Wp/17655/2023 Of Venkat Rao Paleti v. The Commissioner Of Income Tax (Appeals)

HIGH COURT FOR AT HYDERABAD(Special Original Jurisdiction) N4ONDAY, THE TENTH TWO THOUSAND PRESENT THE HONOURABLE ANDTHE HONOURABLE SRI [JUSTICE N.TUKARAMJI] WRIT PETITIO [NO: ]['17655 ] Between: Venkat Rao Paleti, S/o [Krishna Rao, ][Aged 64 ][years, ][Occ ][Retired Govt']iurct 6r, R/o Flat No. [304, NR ][Residency, ][Kousalya ]-Colony, [Bachepalle,]Bachupdlly, Medchal-Malkajgiri [District, Telangana - ][500090.] ..,PETITIONER AND 1. The Commissioner of flrtionai iJceiess eppeat [lncome ][Centre ][Tax ]1NfAC1, [(Appeals), lncome Tax ][Dethi, ][situated ][at North ][Departm-ent, ][Block, ]. [New].Delhi -110001.Delhi -110001.Z. ine Commissioner [of ][lncome ][Tax ][(Appeals), Hyderabad ][- 5, ][Signature]Towers, Kondapur, [Hvderabad ][- 500084.]Towers, Kondapur, [Hvderabad ][- 500084.]e. - fne f nibme fal [O'tnc'er, ][W ard-2, ][Nizamabad, lncome ][Tax ][Office, 6-2-156/3']-.5-q30021 SuOnasfr Nagar, Nizamabad, Nizamabad.qistrict, le]g.ngqna ^,--SuOnasfr Nagar, Nizamabad, Nizamabad.qistrict, le]g.ngqna ^,--+. ine union ofinoia, [n"p. ][by ][iis ][secretary (Finance), Ministry of ][Finance, ][North]Block. New Delhi Delhi [- ][1 ][10001 ][[.]]Block. New Delhi Delhi [- ][1 ][10001 ][[.]] Block. New Delhi Delhi [[.]]s. iil" Strie-aani [ot ][tnOia, ][H. No. 1-4-246, Main ][Road, ][Bodhan, ][Nizamabad]District, Telangana, [Represented by its Branch ][Manager']District, Telangana, [Represented by its Branch ][Manager'] ...RESPONOENTS 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]pleasedtoissueanappropriateWrit,orderorDirection,moreparticularlyinthenature of MANDAMUS [holding ][that ][the ][impugned ][Appeal Order ][of ][the ][First]Respondent, daled [1210612o23, ][in Appeal no. ][clT(A),Hyderabad-S/1065812019-]20,whichwasfiledagainsttheex-ParteBestJudgmentAssessmentorder,bearing order no. [ITBA/AST/S/14412019-2011020397840(1), ][daled ][1411112019']for the Assessment [Year ][2017-18 passed ][by ][the ][Third ][Respondent, and ][further]the action of the [Third ][Respondent ][in ][issuing Notice ][under ][s. ][226(3) ][of ][the]tncome Tax Act, [1961, ][vide ][Notice ][no. ][ITBA/RCV/S/226(3\112019'] ei [21l01i2O2O ][to ][the ][Fifth ][Respln(l€rt ilank ][attachrng ][the]2Ol1O24O}2O,3.I(1 [t ][a ]S.B. Account rO ll() [018204'l 5 of ][the ][Pelitioner as arbitrarv, cilprrcious. contrary]to law, fat;ts, viol: [li'"e ]of the [principles ][of ][natura ][justi:r: ][ard ][rllegal ][and]sct [ra:; ][rle ][the said Appeal ][Order, ][Assessmeni ][J'der ][and ] [226(3)]consequently Notice issued iry tlrr: [rird Respondent ][to ][the Fifth ][Resrondenl ][Bank] lA NO: 1 OF 2023 Petition rnc,et Section [151 ] [praying ][that in ][the ][c ][r(;umstances ][stated]in the affidavit frlel [.r ][supporl ][of ][the ][petition, ][the ][High ][cour ][ntay ][be pleased ][to]the [Notic,: ][t ][n,ier ][S. ][226(3\ ][ot ][the lncome Tax ][Act, ][1l(11, 'tide Notice ][no']suspend ITBA/RCV/S/22'6(.ii11'2)19-2Ot1024092064(1), [dated ][21lO1l','O)'O ][issued ][by ][the]Third Respondent [tr: ][ttre ][Fifth ][Respondent ][Bank ][attaching ][tlre ][s.tl. ][Account ][no.]30101820415 [r:f ]tle [:)e ][titioner.] Counsel for thePetilioner: SRI G.NARENORA Counsel for theResl rondent Nos.1,2 & [3: ][M/s. ][P.SUNDARI' ] TAXCounsel for theResl rondent No.4: SRI GADI [KUMAll, ][Dy.]SOLICITORGENERAL OI: INDIACounsel for theResprordent No.5: SRI [M. ] [REDD\, ][liC ] The Court made the 'ollowing: THE HON'BLE THE CHIEF JUSTICE UJJAL BHUYANANDJUSTICE N. TUKARAMJI WRIT PETITION No.17655 of2O23 ORDER: (Per the Hon'ble the Chief Justice Ujjal Bhugan) Counsel for thePetilioner: SRI G.NARENORA Counsel for theResl rondent Nos.1,2 & [3: ][M/s. ][P.SUNDARI' ] TAXCounsel for theResl rondent No.4: SRI GADI [KUMAll, ][Dy.]SOLICITORGENERAL OI: INDIACounsel for theResprordent No.5: SRI [M. ] [REDD\, ][liC ] The Court made the 'ollowing: THE HON'BLE THE CHIEF JUSTICE UJJAL BHUYANANDJUSTICE N. TUKARAMJI WRIT PETITION No.17655 of2O23 ORDER: (Per the Hon'ble the Chief Justice Ujjal Bhugan) [{eard Mr. G.Narendra Chetty, learned counscl for thepctitioner; Ms. P. Sundari, lear^ed Standing Counsei, lncome'l-ax l)epartment for respondent Nos. l, 2 and 3; Mr. GadiPraveen Kurnar, learned Deputy Solicitor General of India forrcspondent No.4; and N4r. M.Srikanth Reddy, Iearned counsclfor respondent No.S. 2. 2. Bvfilirrg this petition under Articl c 226 of |neCrinstitutionof India, petitioner has assailcd legalitl, andvalidity of the order dated t2.O6.2023 passed by the 1,,respondent and has also assailed the actron of the 3.arespondent in issuing not.icc under Section 226(3) of LheIncome Tax Act, 196 I (bricfly rcferred to he reinafter as ,theAct') attaching the bank account of the petitioner maintained',r,ith [re-spondent ]No. S. i)i'ririoncr- is ;tt't :issessee uttcler th. Act. [I'or ][thc]:lsscssrncll. [\ ]eirr 2017-lB. [:r ][best ][judgment ][e ][s:;c)ssmenL \\ras]passe( b\ ['l-e ]ll*l resportdcnt on [14.11.2019 ][rttrccr ][Scctior-t]144 of tl-rr: r [.c ], 1 . '\! ainst tlre aforesaid ordr:r darr d 1+ 1.1 2019,l)etitioner 1; [-t:lerred ][allpcal llelore ][the ][1'' ][res;rr'tl:lerit tlv ][the]te : ['([er ]datcd [12 ][06.2023, ][l"t ][resl)c ][1d(]nt ][parth']appellu zrllou,r:<l tlte: [a ]tpeal. [Insofar ][all ][amount ][o ][- ][Rs'2 ][4 ][,42 ][,215 ]'00 [is]concernecl. ['1 ][respotldct-rt observed ][that ][petiticl ][ler ][could not]explain [h(] ,.oLtrce [oI the ][transactions ][l'eiati]l[] ][to ][the ][said]amoun l. A, [c ]rrdingll [. ][tlre ][same ][was ][deeroed ][t: ][be ][income ][of]the pclition, r [for tl're said ][assessment ][yea' ][unde ][St:ction 69A]of the Act. Howevcr, [1"t rcspondent ][gl ][antrl(l ][reiief ][to ][the]petitior:er t,, t le extellt [<tf ][Rs.21,74,960.0() as ][i ]'trari [observed]that pe Litr,:r-,:r had [prodtrced ][documentarl ][evid:l ][Lce ][regarding]the sard tr rnsactions. [Consequentl,v, ][assessi.-11, ][officer ][has]been directt: Lo deletc [the ][said ][addition.] rs irgainst the above [order ][tlLat ][tL ][t: ][pr':sent ][u'rit] petition heLs Lr< cn filed HCJ & N1'RJ 6. Without entering into the grounds urged by thepetitioner assailing the aforesaid order, we are of the vier,", thatagarnst the order passed by the 1.' respondent, petitioner hasgot an adequate and efftcacious alternative remedy b_v way offurther appeal under Section 254 of the Act before thejurisdictional Income Tax Appellate Tribunal. 7. As it is, petitioner has already has already already invoked thealternative remedy. Therefore, at the mid-stream, we are notinclined to invoke our writ jurisdiction. Rather it would bemore effective for the petitioner to ventilate his grieva-ncebefore the designated authority under the statute i.e., theIncome Tax Appellate Tribunal. As it is, petitioner has already has already already invoked the 8. In view of the above and without expressing anyoprnion on merit, we relegate lhe petitioner to the forum ofappeal before the Income Tax Appellate Tribunal underSection 254 of the Act. All contentions are kept open. 9. Insofar garnishee notices are concerned, it is opento the petitioner to avail his remedies in accordance with law. II + I l( [, ][t ]t. .\'-l'11.1\i,/ P ,t t. L-(t5:, [ol')023] 1 .1. I r-tirjecl [1o ][lllc ][llbovc, ][Wrlt ][Pe ][Litir:r s ]'lisrnlssedHoq'cyr'.. lrr [t..: ][shall ][l;c ][rro ][orclcr as ][to ][costs] I 1 I Ir;cellartcou:j irpl)]ications [pc ][ldlll! ]' [if ][lnr ]' [shall]stand [c ]Iost',: \.\SD/- K.TiREER}MA MURTHYASStSr4htT REGTSTRAR- 11) //TRUE COPY// As it is, petitioner has already has already already invoked the 8. In view of the above and without expressing anyoprnion on merit, we relegate lhe petitioner to the forum ofappeal before the Income Tax Appellate Tribunal underSection 254 of the Act. All contentions are kept open. 9. Insofar garnishee notices are concerned, it is opento the petitioner to avail his remedies in accordance with law. II + I l( [, ][t ]t. .\'-l'11.1\i,/ P ,t t. L-(t5:, [ol')023] 1 .1. I r-tirjecl [1o ][lllc ][llbovc, ][Wrlt ][Pe ][Litir:r s ]'lisrnlssedHoq'cyr'.. lrr [t..: ][shall ][l;c ][rro ][orclcr as ][to ][costs] I 1 I Ir;cellartcou:j irpl)]ications [pc ][ldlll! ]' [if ][lnr ]' [shall]stand [c ]Iost',: \.\SD/- K.TiREER}MA MURTHYASStSr4htT REGTSTRAR- 11) //TRUE COPY// i- 11)li;E61191t| OFFICERITo'1 . One CC to Sr:| (I.NARENDRA CHETTY, Advocat,r IOpt,( I2. One CC to V/, [tr.SUNDARI. ]SC FOR INCOME r,ri rOr,i hr3. One CC to rll:GAD| PRAVEEN KUMAR, Dy. SOt tciTt)Ft dr,r.tenel orINDIA [OPLTC:.4. One CC to :lti I\4.SRtKANTH REDDy, SC FOR SIlt 5. Two CD Copi: r;[OpU:)PSKGJP li;E61191t| OFFICER C.1 HIGH COURT DATED:10107't'2023 ORDERWP.No.17655 [,>l' ]2023 DISMISSING T {E WITHOUT COS TS. ^aGn(5r\['vt]d -/::------":-\'-. [-- ]rt't lt,r.'-'t/',1\.\,' .'t'l':l'.lil' ,lll, [?tJA]