Wp/24266/2024 Of Sudha Rani Burra v. Income Tax Officer

HIGH COURT (SPecial Original [Jurisdiction)] WEDNESDAY, TWO THOUSAND PRESENT THE HONOURABLE ANDTHE HONOURABLE [SRIJUSTIC-d NAMAVARAPU RAJESHWAR ] WRIT PETITION [Nos:][ 24266 ][A] [20F ][2024] WRIT PETI [NO:][ 2426][60F ][2024] Between: Sudha Rani [Burra ][Wo. ][Pulla ][Reddy ][Burra' ][Age.d ][about ][60 ][vears' ][Occupation:]# [H.No. ][11, ][liffi;ffi;" ][f-nohi,"kooio ][Post' ][kodad' ][Nalgonda']Housewife, Telangana-508206. ...PETITIONER AND Krishna Nagar [ColonY']1lncome Tax Officer, [Suryapet ][lncome ][tax ][office']Suryapet, [Telangana-50821 ][3.]1 'loth Floor, [C-Block, ][l.T]Suryapet, [Telangana-50821 ][3.]1 'loth Floor, [C-Block, ][l.T]2The Princioal Commissioner [of ][lncome ]-T-q{ ^-. iliir"*,' [r ]o:i-s, [A.C- ][cuaras' ][Hvderabad-500004']iliir"*,' [r ]o:i-s, [A.C- ][cuaras' ][Hvderabad-500004'] 3. The Assessment [Unit, ][lncome ][Tax ][Department National ][Facebss]Assessment [centre, ][oeihi,'d"ifilli'y ][oi?ina1Cd' noom ][No ][4o1'2no Floor' ] Ri""ip, iitiini;tri' [liehru ][Stad ][i ][um,'Del ][h ][i- ][1 ][1 ][0003']Assessment [centre, ][oeihi,'d"ifilli'y ][oi?ina1Cd' noom ][No ][4o1'2no Floor' ] Ri""ip, iitiini;tri' [liehru ][Stad ][i ][um,'Del ][h ][i- ][1 ][1 ][0003'] ...RESPONDENTS PetitionunderArticle226ottheConstitutionoflndiaprayingthatinthecircumstances [stated ][in ][the ][affidavit ][filed therewith' ][the ][High Court may ][be]pleasedtoissueawrit,orderordirection'moreparticularlyoneinthenatureotWritofMandamus,declaringtheAssessmentorderdt.ol.ol.2024passedbythe3'd respondent [uts ][147 ][r.w's ][144t1448 ][of ][the ][lncome-tax ][Act ][for ] [2O19-2O]vide DIN [No. ] [tst147t2l23-241105g254g37(1)' consequent ][to ][the ][order]u/s [148A(d) ][dt' ][30'03 ][2023 vide ] [No' ] passed 2311051678877(1) and the notice u/s148dt.30.03.2023vide DtN No.trBA/AST/s/148-112022-23/1051693637(1), issued by the JA0(1st respondent) instead ofFAo(3rd respondent). and consequentiar penarty orders passed vide order u/s270A of the Act dt.20-06.2024 bearing DrN rrBArpNLtFt2ToN2o24-2st1065882257(1) and order urs 272A(1)(d) of the Act dt 03.06.2024 bearing DrNfiBNPNLlFl272A(1)(d)t2o24-25l1065360187(1), as void, iilegat, and contrary rothe provisions of lncome{ax Act and contrary to the principres of Naturar Justice. 1A NO: 1 OF 2024 Petition under section 1s'r cpc praying that in the circumstances stated inthe affidavit fired in support of the petition, the High court may be preased to stayall further proceedings pursuant to the Assessment order dt. 01 .01 .2024 passedby the 3'd respondent uts 147 r.w.s 144t1448 of the lncome-tax Act for A.y. 201g-20 vide DIN No. rrBA/AsT/s/147r2023-24t10s92s4937(1),and consequentiarthe affidavit fired in support of the petition, the High court may be preased to stayall further proceedings pursuant to the Assessment order dt. 01 .01 .2024 passedby the 3'd respondent uts 147 r.w.s 144t1448 of the lncome-tax Act for A.y. 201g-20 vide DIN No. rrBA/AsT/s/147r2023-24t10s92s4937(1),and consequentiarpenalty orders passed vide order uls 27oA of the Act dt.20.06.2024 bearing DINlrBNPNLlFl2ToN 2024-2st'ro6s\B22s7(1) and order urs 272A(1)(d) of the ActlrBNPNLlFl2ToN 2024-2st'ro6s\B22s7(1) and order urs 272A(1)(d) of the Actdt.03-06.2024 bearins DrN ITBA/PNLtFr2TzA(1)(d)t2024-2st106s360187(1) andmay pass such other order(s) as the Hon'ble court deems fit and proper in theinterests of substantiar justice, as otherwise the petitioner wourd be put toirreparable loss and severe injury.irreparable loss and severe injury. WRIT PETITION NO:2 4322o.F 2024 Between: lqbal Qureshi Mohammed S/o. Mohammed Masthan r<ii" arii"li.;'ir ];]d:'i:! Nizampura, r,ranaie;ii, ft,T,.??Hf???"i3:H::frffiAt: ...PETITIONER WRIT PETITION NO:2 4322o.F 2024 Between: lqbal Qureshi Mohammed S/o. Mohammed Masthan r<ii" arii"li.;'ir ];]d:'i:! Nizampura, r,ranaie;ii, ft,T,.??Hf???"i3:H::frffiAt: ...PETITIONER 1. lncome Tax [offir:er, ][Ward ][1, ]W-qr.ql-gq!,#.lncome [Tax ][Office' ][1-'6'610' ][3d]Floor, Mayuri [comprex'tipi' ][ibtED-Ct ][Bhawan' Nakkalagutta' ][Warangal']Telangana-506001 [.]Floor, Mayuri [comprex'tipi' ][ibtED-Ct ][Bhawan' Nakkalagutta' ][Warangal']Telangana-506001 [.] 2. The Principal [Chief ][Commissioner ][of ][lncome ][Tax ] [& TS' ][loth ][Floor' ] ' eii,-"Ii, i.i. To*"t", r o-z-C, A c' Guards, Hvderabad-500004'' eii,-"Ii, i.i. To*"t", r o-z-C, A c' Guards, Hvderabad-500004' 3. The Assessment [Unit, ][lncome ][Tax ][Department' ][National ][Faceless]Assessment [centre, ][oeiiri, ][ii,ii;;ii ]-Delhi-1 [oiFin'ncr5' ][noom'No ][4o1 ][' ][2"" ][Floor' ] 'riffi;, i;-wih*lal Nenru Stadium, 1 0003Assessment [centre, ][oeiiri, ][ii,ii;;ii ]-Delhi-1 [oiFin'ncr5' ][noom'No ][4o1 ][' ][2"" ][Floor' ] 'riffi;, i;-wih*lal Nenru Stadium, 1 0003 ...RESPONDENTS PetitionUnderArticle226oftheConstitutionoflndiaprayingthatinthecircumstancesStatedintheaffidavitfiledtherewith,theHighCourtmaybepleased to issue [a ][writ, ][order or direction' more particularly ][one ][in ][the ][nature of]Writ of Mandamus, [declaring the Assessment Order ][dt ][19 ][02 ]['2024 ][passed by the]3.d respondent [uls ][,147 ][r.w ][,s144t144Bof the ][lncome-tax ][Act ][for ][A.Y. ][2016-17 vide]DIN No. [ITBtuAST/S/14712023-24t1061 ][116739(1)' ][which ][is ][passed ][as ][a]consequence [of ][the ][order ][passed ][u/s ][14BA(d) ][dt'28032023 ][vide DIN ][No']ITBA/AST/F/148N2022-23t1051516066(1)andthenoticeu/s148dL.29.03.2023videDlNNo.ITBA/ASTtsl1481l2o2223t1o51621go5(1),issuedbytheJAo(1"trespondent) [instead ][of ] [(3'd ][respondent)' ][and ][consequential penalty orders]passed vide order [u/s ][271(1)(c) ][of ][the ][Act ][dt'12'08'2}24 bearing ] ITBA/PNUF/27 [1(1)(c)12024.25/1067558807(1), ][order ][u/s ][271(1)(b) ][of ][the ][Act]anddt.13.08.2024 [bearing ] [|TBAJPNLtFl2Tl\1)(b)12024-2511067596599(1) ]order u/s [271F ][of ][the ][Act ][dt.13.08.2024 ][bearing ] [lrBtuPNLlFl271Fl2024-]25t1067705824(1), [as void, ][iltegal, and contrary ][to ][the ][provisions ][of ][lncome-tax]Act and contrary [to the ][Principles ][of ][Natural Justice' apart ][from ][being barred ][by]limitation as [per ][prov'tsions ][of ][iection ][149 ][of ][the ][Act'] lA NO: 1 oF 2024 Petition under Section 151 cpc praying that in the circumstances stated inthe affidavit fired in support of the petition, the High court may be preased to stayall further proceedings pursuant to the Assessment order dt. 19.02.2024 passedby the 3'd respondent urs 142 r.w.s 144t1448 of the rncome-tax Act for A.y . 2016-17 vide DrN No rrBA/AST/s/147t2023-24r1061116739(1), and consequentialpenarty orders passed vide order uts 271(1)(c) of the Act dt.12.0g.2024 bearingDrN rrBA/pNLrFt271(1)(c)t2024-25t1067558807('t), order uts 271(1)(b)of the Actd1.13.08.2024 bearins DrN tTBtupNLtFt2tl(1)(b)t2024_25t1*675s6599(.1) andorder u/s 271F of the Act dt 13.08.2024 bearing DrN rrBA/pNL tFt271Fr2o24-25t1067705824(1) Counsel for the petitioner in both the Writ petitions: SRI DUNDU SHASHANK MANMOHAN Counsel for the Respondents in both the Writ petitions:Ms. BOKARO SAPNA REDDY,JUNIOR STANDING COUNSEL FOR INCOME TAXMs. BOKARO SAPNA REDDY,JUNIOR STANDING COUNSEL FOR INCOME TAX The Court made the following: COMMON ORDER THE HONOURABLE SRI AND THE HONOURABLE [NAMAVARAPU RA"IESIIWAR RAO] UIRIT PETITION NOS.24 266 [24922 ][0F 2024] COMMON ORDER[(per ][Hon'ble ][SP,J)] Sri Dundu Shashank [Manmohan, ][learned ][counsel] for the [petitioner(s) ][and ][Ms.B.Sapna Reddy, ][learned]appears Junior Standing Counsel [for ][Income ][Tax ][Department, ][appears]for the respondents. Counsel for the petitioner in both the Writ petitions: SRI DUNDU SHASHANK MANMOHAN Counsel for the Respondents in both the Writ petitions:Ms. BOKARO SAPNA REDDY,JUNIOR STANDING COUNSEL FOR INCOME TAXMs. BOKARO SAPNA REDDY,JUNIOR STANDING COUNSEL FOR INCOME TAX The Court made the following: COMMON ORDER THE HONOURABLE SRI AND THE HONOURABLE [NAMAVARAPU RA"IESIIWAR RAO] UIRIT PETITION NOS.24 266 [24922 ][0F 2024] COMMON ORDER[(per ][Hon'ble ][SP,J)] Sri Dundu Shashank [Manmohan, ][learned ][counsel] for the [petitioner(s) ][and ][Ms.B.Sapna Reddy, ][learned]appears Junior Standing Counsel [for ][Income ][Tax ][Department, ][appears]for the respondents. Regard being had to the being had to the had to the to the the [[similarity ][of ][the ][question]][[of ][the ][question]][[the ][question]][[question]] 2. Regard being had to the being had to the had to the to the the [[similarity ][of ][the ][question]][[of ][the ][question]][[the ][question]][[question]]involved, on the [joint ][request ][of the ][parties, ][the ][matters ][are]analogously heard [and ][decided ][by ][this ][common ][order'] It is common ground is common ground common ground ground [[taken ]][[by the ][learned counsel for]][[learned counsel for]] 3. It is common ground is common ground common ground ground [[taken ]][[by the ][learned counsel for]][[learned counsel for]]the petitioner(s) [that ][in ][furtherance ][of ][Financ ][e ][Act, ][2O2l ]' [te-]assessment [process stood modifred ][but ][the ][respondents ][have ][not]taken care of it and [therefore ][notices ][issued ][under ][Section ][148]ofthelncomeTaxAct,lg6lcannotsustainjudicialscrrrtiny.Since notices are [bad ][in ][law, ][the ][consequential ][orders ][are ][also]bad in law. During the course the course course [[of ][hearing, learned ][counsel ]][[hearing, learned ][counsel ]][[counsel ]][[for ][the]][[the]] 4. During the course the course course [[of ][hearing, learned ][counsel ]][[hearing, learned ][counsel ]][[counsel ]][[for ][the]][[the]]parties agreed that curtains [on ][this ][issue ][are ][finally ][drawn ][by]this Court in a batch [of ][writ ][petitions, ][W'P'No'25903 ][of ][2022]and other connected [matters, ][decided ][by ][common ][order ][dated] t? 14.O9.2023. The parties agreed that this matter may be disposedof in terms of the Common Order dated 14.O9.2023.of in terms of the Common Order dated 14.O9.2023. This Court in the said order dated 14.09.2023 in 5 W.P.No.259O3 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 upontreating 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 Fanance 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. This Court in the said order dated 14.09.2023 in 5 W.P.No.259O3 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 upontreating 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 Fanance 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 orders gettingquashed, the consequential orders passed by the respondentDepartment pursuant to the notices issued under Section 142 and 14gwould also get quashed and it is ordered accordingly. The reason weare quashing the consequential order is ori the principles that whenthe initiation of the proceedings itself was procedurally wrong, thesubsequent orders 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 anclined to proceed further and decidethe other issues raised by the petitioner which stands reserved to beraised 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 powe6 underArticle 142 of the Constitution of lndia, permitted the Revenue toproceed under the substituted provisions, and this Court allowing thepetitions only on the procedural flaw, the right confer.ed on the Revenue [would ][remain ][reserved ][to ][proceed ][further ][if ][they ][so ][want]from the [stage ][otthe ][order ][of ][the ][Supreme ][court ][in the ][case ][of ][Ashish]Agarwal' [suPra']39. No [order ][as ][to ][costs-"] In rriew [of ][the ][consensus ][arrived, ][the ][impugned ][Show] 6. Cause notices [and ][consequential ][orders ][passed ][in ][this ][batch ][of]writ petitions [are set ][aside' ][Liberty ][is ][reserved ][to ][both ][the ][parties]to take [respective ][stand and ][to ][proceed ][in ][accordance ][with ][law]as per [paragraph ][No.38 ][of ][the ][order dated ][14'09 ]['2023 ][ln]W.P.No.25903 [of ][2022'] 7. The Writ [Petitions ][are ][allowed' No ][costs' ][Interlocutory]applications, [if ][any ][pending, ][shall also stand ][closed'] sD/. Prrh,rS+fffi HgSli+HRA /\ ,,,sEcrloN%FFlcER /ITRUE COPY/' ./ to'',. lncome [Tax ][officer'^Suryapet ][lncome ][Tax ][office' ][Krishna Nagar ][Colony']' ,n" sijwlPti Telangana-508213'1' 10'[h [Froor' c-Brock', ][rr]sijwlPti Telangana-508213'1' 10'[h [Froor' c-Brock', ][rr], I:i"H1,"6l3l.lit 3ii",H:,fJ.5,",?TSJrlt- 3. " rhe [Assessment ][unit.. ][rncome ]Tg ?33,"4T"TI'*J?3?11" En#:i:nsle.li"-"n, RamP, [Jawaharl']"",T,i,,"?:Jt,S'ililloSilllir"oooinsle.li"-"n, RamP, [Jawaharl']"",T,i,,"?:Jt,S'ililloSilllir"oooi 'H?,I"fi [T,",1";*;f*'3'#'+.HF33e"bff#:::i,J'i1"3$'tr;''ft;":'"':l]Telangand-50600t [[']]Telangand-50600t [[']] [[']]5. The [Principal ][Chief ][Commissioner ][of ][lncome ][Tax AP ][& ][TS' ][l0th ][Fbor' ] Bbck. l.r. [ro*"ll]i ][oIIl5,'ii]c' ][c ][J"a"' ][Hvderabad-500004']Bbck. l.r. [ro*"ll]i ][oIIl5,'ii]c' ][c ][J"a"' ][Hvderabad-500004'] 6. One [CC to ] [DUNDU SASHANK MANMOHAN' ][Advocate ][ ] SAPNA [REDDY' Junior ][standins counsel ][ror]' [PrHf"?#tBBrBi**o ] B. Two [CD Copies] od*\#.* HIGH COURT 3. " rhe [Assessment ][unit.. ][rncome ]Tg ?33,"4T"TI'*J?3?11" En#:i:nsle.li"-"n, RamP, [Jawaharl']"",T,i,,"?:Jt,S'ililloSilllir"oooinsle.li"-"n, RamP, [Jawaharl']"",T,i,,"?:Jt,S'ililloSilllir"oooi 'H?,I"fi [T,",1";*;f*'3'#'+.HF33e"bff#:::i,J'i1"3$'tr;''ft;":'"':l]Telangand-50600t [[']]Telangand-50600t [[']] [[']]5. The [Principal ][Chief ][Commissioner ][of ][lncome ][Tax AP ][& ][TS' ][l0th ][Fbor' ] Bbck. l.r. [ro*"ll]i ][oIIl5,'ii]c' ][c ][J"a"' ][Hvderabad-500004']Bbck. l.r. [ro*"ll]i ][oIIl5,'ii]c' ][c ][J"a"' ][Hvderabad-500004'] 6. One [CC to ] [DUNDU SASHANK MANMOHAN' ][Advocate ][ ] SAPNA [REDDY' Junior ][standins counsel ][ror]' [PrHf"?#tBBrBi**o ] B. Two [CD Copies] od*\#.* HIGH COURT DATED:0 4l0gt1024 1HE [S][ 14r]((oooo3 [0 ][N[\/ ][2021]t;).CrT)COMMONERW.P.Nos: 242GG AND 24322 OF 2OZ4 ALLOWING THE WRIT PETITIONSWITHOUT COSTS