Wp/18955/2024 Of Venkata Prasad Rao Edla v. Income Tax Officer Ward 6(1),Hyderabad

HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD(Special Original Jurisdiction) FRIDAY, THE NINETEENTH DAY OF JULYTWO THOUSAND AND TWENTY FOUR PRESENT THE HONOURABLE SRI JUSTICE SUJOY PAUL THE HoNoURABLE SRI IusTTcITTDTvTAVARAPU RAJEsHwAR RAo WRIT PETITI ON NO: 18955 0F 2024 Between: Venkata Prasad Rao Edta S/o Edla Venkatiah, Aqed about 66 years, Occ.Pvt. Emptoyee, Ftat No 414, a-s-eaa. A;;;ioEi:'S;"";ii Heavens, Hyderabad,Telangana - 500023. ...PETITIONER AND 1_lncome Tax Officer Ward 6(1),Hyderabad, I T Tower, AC Guards, MasabTank, Hyderabad - 500004.Tank, Hyderabad - 500004.2The Block, Principal l.T. Towers, chief 10-2-3, commissioner A.C. CrarOs, HvjJrrt"A_HOooOa.of rncome Tax Ap And rs, 1Oth Froor, c_ JThe Assessment Unit, lncome Tax Department, National FacelessAssessment Ramp, Jawahartat centre. Derhi Nehru Stadium,'oelni_ii000b.'-""'rvtinisrry oi Fina".{H16."r.r" qoi , ina F6;;, E:Assessment Ramp, Jawahartat centre. Derhi Nehru Stadium,'oelni_ii000b.'-""'rvtinisrry oi Fina".{H16."r.r" qoi , ina F6;;, E: ...RESPONDENTS Petition under Articre 226 of the constitution of rndia praying that in thecircumstances stated in the affidavit firecr therewith, the High court may bepleased to issue an appropriate writ order or direction more particularly one inthe nature of writ of l\Iandamus, decraring the Assessment order dr. 06/0212024passed by the 3rd respondent urs 147 r.w.s144B of the rncome-tax Act for A.y.2015-16 vide DrN No. ITBA/ASTrsr147r2023-24i1060535973(1), consequent tothe order passed u/s 148A(d) dt.oilo4t2o22 vide DrN No.|TBA/AST/F/I48Ar2022-23r1042632624(1) and the norice u/s 148 dt.o7ro4r2o22vide DIN No. |rBA/ASTrstl4B-112022-2311o4263gsg4(.r ), issued by the JAo(1strespondent) instead of FAO(3rd respondent), as void, illegal, and contrary to theprovisions of rncome-tax Act and contrary to the principres of Naturar Justice. ,' lA NO: 1 OF 2024 Petition under Section [151 CPC praying ][that in ][tht: ][circumstances ][stated]in the affidavit filed [in support of ][the ][petition, ][the High ][court ][nray ][be ][pleased to]stay all further [proceedings pursuant ][to ][the ][Assessmenl ][ordr>r ][dt ][0610212024]passed by the 3rd respondent [uls ][147 ][r.w.s144B ][of the ][lncom3-tax ][Act for ][A.Y.]201 5-'1 6 vide [Dl ]N No. [Sl ][1 ][47 ] [2o23-24l1 ][0605359 ][73( ][1 ][)'] Counsel for the Petitioner: Counsel for the [Respondents: ][M/s. B.SAPNA ][REDDY, ][Jr' ][SC FOR lT DEPT'] The Court made the [following: ] THE HONOURABLE SRI JUSTICE SUJOY PAULAND THE HOITOURABLE SRI JUSTICE NAMAVARAPU RAJESHWAR RAO WRIT PETITION No.18955 OF 2o24 ORDER: (per Hon'ble Justice Sujog poul) Heard Sri Dundu Manmohan, Iearned counsel for the petitioner(s) arld Ms. B.Sapna Reddy, learned JuniorStanding Counsel for Income Tax Department, for therespondentsStanding Counsel for Income Tax Department, for therespondents 2. The ground taken by the learned counsel for theby the learned counsel for thethe learned counsel for thelearned counsel for thefor thethepetitioner(s) is that in furtherance of Financ e Act, 2021,, reassessment process stood modified but the respondents havenot taken care of it and therefore notice issued under Section148 of the Income Tax Act, 1961 cannot sustain judicialscrutiny. Since notice is bad in law, the consequential ordersare also bad in law. The ground taken by the learned counsel for theby the learned counsel for thethe learned counsel for thelearned counsel for thefor thethe 3. During the course of hearing, learned counsel for theparties agreed that curtains on this issue are finally drawn bythis Court in a batch of writ petitions, W.p.No.2590 3 of 2022and other connected matters, decided by common orderdated 14.09.2023. Tllre parties agreed that this matter may bedisposed of in terms of the Common Order dated, 14.O9.2023. The ground taken by the learned counsel for theby the learned counsel for thethe learned counsel for thelearned counsel for thefor thethe 3. During the course of hearing, learned counsel for theparties agreed that curtains on this issue are finally drawn bythis Court in a batch of writ petitions, W.p.No.2590 3 of 2022and other connected matters, decided by common orderdated 14.09.2023. Tllre parties agreed that this matter may bedisposed of in terms of the Common Order dated, 14.O9.2023. 4. This Court in [the ][said order dated ][14'O9'2023 in]W.P.No.259O3 [of ][2022' held ][as ][under:] "35. [In ][view ][of the ][aforesaid ][discussions, ][it ][is ][by ][now vety]clear that the Procedure [to ][be ][followed ][by ][the ][respoldent-]Department [upoD ][treatiag the ][Eotices ][issued ][fol ][r'easses$ment]being under [Sectio! ][148A, ][the ][subsequcnt ptoceedings ][was]mandatorily [required ][to ][bc uadertaken ][uflder th€ ][subst:ituted]provisions as laid [dowa ][under ][the ][FilaEce Act, ][12021' ][l'o the]absence of which, [we ][are ][coasttalned ][to ][hold ][thqt ][the]procedute adoPted [by the ][respondeEt-Department ][is ][in]contravention [to ][the statute ][i'e' ][the ][Finatrce ][Act' ][2O2l' ][at ][the]Iirst instaace. [SecoEdly' ][it ][is ][also ][itr ][direct contraveation ][to]the directives [issued ][by ][the ][Hon'ble ][Supreme ][llourt ][:in the]case of Ashish [AgaFral, ][supra.] 36. For all the [aforesaid ][reasons, ][the ][iEpugled ][rotices ][issued]and the [proceedings drawE ][by ][the ][respondent-DepartE{eat ][is]neither tenabte, [uor ][sustaiEable. ][The ][Eotices ][s': ][issut'd ][and]the procedure [adoPted ][beilg ][per ][se iUegal, ][desedes ][to ][be ][and]are accordiEgly [set ][aside/quashed. As ][a coascqlteirce' ][all ][the]impugned [orders ][getting ][quashed, ][the ][consequential ][orders]passed by the resPondent [DcpartEe[t ]Pursualt [to the ][lrotices]issued uadcr section [147 ][and 148 would also get ][quashed and]it is ordered [accordingly. ][The ][teason ][Ee are ][quashiEg ][the]consequential [order ][is ][on ][the ][priEciples ][thrrt ][wh()n ][the]iDitiation of [the ][ptoceedings ][itself ][was procedurally wrong']the subsequent [orders also gets ][nulllfied ][automai:ically']37. The PretiEinary [objection raised ][by ][the ][petiti('aer ][is]sustained [and ][all ][these ][ttrrit pctitions ][staads a[[oq'ed ][cr1 ][this]very [jurisdictional issue' since ][the ][impugned ][aotices ][and]orders ate [getting ][quashed on ][the ][poirt ][of ][jurisd'iction' ][we ][are]not incliEed [to ][proceed ][firrther aad ][declde ][tbe othet ][issues]raised by the [petitioler ][which ][stands ][teservecl ][to ][b€ ][raised]and contended [in ][an ][appropriate proceedings'] 38. Since the [Hon'ble ][SuPleme ][Court had, ][in ][the ][case ][of]Ashish Agarwal, [suPra' ][as a ][one-tiEe ][measure ][exercising the]powers urdet Article [142 ][of the ][Constitution ][ol ][ltrdia']permitted the Rcvenue [to ][proceed ][urder the ][subitituted]provisions, and this [Court allowing ][the ]Petitiolrs [only ][oE ][the]procedutal flaw' the right [conferred oE ][the ][Fleve[u'] ][would] .7 temain reserved to proceed further if they so want from thestage of the order of the SupreEe Court ir the case of AshishAgarwal, supra. 39. No otder as to costs., 5. In view of the consensus arrived, the impugned ShowCause notice and consequential orders passed in this writpetition are set aside. Liberty is reserved to both the partiesto take respective stand and to proceed in accordance withlaw as per paragraph No.38 of the order dated 14.09.2023 inW.P.No.25903 of 2022. I6. The Writ Petition is allowed. No costs. Interlocutoryapplications, if any pending, sha11 also stand closed.applications, if any pending, sha11 also stand closed. SD/. T. JAYASREEASSISTANREGISTRARSECTION OFFICER //TRUE COPYII To, 'I . lncome Tax Officer Ward 6(1),Hyderabad, I T Tower, AC Guards, MasabTank, Hyderabad - 500004.. lncome Tax Officer Ward 6(1),Hyderabad, I T Tower, AC Guards, MasabTank, Hyderabad - 500004. 39. No otder as to costs., 5. In view of the consensus arrived, the impugned ShowCause notice and consequential orders passed in this writpetition are set aside. Liberty is reserved to both the partiesto take respective stand and to proceed in accordance withlaw as per paragraph No.38 of the order dated 14.09.2023 inW.P.No.25903 of 2022. I6. The Writ Petition is allowed. No costs. Interlocutoryapplications, if any pending, sha11 also stand closed.applications, if any pending, sha11 also stand closed. SD/. T. JAYASREEASSISTANREGISTRARSECTION OFFICER //TRUE COPYII To, 'I . lncome Tax Officer Ward 6(1),Hyderabad, I T Tower, AC Guards, MasabTank, Hyderabad - 500004.. lncome Tax Officer Ward 6(1),Hyderabad, I T Tower, AC Guards, MasabTank, Hyderabad - 500004. 2. The Principal Chief, Commissioner of lncome Tax AP and TS, 1Oth Floor, C-Block, l.T. Towers, 10-2-3, A.C. Guards, Hyderabad-500004.Block, l.T. Towers, 10-2-3, A.C. Guards, Hyderabad-500004. 3. The Assessment Unit, lncome Tax Department, National FacelessAssessment Centre, Delhi, tvlinistry of Finance, Room No. 4O1 , 2nd Floor, E-Ramp, Jawaharlal Nehru Stadium, Delhi-1 10003.Assessment Centre, Delhi, tvlinistry of Finance, Room No. 4O1 , 2nd Floor, E-Ramp, Jawaharlal Nehru Stadium, Delhi-1 10003. 4. One CC to SRI DUNDU MANMOHAN, Advocate One CC to M/s. B.SAPNA REDDY, Jr. SC FOR lT DEPT. 6.Two CD CopiesBSRcJP q.-cJP q.- HIGH COURT DATED: 1910712024 ORDER WP.No.18955 of 2024 iHo[F]NF'_)io.j1108i ffi i.t'I.a ALLOWING THE [PETITION,]WITHOUT COSTS o^rLgeod€W.6-rq\>l