Wp/25308/2024 Of Jain Vijaykumar v. Income Tax Officer

HIGH COURT FOR THE STATE OF TELANGANAAT HYDERABAD(Special Original Jurisdiction) WEDNESDAY,THE EIGHTEENTH DAY OF SEPTEMBERTWO THOUSAND AND TWENry FOUR PRESENT THE HONOURABLE SRI JUSTICE SUJOY PAULrHE HoNouRABLE sRr rr.r,"lt?rovARApu RAJESHwAR RAo WRIT PETITION NO's:25308 AND 25316 0F 2024 W.P. No:2 53080F 2024 Between: !.ain Rlo 15-9-44, Maharaj Gunj, Hyderabad, [Vilaykumar, ][S/o ][Jain ][Shainik ]Raj, Aged fErrng-rn-a-_ about 43 {OdOpyears, Occ. Business, ...PETITIONER AND 1.lncome T_ax Officer, Ward 9(1) ]1y-qe-rab!d, Aaykar Bhawan, Opp. LBStadium, Basheerbagh Hyderab'ad- sobo-o+ feianolii"-'Stadium, Basheerbagh Hyderab'ad- sobo-o+ feianolii"-'2.I he .Pflnctpat Chief Commissioler of lncome Tax,-Ap and TS, 1oth Floor, C-.Pflnctpat Chief Commissioler of lncome Tax,-Ap and TS, 1oth Floor, C-Block, l T.Towers, 10-2-3, A.C.Guards, ttvOeia'O}j _sbOtOnJ.Assessment Unit, National Faceless Assessment Centre, lncome TaxDepartment, Ministrv of Finance noom [- ]wo. aOi, InO Ff oor.- [-e-nrirp,]Jawaharlal Nehru Stidium, Delhi- 1 1000-jDepartment, Ministrv of Finance noom [- ]wo. aOi, InO Ff oor.- [-e-nrirp,]Jawaharlal Nehru Stidium, Delhi- 1 1000-j ...RESPONDENTS Petition under Articre 226 of the constitution of rndia praying that in thecircumstances stated in the affidavit fired therewith, the High court may bepleased to issue a writ, order or direction, more particurarry one in the nature ofwrit of Mandamus, decraring the Assessment order dated 21t03r2024 passed bywrit of Mandamus, decraring the Assessment order dated 21t03r2024 passed bythe 3rd Respondent u/s 14r rtw section 144 g of the rncome Tax Act for A.y.2016-17 vide DrN No rrBA/AST/sr14712023-241106310s729(1) and the noticeu/s 148 dated 3oro3r2o23 vide DrN No. rrBtuAST/s/14a_1r2022-2311051697713(1), issued by the JAo (1'r Respondent) instead of FAo (3.du/s 148 dated 3oro3r2o23 vide DrN No. rrBtuAST/s/14a_1r2022-2311051697713(1), issued by the JAo (1'r Respondent) instead of FAo (3.dRespondent) as void, ilegar and contrary to the principres of Naturar Justice IA NO:1oF 2024 Petrtion under section 151 cpc praying that rn 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 dated 21/03/2024the affidavit fired in support of the petition, the High court may be preased to stayall further proceedings pursuant to the Assessment order dated 21/03/2024passed by the 3'd Respondent u/s 147 rtw section 144 B of the rncome Tax Actfor A.Y 2016-17 vide DtN No |TBA/AST/S /147/2023_24/1063i05729(1) Counsel for the petitioner: SRI. PAR|KSHITH KUTUR Counsel forthe Respondents: Ms. B. SAPNA REDDY, JT SC FoR tNcoME TAx DEPARTMENT W.P.No:25316 0F 2024 Between: Eusrness, Innani Ritesh Kumar. Rto 21_4_3ss, S/o. cnarmanai Ram. Nivas ['Fit;i,;;; ]lnani Aged about 32 years, Occ.fiyil,;rd_ b00064 AND...PETITIONER't't2*::ufr .",rilfffi T^ T^ 3Assessment Unit. Nationat U+tlifry"ifrlt#-,"".. Facetess [,A.;;;;;";i"Antre, ]" :::, ::. " iG:' 6 i ino F I o o tncome i - -E Tax. " iG:' 6 i ino F I o o tncome i - -E Tax,","#j[,IE?,* -i,,ff"1,"1,8,,7o,.?,{,'dlfi [ffi, ][;|i"fl ]"1,"1,8,,7o,.?,{,'dlfi [ffi, ][;|i"fl ] ...RESPONDENTS Counsel for the petitioner: SRI. PAR|KSHITH KUTUR Counsel forthe Respondents: Ms. B. SAPNA REDDY, JT SC FoR tNcoME TAx DEPARTMENT W.P.No:25316 0F 2024 Between: Eusrness, Innani Ritesh Kumar. Rto 21_4_3ss, S/o. cnarmanai Ram. Nivas ['Fit;i,;;; ]lnani Aged about 32 years, Occ.fiyil,;rd_ b00064 AND...PETITIONER't't2*::ufr .",rilfffi T^ T^ 3Assessment Unit. Nationat U+tlifry"ifrlt#-,"".. Facetess [,A.;;;;;";i"Antre, ]" :::, ::. " iG:' 6 i ino F I o o tncome i - -E Tax. " iG:' 6 i ino F I o o tncome i - -E Tax,","#j[,IE?,* -i,,ff"1,"1,8,,7o,.?,{,'dlfi [ffi, ][;|i"fl ]"1,"1,8,,7o,.?,{,'dlfi [ffi, ][;|i"fl ] ...RESPONDENTS Petition under Articte 226 of the Constitution of lndia prayinq that in thecircumstances stated in the affidavit filed therewith, the High Court may bepleased to issue a writ order or direction, more particurarry one in the nature ofwrit of Mandamus' declaring the Assessment order dated 1g.05.2023 passed bythe 3rd respondentuts 147 r/w section 1448 of the rncome TaxAct for A.y.2014_15 vide DrN No.rrBtuAST/s r/147t2023-24r1052995508(1) and the notice u/s 148writ of Mandamus' declaring the Assessment order dated 1g.05.2023 passed bythe 3rd respondentuts 147 r/w section 1448 of the rncome TaxAct for A.y.2014_15 vide DrN No.rrBtuAST/s r/147t2023-24r1052995508(1) and the notice u/s 148dated 27 .07 .2022 , issued by the JAO (1s, Respondent) instead of FAO (3dRespondent) as void, illegal and contrary to the principles of Natural JLlshceRespondent) as void, illegal and contrary to the principles of Natural JLlshce IANO:1OF2 024 Petition under section 15 r cpc prayrng that in the circumstances stated rnthe affidavit filed in support of the petition, the High court may be pleased to stayall further proceedings pursuant to the Assessment order dated 19.05.2023passed by the 3rd respondent u/s 141 rtw section 14413 of the lncome Tax Actf ot A.Y 2014-15 vide DtN No tTBtuAST/S tt147 t2023_ Z4tlOS2ggSSOB(1) Counsel for the Petitioner: SRl. PARIKSHITH KUTUR Gounsel for the Respondents: Ms. B. SAPNA REDDY,Jr SC FOR INCOME TAX DEPARTMENT The Court made the following: COMMON ORDER THE HONOURABLE SRI JUSTICE SUJOY PAULANDTHE HONOURABLE SRJ JUSTICE NAMAVARAPU RAJESHWAR RAOWRIT PETITION NOS.253OA AND 25316 OF 2024 COMMON ORDER (per Hon'ble SP,J) Sri K. Parikshith, learned counsel, appears for thepetitioner(s) and Ms.B.Sapna Reddy, learned Junior StardingCounsei for Income Tax Department, appears for therespondents 2. Regard being had to the similarity of the questioninvolved, on the [joint ]request of the parties, the matters areanalogously heard and decided by this common order3. It is common is common common ground taken by the learned counsel forby the learned counsel forthe learned counsel forlearned counsel forcounsel forthe petitioner(s) that in furtherance of Finance Act, 2021, re-assessment process stood modified but the respondetrts have nottaken care of it and therefore notices issued under Section 148of the Income Tax Act, 196 1 cannot sustain [judicial ]scrutiny.Since notices are bad in law, the consequential orders are alsobad in law. It is common is common common ground taken by the learned counsel forby the learned counsel forthe learned counsel forlearned counsel forcounsel for During the course of hearing, Iearned counsel for thecourse of hearing, Iearned counsel for theof hearing, Iearned counsel for thehearing, Iearned counsel for thefor thethe 4During the course of hearing, Iearned counsel for thecourse of hearing, Iearned counsel for theof hearing, Iearned counsel for thehearing, Iearned counsel for thefor thetheparties agreed that curtains on this issue are final1y drawn bythis Court in a batch of writ petitions, W.P.No.259O3 of 20224,and other connected matters, decided by common order dated 14.Og.2023. [The ][parties ][agreed ][that ][this ][matter ][may ][be disposed] of in terms of the [Common ][Order ][dated ][l4'O9 ]'2023 ['] 5. This Court in the [said ][order ][dated ][l4'O9'2O23 ][in]W.P.No.259O3 of [2022, held ][as ][under:] During the course of hearing, Iearned counsel for thecourse of hearing, Iearned counsel for theof hearing, Iearned counsel for thehearing, Iearned counsel for thefor thethe 4During the course of hearing, Iearned counsel for thecourse of hearing, Iearned counsel for theof hearing, Iearned counsel for thehearing, Iearned counsel for thefor thetheparties agreed that curtains on this issue are final1y drawn bythis Court in a batch of writ petitions, W.P.No.259O3 of 20224,and other connected matters, decided by common order dated 14.Og.2023. [The ][parties ][agreed ][that ][this ][matter ][may ][be disposed] of in terms of the [Common ][Order ][dated ][l4'O9 ]'2023 ['] 5. This Court in the [said ][order ][dated ][l4'O9'2O23 ][in]W.P.No.259O3 of [2022, held ][as ][under:] "35. ln view [of ][the ][aforesaid ][discussions, ][it is ][by now ][very ][clear that]the procedure to [be ][followed ][by ][the ][respondent-Department ][uPon]treating the notices [issued ][for ][reassessment ][being under ][Section]148A, the subsequent [proceedings ][was ][mandatorily required ][to ][be]undertaken under [the ][substituted ]Provisions [as laid down under ][the]Finance Act, 2021. [ln the ][absence ][of which, ][we are ][constrained ][to ][hold]that the [procedure adopted ][by ][the ][respondent-Department ][is ][in]contravention to [the ][statute i.e. ][the ][Finance Acl, ][202'1, ][at ][the ][first]instance. Secondly, [it ][is ][also ][in ][direct contravention ][to ][the ][directives]issued by the [Hon'ble ][SuPreme ][Court in the ][case ][of ][Ashish Aganral']supra. 36. For all [the aforesaid reasons, the impugned notices issued ][and ][the]proceedings drawn by the [respondent-Department ][is ][neither ][tenable']nor sustainable. [The ][notices ][so ][issued and ][the ][procedure ][adopted]being [per ]se illegal, [deserves ][to ][be ][and are ][accordingly ][set]aside/quashed. [As ][a ][consequence, ][all the ][impugned ][orders ][getting]quashed, the consequential [orders ][passed ][by ][the ][resPondent]Department [pursuant ][to ][the ][notices ][issued under Section ][147 ][and ][148]would also [get quashed and ][it ][is ][ordered ][accordingly' ][The reason ][we]are [quashing ]the [consequential order ][is on the ][principles ][that ][when]the initiation of the [proceedings ][itself was ][procedurally ][wrong' ][the]subsequent orders [also gets ][nullified ][automatically'] 37. The [preliminary ][obiection ][raised by ][the ][petitioner ][is ][susta'ned ][and]all these writ [petitions stands allowed on ][this ][very ][jurisdictional ][issue']Since the impugned [notices and orders are getting quashed ][on ][the]point of jurisdiction, we are not [inclined ][to ][proceed ][further ][and decide]the other issues raised [by ][the ][petitioner ][which stands ][reserved ][to ][be]raised and contended [in ][an ][apPropriate proceedings'] 38. Since the [l-l,on'ble ][Supreme ][Court had, ][in ][the ][case ][of ][Ashish]Agalwal, supta, as [a one'time ][measure ][exercising ][the ][powers ][under]Article 142 of the [Constitution ][of ][ln&a, ][permitted ][the ][Revenue to]proceed under the substituted [provisions, ][and ][this ][Court ][allowing ][the]petitions only on the [procedural ][flaw, ][the ][right ][conf€rred ][on ][the] Revenue [wourd ][remain'*"ff ]: [j: ]r:.,"" [:1 ][J:T:l ][J":?;'Jll;]from [the stage of the order ][of] Agarwal, [suPra'] 39. [No ][order ][as ][to ][costs ]["] ln [[vieu' ][of the ][consenslls ]][[of the ][consenslls ]][[consenslls ]][arrived' ][the ][impugned ][Show] ln [[vieu' ][of the ][consenslls ]][[of the ][consenslls ]][[consenslls ]]6. cause [notices ][ancr ][consequentiar ][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 ][accordanct: ][with ][law]as [per ][paragraph ][No'38 ][of ][the ][order dated ][14'09 ]['2023 ][in]W.P.No.25903 [of ][2022'] The [Writ ][Petitions ][are ][allowed' No ][costs ][lnterlocutory] 7. Revenue [wourd ][remain'*"ff ]: [j: ]r:.,"" [:1 ][J:T:l ][J":?;'Jll;]from [the stage of the order ][of] Agarwal, [suPra'] 39. [No ][order ][as ][to ][costs ]["] ln [[vieu' ][of the ][consenslls ]][[of the ][consenslls ]][[consenslls ]][arrived' ][the ][impugned ][Show] ln [[vieu' ][of the ][consenslls ]][[of the ][consenslls ]][[consenslls ]]6. cause [notices ][ancr ][consequentiar ][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 ][accordanct: ][with ][law]as [per ][paragraph ][No'38 ][of ][the ][order dated ][14'09 ]['2023 ][in]W.P.No.25903 [of ][2022'] The [Writ ][Petitions ][are ][allowed' No ][costs ][lnterlocutory] 7. applications' [if ][any ][pending' shall ][also ][stand ][closed'] ASsSPlhlloRt%'rytk,,TR,E [coPY" ]secrro3/orrrcea u.aarab2d. [Aaykar ][Bhawan, ][oPP' ] To, u.aarab2d. iBrffi [trffi ][.3-$,6r1";qtr_:,*:ffi ][*ru;;]t33uPL* rAxNcoME ;'nfltll{ ffii-i!'fi&":"f'" t:{ii.f, t BE"o'nXiui.lrtoPucl t33uPL* rAxNcoME 6. Two [CD Coples] w BMLS 1l HIGH COURT DATED:1810912024 COMMON ORDER WP.No's.25308 [ot ][2024] ALLOWING WITHOUT 1. a.'do[() #, -----7i\IIttw:Ii I [c['l ][2Ui{]i-. ri-: [./]"/- ',-..i:..\_\-.i:i'- - -:--r _- :-: ;" -i7'