Wp/21774/2024 Of Sandhya Rani Anumasa v. Income Tax Officer

HIGH COURT FOR THE STATE OF TELANGANAAT HYDERABAD(Special Original Jurisdiction) FRIDAY, THE NINTH DAY OF AUGUSTTWO THOUSAND AND TWENTY FOUR PRESENT THE HONOURABLE SRI JUSTICE SUJOY PAULAND THE HONOURABLE SRI JUSTICE J SREENIVAS RAO WRIT PETITION NO:21774 oF 2024 Between: Sandhya Rani Anumasa, W/o Sambaiah, Aged about 64 years, Occ; Housewife,H.No. 3-14-333/1 , Durga Colony, KUC Road, Hanamkonda, Warangal -506001. .....PETITIONER AND income Tax Officer, Ward 1, Warangal, D.No. 1-8-610, 3rd Floor. lv{ayuriComplex, Opp. TSNPDCL Bhawan, Nakkalagutta, Hanamkonda, Waiangal-506001.Complex, Opp. TSNPDCL Bhawan, Nakkalagutta, Hanamkonda, Waiangal-506001. '2The 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, 3The Assessment Unit, lncome Tax Department, National FacelessAssessment Centre, Delhi, Ministry of Finance, Room No. 4O1 ,2nd Floor, E-Ramp, Jawaharlal Nehru Stadium, Delhi-'l 10003.Assessment Centre, Delhi, Ministry of Finance, Room No. 4O1 ,2nd Floor, E-Ramp, Jawaharlal Nehru Stadium, Delhi-'l 10003. .....RESPONDENTS Petition Under Article 226 of the Constitution of lndia praying that in thecircumstances stated in the affidavit filed therewith, the High Court may bepleased to issue a writ, order or direction, more particularly one in the nature ofWrit of Mandamus, declaring the Assessment Order dt. OS.O1 .2}24passed by the3rdrespondent uls 147 rw.s144l 1448 of the lncome-tax Act for A.y. 2015-16 videDIN No, ITBA/AST/S/14712023-2411059411818(1),which is passed as aconsequence of the order passed u/s 148A(d) dt.24.O4.2O22 vide DIN No.ITBA/AST/F/'I48A12022-2311042833316(1) and the notice u/s 148dt.25.04.2022vide DIN issued No.ITBA/AST/S/148-1 12O22-23t104283a539(t), by the JAO(1st respondent) rnstead of FAO(3rd respondent), as void, illegal, andcontrary to the provisions of lncome-tax Act and contrary to the Principles ofNatural Justice, apart from being barred by limitation. l.A.NO:1 OF 2024 Petition Under Section 15'1 CPC praying that in the circumstances stated inthe affidavit filed in support of the petition, the High Court may be pleased to stayall further proceedings pursuant to the Assessment Order dt, 05.0.1 .2024 passedby the 3rdrespondent u/s 147 r.w_s 1441144A of the lncome-tax Act for A.y. 201 5-16 vide DIN No ITBAiAST/S114712O23-Z4t1OSg4118i8 (1). Counsel for the Petitioner : SRI DUNDU MANMOHAN Counsel for the Respondents : Ms. BOKARO SAPNA REDDy (Jr. SC FORINCOME TAX) The Court made the following ORDER THE HONOURABLE SRI JUSTICE SUJOY PAULANDTHE HONOURABLE SRI JUSTICE J. SREENIVAS RAO WRIT PETITION No.21774 0F 2024 ORDER: (per Hon'ble Justice Sujog Paul) Heard Sri Dundu Manmohan, learned counsel for thepctitioner(s) and Ms. B. Sapna Reddy, learned JuniorStanding Counsel for Income Tax Department, for therespondents. 2. The ground taken by the learned counsel for thepetitioner(s) is that in furtheralce of Finance Act, 202 1, re-assessmcnt process stood modified but the respondents havenot taken care of it and therefore notice issued under Section148 of the lncome Tax Act, 1961 cannot sustain judicialscrutiny. Since notice is bad in law, the consequential ordersare also bad in law. 3. During the course of hearing, learned counsel for theparties agreed that curtains on this issue are hnally drawn bythis Court in a batch of writ petitions, W.P.No.259O3 ot 2022and other connected matters, decided by common orderdatcd 14.09.2O23. The parties agreed that this matter may bedisposed of in terms of the Common Order dated 74.O9.2023. 4. This Court rn thr: szrid order dated 14 .O9 .2023 inW.P.No.259O3 of 2022, hcld as under 3. During the course of hearing, learned counsel for theparties agreed that curtains on this issue are hnally drawn bythis Court in a batch of writ petitions, W.P.No.259O3 ot 2022and other connected matters, decided by common orderdatcd 14.09.2O23. The parties agreed that this matter may bedisposed of in terms of the Common Order dated 74.O9.2023. 4. This Court rn thr: szrid order dated 14 .O9 .2023 inW.P.No.259O3 of 2022, hcld as under "35. [ln ][view ][of ][the ][aforesaid discussions, ]it is by 'tow [very]clear that the procedure to be folloecd by the respondeat-I)epartmetrt upon treatiEg the rotices lssued for reassessmentbeing uoder Sectiotr 148A, the subsequelt proceedings wasmaadatorily required to lrc undcrtakeD u[der the substitutedprovisiotrs as laid down uDder thc Finaace Act,2O2l. Ilr tleabsence of which, we ate const.ained to hold that theproc€dure adopted by the respordeDt-Depart6eat is iscontrevention to the statute i.e. the Finance Act, 2O21, at the{lrst instance. Secondly, it is also in diiect cuttrave[tioa tothe directives issued by the Hon'bte SupreEe Court ia thec&se of Ashish Agarwal, strpra. 36. For aU the eforesaid r€asons, thc irupug[ed Bouces issuedand the proceedings drasn by the respondent-Depa.ttaeEt isneitier tenable, nor sustainable. The trotices so is,sued andthe p.ocedure adopted beint per sc illegal, deserees to be andare accorditrgly set aside/quashed- As a coosequelce, all theiEpug[ed orders getting quashed, the coDsequeltial orderspassed by the respondeat Depa{ment pursualt to the ooticesissued under Sectioa 147 aod 14E would also get quashed aDdit is ordered accordiqgy. The rcason se a.e quashing theconsequedtial order is otr the priociples that whea theinitiatior of the proccedings itself was procedurally wrotrg,the subsequent orders also gets nullilied autornatically.37- The preliminary cbjectioc raised by the petitioner issustained aad all thesc ttrrit petitions staads altosed on thisvery jurisdictional issue. Sincc the impug[ed notices aldorders are gettiag quashed on the poiut ofjurisdictioa, we arenot incliaed to proceed further and decide the other issuesraised by the petitiooer which sta[ds rescrved to be (aisedaqd coatended in an appropriate proceedings.3E. Since the Hon'ble Supreme Court had, in the cese ofAshish Agarwal, suprar as a orae-time Eeasure exercising thepowers under Article 142 of the Consutuuon of India,permitted the Rcve ue to proceed under the substitutedprovisions, and this Coun auowitrg the petltlons orly on tbeprocedural tlaw, the right confcrred otr the Revenue woulal \ remain reserved to [proceed ][further ][if ][they ][so ][wa[t froB ][the]stage of the order [of ][the ][Supreme ][Court ][in ][the ][case ][of ][Ashish]AtarFal, supra.39. No order as to costs." 5. In view of the consensus [arrived, ][the ][impugned ][Show]Cause notice [and ][consequential ][orders ][passed ][in ][this ][writ]petition are set aside. [Liberty ][is ][reserved ][to both the ][parties]to take rcspective [stand and ][to ][proceed ][in ][accordance ][with]Iaw as per [paragraph ][No.38 ][of ][the ][order ][dated ][14'O9'2O23 ][in]W.P.No.25903 of [2022.] 6. ]'he Writ [Petition ][is ][allou'ed. ][No costs' ][Interlocutory]applications, if any [pending, ][shall ][also ][stand ][closed] SD/.V.KAVITHAASSISTANT REGISTRARv.SECTION OFFICER //TRUE COPY// To \ remain reserved to [proceed ][further ][if ][they ][so ][wa[t froB ][the]stage of the order [of ][the ][Supreme ][Court ][in ][the ][case ][of ][Ashish]AtarFal, supra.39. No order as to costs." 5. In view of the consensus [arrived, ][the ][impugned ][Show]Cause notice [and ][consequential ][orders ][passed ][in ][this ][writ]petition are set aside. [Liberty ][is ][reserved ][to both the ][parties]to take rcspective [stand and ][to ][proceed ][in ][accordance ][with]Iaw as per [paragraph ][No.38 ][of ][the ][order ][dated ][14'O9'2O23 ][in]W.P.No.25903 of [2022.] 6. ]'he Writ [Petition ][is ][allou'ed. ][No costs' ][Interlocutory]applications, if any [pending, ][shall ][also ][stand ][closed] SD/.V.KAVITHAASSISTANT REGISTRARv.SECTION OFFICER //TRUE COPY// To ,|The lncome Tax Officer, Ward 1, Wqrglga!, D.No. 1-8-610, 3rd Floor, tVlayuri!^onql9x, [Opp ][TSNPDCL Bhawan, ][Nak-katagutta, ]Hanam(onda, Wr;r;g;t506001!^onql9x, [Opp ][TSNPDCL Bhawan, ][Nak-katagutta, ]Hanam(onda, Wr;r;g;t5060012The Principal Chief Commissioner of lncome Tax Ap and TS, 1Oth Floor, C-8lock. lT. Towers, 10-2-3, A.C, Guards, Hyderabad_500004.3The Assessment Unit. lncome Tax Department, National FacelessAssessment Centre, Delhi, L4inistry of Finance, Room No. 401, 2nd Floor, E-Ramp, Jawaharlal Nehru Stadium, Delhi-1 10003.8lock. lT. Towers, 10-2-3, A.C, Guards, Hyderabad_500004.3The Assessment Unit. lncome Tax Department, National FacelessAssessment Centre, Delhi, L4inistry of Finance, Room No. 401, 2nd Floor, E-Ramp, Jawaharlal Nehru Stadium, Delhi-1 10003. 4One CC to SRI DUNDU IVANIVOHAN, Advocate tOpUClOne CC to ivts BOKARO SAPNA REDDY (Jr. SCiOR |NCOI\|ETAX ) Al voca r? [OPUCIoT v,,l CD Coci." sOne CC to ivts BOKARO SAPNA REDDY (Jr. SCiOR |NCOI\|ETAX ) Al voca r? [OPUCIoT v,,l CD Coci." s SAKKSPt'tQ. HIGH COURT DATED:09108t2024 ORDER WP.No.2't774 of 2OZ4 ALLOWING THE W.PWITHOUT COSTS. '>*\qtt'u tllt[sial]Iel)t6\I? [1 ][c [2o2l]\ \-.:--.=/1;;iiO I