Wp/25423/2024 Of Apparla Raghunath v. Assistant Commissioner Of Income Tax

IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD(Special Original Jurisdiction) FRIDAY, THE TWENTIETH DAY OF SEPTEMBERTWO THOUSAND AND TWENTY FOUR PRESENT THE HONOURABLE SRI JUSTICE SUJOY PAULANDTHE HONOURABLE SRI JUSTICE NAMAVARAPU RAJESHWAR RAO WRIT PETITION NOs: 25423 &254260F 2024 W.P.No.25423 OF 2024 Between: fnOarlq [Rgg!.unglh, ]!{o [Apparla ][Narasimha, ][Aged ][about ][58 ][years, ][Occupation.]Business, H. No.'12-1-668/'19/1. Shanti Nagar, Near Arya Samaj, North Lalbguda,Secunderabad, Hyderabad-50001 7. ..,PETITIONER AND 1 . Assistant Commissioner of lncome Tax, Circle I 3(1), Aayakar Bhawan,OPP.LB Stadium, Basheer Bagh, Hyderabad, Telangana-500004.LB Stadium, Basheer Bagh, Hyderabad, Telangana-500004. 2. The Principal Chief Commissioner of lncome Tax AP and TS, 1Oth Floor, C-Block, l.T. Towers, 10-2-3, A.C. Guards, Hyderabad-500004.Block, l.T. Towers, 10-2-3, A.C. Guards, Hyderabad-500004. 3. The Assessment Unit, lncome Tax Department, National FacelessAssessment Centre, Delhi, Ministry of Finance, Room No. 401,2nd Floor, E-Ramp, Jawaharlal Nehru Stadium, Delhi-1 10003.Assessment Centre, Delhi, Ministry of Finance, Room No. 401,2nd Floor, E-Ramp, Jawaharlal Nehru Stadium, Delhi-1 10003. ...RESPONDENTS Petition under A(icle 226 of the Constitution of lndia praying that in thecircumstances stated in the affidavit filed therewith, the High Court may bepleased to issue a writ, order or direction, more particularly one in the nature ofWrit of Mandamus, declaring the notice u/s 148 dl. 30103/2024 vide DIN No.ITBA/AST/S/148_1/2023-2411063688178(1) issued by the JA0(1st respondent)instead of FAO(3rd respondent) for A.Y. 2017-18, as void, illegal, and contrary tothe provisions of lncome-tax Act and contrary to the Principles of Natural Justice. i, IA NO: 1 OF 2024 Petition under Section [151 ][CPC praying ][that ][in ][the ][circLmstances stated ][in]the affidavit [filed ][in support of ][the ][petition, ][the ][High Court may be pleased ][to ][stay]all further [proceedings pursuant to ][the ][notice ][u/s ][148 ][dt ][3Ol03l2O24 ][vide ] [No']ITBA/AST/S/1 [4 ] 12023-24 I [10636881 ][78(1 ]) [issued ][by ][the ][JAo(1 ][st ][respondent)]-1 instead of FAO(3rd [respondent) ][for ] [2017-18] W.P.No.254 26 [0F ][2024] Between: Samaikya Educations [Private Limited, ][Rep ][by ]. [Managino ][Di'ector ][of ][Company']Nanda Kishore [sura ][pa ][nen ][r'"s/J ][xii"d*riirr_".' ][Rged ]..a-bo"ut [52 ][yea ][rs, ][{lccupation]iiZr"rti.ii il-LitJi'56iire, [srikiidn-nl-ii'tiilts, ][eich"upallv, ][Hvdera6ad-5000e0] ...PETITIONER AND 1Assistant comrnissioner [of ][lncome ]-sl, [Tax circle 3(1), ][Hyderabad, ][sig natu re]?8il.ii,'si.r.r. otpr"oi [xonoip,li, ]Sitpl of Kothls^trda, opp Botanicaloii'oins SeriinSdmpatly [(M), ][R.R,Distiict, ][Hyderabad, 503084]?8il.ii,'si.r.r. otpr"oi [xonoip,li, ]Sitpl of Kothls^trda, opp Botanicaloii'oins SeriinSdmpatly [(M), ][R.R,Distiict, ][Hyderabad, 503084] 2The Princioal Chief Commissioner [of ][lncome Tax AP-and ] [1Oth ][Floor' ] eio"k. f .f io*.'rs, [10-2-3, A ] [Guards, Hyderabad-500004 ][']eio"k. f .f io*.'rs, [10-2-3, A ] [Guards, Hyderabad-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]Writofl\,4andamus,rJeclaringthenoticeu/s148dt.30.08'2024videDlNNo.ITBA/AST/S/14 81t202.4-2511068200058(1) [issued ][by the ][JAo(,1st ][respondent)]insteadofFacelessAssessingoffice(FAo)forA.Y.20l8.l9,asvoid,illegal,andcontrary to the [provisions ][of ][lncome-tax ][Act and ][contrary ][to ][the ][Principles ][of]Natural Justice, [apart ][from ][lacking ][jurisdiction ][on ][the ground of change ][of opinion] IA NO:1 OF 2024 ...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]Writofl\,4andamus,rJeclaringthenoticeu/s148dt.30.08'2024videDlNNo.ITBA/AST/S/14 81t202.4-2511068200058(1) [issued ][by the ][JAo(,1st ][respondent)]insteadofFacelessAssessingoffice(FAo)forA.Y.20l8.l9,asvoid,illegal,andcontrary to the [provisions ][of ][lncome-tax ][Act and ][contrary ][to ][the ][Principles ][of]Natural Justice, [apart ][from ][lacking ][jurisdiction ][on ][the ground of change ][of opinion] IA NO:1 OF 2024 petition under section 151 CPC praying that in the circumstances [stated ][in]the affidavit fited [in support of ][the ][petition, ][the ][High Court may be pleased ][to ][stay] all fu(her proceedings pursuant to the notice u/s 148 dt. 30.08.2024 vide DIN No.ITBA/AST/S/148 112024- 2511068200058(1) issued by the JA0(151 respondent)ITBA/AST/S/148 112024- 2511068200058(1) issued by the JA0(151 respondent)instead of Faceless Assessing Office(FAO) for A.Y. 2018- '19,and may pass suchother orde(s) as the Hon'ble Court deems fit and proper in the interests ofsubstantial justice, as otherwise the Petitioner would be put to irreparable loss andsevere injury.other orde(s) as the Hon'ble Court deems fit and proper in the interests ofsubstantial justice, as otherwise the Petitioner would be put to irreparable loss andsevere injury. Counsel for the Petitioner in W.Ps : SRI DUNDU SASHANK MANMOHAN counser ror rhe Respondenrs in *.r", 1l?Lrl3H1$r.o#Jr^*, The Court made the following: COMMON ORDER it ,,/ THE HOI{OURABLE ANDTHE HONOURABLE WRIT PETITION [s.25423][ AND ][25426][ oF ][2024] COMMON oRDER[ tper ][Hon'ble ][SP,J)] Sri Dundu [Sashank Manmohan' ][iearned ][counsel]for [the ][petitioner(s) ][and ][Ms'B'Sapna Reddy' ][lerarned]appears JuniorStandingCounselforlncomeTaxDepartment'appearsfor the resPondent(s). 2. Regard being [had ][to ][the ][similarity ][of ][the ][qu ][estlon]involved, on [the ][joint ][request ][of the ][parties' ][the ][matters ][are]analogously [heard and ][decided by ][this ][common ][order'] 3. It rs corrmon [ground ][taken ][by the ][learnerd ][counsel ][for]the [petitioner(s) ][that ][ln ][furtherance ][of Finalce Act' ][2021 ][1 ]' [re-]assessment [process stood ][modified ][but ][the respondents ][have ][not]tal<en care [of ][it ][and ][therefore notices issued ][under ][Section ][148]ofthelncome.laxAct,lg6lcannotsustainjudicialscrutiny.Since notices [are ][bad ][in ][1aw, ][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 ][finall1' ][drawn ][by]this Court in [zr ]batch [of ][writ ][petitions, ][W'P ][No'125903 ][ctl ][2022]ald other connected [matters, ][decided ][by ][common ][order ][dated] \ 14.O9.2023. The parties agreed that this [matter ][may ][be ][disposed]of in terms of the Common Order dated 14.09.2023. 5This Court in the said order dated [14.09.2023 ][in]W.P.No.25903 of 2022, held as under: 4. During the [course ][of ][hearing, learned ][counsel ][for ][the]parties agreed that curtains [on ][this ][issue are ][finall1' ][drawn ][by]this Court in [zr ]batch [of ][writ ][petitions, ][W'P ][No'125903 ][ctl ][2022]ald other connected [matters, ][decided ][by ][common ][order ][dated] \ 14.O9.2023. The parties agreed that this [matter ][may ][be ][disposed]of in terms of the Common Order dated 14.09.2023. 5This Court in the said order dated [14.09.2023 ][in]W.P.No.25903 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 Gonstrained ][to ][hold]that the [procedure ]adopted [by the ][resPondent-Department ][is ][in]contravention to the statute [i.e. ][the ][Finance ][Acl, ][202'l ]' [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 ][Agarwal']supra. €6 For all the aforesaid [reasons, ][the impugned notices issued ][and ][the]Iproceedings 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 ][objection ][raised ][by ][the ][petitioner is sustained ][and]all these writ [petitions stands allowed on this very ][lurisdictional ][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 Hon'ble [Supreme ][Court ][had, ][in ][the ][case ][of ][Ashish]Agarwal, supral 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] l lIII i Ir I i Revenue would remain [reserved ][to ][proceed ][further ][if ][they ][so ][want]from the stagc of the order of the [Supreme ][Court ][in ][the ][Gase ][of Ashish]Agarwal, supra. 39. No order as to costs." 6. In vierv of the consensus arrived, [the ][impugned ][Show]Cause notices and consequential [orders ][passed ][in ][this ][batch ][of]writ petitions are set aside. Liberty is reserved [to b,rth ][the ];cartiesto take respective stand and to [proceed ][in ][accordance ][with ][law]as per paragreLph No.38 of the order dated [L4'09.2()23 ][in]W.P.No.25903 of 2022. 7The Writ Petitions are allowed. No costs, Interlocutory applications, if any pending, sha1l aiso standSSD'. [N.]OFFICER/TRUE [COPYI']SE :iI HIGH DATED:2010912024 GOMMON WP.Nos.25423 [& ][25426 ][of ][2024] ALLOWING WITHOUT qlttUw,t,' 1r1E [s ][TAf]Fka-(5( \c24i'i. L,2025IC*f.:',) 4 r ':i,€ [(]