Wp/24938/2024 Of Kapil Dev Pandey v. The Income Tax Officer

HIGH COURT AT HYDERABAD(SPecial Original Jurisdiction) WEDNESDAY, TWO THOUSAND PRESENT THE HONOURABLE AND THE HONOURABLE WRIT PETITION [ :24938ClF ][2024] Between: Kaoil Dev Pandev. s/o V.N. [Pandey, aged ][about ][54 ][years, ][occ-; ][Business, ][Flat No'])o i,'ru Ji."dJFijri. [o. ][r. ][Road ][Aheerpet, ][Hvderabad- ][50001 ][6'] .....PETITIONER AND '1 . The lncome Tax Officer, Ward 2(1) lncome [Tax ][Department' ][Hyderabad'] 2. Assessment [Unit, ][lncome ][T-qx ][Department, ][National e- ][Assessment Center]New Dethi noo, [NoTijiI ][iil'rroJidnimp ][Jawaharlal Nehru ][stadium, ][New]Delhi - 110 003 New Dethi noo, [NoTijiI ][iil'rroJidnimp ][Jawaharlal Nehru ][stadium, ][New]Delhi - 110 003 ""'RESP.NDENTS Petition Under [Article ][226 ][of ][the ][constitution ][of ][lndia ][praying ][that ][in ][the]circumstancesstatedintheaffidavitfiledtherewith'theHighCourtmaybepleased to issue a Writ [of ][lVlandamus ][or any ][other ][appropriate ][Writ ][Order ][or]DirectiondeclaringtheorderpassedbythelstRespondentu/s148A(d)ofthelncome Tax [Act ][1961 ][dated ][30/08/20 ][24 ][bearing ] [and ][Notice ][No ] [Notice]No. ITBA/AST/F/148At2O24-25t10G8170110(1) [for ][the ] [2018-19 ][and]Subsequently,Noticeundersectionl43oflncomeTaxActdated30/08/2024inDIN No. ITBA/AST/148 [112024-25 ][1068170627(1) ][as ][arbitrary illegal ][bad ][in ][law]void-ab-initioviolativeoftheprinciplesofnaturaljusticeapartfrombeingviolativeof Articles [14,1 ][9g ][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 and to pass in [the interest ][of ]iustice' |.A.NO:1 OF 2024 Petition Under Section ['151 ]CPC praying that in the circumstances stated inthe affidavit filed in support of the petition, the High Court may be pleased todirect the responderrts to stay all further proceedings, including any recovery,pursuant to the order issued by the ['1st ]Responcient, u/s 14BA(d) of the IncomeTax Act 1961 dated 30-08-2024 bearing DIN and Notice No DIN Notice No.ITBA/AST/F/'148A12024- 2511068170110(1) for the A Y 2018-19 andsubsequently, Notice under section 148 of lncome Tax Act dated 3010812024 inDIN No. ITBA/AST/148 112024-2511068170627(1), for the Assessment Year2018-19, pending disposal of the main writ petition. Counsel for the Petitioner : SRI HIMANGINI SANGHI Counsel for the Respondents : Ms. J.SUNITHA (JUNIOR SC FOR TNCOME TAX)The Court made the following ORDER THE HONOURABLE ANDTIIE HONOURABLE [RAi'ESIIWAR ] IIIRIT PET [No.2][493][a ][oF ][20.24] ORDER: [(per ][Hon'ble ][Justice ][Sujoy ][Poul)] Heard Himangini [Salghi, ][learned ][counsel ][for ][the]and [Ms. ][J.Sunitha, ][learned ][Junior ][Standing]petitioner(s) Counsel for [Income Tax ][Department, for the ][respondents'] 2. The ground [taken ][by ][the ][learned ][counsel ][for ][the]is [that ][in ][furtherance ][of ][Finance ][Act' ][2O2l' ][re-]petitioner(s) assessment [process ][stood ][modihed ][but ][the ][respondents ][have]not taken [care ][of ][it ][and ][therefore ][notice issued ][under ][Section]l48ofthelncomeTaxAct,lg6lcannotsustainjudicialscrutiny. [Since ][notice is bad ][in ][law, ][the consequential ][orders]are also bad [in ][law.] 3. During the [course ][of ][hearing, learned counsel ][for ][the]that [curtains ][on ][this ][issue are ][finally ][drawn ][by]parties agreed this Court in [a ][batch ][of ][writ ][petitions' ][W'P'No'259O3 ][of ][2022]andotherconnectedmatters,decidedbycommonorderdated 14.09.2023. [The ][parties ][agreed' ][that ][this ][matter ][may ][be]disposed [of ][in ][terms ][of ][the ][Common ][Order ][dated ][14 'O9 ][2023 ]['] 3. During the [course ][of ][hearing, learned counsel ][for ][the]that [curtains ][on ][this ][issue are ][finally ][drawn ][by]parties agreed this Court in [a ][batch ][of ][writ ][petitions' ][W'P'No'259O3 ][of ][2022]andotherconnectedmatters,decidedbycommonorderdated 14.09.2023. [The ][parties ][agreed' ][that ][this ][matter ][may ][be]disposed [of ][in ][terms ][of ][the ][Common ][Order ][dated ][14 'O9 ][2023 ]['] 4. This Court in the said order dated 14.09.2023 inW.P.No.25903 of 2022, held as under: "35. [In ][vier ][of ][the ][aforesaid ][discussioas, ][it ][is ][by aotf ][very]cleat that the procedure to be followei by the respoadent-DepartEent upon trcatirrg the aotices issued for reassessmentbeing rnder Section 148A, the subsequent [proceedings ]wasmandatorily required to be undertaken under thc substitutedprovisions as laid down under the Finance Act, 2021. In theabsence of which, we are constrained to hold that theprocedure adopted by the respondent-Department is incontraveDtio! to the statute i.e. tbe Finance Act, 2021, at thefirst instance. SecoEdly, it ls also in direct contraveation tothe directives issued by the Hoa'ble Supreme Court in thecase ofAshish Agarval, sup.a. 36. For all the aforesaid reasoas, the iEpugled rotices issuedand the proceedings drawn by the respondent-Departmeflt isneither tenable, Eor sustainable. The notices so issued andthe procedure adopted being per se illegal, deserves to be andare accordilrgly set aside/quashed. As a coasequence, all theimpugned orders gettiug quashed, the consequential orderspassed by the respondent Department pursuant to the noticesissued under Section 147 and 148 trould also get quashed andit is ordered accordiugly. The reasoa se are quashing theconsequential order is otr the principles that when theinitiation of the proceeditrgs itself was procedurally wrong,the suhsequent orders also gets nullified autoEatically. 37. The preliminary objectioE raised by the petitioner issustained and all these writ petitions stands allowcd on thisvery jurisdictionel issue. Since the iapugned notices andorders are gettitrg quashed on the point ofjurisdiction, we arenot inclined to proceed further and declde the other issuesraised by the petitioDer which stands reserved to be raisedand conteaded in an appropriate proceedings. 38. Since the Hor'ble Supreoe Court had, in the case ofAshish Agarwal, supra, as a one-tlme rDeasure eaercising thepowersi under Article 142 of the Conatitutioa of ladia,permitted the Revenue to procced ulder the substitutedprovisiors, and this Court allotf,ing the petitions only on theprocedural flaw, thc right coaferred on the Revenue woulalremain reserved to proceed further if they so rcant from theq- \I stage of the order o[ the Suprcme [Court ][in the ][case ][of Ashish]Agarwal, supra.39. No ordet 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 respective stand [and ][to ][proceed ][in ][accordance ][with]law as per pa-ragraph [No.38 ][of the order ][dated ][14.09.2023 rn]W.P.No.259O3 of 2022. 6. The Writ Petition is allowed' [No ][costs. ][Interlocutory]applileations, if any [pending, shall ][also ][stand ][closed.] SD/-V.KAVITHAASSISTANT SECTION /TTRUE Tol.ThelncomeTaxofficer,Ward2(1)lncomeTaxDepartment,Hyderabad.2 Assessment [Unit, ][tncomJfl;5Hild'Ii ][Nationdl e-Assessment ][center]New Dethi, [Room ][No ][aoi, ][ift"Fi$;,'i ][irmp ][Jawaharlal Nehru ][stadium']New Delhi [1 ][10 ][003']I [gfu ]E3[ [il:',1uftl+ilf,i,'T,3H'#IB"f ][i-8sMEr'o*r ][Advocate]toPUCl5. Two CD [CoPies]SAGJPo HIGH COURT DATED:1110912024 ORDER WP.No.24938 of 2024 ALLOWING THE W.PWITHOUT COSTS. o[R][ 1HE ][S'4][ r4-]Yozfl l'EE|" 2tJ21z.rl,/*.AoDEsp qT (lrlEg[a]