Wp/24810/2024 Of Aziz Ahmed Shaik v. The Income Tax Officer Ward4(1)

[34111 HIGH COURT FOR THE STAIE OF TELANGANAAT HYDERABAD(Special Original Jurisdiction) TUESDAY, THE TENTH DAY OF SEPTEMBERTWO THOUSAND AND TWENTY FOUR PRESENTTHE HONOURABLE SRI JUSTICE SUJOY PAULAND THE HONOURABLE SRI JUSTICE NAMAVARAPU RAJESHWAR WRIT PETITION NOS:2481024819 AND 24838 0F 2024 W.P.No.24810 ot 2024 Between: AZIZ AHMED SHAIK, S/o Late Shaik Ahmed, Aged [about ][60 ][years, ][Occupation]Business, R/o 2- 3- 603/67- 25lD Palel Nagar , Amberpet, [Hyderabad ][500013]Telangana, lndia. PAN DXVPS2B04D Assessment Year 2016- [17.] .....PETITIONER AND 1. The lncome Tax Officer Ward 4 [(1), ]Hyderabad, lT [TOWER, AC ][Guards,]Masab Tank, Hyderabad, Telangana, 500084.Masab Tank, Hyderabad, Telangana, 500084. 2. The Principal Chief Commissioner of lncome Tax [- ][Telangana ][qrlq ] ?,Hyderabad, lT Towers, AC Guards, Masab [Tank, ][Hyderabad - 500 ][028,]Telangana.Hyderabad, lT Towers, AC Guards, Masab [Tank, ][Hyderabad - 500 ][028,]Telangana. 3. The Central Board of Direct Taxes, Represented by [its ][Chairman, ][Department]of Revenue, Ministry of Finance, Government of lndia, [Secretariat ][Buildings,]New Delhi - 110 001.of Revenue, Ministry of Finance, Government of lndia, [Secretariat ][Buildings,]New Delhi - 110 001. 4. The National Faceless Assessment Center, lncome Tax Department, [New]Delhi.Delhi. 5. The Union of lndia, Represented by its Secretary to the Government,Departnrent of Revenue, Ministry of Finance, New [Delhi ]-- ['l ]['10 001 ][-]Departnrent of Revenue, Ministry of Finance, New [Delhi ]-- ['l ]['10 001 ][-] .....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 t 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 ] [Assessment ][centre ][completed ][the ][assessment]uts 147 r. w. s [144 read ][with ][section ][1448 ][of the lncome ][Tax ][Act, ][1961 ][vide ] and Notice No. dated 0B- [02- 2024 ITBA/ASTtst147t2O23- ][2411060670644(1) ][for]the assessment [year ][2016- ][17 ][determining the ][total ][income ][of ][Rs. ][1,53,05,6151]as arbitrary, illegal, [bad in ][law, without ][jurisdiction, void- ab- initio, violative of ][the]principles of natural [justice ]apart [from ][being ][violative of ][Articles ][14, 19(1)(g) ][and]265 0f the constitution [of ][lndia and ][sec. ][148A ][of the lncome Tax ][Act, ][1961, ][and]consequently set aside [the same ][in ][the ][interests ][of ][justice'] Counsel for the Petitioner [: ][SRI THANNERU CHAITANYA KUMAR] Counsel forthe Respondent [Nos.1 ][& ][2 ][: ][Ms. BOKARO ] [(Jr' ] FOR TNCOME TAX) counsel for the Respondent [Nos.3 ][to ][5 ][: SRI ][GADI PRAVEEN KUMAR, ] SOLICITOR GENERAL W.P.NO:24819 OF 2024 Between: GEETHA SAJU, Wo. [SAJU, ][Aged ]?bqYt [53v.ears']Sccuojtion.gusinbss, [Rto.2O-40-10211 ][Road No6,Venkatasai Nqgqt ][West]VJniSiapur", Alwal Secunderabad5Og6l5,Hyderabad [Telangana,]lndia.PAN.BBYPS920BL ...PETITIONER(S) AND 1. The lncome Tax Officer, [Ward15(1),Hyderabad/ ][lT ][TOWER, AC ][Guards,]Masab Tank, Hyderabad, [Telangana, ][500084]Masab Tank, Hyderabad, [Telangana, ][500084] 2. The Principal Chief Commissioner [of lncome ][Tax,.Telangan? ]9t19 Ai,Hyderabad, lT Towers, [AC Guards; ][Masab ][Tank, Hyderabad ][500 ][028']Telangana.Hyderabad, lT Towers, [AC Guards; ][Masab ][Tank, Hyderabad ][500 ][028']Telangana. 3. The central Board of [Direct ][Taxes, ][Represented ][by ][its ][chairman, ][Department]of Revenue, Ministry of [Finance, ][Goveinment ][of ][lndia, Secretariat ][Buildings,]New Delhi - 110 001.of Revenue, Ministry of [Finance, ][Goveinment ][of ][lndia, Secretariat ][Buildings,]New Delhi - 110 001. ...PETITIONER(S) AND 1. The lncome Tax Officer, [Ward15(1),Hyderabad/ ][lT ][TOWER, AC ][Guards,]Masab Tank, Hyderabad, [Telangana, ][500084]Masab Tank, Hyderabad, [Telangana, ][500084] 2. The Principal Chief Commissioner [of lncome ][Tax,.Telangan? ]9t19 Ai,Hyderabad, lT Towers, [AC Guards; ][Masab ][Tank, Hyderabad ][500 ][028']Telangana.Hyderabad, lT Towers, [AC Guards; ][Masab ][Tank, Hyderabad ][500 ][028']Telangana. 3. The central Board of [Direct ][Taxes, ][Represented ][by ][its ][chairman, ][Department]of Revenue, Ministry of [Finance, ][Goveinment ][of ][lndia, Secretariat ][Buildings,]New Delhi - 110 001.of Revenue, Ministry of [Finance, ][Goveinment ][of ][lndia, Secretariat ][Buildings,]New Delhi - 110 001. 4. The National Faceless [Assessment Center, ][lncome ][Tax Department, New]Delhi.Delhi. ' 5. The Union of lndia, Represented by its Secretary [to the ][Government,]Department of Revenub, Ministry [oi ][Finance, New Delhi ][- ][110 ][001 ][.]Department of Revenub, Ministry [oi ][Finance, New Delhi ][- ][110 ][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 toto 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]uls 147 r.w.s 144 [read ][with ][section ][1448 ][of ][the ][lncome Tax ][Act, ][1961 vide ] AND Notice No. [dated ][22-01 ][-2024 ] [47 ][12023-241 ][1 ][0599931 ][87(1 ][) ][for]the assessment [year ][2016-17 ][determining the ][total ][income ][of ][Rs. ][55,5o,060/-as]arbitrary, illegal, [bad ][in ][law, without jurisdiction, void-ab-initio, violative ][of ][the]principles of natural [justice ][apart from ][being ][violative of ][Articles ][14, 19(1)(g) ][and]265 0f the constitution [of ][lndia ] [Sec. ][14BA ][of ][the ][lncome ][Tax ][Act, ][1961, ][and]set [aside ][the ][same ][in ][the ][interests ][of ][justice']consequently Counsel for the [Petitioner ][: SRI ] Counsel for the [Respondent ][Nos.1 & 2 ][: ][Ms' ] [(Jr' ] FOR TNCOME TAX) Counsel for the Respondent [Nos.3 ][to ][5 ][: ] [KUMAR' ] SOLICITOR GENERAL W.P.NO:248380F [2024] Between: RAGHUVEER REDDY [TooMU, S/o' TooMU ][ANANTHAREDDY, ][Aged ][about];ii;;;;' o."ip"tion. [susinesi, ]['Rlo. ] [Ng ][3-12448 ][Rock ][Town ][colony ][, ][Near]i#;;;irr-6l5nv L e [rlig-rt ][iingareddv ][5ooo6s Telangana, ][lndia' ][PAN'] Asiessment [Year. ][201 ][5-16.] ....,PETITIONER AND 1. The Assistant Commissioner [of income tax, circle ][9(1), ][Hyderabad ] [T]fOWEn, AC Guards, [Masab ][Tank, ][Hyderabad, ][Telangana' 500004']fOWEn, AC Guards, [Masab ][Tank, ][Hyderabad, ][Telangana' 500004']2. - The ifi;r;b;[,lr-ro*er., Principal Chief [Commissioner of lncome Tax, ]AC Guards, Masab Tank, Hyderabad [T. ][elanganq ]- [a!9Ail]500 028'Telangana.Telangana. 3. - The 6i n"*ni", central Board Ministry [of Direct ]of F]nance, Gove'rnment [Taxes, ][Represented.by its ]of ln-dia, Secretariat Buildings'[chairman, ][Department]New Delhi [- ]110 001.New Delhi [- ]110 001. 4. The National Faceless [Assessment ][center, ][lncome ][Tax Department, ][New]Delhi.Delhi. I 5. The Union of lndia, [Represented by its Secretary ][to ][the Government,]Department of Revenub, [Ministry ][of ][Finance, New Delhi ][- ][110 ][001 ]['] .....RESPONDENTS 3. - The 6i n"*ni", central Board Ministry [of Direct ]of F]nance, Gove'rnment [Taxes, ][Represented.by its ]of ln-dia, Secretariat Buildings'[chairman, ][Department]New Delhi [- ]110 001.New Delhi [- ]110 001. 4. The National Faceless [Assessment ][center, ][lncome ][Tax Department, ][New]Delhi.Delhi. I 5. The Union of lndia, [Represented by its Secretary ][to ][the Government,]Department of Revenub, [Ministry ][of ][Finance, New Delhi ][- ][110 ][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]U/S 147 r.w.s 144 read [with ][section ][144B ][o'f ][the ][lncome Tax ][Act, ][1961 vide ] and Notice No. dated. 02-02-2024 [ITBtuAST/S/1 ][47 ][12023-241 ][1 ][060429367 ][(1) ][tor]the assessment [year ]2015-16 [determining the ][total ][income ][of ][Rs. ][55,98,099/-as]arbitrary, illegal, bad in [law, without jurisdiction, void-ab-initio, violative ][of ][the]principles of natural [justice ]apart from being violative [of ][Articles ][14, ][19(1)(g) ][and]265 of the Constitution [of ][lndia and ][Sec.'148A ][of ][the ][lncome Tax ][Act, ][1961, ][and]consequently set aside the same [in ][the ][interests ][of ][justice.] Counsel for the Petitioner : SRI THANNERU Counsel for the Respondent Nos.1 [& ][2 ][: ][Ms. BOKARO SAPNA REDDY ][(Jr. ][Su]FOR INCOME TAX) Counsel for the Respondent Nos.3 to 5 [: SRI ][GADI PRAVEEN KUMAR, ] SOLICITOR GENERAL OF INDIA The Court made the following THE HONOURABLE SRI JUSTICE AND THE HONOURABLE SRI JUSTICE NAMAVARAPU UTRIT PETITION NOS.24810 .248L9 [24438 ][0F][ 2o24] COMMON ORDER [(per ]Hon'bte [SP,J)] Sri Thanneru Chaitanya Kumar, [learned ][counsel]appears for the petitioner{s), [Ms. ]B. [Sapna ][Reddy, ][learned ][Junior]Standing Counsel for Income [Tax ][Department, appears ][for]respondent Nos. 1 & 2 and Sri [B. ][Mukherl'ee, ][learned ][counsel]representing Sri Gadi [Praveen ][Kumar, ][learned ][Deputy ][Solicitor]General of India, for [respondent ][Nos.3 ][to ][5.] 2. Regard being had to the [similarity ][of ][the ][question]involved, on the [joint ]request [of the ][parties, ][the ][matters ][are]analogously heard and [decided ][by ][this ][common order.] 3. It is common ground taken [by the ][learned ][counsel ][for]the petitioner(s) that in furtherance [of ]Finance Act, 2021, re-. assessment [process stood ][modified ][but ][the respondents ][have ][not]taken care of it and therefore [notices issued ][under ][Section ][148]of the Income Tax Act, [1961 ][cannot ][sustain ][judicial ][scrutiny']Since notices are bad in law, [the ][consequential orders ][are ][also]bad in law. 4. During the course of hearing, learned [counsel ][for ][the]parties agreed that curtains on this issue are [finally ][drawn ][by] this Court in a batch of writ petitions, W.P.No.259O3 of 2022and other connected matters, decided by common order dated14.09.2023. 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.259O3 of 2022, held as under: 4. During the course of hearing, learned [counsel ][for ][the]parties agreed that curtains on this issue are [finally ][drawn ][by] this Court in a batch of writ petitions, W.P.No.259O3 of 2022and other connected matters, decided by common order dated14.09.2023. 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.259O3 of 2022, held as under: "35. ln view of the aforesaid discussions, it is by now very clear thatthe procedure to be Iollowed 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 Finance Acl, 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 assued under Section 147 and 148would also get quashed and it is ordered accordingly. The reason weare quashing the consequential order is on the princaples that whenthe initiation of the proceedings itself was procedurally wrong, thesubsequent orders also gets nullified automatically. 37. Thspreliminary 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 inclined 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 powers underall 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 inclined 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 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." 6. 6. In view of the consensus [arrived, ][the ][impugned ][Show]Cause notices arrd 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 w.ith law]as per paragraph [No.38 ][of ][the ][order dated ][14'09'2023 ][in]W.P.No.25903 of [2022.] 7The Writ Petitions are [allowed. ][No ][costs- Interlocutory] if applications, any [pending, ][shal1 ][also stand ][closed'] HIGH COURT DATED:1010912024 COMMON ORDERW.P.Nos.24810, 24819AND 24838 0F 2024 ALLOWING THE WRIT PETITIONS WITHOUT COSTS. .uqKa[\\tr-- 1HE S T4t(Jo('rI2 I [|l[l/ ]202{I-*Irr- -i'4TC HEo