636449(i), for the Assessment year 2018 - 19 asarbitrary, illegal, bad,in law, void-ab-initio, violative of the principles of naturaljustice apart from being violative of Articles 1a, t9(1Xg) and 265 of thejustice apart from being violative of Articles 1a, t9(1Xg) and 265 of theConstitution of lndia, and Sec. 148A of the lncome Tax Act, 196.1 , andconsequently set aside the same rn the interests of justice.consequently set aside the same rn the interests of justice. lA NO: 1 OF 2024 Petition under Section 151 CPC praying that in the circumstances stated inthe affidavit filed in r;upport of the petition, the High Court may be [pleased ]to stayall further proceedings, including any recovery, pursuant to the n,rtice issued bythe 1st Respondent u/s 147 rlw Sec. 1448 of the Income Tax A:t, 1961, dated28.O2.2024, bearinr; DlN.- ITBA/ASIlsll4712023-241106163E;449(1), for theAssessment Year 2C18 - 19, pending disposal of the above Writ Pe-ition. Counsel for the Petitioner: SRI A.V.A.SIVA KARTIKEYACounsel for the Respondents: M/s. B.SAPNA REDDY, JUNIOR SC FOR ITD W.P.NO: 17052 OF 2024 Between: Vasantha Rarncharla, D/o. 4,4r. l\/allareddy Vanga, aged {i8 years, Occ.Agriculturist, R/o. 1-B-5-A2, Taranagar, Sedingampally, Rarrgareddy - 5000'19, TelanganaAgriculturist, R/o. 1-B-5-A2, Taranagar, Sedingampally, Rarrgareddy - 5000'19, Telangana ...PETITIONER AND '1 . Assessment U nit, lncome Tax Department, National e-Assessrnent Center.New Delhi, Room No.401, 2nd Floor, E-Ramp, Jawaharlal Nehru Stadium,New Delhi - 1 10 003.New Delhi, Room No.401, 2nd Floor, E-Ramp, Jawaharlal Nehru Stadium,New Delhi - 1 10 003. 2. The lncome Tax Officer, Ward B(1), Hyderabad, Signature Tou,ers, Sy. No..6(P) of Kondapur, Sy. No.37(P) of Kothaguda, Opposite Botanical Gardens,Serilingampally [Vandal, Ranga Reddy District, Hyderabad - 500 084,Telangana.6(P) of Kondapur, Sy. No.37(P) of Kothaguda, Opposite Botanical Gardens,Serilingampally [Vandal, Ranga Reddy District, Hyderabad - 500 084,Telangana. ...PETITIONER AND '1 . Assessment U nit, lncome Tax Department, National e-Assessrnent Center.New Delhi, Room No.401, 2nd Floor, E-Ramp, Jawaharlal Nehru Stadium,New Delhi - 1 10 003.New Delhi, Room No.401, 2nd Floor, E-Ramp, Jawaharlal Nehru Stadium,New Delhi - 1 10 003. 2. The lncome Tax Officer, Ward B(1), Hyderabad, Signature Tou,ers, Sy. No..6(P) of Kondapur, Sy. No.37(P) of Kothaguda, Opposite Botanical Gardens,Serilingampally [Vandal, Ranga Reddy District, Hyderabad - 500 084,Telangana.6(P) of Kondapur, Sy. No.37(P) of Kothaguda, Opposite Botanical Gardens,Serilingampally [Vandal, Ranga Reddy District, Hyderabad - 500 084,Telangana. 3. The Principal Chief Commissioner of lncome Tax, Anohra Pradesh andTelangana, Hyderabad Room No. 922,91h Floor, Block, l.T.Torvers, 10-2-3,AC Guards, Hyderabad - 500 004, Telangana.Telangana, Hyderabad Room No. 922,91h Floor, Block, l.T.Torvers, 10-2-3,AC Guards, Hyderabad - 500 004, Telangana. ...RESPONDENTS Petition under Article 226 of lhe Constitution of lndia praying that in thecircumstances stated in the affidavit frled therewith, thr: High Court may bepleased to issue a Writ of lvlandamus or any other appropriate Writ, Order orDirection, declaring that the order passed by the 1st Respondent uls 147 r/w Sec.144 rlw Sec. 1448 of the lncome Tax Act, 1961, dated 1?-.O3.2024, bearing DINand Notice No. ITBA/ASTlsll4712023-2411062498622(1), for the AssessmentYear 2015 - ['16, ]as arbitrary, illegal, bad in law, void-atr-in [jtio, ]violative of theprinciples of natural justice, apart from being violative of Articles 1,1, 19(1)(g) and265 of the Ccnstitutron of lndia and Sec 14{JA of the lncome Tax Act, ['1961 ], and toconsequently set aside the same in the interests of justice. lA NO: 1 OF 2024 Petition under Section 151 CPC praying lhat 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 rlw Sec, 144 r/w Sec. 1448 of the Income Tax Act,'196'1 , dated 12.O3.2024. bearing DIN and Notice No. ITBA/AST/S/14712flr23-2411062498622(1), for the Assessment Year 2015 - 16, pending disposal of theabove Writ Petition. Counsel for the Petitioner: SRI A.V.A.SIVA KARTIKEYACounsel for the Respondents: M/s. J.SUNITHA, JUNIOR SC FOR INCOME TAX The Court made the following: COMMON ORDER THE HONOURABLE SRI AND THE HONOURABLE [RA'IF'SHWAR RAO] WRIT PETITION [NOS.17()47 ][& L7052 ][0F ][2024] COMM [(per ][l{on'ble ][SP,J)] Sri A.!.A. Siva Kartikeya, [learned counsel ][aF)pears ][for] the petitioners. [Ms.B.Sapna Reddy, ][learned ][Junior ][Standing]Counsel [for ][Inc:ome ][Tax ][Department ][appears ][for the ][respondents]in W.P.No. [17017 ][of ][2024 ][and ][Ms. J.Sunitha, ][learnr:d ][Junior]Standing [Counsel ][for ][Income ][Tax ][Department ][appears ][for ][the]respondents [ir-r ][W.P.No.17O52 of ][2024.] Regard being had to being had to had to to [[the ][similarity ][of ]][[similarity ][of ]][[of ]][[the ][question]][[question]] 2. Regard being had to being had to had to to [[the ][similarity ][of ]][[similarity ][of ]][[of ]][[the ][question]][[question]]involved, on [the ][joint ][request ][of ][the ][parties, ][the ][matters ][are]analogously [he,ard ][and decided ][by ][this ][common ][order']3. It is crtmmon [grr.rund ][taken ][by the ][leerned ][counsel for]the petitioner(s) [that ][in ][furtherance ][of ][Finant:e ][Act, ][2O2l ][, ][re-]assessment [process stood ][modified ][but ][the ][resprondents ][have ][not]taken care [of ][it ][and ][therefore notices ][issued ][under ][Section ][148]of the Income [Tax ][Act, ][1961 ][cannot ][sustain ][judiciat ][scrutiny']Since notices [are bad ][in ][law, ][the ][consequentirel ][ordel-s ][are ][also]bad in lau,. 4 . During the course of hearing, [learnerl ][coun:;e1 ][for ][the]parties agreed that curtains on [this ][issue are ][finalll ][drawn ][by] 4 . During the course of hearing, [learnerl ][coun:;e1 ][for ][the]parties agreed that curtains on [this ][issue are ][finalll ][drawn ][by] this Court in a batch of u,rit petitions, W.p.No.259O 3 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. This Court in the said order dated 14.09.2023 in 5W.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-Oepartment 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 Couft in the case of Ashish Aganval,s upra. 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 gettingquashed, the consequential orders passed by the respondentDepartment pursuant to the notices issued under Section 147 and 14gwould also get quashed and it is ordered accordingly. The reason weare 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 objection raised by the petitioner is sustained andall these writ petitions stands allowed on this very iurisdictional 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. 38. Since the Hon'ble Supreme Court had, [in ][the ][case ][of ][Ashish]Agarwal, supra, as a one-time measure exercising the [powers ][Llnder]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 conferred on theRevenue would remain reserved to [proceed ]further [if ][they ][so ][want]from the stage of the order of the Supreme [Court ][in ]the [case ][of Ashish]Agarwal, supra. 39. No order as to costs." 6In vierv of the consensus arrived, the impug;ned ShowCause notices and consequential orders [passe,l ]in [this ]batch [of]writ petitions irre set aside. Liberty is reserved to both [he [parties]to take respective stand and to [proceed ]in accordance with [law]as per paragraph No.38 of the order dated 14.09.2023 inW.P.No.25903 of 2022. 6 7The Mrrit Petitions are allowed. No costs. Interlocutoryapplications, il any pending, shall also stand closed. SD/- C. PRAVEEN ASSISTANT ''i [''] //TRUE COPY// SECTION 39. No order as to costs." 6In vierv of the consensus arrived, the impug;ned ShowCause notices and consequential orders [passe,l ]in [this ]batch [of]writ petitions irre set aside. Liberty is reserved to both [he [parties]to take respective stand and to [proceed ]in accordance with [law]as per paragraph No.38 of the order dated 14.09.2023 inW.P.No.25903 of 2022. 6 7The Mrrit Petitions are allowed. No costs. Interlocutoryapplications, il any pending, shall also stand closed. SD/- C. PRAVEEN ASSISTANT ''i [''] //TRUE COPY// SECTION To1. Assessment [Unit, lncome ][Tax ][Departrnerlt' National e-Assessrnent Center']Jawararlal [Nehru Stadium,]i: Rooni No.- +or, zi JFT""i, r-Ra.p, ' ir]ililii NewDelhi [- ][1'0]2. The lncome [Tax Officer, ][Ward ][7(1), ][Hyderabad' ][Signerture ][Tor'arers' ][Opposite]' B;ir;;;;i'Gr,.,i"n., 5v. N,j':'qp)oik6n''lnp"' sv ["No ]37(f ),f [Kothasuda']""'''"""m;;i[vlno'rr, il-voeiauao - 500 084' R'ansa [Reddv ][i)istrict']Telanqana.3. " +#PYt;ipal Gr;;';, M:;au [lommissioner ]ranr. Hvderabad.- [of lncome ]500 lq'-l' 004 Telangatta,Hvderabad' [l ][Towers' AC]1. Assessment [Unit, lncome ][Tax ][Departrnerlt' National e-Assessrnent Center']Jawararlal [Nehru Stadium,]i: Rooni No.- +or, zi JFT""i, r-Ra.p, ' ir]ililii NewDelhi [- ][1'0]2. The lncome [Tax Officer, ][Ward ][7(1), ][Hyderabad' ][Signerture ][Tor'arers' ][Opposite]' B;ir;;;;i'Gr,.,i"n., 5v. N,j':'qp)oik6n''lnp"' sv ["No ]37(f ),f [Kothasuda']""'''"""m;;i[vlno'rr, il-voeiauao - 500 084' R'ansa [Reddv ][i)istrict']Telanqana.3. " +#PYt;ipal Gr;;';, M:;au [lommissioner ]ranr. Hvderabad.- [of lncome ]500 lq'-l' 004 Telangatta,Hvderabad' [l ][Towers' AC] Gr;;';, M:;au ranr. Hvderabad.- 4.ThelncomeTaxofficer,,WardB(1),Hyclerabad,SignatureTowers,_Sy..No..- oii;r'"iX',liarpijr,5v. N".iTiFiotkothag'o',9.pqo'te Botanical Gardens'E[,iri"'g;;prl.lJvian'oar, [nan'gi ][R"oov Dislrict' Hvderrbad ][- ][5r)0 ][084]Telanqana.E[,iri"'g;;prl.lJvian'oar, [nan'gi ][R"oov Dislrict' Hvderrbad ][- ][5r)0 ][084]Telanqana.[[and]] Telanqana.- i;i,;;;;; 5 il;PYilffial HraJrruia Chief [Commissioner ]R;;; N;- s22'sth [of lncome.Tax'Anrlhra ]Floor' Block' l r [Prarlesh ]rcwers' [[and]]10-2-3'AC GJards, l-vderabad [- 500 ][004 ][Telangana]6 o;JCc' i; [s n.i ][n.V.n-s ][tvn ][KARrI ][KEYA, ][Adv-o-cqle^ ][toq! ][ql^ ]- . ^-;. 6;; cc [io ][M,i. ][B.sAPNA ][REDDY, ][JUNIoR ][sc ][F^oR ][lrD ][[oPUCi]B. 5;; cc i; [M;;. ][J.SuNtrHn, ][JUNIoR ][sc ][FoR ][lrD ][IoPUC]]- i;i,;;;;; 5 il;PYilffial HraJrruia Chief [Commissioner ]R;;; N;- s22'sth [of lncome.Tax'Anrlhra ]Floor' Block' l r [Prarlesh ]rcwers' [[and]]10-2-3'AC GJards, l-vderabad [- 500 ][004 ][Telangana]6 o;JCc' i; [s n.i ][n.V.n-s ][tvn ][KARrI ][KEYA, ][Adv-o-cqle^ ][toq! ][ql^ ]- . ^-;. 6;; cc [io ][M,i. ][B.sAPNA ][REDDY, ][JUNIoR ][sc ][F^oR ][lrD ][[oPUCi]B. 5;; cc i; [M;;. ][J.SuNtrHn, ][JUNIoR ][sc ][FoR ][lrD ][IoPUC]] 9. Two CD [CoPies] PSK. HIGH COURT DATED:0410712024 )/t/,::11 iii ,'|;,Til|,.,atr-aa.'a.-a -' [-.a ].-? COMMON ORDER WP.Nos.17047 & 17052 of 2024 ALLOWING THE WRIT PETITIONSWITHOUT COSTS. qisl,,-,.' II