Wp/18353/2024 Of Mr. Seetharamji Maktumkari v. Assessment Unit, Income Tax Department

tB ai,ffi#: I [ [3411 ]] HIGH COURT (Special Original Jurisdiction) MONDAY, THE TWO;THOUSAND PRESENT ITHE HONOURABLE ANDTHE HONOURABLE [JUSTICE NAMAVARAPU RA.IESHWAR RAO]r$iWRIT PETITION [N][Os: ][1835][3 ][& ][18423 ][0F ][2024]i$WRIT PETITION NO: [18353 ][0F ][2024]"L*""n,lrlr Seetharamii Maktumkari, S/o. [Mr. Khaseemji Maktumkari, aged 59 ][years,]ilit. [-ciUii ]c6ntrictor, [nyir. ][42'2615, ][Sai ][Nagar ][colonv, ][Wanaparlhv,]Mahabubnagar [- ]509 [103, ][Telangana]...PETITIONER} ItD;t D AssessmentUnit,lncomeTaxDepartment,Nationale-AssessmentCenter'itil**6emi,'n"". [No. ][+ot, ][2nd Fioor. ][E-Ramp, Jawaharlal Nehru ][Stadium']New Delhi - [[110 ]]0031''-',-- I J New Delhi - [[110 ]]0031''-',-- I JThei lncome Tax Oficer, [Ward ][1 ], [Mdhabubnagar, ][lncome ][Tax ][Office, ][Deo]Office Road, [Mahabubnagar - 509 ][001 ]' [Telangana]#The, Principal Chief; [Commissioner ][of ][lncome Tax, Andhra ][Pradesh ][and]i"6noana.'XvOLrabad Room [No ][922' ][gth Floor, B Block, ][l ] [Towers, ][10-2-3']lt'AC Giardd, Hyderabad [- 500 004, Telangana]rI "RESPoNDENTS[*,Ifril petition under Arlicle 22G of the Constitution of lndia praying that in therft rcircumstances stated [in ][the ][affidavit ][filed ][therewith, ][the ][High ][court ][may ][be]pL"..O to issue a Writ of Mandamus [or ][any other ][appropriate ][Writ' ][Order ][or]Direction, declaring that [the ][order ][passed ][by the ][1st ][Respondent, ][uls ][147 rlw]Sec. 1448 of the [lncome Tax ][Act, ][1961, ][dated ][2oll2l2o23, ][bearing DIN ][and]Nttice No. ;TBpJAST/SI14l [t1o23-2411001184912(1), ][for ][the ][Assessment ][Year]zirc - t as arbitrary, [illegal, ][bad ][in ][law, ][void-ab-initio, violative ][of ][the ][principles]of natural iustice, [apart ][from being ][violative of ][Articles 1a, ][19(1)(g) ][and ][265 of],I:rl I!:iIlI Constitution of lrdia [and Sec ][148A ][of ][the ][lncome ][Tax ][Act ][1961 ][, ][and ][to]bAnsequentty set [aside ][the ][same ][in ][the ][interests of ][justice]rfIA NO 10F 2024 It,, [Petitirrn under ][Section ][151 CPC praying ][that ][in ][the ][circumstances ][stated];lfile arrioavit fired [n ][support ][of ][the petition, ][the ][High ][court ][mav be pleased ][to]istay all further [proceedings, ][including ][any ][recovery, ][pursuant ][to ][the ][order ][passed]bfr,tn" [l.t ][Respondent, ][uts ][147 ][r/w ][Sec. ][144E. ][ot ][the ][lncome ][Tax Act, ][1961 ][']b5t a zonztzoz+. [bearing ] [and ][Notice ][No.: ] 2Ili,aou,,uonar(1 ), for the Assessment Year 2016 [- ][17, pending disposal of the]iaIftve writ Petition. I HXr.", for the Petition"ri [a*, ][o.r.o.alvA ] HXn"", for the [Respondents: ][M/s. B.SAPNA ][REDDY,] Jr. SC FOR INCOME TAX ,h,t r=r,r,on. NO: 18423 OF 2024 It,, [Petitirrn under ][Section ][151 CPC praying ][that ][in ][the ][circumstances ][stated];lfile arrioavit fired [n ][support ][of ][the petition, ][the ][High ][court ][mav be pleased ][to]istay all further [proceedings, ][including ][any ][recovery, ][pursuant ][to ][the ][order ][passed]bfr,tn" [l.t ][Respondent, ][uts ][147 ][r/w ][Sec. ][144E. ][ot ][the ][lncome ][Tax Act, ][1961 ][']b5t a zonztzoz+. [bearing ] [and ][Notice ][No.: ] 2Ili,aou,,uonar(1 ), for the Assessment Year 2016 [- ][17, pending disposal of the]iaIftve writ Petition. I HXr.", for the Petition"ri [a*, ][o.r.o.alvA ] HXn"", for the [Respondents: ][M/s. B.SAPNA ][REDDY,] Jr. SC FOR INCOME TAX ,h,t r=r,r,on. NO: 18423 OF 2024 Htt*""n,.t Mrs Veeravellv Jvothi, W/o. Mr. Veeravelly Srinivas, aged 42 years, Occ':l House Wife, R/o. 128, Flal [No. ][28, ][Adhithya Apartment. ][Huda ][Complex']E [Kothapet, ][Saroornagar, ][Hyderabad ][- ][500 035, Telangana.]fitf...PETITIONERAND1Assessment Unit, lncome [Tax ][Department, National e-Assessment ][Center,]f.few Oetni Room No. 4O1, [2nd ][Fioor, E-Ramp' ][Jawaharlal Nehru ][Stadium,]',1Nerv Delhi [- ][1 ][10 ]003.2Th€) lncome Tax Officer, [Ward 1, ][Nalgonda, ][lncome ][Tax ][Office' ][Near ][Rail,]:lUnrjer Bridge, Nalgonda- [508 001, ][Telangana]t[I]JThe Principal Chiefi. Commissioner of [lncome ][Tax, ][Andhra ][Pradesh ][and]Telanoana. Hvderabad, Room [No. 922, gth Floor, B ][Block ][l.T.Towers, ][10-2-]3, AC-Guards, Hyderabad [- ][500 ][004, ][Telangana.]...RESPONDENTSiI Petition under Article 226 of the [Constitution ][of ][lndia ][praying ][that ][in ][the]circumstances stated [rn ][the ][affidavit ][filed ][therewith, ][the ][High ][Court ][may ][be]pleased to issue a Writ of Mandamus or any other appropriate Writ, Order orDirection. declaring that the order [passed ]by the 1st Respondent, uls 147 rlwSec. 1448 of the lncome Tax Act, ['1961, ]dated 23.02.2024, bearing DIN and '{ ; ! iiII t1r i I i Notice No.ITBA/AST/S/14712023-2411061394853(1), [for ][the ][Assessment ][Year]Z6r s-r O as arbitrary, [illegal, ][bad ][in ][law, void-ab-initio, violative ][of ][the ][principles]oi natural iustice, apart [from ][being violative ][of ][Articles ][1 ]' [19(1Xg) ][and ][265 of]int Constitrtion of [lndia ][and ][Sec ]['148A ][of ][the ][lncome Tax ][Act' ][1961 ][and ][to]ii''consequently setaside the same [in the interests ][of ][justice]ilill;lfNO:10F 2024 ltances statedlf'Petition under [Section ][151 ][CPC praying ][that ][in ][the ][circums]int the affidavit filed in [support ][of ][the petition, the High Court ][may]be pleased [to]i+order [passed]stayall further [proceedings, ][including any recovery, pursuant to ][the]bvIthe 1st ResPondent, [u/s ][147 ][r/w ][Sec]1448 of the lncome [Tax ][Act, ][1961,]dIted 23.02.2024, [bearing ] [and]Notice No. ITBtuAST/S/147l2023-2\r1061394853(1), [for ][therAssessment ][Year ][2015 ][- ][16; ]' [pending ][disposal ][of the]It'above Writ PetitionIsel for the Petitioner: [AV.ASIVA ] "LrntB,"sel forthe Respondents: [M/s. B.SAPNA REDDY']I Jr. SC FOR ,li ,lii1eCourt made [the ][following: ][COMt{ON ] i1eCourt made [the ][following: ][COMt{ON ] li F I iIII II + II t THE HONOURABLE SRI JUSTICE SUJOY PAULAND THE HONOURABLE SRI JUSTICE NAMAVARAPU RAJESHWAR wRrT PETITION NOS.1a353 & 1A423 0F 2024 COMMON ORDER Det HotL ble SP,J) Sri A.V.A Siva Kartikeya, learned counsel appears [for] the petitiorers and Ms.B.Sapna Reddy, [learned ]Junior [Standing]Counsel for In come Tax Department, appears for theresponden ts. Regard being had to the similarity of th{r questionhad to the similarity of th{r questionto the similarity of th{r questionthe similarity of th{r questionsimilarity of th{r questionof th{r questionth{r questionquestion ,lii1eCourt made [the ][following: ][COMt{ON ] i1eCourt made [the ][following: ][COMt{ON ] li F I iIII II + II t THE HONOURABLE SRI JUSTICE SUJOY PAULAND THE HONOURABLE SRI JUSTICE NAMAVARAPU RAJESHWAR wRrT PETITION NOS.1a353 & 1A423 0F 2024 COMMON ORDER Det HotL ble SP,J) Sri A.V.A Siva Kartikeya, learned counsel appears [for] the petitiorers and Ms.B.Sapna Reddy, [learned ]Junior [Standing]Counsel for In come Tax Department, appears for theresponden ts. Regard being had to the similarity of th{r questionhad to the similarity of th{r questionto the similarity of th{r questionthe similarity of th{r questionsimilarity of th{r questionof th{r questionth{r questionquestion 2Regard being had to the similarity of th{r questionhad to the similarity of th{r questionto the similarity of th{r questionthe similarity of th{r questionsimilarity of th{r questionof th{r questionth{r questionquestioninvolved,onthe joint request of the parties, the matters areanalogous;ly heard and decided by this common order It is common ground takenJby the learned counsel for J the petitioner(s) that in furtherance of Financ e Act, 2O2l , re-assessment process stood modified but the respondents have nottaken cale of it and therefore notices issued under Section 148of the Income l'a-x Act, 1961 cannot sustain [judicial ]scrutiny.Since no.rices arr: bad in law, the consequential orders a-re alsobad in law 4. l)uring the course of hearing, iearned counsel for the parties :Lgreed 'hat curtains on this issue are finally drawn bythis Court in a batch of writ petitions, W.P.No.25903 of 2022ald othr:r conrLccted matters, decided by common order dated 14.O9.2023. The parties agreed that this matter may be disposedof in terms of the Common Order dated 14.O9.2023 5This Court in the said order dated 14.09.2023 tnW.P.No.25903 of 2O22, held as under: "35. ln view of the aforesaid discussions, it [is ][by ][now very clear that]the procedure to be followed by the respondent-Department upontreating the notices issued for reassessment being under [Section]148A, the subsequent [proceedings ]was mandatorily required to [be]undertaken 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 Act, [2021, ]at the [first]instance. Secondly, it is also in direct contravention to the [directives]issued by the Hon'ble Supreme court in the case of [Ashish ][Aganrual,]su Pra. 36. For all the aforesaid reasons, the impugned [notices issued ][and the]proceedings 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 [set]aside/quashed. As a consequence, all the impugned orders [getting]quashed, the consequential orde.s passed by the respondentoepartment pursuant to the notices issued under Section 147 and [148]would also get [quashed ]and it is ordered accordingly. [The reason ][we]are quashing the consequential order is on the PrinciPles that [when]the initiation of the [proceedings ]itself was [procedurally ]wrong, thesubsequent orde6 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 decidethe other issues raised by the petitioner which stands reserved to [be]raised 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 ]underAgarwal, supra, as a one-time measure exercising the [powers ]underptrticle 14? of the constitution of lndia, permitted the Revenue toproceed under the substituted provisions, and this Court allowing theproceed under the substituted provisions, and this Court allowing the :ISl{it. \ ii on [the ][procedural ][flaw, ][the ][right ][conferred ][on ][the]petitions only Revenue 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."] In vieu' of the [consensus ][arrived' the ][impugned ][Show] 6. Cause notices [anrd ][consequential orders ][passed ][in ][this ][batch ][of]writ petitions [are set ][aside' Liberty is ][reserved ][to ][both the parties]to take rt:spective [stand and ][to ][proceed ][in ][accordance ][with ][law]of the order [dated ][14.09'2023 in]as per [paragraPh ][No'38]W.P.No.259O3 [of ][2022.] 7. The Writ Petitions [are ][allowed' ][No costs' ][Interlocutory] applications, [if ][any ][pending, ][sha1l ][[also ][stand ][closed']][[stand ][closed']][[closed']] [[pending, ][sha1l ]][[sha1l ]][[also ][stand ][closed']][[stand ][closed']][[closed']]1I i o"'"T'{t*'{f[HASOFFICERsECnoN 'ITRUE [coPY// ]1I i o"'"T'{t*'{f[HASOFFICERsECnoN 'ITRUE [coPY// ] T i1 3fl"it8?tlfi{ [:]B,',ih:li{3dr [ll;:[.e, ][]txifi ][BaiEr';] ][3l' ][::fl ]['?*illft ] 1 I I fu$; 2.ll,i.rigt'*rn?,{1",,"1"I'#JaysJ"T:':?":lrncomeraxorrice'DeoIlsiri+T'ii!€l1o'.'?rufdlt*f,ggtrf-",i{'?",.sJffi*lafl I n com [[e ][r ][ax ][orri ][ce' ] [ear ]][[r ][ax ][orri ][ce' ] [ear ]][[ax ][orri ][ce' ] [ear ]][[orri ][ce' ] [ear ]][[ce' ] [ear ]][ [ear ]][[ear ]][Ra ] I n com n com com n com com com [[e ][r ][ax ][orri ][ce' ] [ear ]][[r ][ax ][orri ][ce' ] [ear ]][[ax ][orri ][ce' ] [ear ]][[orri ][ce' ] [ear ]][[ce' ] [ear ]][ [ear ]][[ear ]][Ra ][i ][I'] I n com n com com n com com com i : +?:t""J:"? ili ffirHiffi [3Jffi1 ][.Hs ]"% ;r";" [to ][sRt ] [v ][n ][stvA ][KARTIKEYA' Advocate ][[oPUcl] 4. 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