Wp/25703/2024 Of Agiru Santhosh Kumar v. Income Tax Officer

HIGH COURT FOR THE STATE OF TELANGANAAT HYDERABAD(Special Original J urisdiction) SATURDAY. THE TWENTY FIRST DAY OF SEPTEN/BERTWO THOUSAND AND TWENTY FOUR PRESENT THE HONOURABLE SRI JUSTICE SUJOY PAULANDTHE HONOURABLE SRI JUSTICE NAMAVARAPU RAJESHWAR WRIT PETITION NO: 25703 OF 2024 Between: Agiru Santhosh Kumar, S/o. Agiru Narender, Aged about 43years, Occ; [Business,]Rl/o. 1 1.9-1 1 5, Lakshmi Colony Nagar Telangana [- ]500060. .....PETITIONER AND 1. lncome Tax Officer, Ward 9(1), Hyderabad, Aaykar Bhawan, [Opp. ] Stadium, Basheerbagh Hyderabad- 500004, Telangana.Stadium, Basheerbagh Hyderabad- 500004, Telangana. 2. The Principal Chief Commissioner of lncome Tax, [and ][TS, ]['1Oth ][Floor, ] 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. Assessment Unit, National Faceless Assessmenl [Centre, ][lncome ][Tax]Department, Ministry of Finance Room No. [401 ], [Znd ][Floor, ][E-Ramp,]Jawaharlal Nehru Stadium, Delhi- [1 ][10003.]Department, Ministry of Finance Room No. [401 ], [Znd ][Floor, ][E-Ramp,]Jawaharlal Nehru Stadium, Delhi- [1 ][10003.] ....-RESPONDENTS Petition Under Arlicle 226 of the Constitution of lndia [praying ]that [in ]thecircumstances 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 ofWrit of Mandamus, declaring the Assessment Order [dated ][18.02.2024 passed ][by]the 3rd Respondent u/s 147 rlw section 144 B of the lncome [Tax ][Act for ][A.Y.]2016-17 vide DIN No. ITBA/AST/5114712023-24/1061079578(1) [and ][the ][notice]u/s 148 dated 24.03.2023 vide DIN No. ITBA/AST/S/148-112022'2311051224444(1), issued by the JAO [(1st ][Respondent) instead ][of ] [(3rd]Respondent) as void, illegal and contrary to the [Principles of Natural ][Justice.] |.A.NO:1 OF 2024 Petition Under Section 15'1 CPC praying that in the circumstances stated inthe affidavit filed in support of the petition, the High Court may be pleased to stayall further proceedings pursuant to the Assessment Order dated 18.02.2024passed by the 3rd Respondent u/s 147 rlw section 144 B of the lncome Tax Actfor A.Y. 2016-1 7 vide DIN No. ITBA/AST/SI1 47 12023-241 1 061 079578(1 ). Counsel for the Petitioner : SRI PARIKSHITH KUTUR Counsel forthe Respondents : Ms BOKARO SAPNA REDDY (Jr. SC FORtNcoME TAX) The Court made the following ORDER THE HONOURABLE ANDTHE HONOURABLE ONN25703F2 ORDER: [(per ]Hon'ble [Justice ][Sujog ][Paul)] Heard Sri K.Parikshith [Kutur, ][Iearned ][counsel ][for ][the]petitioner(s) and Ms.B.Sapna [Reddy, learned ][Junior ][Standing]Counsel for Income [Tax ][Department for the ][respondents'] 2. The [ground ][taken ][by ][the ][learned ][counsel ][for ][the]petitioner(s) is that in [furtherance ][of ][Finance ][Act, ][2027' ][re']assessment [process stood ][modified ][but ][the ][respondents ][have]not taken care of it [and ][therefore, ][notice ][issued ][under]Section 148 of the [Income ][Tax ][Act, ][1961 cannot ][sustain]judicial scrutiny. Since notice [is ][bad ][in ][law, ][the]consequential orders [are ][a-lso ][bad ][in ][law'] 3. 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'25903 of ][2022]and other connected [matters, ][decided ][by ][common ][order]dated 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 14.09,2Q23 inW.P.No.25903 of 2022, held as under: 3. 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'25903 of ][2022]and other connected [matters, ][decided ][by ][common ][order]dated 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 14.09,2Q23 inW.P.No.25903 of 2022, held as under: "35. [In ][vlew ][of ][the ][aforeaeid discuasions, ][it ][16 ][by ][now very]clear that the procedure to be followed by the respondent-Department upon treating the notices i6sued for reassessme!tbeing under Section 148A, the subaequent proceedings wasmandatorily required to be undertaken under the substitutedprovi6ion6 as [ald down under the Finance Act,2021. In theabsence of which, we are constrained to hold that theprocedure idopted by the .espondent-Department is incontravention to the statute l.e. the Finance Act,2O21, at thefirst instance. Secondly, lt is also ln dlrect contravertior tothe directiv€s lssued by the Hon'ble Supreme Court in theca6€ ofAshish Agarwal, supra. 36. For all the aforesaid reasoDs, the impugned notices issuedand the proceedings drawn by the respondent-Department isneither tenable, no! sustainable. The notices so issued andthe procedure adopted being per se illegal, deservea to be andare accordingly set aside/quashed. As a consequence, all thelmpugned orders getting quaahed, the cons€quential orderspassed by the respondent Department pur6uant to the noticesia6ued undcr Section 147 and 148 would alEo get quashed andit is ordercd accordingly, The reaaon we are quashing theconsequential order is on the principles that when thelnltiation c,f the proceedlngs itself was procedulally wtong,the aubsequent orders also BetE nullllied automatically.37. The preliminary objection ralsed by the petitioner issustained and all these writ petitions stands allowed on thisvery jurisdictional issue. Since the impugned notices andorders are getting quashed on the poiat ofjurisdictior, s'e arenot inclined to proceed further and declde the other iasuesrai6ed by the petitioner whlch stands reserved to be raisedaud contended ia an {pproprlate proceedlngs. 38. Since the Hor'ble Supreme Court hqd, in the case ofAshlsh Agarwal, supra, as a one-time measure exercising thepowers under Arttcle 142 of the Constitutlon of ltrdla,pcrmitted the Revenue to proceed under the substltutedprovislons, end this Court alloslng the petitlons only on theprocedural naw, the right conferr€d on the Reveru€ wouldtemain reserved to paoceed further if they so want from the / stag€ of the order of the Supreme Court in the [cese ][of ][Ashish]Agerwal, supra. 39. No order aE 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 paragraph No.38 of the order dated [14.O9.2023 ][in]W.P.No.25903 ol 2022. 6. The writ petition is allowed. No costs. [Interlocutory]if shall [a-lso ][stand ][closed.]applications, any [pending, ] SD/. P. PADMANABHA ASSISTANREGISTRAR ,TRUE COPY// SION OFFICER To' " 1. Th" lncome Tax Officer, Ward 9(1 ),- Hy-derabad' Aaykar Bhawan' Opp Stadium, Basheerbagh [Hvderabad- ][500004' ] [elanoena']- 2. The eioir, Principar i.f.iowers, [cnier ]1o-2-3, A.C Guards, [comil]Jst"li ]-rtiriion,r [orl"tonit ]Hyde^rabad Assessment [ij*'"np ]-500004'[and ]Centre' [TS' ][l ][oth Floor' ]lncorne Tax o. ir'," i"""""ment'unif i"gt"si Deoartment, [,4inistry [oi-Fln'nt" ][Room ][No ][401 ][2nd ][Floor' ][E-Ramp']Jawaharlal Nehru [Strdium, ][Delhi- 110003']+. b.J Cc to [sRl ][PARIKSHITH KUTUR, ][Advo-cale. ]-REDDV [[oPUCl]'SC (Jr FOR lNCOtvE5. one cc [to ][Ms. ][BbjiARO''EA-F'NA ]TAX) 6. Two CD [CoPies ].,SA t,// HIGH COURT DATED:21 10912024 ORDER SD/. P. PADMANABHA ASSISTANREGISTRAR ,TRUE COPY// SION OFFICER To' " 1. Th" lncome Tax Officer, Ward 9(1 ),- Hy-derabad' Aaykar Bhawan' Opp Stadium, Basheerbagh [Hvderabad- ][500004' ] [elanoena']- 2. The eioir, Principar i.f.iowers, [cnier ]1o-2-3, A.C Guards, [comil]Jst"li ]-rtiriion,r [orl"tonit ]Hyde^rabad Assessment [ij*'"np ]-500004'[and ]Centre' [TS' ][l ][oth Floor' ]lncorne Tax o. ir'," i"""""ment'unif i"gt"si Deoartment, [,4inistry [oi-Fln'nt" ][Room ][No ][401 ][2nd ][Floor' ][E-Ramp']Jawaharlal Nehru [Strdium, ][Delhi- 110003']+. b.J Cc to [sRl ][PARIKSHITH KUTUR, ][Advo-cale. ]-REDDV [[oPUCl]'SC (Jr FOR lNCOtvE5. one cc [to ][Ms. ][BbjiARO''EA-F'NA ]TAX) 6. Two CD [CoPies ].,SA t,// HIGH COURT DATED:21 10912024 ORDER WP.No.25703 <tf 2024 ALLOWING THE W.PWITHOUT COSTS. gbU.+ HES(r{oo14 rtB [2m]2t*cts^T