Wp/21784/2024 Of Mahesh Manchikanti v. The Assistant Commissioner Of Income Tax

IN THE HIGH COURT FOR THE STATE OF TELANGANAAT HYDERABAD(Special Original Jurisdiction) MONDAY, THE TWELFTH DAY OF AUGUSTTWO THOUSAND AND TWENTY FOUR PRESENT THE HONOURABLE SRI JUSTICE SUJOY PAULANDTHE HONOURABLE SRI JUSTICE NAMAVARAPU RAJESHWAR RAOWRIT PETITION NO: 21784 OF 2024 Between: lvlahesh [r,4anchikanti, S/o Raghu Manchikanti, Aged [about 45 years, Occ: ][Pvt]Employee, H.No.3-3-4, Opp. Police Station, [Srinivasa Kirana ][and ][General]Stoi'es, LB NaEar- Ring Road, Hyderabad-500044. ...PETITIONER AND 1T.: Assrsi?xi Co,'rmissioner of lncome [Tax. ][Circl: ][9i1). ][HrCeracai ]=lr':':n::Tax To,,vers, 1O-2-3, AC Guards, Masab [Tank, Telangana - ][50000'1]Tax To,,vers, 1O-2-3, AC Guards, Masab [Tank, Telangana - ][50000'1] 2The PrincrDal Chief Commissioner of [lncome Tax, ] [& ][Telangana ][#lncome]Tax Toweis, 10-2-3, A.C. Guards, [Masab ][Tank, ] [ydera ][bad-500004 ][']Tax Toweis, 10-2-3, A.C. Guards, [Masab ][Tank, ] [ydera ][bad-500004 ][']3National Faceless Assessment Centre, [Delhi' The Assessment ][Unit, ][lncome]iai Oepattment, National [Faceless Assessment Centre' Delhi, ][Mrnistry ][of]Frnancd, Room No. 4O1,znd [Floor, E-Ramp, ][Jawaharlal Nehru ][Stadium,]Delhi-1'10003.iai Oepattment, National [Faceless Assessment Centre' Delhi, ][Mrnistry ][of]Frnancd, Room No. 4O1,znd [Floor, E-Ramp, ][Jawaharlal Nehru ][Stadium,]Delhi-1'10003. 4The lncome Tax Officer, Ward [9(1), ][Hyderabad ][#lncome Tax ][Towers' ][10-2-3,]AC Guards, [tvlasab ]Tank, [Telangana ][- 500004.]AC Guards, [tvlasab ]Tank, [Telangana ][- 500004.] ...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 a writ order or direction, [more ][particularly ][one in the ][nature of]Writ of Mandamus, [declaring ][the ][impugned ][Order ][dt ][04'03 2024passed by ][the]4th respondent [u/s ][147 ][r.wls. ][of the ][Act vide DIN No. ] z+lrOoigolsag(1), [for ][A.Y.2015-l6,consequent ][to ][the order ][passed ][u/s ][148A(d)]it Ot .Oq.ZOZZ [ulO" OtN ][No. ][|TBA/AST ][tF ][t ][1 ][4BA:2O22-231 ][1042619086(1 ][) ][and ][the]notice u/s 148 [dt.11.O4.2O22 ][vide ] [No ] [/AST ][lsl148-112-022-]zl)loqzlistsl [(1) ][issued ][by ][the ][1st ][respondent ][instead ][of ][FAO(3rd]that [ioo ][initiatior, ][of ][proceedings after the ][time ][period stipulated ][u/s],"rponJ"ntl, t +d of tne Act, [as void, ][illegal ][and ][contrary ][to ][the provisions ][of ][lncome-tax ][Act]and contrary to [the Principles ][of ][Natural Justice'] lA NO: 1 oF 2024 Petition under Serrn the affidavit t;tno in.rli^ol-'?l ,,cPc [praying ]that in the c,rcumstances stated4th stay responden, alr further proceeo,,PPon IiJl"#''nt pursuant [of the ][petition ]to the order [the ]High_coun d,t..04 03 zo24r"rJ.o"ii',n",l1, o"'plrJJo,,otn il;f "*i.u [r'.'"',TliinitiiJi::fi ]i,"" pffi ;'"/ ff;: fffi .1,!ii:y',".'.1-,):,1'#;y"'l,ll,:,la:',"",,.11i, i:l:,-J il: "-r .,,,.,"m"i il {,,1J,,.oss and severe injury. Counsel for the petitioner: SRI DUNDU MANMOHANSRI DUNDU MANMOHAN Counsel for the Respondents: Ms. B. SAPNA REDDYMs. B. SAPNA REDDY (Jr. SC FoR TNCOME TAX) The Court made the following: ORDER THE HONOURI s;lJusrrcE suroy pAuL rHE HoryouRAB". STICE NAIIAVARAPU "o [rr.*-:t ] STICE NAIIAVARAPU RA.IESHWAR RAO T TION No.21 7a4 OF 2024 ORDER: (per Hon'ble Justice SujoA paul) Heard Sri Dundu Manmohan, Iearned counsel for thethe for thethePetitioner(s) and Ms.ttto" Reddy' iearned Junior Standingcounsel for Income "* for respondents.2. The ground ,.rotoutt-"'t :en bY the learned counsel for thepetitioner(s) is that in lurtherance of Finance Act, 2O21, re_assessment process stood modified but the respondents havenot taken care of it and therefore notice issued under Section Counsel for the Respondents: Ms. B. SAPNA REDDYMs. B. SAPNA REDDY (Jr. SC FoR TNCOME TAX) The Court made the following: ORDER THE HONOURI s;lJusrrcE suroy pAuL rHE HoryouRAB". STICE NAIIAVARAPU "o [rr.*-:t ] STICE NAIIAVARAPU RA.IESHWAR RAO T TION No.21 7a4 OF 2024 ORDER: (per Hon'ble Justice SujoA paul) Heard Sri Dundu Manmohan, Iearned counsel for thethe for thethePetitioner(s) and Ms.ttto" Reddy' iearned Junior Standingcounsel for Income "* for respondents.2. The ground ,.rotoutt-"'t :en bY the learned counsel for thepetitioner(s) is that in lurtherance of Finance Act, 2O21, re_assessment process stood modified but the respondents havenot taken care of it and therefore notice issued under Section 148 ol the Income Ta_x Act, 1961 calnot sustain judicialscrutrny. Since notice is bad in law, the consequential ordersare also bad in law 3' During the course of hearing, rearned counsel for thepa,rties agreed that curtains on this issue are iinally drawn bythis Court in a batch of writ petitions, W.p.No.259O 3 ol 2022and other connected matters, decided by common orderdated 14.09.2023. The parties ,gr.eed that this matter may bedisposed of in terms of the Common Order dated 14.09.2023. i I I: 4. This [Court ][lr-r ][the ][said ][crder ][d'aled ][l4'O9 ][2023]W.P.No'2590 [3 ][al ][2022' ][heid ][as ][under:] 111 :::;":J::":',X'"J:::::"'"'":"""'J;TJ::"fjjIDepartcrent [upon ][treatrl6 ]['_ ].. , -..r.-..oart [proceealings ][l"ras]b" iog 'l [nd" ][r ]" [" ][o. ][". ]1 1:' .:::" :::'"- [J:.nl'* ]""o".,."."u;::'"^'":l'J:":;;;;";;"":"1,*-:'1"1:',l;llll"absence [of ][which, ][we arc ][constrained. ][,1l-".a-.rra ," ][,rt]procedute [adopted ][by the ][respondent-Depl]t't' tttt [Fi"a"ct ][Act' 2021' ][at ][the]contraveotion [t" ;" ;t";t ]it is [also ][in ][dircct ][coEtravention ][to]flrst [instance. ][;;;;;, ]the [directives ][;"";.; ;' ][the ][lton,ble ][suPtefire ][court ][in ][the]case [[ol ][Ashish ][A5arwa-l' ]][[Ashish ][A5arwa-l' ]][[A5arwa-l' ]][supra ]-r -^+[[notces ]]i-a< [[issued]][[the ]][impugned ] case [[ol ][Ashish ][A5arwa-l' ]][[Ashish ][A5arwa-l' ]][[A5arwa-l' ]]-r -^+i-a< [[issued]]35. [For ][all ][the ][aforesaid reasons' ][[the ]][impugned ][[notces ]]and the [pioceedings ][dtawn ][by ][the ][respondent-DePartment ][is]neithet [tenable' nor ][sustainable' ][The ][notices ][so ][issued ][and]the [proredure ][adoPtcd beitrg ][Pcr ][sc ][iltegal' ][deserves ][to ][be ][and]ate [accord.inEly set ][asidelqlreshed' ][As a consequence' ][aU ][the]irrrpugned [orders ][getting ][qua$hed' ][the ][co[sequential ][orders]passed [by the ][resPondent ][Department ][pursualt ][to ][the ][notices]issued [undet Section ][14? ][and ][148 ][would ][atso ][get ][quashed ][and]it is ordered [accordingly' ][The ][reason ][r^,e ][are ][quashing the]consequential [order is on the ][Principles ][that when ][the]initiation [of the ][proceedings ][itself ][{ras ][proce'lurally ][wfong']the subsequent [orders ][also ][gets ][nultified ][automaticauy-]37. The Preliminary [objection raised ][by the ][petitiooer ][is]sustained [and ][all ][these ][q'rit ][Petitions ][stands ][allowed on ][this]very [jurisdictioflal ][issue' Since ][the ][imPugned ][notices ][and]orders are [getting ][quashed ][on the ][point ][ofjurisdictiol- ][we ][ate]not inclined [to ][proceed ][further ][aod ][decide ][the other ][issues]raised hy the [petitiooer which ][stands ][reserved ][to ][bc ][raised]and contended [in ][an appropriate proceediags']38. Since the [Hon'ble ][Suprelrre ][Court had' ][in the ][case ][of]Ashish Agarwal, supra, as [a one-time ][measure ][exercisiag the]powers under Articte 742 of the Constitution of lndia,provisions, and pcrmitted the this Revenue court to .,r"::::":. Iunder the substitutedprocedurar flaw, the ,,-.. _ 'l't* [the petitions ]only on the."--"i' .".u,,.d ," "l [.o. ][Revenue pourd]rther if ",":".; [;;:::'::- ]they so Erant from the \ \ stage of the order of the [Supreme ][court ][in ][the ][case ][of ][Ashish] Agarsal, supra. \ \ stage of the order of the [Supreme ][court ][in ][the ][case ][of ][Ashish] Agarsal, supra. 39. I{o order as to costs." 5. In view of the consensus [arrived, ][the ][impugned ][Show] Cause notice [and ][conseque ][ntial ][orders ][passed ][in ][this ][writ]set [aside. Liberty ][is ][reserved ][to both ][the ][parties]petition are to take respective [stand and ][to ][proceed ][in ][accordartce ][with]law as [per paragraph ][No.38 ][of the order ][dated ][14'09'2023 ][in]W.P.No.259O3 [ol 2022.] 6. The rvrit Petltloll[is ][allowed. ][No costs. ][Interlocutory]applications, [if ][any ][pending, shall ][also ][stand ][closed'] SD/.N. SRIHARIASSISTANT REGISTRARV, SECTION OFFICER //TRUE COPY// To, 1The Assistant Commissioner of lncome Tax, Circle 9('t ), Hyderabad lncomeTax Towers, 10-2-3, AC Guards, Masab Tank, Telanldna - SOOOO+.Tax Towers, 10-2-3, AC Guards, Masab Tank, Telanldna - SOOOO+.2The Principal Chief Commissioner of Income Tax, APand Telangana, lncomeTax Towers, 10-2-3, A.C. Guards, Masab Tank, Hyderabad-SOOdO4.Tax Towers, 10-2-3, A.C. Guards, Masab Tank, Hyderabad-SOOdO4.3National Faceless Assessment Cenke, Delhi, The Assessment Unit, lncomeTax Department, National Faceless Assessment Centre, Delhi, Ministry ofFinance, Room No. 4O1 .2nd Floor, E-Ramp, Jawaharlal Nehru Stadiu-m,Delhi-1 ['10003.]Tax Department, National Faceless Assessment Centre, Delhi, Ministry ofFinance, Room No. 4O1 .2nd Floor, E-Ramp, Jawaharlal Nehru Stadiu-m,Delhi-1 ['10003.]4The lncome Tax Officer, Ward 9(1), lncome Tax Towers, 10-2.3, AC Guards,lvlasab Tank, Telangana - 500004.lvlasab Tank, Telangana - 500004.5One CC to SRI DUNDU [/ANMOHAN, Advocate 6One CC ro MS B SAPNA REDDY (Jr. SC FOR TNCOME TAX) tOpUCl7Two CD Copies7Two CD Copies BNGJPGJP 8"\r,, HIGH COURT DATED:1210812024 ORDER WP.No.21784 of 2024 ALLOWING THE WRIT PETITIONWITHOUT COSTS ?r.(.r-r{qlrl. .111 6(9[t'r zul!,))/d\,_,-_.?-