Wp/19687/2024 Of Ram Mohan Miryala v. The Income Tax Officer

HIGH COURT AT HYDERABAD(SPecial Original [Jurisdiction)] THURSDAY, TWO THOUSAND PRESENT THE HONOURABLE ANDTHE HONOURABLE [SRIJUSTIC.d ] WRIT PETITION [N][os. ][19][665][ r9687 ] [ 19727][ aF ][2024] WRIT PE [:196€5][ OF][ 2024] Between: Ram, Aqed [about ][61lears'],opp:-Oi [Higi ][Court ][Ghansi ][Bazar] Shiv Shanker [Goel, ] - - lttu6iCrprtion.eusiness, [R/o ][21'.7'558]Hydeiabad [500002.Telangana' ][Inora'] ...PETITIONER AND1office of The [lncome Tax ][officer, Ward ][8(1), ][Hyderabad, Telangana ][State]1office of The [lncome Tax ][officer, Ward ][8(1), ][Hyderabad, Telangana ][State] zThe Principal [Chief Commissioner of lncome ][Tax -Telanoana ][and ] [P]Hyderabad, [lr ][Towers ] ['i;:';;;' ][ffitIo ][i"ni' ][Hvdera-bad ][- ][500 ][028']TelanganaHyderabad, [lr ][Towers ] ['i;:';;;' ][ffitIo ][i"ni' ][Hvdera-bad ][- ][500 ][028']TelanganaJThe central [Board of ][Direct ][Taxes, Represented.by its ][chairman' ][Department]of Revenue, Ministry [ot ][r,nan66]6o'lEln'*lot ][lMia' ][Secretariat Buildings']New Delhi [- ][110 001.]of Revenue, Ministry [ot ][r,nan66]6o'lEln'*lot ][lMia' ][Secretariat Buildings']New Delhi [- ][110 001.] lncome Tax [DePartment, New]4. The National [Faceless ][Assessment Center']Delhi.Delhi. u*",,',ili"J.?:l,"Htxs:81"fi fl l:i8,?Yli.ff :::1t3*'"olH'9?l"o't['""'fl l:i8,?Yli.ff :::1t3*'"olH'9?l"o't['""' ...RESPONDENTS Petition under [Article ][226 ][of ][lhe ][Constitution ][of ][lndia ][praying ][that ][in ][the]circumstances [staled ][i1 ]Jhe [atfidayl! ]l1!ed [tnelewrtfr' ][the ][Hlgh ][Court ][may ][be]pleased to issue [an ][appropriate ][*'it, ][o'4"' ][or ][Oiiection ][more particularly ][one in the]nature of [Writ ][of ][Mandamus, declaring ][the order ][passed ][by ][the ][lncome ][Tax]Authorities [(Nationar Faceless E-Assessment ][centre) ][completed ][the ][assessment] Ulsl4TreadwithSection,l44Bofthelncome-taxACtDateoforderlS-03.2o24'DINITBA/AST/st14712023.2411062823928(1)fortheAssessmentYear20,lB.l9the [total ][income ][of ][Rs ][19,06,674l-as ][arbitrary' illegal' bad ][in ][law']determining without [jurisdiction. void-ab-initio, violative ][of ][the ][principles ][of ][natural ][iustice apart]frombeingViolativeofArticlesla,lg(1)(g)and265oftheConstitutionoflndiaandsec. 14BA of [the ][lncome Tax ][Act, ]['1961, ][and consequently set ][aside the same ][in]the interests of iustice Counsel for the [Petitioner: ] Counsel for the [Respondent ][Nos.1 ][and ][2: ][MS' ][J' ][SUNITHA' ] SC FOR INCOME Counsel forthe [Respondent ][No.3: ] [B' ][MUKHERJEE' ] SRI GADI PRAVEEN [KUMAR, ] WRIT PETITION[NO: 19687 ][0F ][2024] Between: Ram Mohan [Miryala, S/o.' Veeiaiah Miryala' ][Aged ][ab^out., ][S5ye-ars']cj;;rp;iffi -Brslnedi [Rro ]!-!Qll ^lt9a1 [Vijava ] [ursing ][Home' ][Gauthamnasar]CninErnrgrt [Rangareddy 500050, Telangana, lndia] ...PETITIONER AND 1The lncome Tax Officer, [Serlingampally' Office ][of ][thelncome ][tax ][office' ward]8(1) Hyderabad, [Telangana ][State.]8(1) Hyderabad, [Telangana ][State.] 2The Principal Chief [Commissioner of lncome Tax ][- ][Telanoana ][and ] 'Hfi;';;;'i.liro*eii, Ac'c;;', [M;;;b ][iank, ][Hvdera"bad ][- ][500 ][028']Telangana.Hfi;';;;'i.liro*eii, Ac'c;;', [M;;;b ][iank, ][Hvdera"bad ][- ][500 ][028']Telangana.3. The Central [Board of ][Dlrect ][Taxes, Represented by.its ][chairman, ][Department]" ;i'R"*.;;, fr,,1inistr, ot finance, Goveinment of lndia, Secretariat Buildings,New Delhi [- ][1 ][.10 ][001 ][.]" ;i'R"*.;;, fr,,1inistr, ot finance, Goveinment of lndia, Secretariat Buildings,New Delhi [- ][1 ][.10 ][001 ][.] 4. The National [Faceless ][ASSeSSment ][Center, lncome ][Tax ][Department, New]Delhi.Delhi. 2The Principal Chief [Commissioner of lncome Tax ][- ][Telanoana ][and ] 'Hfi;';;;'i.liro*eii, Ac'c;;', [M;;;b ][iank, ][Hvdera"bad ][- ][500 ][028']Telangana.Hfi;';;;'i.liro*eii, Ac'c;;', [M;;;b ][iank, ][Hvdera"bad ][- ][500 ][028']Telangana.3. The Central [Board of ][Dlrect ][Taxes, Represented by.its ][chairman, ][Department]" ;i'R"*.;;, fr,,1inistr, ot finance, Goveinment of lndia, Secretariat Buildings,New Delhi [- ][1 ][.10 ][001 ][.]" ;i'R"*.;;, fr,,1inistr, ot finance, Goveinment of lndia, Secretariat Buildings,New Delhi [- ][1 ][.10 ][001 ][.] 4. The National [Faceless ][ASSeSSment ][Center, lncome ][Tax ][Department, New]Delhi.Delhi. " 5. The o"pa.t*""ioi Union of [lndia, Represented by ]nevenu'e, trrtinistry oi Finance, Ndw Delhi - 110 [its ][Secretary to-the Government']001 ' ,.,RESPONDENTS 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] pleased to issue an appropriate [writ, ][order ][or direction ][more ][particularly one ][in ][the]nature of writ of [Mandamus, ][declaring ][the ][order ][passed ][by the ][lncome ][Tax]Authorities [(National ][Faceless E-Assessment ][Centre ][completed ][the ][assessment]uts 147 r/w section [144-8 of ][the ][lncome ][iax ][Act, ][1961 ][vide ][DIN and Notice ][No.]dated 18-01-2024 [ITBA/AST tsl147 ][t2023-24/1059870199(1) ][for the ][assessment]year2015-'l6determiningthetotalincomeofRs5l"lT'543l-asarbitrary'illegal'badinlaw,withoutjurisdiction,void-ab-initio,violativeoftheprinciplesofnatural265 of thejustice apart from being [violative ][of ][Articles ][14' ][19(1)(g) ][and]Constitution of [lndia ][and ][Sec. ][14BA ][of ][the ][lncome ][Tax ][Act']1961, andset [aside ][the ][same in ][the ][interests ][of ][justice' ][and ][pass]consequently nature of writ of [Mandamus, ][declaring ][the ][order ][passed ][by the ][lncome ][Tax]Authorities [(National ][Faceless E-Assessment ][Centre ][completed ][the ][assessment]uts 147 r/w section [144-8 of ][the ][lncome ][iax ][Act, ][1961 ][vide ][DIN and Notice ][No.]dated 18-01-2024 [ITBA/AST tsl147 ][t2023-24/1059870199(1) ][for the ][assessment]year2015-'l6determiningthetotalincomeofRs5l"lT'543l-asarbitrary'illegal'badinlaw,withoutjurisdiction,void-ab-initio,violativeoftheprinciplesofnatural265 of thejustice apart from being [violative ][of ][Articles ][14' ][19(1)(g) ][and]Constitution of [lndia ][and ][Sec. ][14BA ][of ][the ][lncome ][Tax ][Act']1961, andset [aside ][the ][same in ][the ][interests ][of ][justice' ][and ][pass]consequently Counsel for the [Petitioner: ] Counsel for the [Respondent ][Nos.1 and ][2: ][MS' ][J' ][SUNITHA' ] SC FOR INCOME Counsel for the [Respondent ][No.3: ] [B' ][MUKHERJEE' ] SRI GADI PRAVEEN [KUMAR, ][DEPUTY SOLICITOR GENERAL OF INDIA] WRIT PETIroli'ilio:['1i;lzi'aiF ][2ozA ][''] Between: Kanike Mahesh, [S/o: ][Kanike ][Veeraiah, ][Aqgd. ][about ][43 ][y99r9']iiiir'Jrti".ilir-"nb.., [nlo ]i.p [of ][rvilS ][sai ][Deep-"Mobrles ][and ][watch ][.Main]ffi;:ruiliffiffi [habronrGr ][rvratiabubnagar'509001'Telangana' ][lndia] ...PETITIONER AND 1The lncome [Tax Officer, Office ][of ][the lncome ][tax ][officer ][ward' ][DEO Office]Road Mahabubnagar, [Telangana ][State]Road Mahabubnagar, [Telangana ][State] 2The Principal Chief Commissioner [Of ][lncome ][Tax Telangana And ][Ap']Hlii,j,Iiiili'Ir-i"*eii, [cuaros, ][Masab ][Tank, ][Hvderabad-]b6oo2B,T.tangan"Hlii,j,Iiiili'Ir-i"*eii, [cuaros, ][Masab ][Tank, ][Hvderabad-]b6oo2B,T.tangan" WRIT PETIroli'ilio:['1i;lzi'aiF ][2ozA ][''] Between: Kanike Mahesh, [S/o: ][Kanike ][Veeraiah, ][Aqgd. ][about ][43 ][y99r9']iiiir'Jrti".ilir-"nb.., [nlo ]i.p [of ][rvilS ][sai ][Deep-"Mobrles ][and ][watch ][.Main]ffi;:ruiliffiffi [habronrGr ][rvratiabubnagar'509001'Telangana' ][lndia] ...PETITIONER AND 1The lncome [Tax Officer, Office ][of ][the lncome ][tax ][officer ][ward' ][DEO Office]Road Mahabubnagar, [Telangana ][State]Road Mahabubnagar, [Telangana ][State] 2The Principal Chief Commissioner [Of ][lncome ][Tax Telangana And ][Ap']Hlii,j,Iiiili'Ir-i"*eii, [cuaros, ][Masab ][Tank, ][Hvderabad-]b6oo2B,T.tangan"Hlii,j,Iiiili'Ir-i"*eii, [cuaros, ][Masab ][Tank, ][Hvderabad-]b6oo2B,T.tangan" JThe central Board [of ][Direct ][Taxes, ][Represented- By ][lts- ][chairman ][Department];i'[";;;;, [Mi;i.try ]"i [rinjnce, ][cbu.inment ][of ][lnd'ia, ][secretariat ][Buildinss'];i'[";;;;, [Mi;i.try ]"i [rinjnce, ][cbu.inment ][of ][lnd'ia, ][secretariat ][Buildinss']New Delhi4The National [Faceless ][Assessment Center, lncome ][Tax ][Department' ][New]DelhiDelhi5The Union Of [lndra, Represented ][Bylts ][Secretary ]!o [The ][Government]of [Revenue, Ministry of Finance, New ][uelnr]of [Revenue, Ministry of Finance, New ][uelnr]Department ...RESPONDENTS Petition under Article 226 of the Constitution of lndia praying that in thecircumstances stated in the affidavit filed therewith, the High Court [may ][be]pleased to issue an appropriate writ, order or direction more particularly one in thenature of Writ of [\,4andamus declaring the order passed by the lncome TaxAuthorities (National Faceless E-Assessment Centre completed the assessmentUIS 147 r/w Section 144-B of the lncome Tax Act, 1961 vide DIN and Notice No.daled 20-12-2023 ITBA/ASTlsl 1 47 12023- 2411 059093666(1 ) for the assessmentyear 2015-16 determining the total income of Rs. 50,68,5101as arbitrary, illegal,bad in law, without [jurisdiction, ]void-ab-initio, violative of the [principles ]of naturaljustice apart from being violative of Articles 14, 19(1Xg) and 265 of theConstitution of lndia and Sec. 14BA of the lncome Tax Act, 1961, andconsequently set aside the same in the interests of [justice ]and [pass] Counsel for the Petitioner: SRI THANNERU CHAITANYA KUMAR Counsel for the Respondents: MS. BOKARO SAPNA REDDY(Jr. SG FOR INCOME TAX) Counsel forthe RespondentNo.3: SRI B. MUKHERJEE, REPRESENTING FORSRI GADI PRAVEEN KUMAR, DEPUW SOLICITOR GENERAL OF INDIAThe Court made the following: COMMON ORDER THE HONOURABLE SRI JUSTICE NAMA,VARAPU RAJESHWAR RAO 19687 & 19727 0F 2024 UIRIT PETITION NOS.19665 COMMON ORDER (per Honbte SP,J) Sri Thanneru Chaitanya Kumar, learned counsel, appears for the petitioners, Ms. J.Sunitha, learned JuniorStanding Counsel for Income Tax Department, appears for therespondent(s)-Income Tax Department in W.P.Nos.19665 &19687 of 2024, Ms.B.Sapna Reddy, learned Junior StandingCounsel [.for ]Income Tax Department, appears for therespondent(s)-Income Tax Department in W.P.No.l9727 of 2024ald Sri B. Mukherjee, learned counsel representing Sri GadiPraveen Kumar, learned Depuly Sp-llqitor Gqr1er,4l . [qf, ]India. [fpr ]' ; ;the respondent(s)-Central Government in all the writ petitions. Regard being had to the similarity of had to the similarity of to the similarity of similarity of of the questionquestion 2. Regard being had to the similarity of had to the similarity of to the similarity of similarity of of the questionquestioninvolved, on the joint request of the parties, the matters areanalogously heard and decided by this common order. It is common is common common ground taken by the learned counsel forthe learned counsel forlearned counsel forcounsel for Regard being had to the similarity of had to the similarity of to the similarity of similarity of of the questionquestion 2. Regard being had to the similarity of had to the similarity of to the similarity of similarity of of the questionquestioninvolved, on the joint request of the parties, the matters areanalogously heard and decided by this common order. It is common is common common ground taken by the learned counsel forthe learned counsel forlearned counsel forcounsel for 3. It is common is common common ground taken by the learned counsel forthe learned counsel forlearned counsel forcounsel forthe petitioner(s) that in furtherance of Finance Act, 2021, [te-]assessment process stood modihed but the respondents [have ]nottaken care of it and therefore notices issued under Section [148]of thq Income Tax Act, 1961 cannot sustain [judicial ]scrutiny. 2 Since notices are bad in law, the consequential orders are alsobad in law. 4During 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.25903 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 14.09.2023. 5This Court in the said order dated 14.09.2023 inW.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-Department upon treating the notices issued for reassessment being under Section1484, 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 Court in the case of Ashish Agarwal, : supra. 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 o.ders gettingquashed, the consequential orders passed by the respondentDepartment pursuant to the notices issued under Section 147 and 148would also get quashed and it is o.dered accordingly. The reason we ,are quashing the consequential order is on the principles that whenthe initiation of the proceedings itself was procedurally wrong, the- -sqbs_equent ordeIs also gets nullified automatically. 337. The preliminary obiection raised by the [petitioner ][is ][sustained ][and]all these writ [petitions ]stands allowed on [this ][very ][jurisdictional ][issue.]Since the impugned notices and orders [are ][gefting ][quashed ][on ][the]point of jurisdiction, we are not inclined to [proceed ]fu(her [and decide]the 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 ][Ashish]Agarwal, supra, as a one-time [measure ][erercising the powers ][under]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 ][the]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." 39. No order as to costs." 6In view of the consensus arrived, [the ][impugned ][Show]Cause notices and consequential [orders ][passed ][in ][this ][batch ][of]writ petitions are set aside. Liberty [is ][reserved ][to ][both the parties]to take respegtivg, sleind g*9'-tq lawflq."S.g,4:in:.?c^c9t+3ll9 [wrth. ]as per paragraph No.38 of [the ][order ][dated ][14.09.2023 in]W.P.No.259O3 of 2022. The Writ Petitions are allowed. [No ][costs. Interlocutory] 7 applications, if any [pending, shall ][also ][stand ][closed.] SD/. C, PRAVEEN KUMAASSISTANT REGISTRAV//TRUE COPY//SEON OFFICER To,1Office of The Income Tax Officer, Ward 8(1), [Hyderabad, Telangana ][State.]2The Principal Chief Commissioner of lncome Tax [- ]Telangana and [A.P., Hyderabad,]lT Towers, AC Guards, Masab Tank, Hyderabad [- ]500 028, [Telangana.]3The Chairman, The Central Board of Djrect Taxes, Department of [Revenue, ][Ministry]of Finance, Government of lndia, Secretariat Buildings, [New Delhi ][- ][1 ][10 001 ][.]2The Principal Chief Commissioner of lncome Tax [- ]Telangana and [A.P., Hyderabad,]lT Towers, AC Guards, Masab Tank, Hyderabad [- ]500 028, [Telangana.]3The Chairman, The Central Board of Djrect Taxes, Department of [Revenue, ][Ministry]of Finance, Government of lndia, Secretariat Buildings, [New Delhi ][- ][1 ][10 001 ][.]4The National Faceless Assessment Center, lncome Tax_Department, NewDelhi.5The Secretary to the Government, Department of [Revenue, ]The [Union ][of ][lndia,]Ministry of Finance, New Delhi - [1 ][10 ]001 [.]Ministry of Finance, New Delhi - [1 ][10 ]001 [.]6.One CC to Sri Thanneru Chaitanya Kumar, [Advocate ] 7.One CC to Ms. J.Sunitha, Junior Sc For [lncome Tax ] 8.One CC to Sri Gadi Praveen Kumar, Deputy [Solicitor General ][of ][lndia ]LOne CC to fvls. B. Sapna Reddy, SC for [lncome Tax Department ]LOne CC to fvls. B. Sapna Reddy, SC for [lncome Tax Department ]10Two CD CopiesTJqtrGJPTJqtrGJP iI HIGH COURT DATED:2510712024 B[1HF- ][s][ ra ]ioY(o.J2 I [l.lDIJ ][2021]rl7.t COMMON WRIT PETITION [NOS. ][19665, 19687 ] 2024 ALLOWING WITHOUT ap5t\ )-q.\z(q-"+u