Wp/29122/2021 Of Suryalakshmi Cotton Mills Ltd v. The Assistant Commissioner Of Income Tax

HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD(SPecial Original Jurisdiction) IMONDAY ,THE THIRTEENTH DAY OF JUNETWO THOUSAND AND TWENTY TWOTWO THOUSAND AND TWENTY TWO PRESENT THE HONOURABLE THE CHIEF JUSTICE UJJAL BHUYANANDTHE HONOURABLE MRS JUSTICE SUREPALLI NANDA WRIT PETITION NOS: 20529 2053'l20581 2065529015 29122 AND29532 0F 202't AND 8245 & 6244 0F 2022 WP No: 20529 ol 2021: Between: Sri Mohan Rao Gandra, S/o. Sri G.Raghavendra Rao, Rl/o. Villa No.54A,Ektha Prime Highland Park, Financial District, Nanakramguda, Gachibowli,Hyderabad- 500032. ...PETITIONER AND 1. UNION OF lNDlA, Rep. by Secretary to Govt. of lndia, Department ofRevenue, Ministry of Finance, Government of lndia, North Block, New Delhi-1 ['10001 ],Revenue, Ministry of Finance, Government of lndia, North Block, New Delhi-1 ['10001 ], 2. CENTRAL BOARD OF DIRECT TAXES, Department of Revenue, Ministry ofFinance, Government of lndia, North Block, New Delhi-1 10001 , Rep. by itsChairman.Finance, Government of lndia, North Block, New Delhi-1 10001 , Rep. by itsChairman. 3. INCOME TAX OFFICER, Ward 14(1), Hyderabad, l.T.Towers, A.C.Guards,Hyderabad- 500004.Hyderabad- 500004. ...RESPONDENTS Petition under Article 226 of the Constitution of lndia praying that in thecircumstances stated in the affidavit filed therewith, the High Court may bepleased to pass an order or writ especially one in the nature of writ of mandamusdeclaring a) that the Notification No. 2Ol2021lF No 3701421351202OTPL dated 3'110312021and Notification No. 38i2021 lF No 3701421351202OTPL daled 271O412021 issuedby the 2nd Respondent extending the time limit under the pre-amended provisionsas not applicable after 0110412021 after declaring the same as ultra vires theprovisions of the lncome Tax Act 1961 and b) that the notice dated 2310412021 issued by the 3rd Respondent with DIN andNotice No. ITBAiAST/S/14812021-2211032624765(1) [proposing ]to reopen the assessment of the Petitioner for the Assessment Year 2017-18 as being arbitrary,illegal, bad in law, barred by limitation and without [jurisdiction ]being contrary to theprovisions of the lncome Tax Act 1961 and consequently to set aside the same inthe interest of [justice.]illegal, bad in law, barred by limitation and without [jurisdiction ]being contrary to theprovisions of the lncome Tax Act 1961 and consequently to set aside the same inthe interest of [justice.] lA NO: 1 OF 20el 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 on the file of 3rd Respondent pursuant to issuance of thenotice dated 2310412021 with DIN and Notice No. ITBA/ASTlSl148l2O21-2211032624765(1) calling upon the Petitioner to file return of income for asst. year2017-18. Counsel for the Petitioner:SRl. A V RAGHU RAM Counsel forthe Respondent No. 1: SRl. NAMAVARAPU RAJESHWAR RAO,ASST. SOLICITOR GENERAL Counsel for the Respondent Nos. 2 & 3: SRl. K. RAJI REDDY, SC FOR CT WP NO: 20531 OF 2021 Between: Smt. Geetha Rani Gandra, W/o. Sri Gandra Mohan Rao, R/o. Villa No.54A,Ektha Prime Highland Park. Financial District, Nanakramguda, Gachibowli,Hyderabad- 500032. ...PETITIONER AND 1. UNION OF lNDlA, Rep. by Secretary to Govt. of lndia, Department ofRevenue, Ministry of Finance. Government of lndia, North Block, New Delhi-110001Revenue, Ministry of Finance. Government of lndia, North Block, New Delhi-110001 2. CENTRAL BOARD OF DIRECT TAXES, Department of Revenue, Ministry ofFinance, Government of lndia, North Block, New Delhi-1 10001, Rep. by itsChairman.Finance, Government of lndia, North Block, New Delhi-1 10001, Rep. by itsChairman. 3. INCOME TAX OFFICER, Ward 14(1), Hyderabad, l.T.Towers, A.C.Guards,Hyderabad- 500004Hyderabad- 500004 ...RESPONDENTS WP NO: 20531 OF 2021 Between: Smt. Geetha Rani Gandra, W/o. Sri Gandra Mohan Rao, R/o. Villa No.54A,Ektha Prime Highland Park. Financial District, Nanakramguda, Gachibowli,Hyderabad- 500032. ...PETITIONER AND 1. UNION OF lNDlA, Rep. by Secretary to Govt. of lndia, Department ofRevenue, Ministry of Finance. Government of lndia, North Block, New Delhi-110001Revenue, Ministry of Finance. Government of lndia, North Block, New Delhi-110001 2. CENTRAL BOARD OF DIRECT TAXES, Department of Revenue, Ministry ofFinance, Government of lndia, North Block, New Delhi-1 10001, Rep. by itsChairman.Finance, Government of lndia, North Block, New Delhi-1 10001, Rep. by itsChairman. 3. INCOME TAX OFFICER, Ward 14(1), Hyderabad, l.T.Towers, A.C.Guards,Hyderabad- 500004Hyderabad- 500004 ...RESPONDENTS Petition under Article 226 ol the Constitution of lndia [praying ]that in thecircumstances stated in the affidavit [filed ]therewith, the High Court [may ][be]pleased to pass an order or writ especially one in the nature of writ of mandamusdeclaring a). that the Notification No. 20l2O21lF [No ]370142/35/202OTPL dated [31 .O3.2O21]and Notification No. 38/2021 lF No 37O142135/2020TP1 dated 27.04.2021 issued by the 2nd Respondent extending the time limit under the pre-amended provisionsas not applicable after 01 .O4.2O21 after declaring the same as ultra vires theprovisions of the lncome Tax Act ['1961 ]and ]as not applicable after 01 .O4.2O21 after declaring the same as ultra vires theprovisions of the lncome Tax Act ['1961 ]and ] b). that the notice dated 2310412021 issued by the 3rd Respondent with DIN andNotice No. ITBA/AST/S/14812021-2211032624760(1) proposing to reopen theassessment of the Petitioner for the Assessment Year 2017-18 as being arbitrary,illegal, bad in law, barred by limitation and without jurisdiction being contrary to theprovisions of the lncome Tax Act 1961 and consequently to set aside the same inthe interest of [justice.] lA NO: 1 OF 2021 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 to stayall further proceedings on the file of 3rd Respondent pursuant to issuance of thenotice dated 23.04.2021 with DIN & Notice No. ITBAJAST/S/14812021-2211032624760(l) calling upon the Petitioner to file return of income for asst. year2017-18. Counsel for the Petitioner:SRl. A V RAGHU RAM Counsel for the Respondent No. 1: SRl. NAMAVARAPU RAJESHWAR RAO,ASST. SOLICITOR GENERAL Counsel forthe Respondent Nos.2 & 3: SRl. K. RAJI REDDY, SC FOR CT WP NO: 20581 OF 2021 Between: Sri Mohan Rao Gandra, S/o. Sri G.Raghavendra Rao, Rl/o. Villa No.54A,Ektha Prime Highland Park, Financial District, Nanakramguda, Gachibowli,Hyderabad- 500032. ..,PETITIONER AND 1. UNION OF lNDlA, Rep. by Secretary to Govt. of lndia, Department ofRevenue, Ministry of Finance, Government of lndia, North Block, New Delhi-'1 10001,Revenue, Ministry of Finance, Government of lndia, North Block, New Delhi-'1 10001, 2. CENTRAL BOARD OF DIRECT TAXES, Department of Revenue, Ministry ofFinance, Government of lndia, North Block, New Delhi-11000'l , Rep. by itsChairman.Finance, Government of lndia, North Block, New Delhi-11000'l , Rep. by itsChairman. 3. INCOME TAX OFFICER, Ward 14(1), Hyderabad, l.T.Towers, A.C.Guards,Hyderabad- 500004.Hyderabad- 500004. Petition under Article 226 of the Constitution of lndia praying that in thecircumstances stated in the affidavit filed therewith, the High Court may bepleased to pass an order or writ especially one in the nature of writ of mandamusdeclaring.declaring. a) that the Notification No. 20l2O21lF No 37O14213512020TPL dated 31103/2021and Notification No. 38/2021lF No 370142135/2020TP1 dated.27l04l2021 issuedby the 2nd Respondent extending the time limit under the pre-amended provisionsas not applicable after 01 .04.2021 after declaring the same as ultra virus theprovisions of the lncome Tax Act 1961 and 3. INCOME TAX OFFICER, Ward 14(1), Hyderabad, l.T.Towers, A.C.Guards,Hyderabad- 500004.Hyderabad- 500004. Petition under Article 226 of the Constitution of lndia praying that in thecircumstances stated in the affidavit filed therewith, the High Court may bepleased to pass an order or writ especially one in the nature of writ of mandamusdeclaring.declaring. a) that the Notification No. 20l2O21lF No 37O14213512020TPL dated 31103/2021and Notification No. 38/2021lF No 370142135/2020TP1 dated.27l04l2021 issuedby the 2nd Respondent extending the time limit under the pre-amended provisionsas not applicable after 01 .04.2021 after declaring the same as ultra virus theprovisions of the lncome Tax Act 1961 and b) that the notice dated.23l04l2o21 issued by the 3rd Respondent with DIN andNotice No. ITBA/AST/S/'14812021-2211032624766(1) proposing to reopen theassessment of the Petitioner for the Assessment Year 2O16-17 as being arbitrary,illegal, bad in law, barred by limitation and without [jurisdiction ]being contrary to theprovisions of the lncome Tax Act 1961 and consequently to set aside the same inthe interest of [justice.] lA NO: 1 OF 2021 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 to stayall further proceedings on the file of 3rd Respondent pursuant to issuance of thenotice dated 2310412021 with DIN and Notice No. ITBA/ASTlSl148l2O21-2211032624766(1) calling upon the Petitioner to file return of income for asst. year2016-17.the affidavit filed in support of the petition, the High Court may be pleased to stayall further proceedings on the file of 3rd Respondent pursuant to issuance of thenotice dated 2310412021 with DIN and Notice No. ITBA/ASTlSl148l2O21-2211032624766(1) calling upon the Petitioner to file return of income for asst. year2016-17. Counsel for the Petitioner:SRl. A V RAGHU RAM Counsel for the Respondent No. ['l: ]SRl. NAMAVARAPU RAJESHWAR RAO,ASST. SOLICITOR GENERAL Counsel for the Respondent Nos. 2 & 3: SRl. K. RAJI REDDY, SC FOR CT WP NO: 20655 OF 2021 Between: Sri Vikas Kumar, S/o. Sri SatishKumar,No. 21-2-94, Gulzar HouseCharkaman, Hyderabad- 500002....PETITIONER AND 'l . UNION OF lNDIA, Rep. by Secretary to Govt. of lndia, Department ofRevenue, Ministry of Finance, Government of lndia, North Block, New Delhi-1 10001,Revenue, Ministry of Finance, Government of lndia, North Block, New Delhi-1 10001, 2. CENTRAL BOARD OF DIRECT TAXES, Department of Revenue, Ministry ofFinance, Government of lndia, North Block, New Delhi-1'10001, Rep. by itsChairman..Finance, Government of lndia, North Block, New Delhi-1'10001, Rep. by itsChairman.. 3ASSISTANT COI\IMISSlONER OF INCOME TAX, Circle 8(1), SignatureTowers, Opp. Botanical Gardens, Kondapur, Hyderabad- 500084Towers, Opp. Botanical Gardens, Kondapur, Hyderabad- 500084 ,..RESPONDENTS Petition under Article 226 ol the Constitution of lndia praying that in thecircumstances stated in the affidavit filed therewith, the High Court may becircumstances stated in the affidavit filed therewith, the High Court may bepleased to pass an order or writ especially one in the nature of writ of mandamusdeclaring.declaring. a) that the Notification No. 2Ol2021lF No 370142l35l2O2OfPL daled 3110312021and Notification No. 38/2021|F No 370142l35l2O2OfPL dated 2710412021 issuedby the 2nd Respondent extending the time limit under the pre-amended provisionsas not applicable after 0110412021 after declaring the same as ultra virus theprovisions of the lncome Tax Act 1961, and b) that the notice dated 2910612021 issued by the 3rd Respondent with DIN andNotice No. ITBA/AST/Si14812021-2211033851500(1) proposing to reopen theassessment of the Petitioner for the Assessment Year 2014-15 as being arbitrary,illegal, bad in law, barred by limitation and without [jurisdiction ]being contrary to theprovisions of the lncome Tax Act 196'1 and consequently to set aside the same inthe interest of [justice.] a) that the Notification No. 2Ol2021lF No 370142l35l2O2OfPL daled 3110312021and Notification No. 38/2021|F No 370142l35l2O2OfPL dated 2710412021 issuedby the 2nd Respondent extending the time limit under the pre-amended provisionsas not applicable after 0110412021 after declaring the same as ultra virus theprovisions of the lncome Tax Act 1961, and b) that the notice dated 2910612021 issued by the 3rd Respondent with DIN andNotice No. ITBA/AST/Si14812021-2211033851500(1) proposing to reopen theassessment of the Petitioner for the Assessment Year 2014-15 as being arbitrary,illegal, bad in law, barred by limitation and without [jurisdiction ]being contrary to theprovisions of the lncome Tax Act 196'1 and consequently to set aside the same inthe interest of [justice.] lA NO: 1 OF 2021 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 to stayall further proceedings on the file of 3rd Respondent pursuant to issuance of thenotice dated 29lOOl2O21 with DIN and Notice No. ITBA/AST/S/14812021-2211033851500(1) calling upon the Petitioner to file return of income for asst. [year]2014-15. Counsel for the Petitioner:SRl. A V RAGHU RAM Counsel for the Respondent No. 1: SRl. NAMAVARAPU RAJESHWAR RAO,ASST. SOLICITOR GENERAL Counsel forthe Respondent Nos.2 & 3: SRl. K. RAJI REDDY, SC FOR CT WP NO: 29015 OF 2021 Between: Suryalakshmi Cotton Mills Ltd, Registered office at Surya Towers, 6th floor105 Sardar Patel Road, Secunderabad - 500003 Rep. by its AuthorisedSignatory Pan No.AAECS1921 R ...PETITIONER AND 1. Assistant Commissioner of lncome Tax Circle 3(1), Hyderabad SignatureTowers, Opp. Botanical Gardens Kondapur, Hyderabad - 500084Towers, Opp. Botanical Gardens Kondapur, Hyderabad - 500084 2. Union of lndia, Rep. by its Secretary, Department of Revenue, tr/inistry ofFinance, North Block New Delhi - 1 ['10 ]001Finance, North Block New Delhi - 1 ['10 ]001 ...RESPONDENTS Petition under Article 226 of lhe Constitution of lndia praying that in thecircumstances stated in the affidavit filed therewith, the High Court may bepleased to issue Writ Order or Direction more particularly in the nature of Writ ofCertiorari quashing the impugned Notice No.ITBA/ASTiS l'14812021-2211032703737(1)dated 2810412021 issued by the 1St respondent under section148 ofthe lncome Tax Act, 1961 for A.Y.2015-'16 as being without [jurisdiction.]without authority of law, beyond period of limitation, contrary to provisions oflncome Tax Act, arbitrary and illegal. lA NO: 1 OF 2021 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 ]to staythe impugned Notice No.lTBA/AST/S114812021- 22110327O3737(1) dated2810412021 issued by the 1st respondent under section 148 of the lncome Tax Act,1961 for A.Y.2015-16 and all further proceedings pursuantto impugned notice Counsel for the Petitioner:SRl. C V NARASIMHAM Counsel for the Respondent No. 1: SRl. A RADHA KRISHNA Counsel for the Respondent No. 2: SRl. N. RAJESHWAR RAO, ASST.SOLICITOR GENERAL WP NO: 29122OF 2021 Between: Suryalakshmi Cotton Mills Ltd., Registered office at Surya Towers, 6th floor105 Sardar Patel Road, Secunderabad 500003 Rep. by its AuthorisedSignatory Pan No.AAECS1921 R ...PETITIONER AND 1. The Assistant Commissioner of lncome Tax, Circle 3(1), Hyderabad SignatureTowers, Opp. Botanical Gardens [Kondapur, ]Hyderabad [- ]500084Towers, Opp. Botanical Gardens [Kondapur, ]Hyderabad [- ]500084 2. Deputy Commissioner of lncome [Tax, ]Circle 3(2), Hyderabad SignatureTowers, Opp. Botanical Gardens [Kondapur, ]Hyderabad - 500084Towers, Opp. Botanical Gardens [Kondapur, ]Hyderabad - 500084 Counsel for the Respondent No. 2: SRl. N. RAJESHWAR RAO, ASST.SOLICITOR GENERAL WP NO: 29122OF 2021 Between: Suryalakshmi Cotton Mills Ltd., Registered office at Surya Towers, 6th floor105 Sardar Patel Road, Secunderabad 500003 Rep. by its AuthorisedSignatory Pan No.AAECS1921 R ...PETITIONER AND 1. The Assistant Commissioner of lncome Tax, Circle 3(1), Hyderabad SignatureTowers, Opp. Botanical Gardens [Kondapur, ]Hyderabad [- ]500084Towers, Opp. Botanical Gardens [Kondapur, ]Hyderabad [- ]500084 2. Deputy Commissioner of lncome [Tax, ]Circle 3(2), Hyderabad SignatureTowers, Opp. Botanical Gardens [Kondapur, ]Hyderabad - 500084Towers, Opp. Botanical Gardens [Kondapur, ]Hyderabad - 500084 3Unron of lndia, Rep. by rts Secretary, Department of Revenue, Ministry ofFinance, North Block New Delhi - 1 10 001Finance, North Block New Delhi - 1 10 001 ...RESPONDENTS Petition under Article 226 of the Constitution of lndia praying that in thecircumstances stated in the affidavit filed therewith, the High Court may bepleased to issue Writ Order or Direction more particularly in the nature of Writ ofCertiorari quashing the impugned Notice No.ITBA/AST/S 114812021-2211032476846(1) dated 16-04-2021 issued by the 1st respondent under sectioncircumstances stated in the affidavit filed therewith, the High Court may bepleased to issue Writ Order or Direction more particularly in the nature of Writ ofCertiorari quashing the impugned Notice No.ITBA/AST/S 114812021-2211032476846(1) dated 16-04-2021 issued by the 1st respondent under section148 of the lncome Tax Act, 1961 for A.Y.2014-15 as being without jurisdiction,without authority of law, beyond period of limitation, contrary to provisions ofwithout authority of law, beyond period of limitation, contrary to provisions oflncome Tax Act, arbitrary and illegal. lA NO: 1 OF 2021 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 to staythe impugned Notice No.ITBAIAST/S/148/2021- 2211032476846(1 ) dated 16-04-2021 issued by the 1st respondent under section 148 of the lncome Tax Act, 1961lor A.Y.2O14-15 and all further proceedings pursuant to impugned notice. Counsel for the Petitioner:SRI. C V NARASIMHAM Counsel for the Respondent Nos. 'l & 2: SRl. A. RADHA KRISHNA Counsel for the Respondent No. 3:SRl. N. RAJESHWAR RAO, ASST.SOLICITOR GENERAL WP NO: 29532 OF 2021 Between: Suryalakshmi Cotton Mills Ltd, Registered office at Surya Towers, 6th floor105 Sardar Patel Road, Secunderabad - 500003 Rep. by its AuthorisedSignatory Pan No.AAECS1921 R ...PETITIONER AND 1. Assistant Commissioner of Income Tax Circle 3(1) And 2 Others, HyderabadSignature Towers, Opp. Botanical Gardens Kondapur, Hyderabad - 500084Signature Towers, Opp. Botanical Gardens Kondapur, Hyderabad - 500084 2. Assistant Commissioner of lncome Tax Circle 3(2), Hyderabad SignatureTowers, Opp. Botanical Gardens Kondapur, Hyderabad - 500084Towers, Opp. Botanical Gardens Kondapur, Hyderabad - 500084 3. Union of lndia, Rep. by its Secretary, Department of Revenue, Ministry ofFinance, North Block New Delhi - 110 001Finance, North Block New Delhi - 110 001 ...RESPONDENTS Between: Suryalakshmi Cotton Mills Ltd, Registered office at Surya Towers, 6th floor105 Sardar Patel Road, Secunderabad - 500003 Rep. by its AuthorisedSignatory Pan No.AAECS1921 R ...PETITIONER AND 1. Assistant Commissioner of Income Tax Circle 3(1) And 2 Others, HyderabadSignature Towers, Opp. Botanical Gardens Kondapur, Hyderabad - 500084Signature Towers, Opp. Botanical Gardens Kondapur, Hyderabad - 500084 2. Assistant Commissioner of lncome Tax Circle 3(2), Hyderabad SignatureTowers, Opp. Botanical Gardens Kondapur, Hyderabad - 500084Towers, Opp. Botanical Gardens Kondapur, Hyderabad - 500084 3. Union of lndia, Rep. by its Secretary, Department of Revenue, Ministry ofFinance, North Block New Delhi - 110 001Finance, North Block New Delhi - 110 001 ...RESPONDENTS Petition under Article 226 of lhe Constitution of lndia praying that in thecircumstances stated in the affidavit filed therewith, the High Court may bepleased to issue Writ Order or Direction more particularly in the nature of Writ ofCertiorari quashing the impugned Notice No.ITBA/AST/S l14Bl2O21-2211032264340( 1 )dated 0710412021 issued by the 1st respondent under section148 of the lncome Tax Act, 1 961 tor A.Y .2O17-18 as being without [jurisdiction,]without authority of law, beyond period of limitation, contrary to provisions oflncome Tax Act, arbitrary and illegal.circumstances stated in the affidavit filed therewith, the High Court may bepleased to issue Writ Order or Direction more particularly in the nature of Writ ofCertiorari quashing the impugned Notice No.ITBA/AST/S l14Bl2O21-2211032264340( 1 )dated 0710412021 issued by the 1st respondent under section148 of the lncome Tax Act, 1 961 tor A.Y .2O17-18 as being without [jurisdiction,]without authority of law, beyond period of limitation, contrary to provisions oflncome Tax Act, arbitrary and illegal. lA NO: 1 OF 2021 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 to staythe impugned Notice No.lTBA/AST/S114812021- 2211032264340(1) dated07 10412021 issued by the 1 st respondent under section 1 48 of the lncome Tax Act.1961 for A.Y.201 7-1 8 and all further proceedings pursuant to impugned notice Counsel for the Petitioner:SRl. C V NARASIMHAM Counsel for the Respondent Nos. 1 & 2: SRl. A RADHA KRISHNA Counsel for the Respondent No. 3: SRl. N. RAJESHWAR RAO, ASST.SOLICITOR GENERAL WP NO: 8245 OF 2022 Between: SRI. BRIJESH CHANDWANI, SON OF CHANDRA PRAKASH CHANDWANI,AGED ABOUT 49 YEARS, Fl/o. 67/C, IVLA COLONY, ROAD NO. 12,BANJARA HILLS, HYDERABAD- 5OO 034 ..,PETITIONER AND 1. THE INCOME TAX OFFICER, WARD 14(1), INCOME TAX TOWERS, ACGAURDS, MASAB TANK, HYDERABAD - 5OOOO4.GAURDS, MASAB TANK, HYDERABAD - 5OOOO4. 2. CENTRAL BOARD OF DIRECT TAXES, THROUGH THE SECRETARYDEPARIMENT OF REVENUE, MINISTRY OF FINANCE, UNION OF INDIA,NORTH BLOCK, NEW DELHI - 11OOO2.DEPARIMENT OF REVENUE, MINISTRY OF FINANCE, UNION OF INDIA,NORTH BLOCK, NEW DELHI - 11OOO2. 3. THE PRINCIPAL COMMISSIONER OF INCOME TAX, HYDERABAD. [1,,]INCOME TAX TOWERS, AC GAURDS, MASAB TANK, HYDERABAD [-]500004.INCOME TAX TOWERS, AC GAURDS, MASAB TANK, HYDERABAD [-]500004. ...RESPONDENTS Petition under Article 226 of the Constitution of lndia praying that in thecircumstances stated in the affidavit filed therewith, the Hiqh Court may bepleased to issue a writ, order or direction in the nature of writ of Certiorari ordirection in the nature of a writ of certiorari [quashing ]the notice issued under the provision of section 148 of the lncome-tax Act, 196'l issued by the RespondentNo. 1 as enclosed and marked as Annexure-A vide No. ITBA/AST/S/14812021-20221 1 033882366( 1 ) dated 30 I 06 I 2021 for the A.Y. 201 6-20 17 .No. 1 as enclosed and marked as Annexure-A vide No. ITBA/AST/S/14812021-20221 1 033882366( 1 ) dated 30 I 06 I 2021 for the A.Y. 201 6-20 17 . ...RESPONDENTS Petition under Article 226 of the Constitution of lndia praying that in thecircumstances stated in the affidavit filed therewith, the Hiqh Court may bepleased to issue a writ, order or direction in the nature of writ of Certiorari ordirection in the nature of a writ of certiorari [quashing ]the notice issued under the provision of section 148 of the lncome-tax Act, 196'l issued by the RespondentNo. 1 as enclosed and marked as Annexure-A vide No. ITBA/AST/S/14812021-20221 1 033882366( 1 ) dated 30 I 06 I 2021 for the A.Y. 201 6-20 17 .No. 1 as enclosed and marked as Annexure-A vide No. ITBA/AST/S/14812021-20221 1 033882366( 1 ) dated 30 I 06 I 2021 for the A.Y. 201 6-20 17 . b) Declare that the Explanation below clause (A) in the Notification bearingNo.20120211 F. No.370'14213512020-fPL daled 3110312021 herein marked asAnnexure-B and No.38/2021|F. No.3701421351202O-TPL dated 2710412021 hereinmarked as Annexure-C issued by the Respondent No.2 is ultra vires the provisionsof the lncome-tax Act, 1961 and the provisions of the Taxation And Other Laws(Relaxation and Amendment of Certain Provisions) Act,2020, and thus bad in law c) Declare that in the event it is beinE held that the impugned Notifications bearingNo.20l2o21l F. No.37014213512O2O-TPL dated 3110312021 herein marked asAnnexure-B and No.38/2021lF. No.3701421351202O-TPL daled 2710412021 hereinmarked as Annexure-C issued by the Respondent No.2 enable the Respondentsand the lncome{ax authorities to dispense with the requirement to comply with theconditions precedent that are set out in Section ['148A ]of the lncome-tax Act, 1961before issuing any notice under Section 148 of the lncome{ax Act, 1961 , the saidNotifications are ultra vires the provisions of the lncome{ax Act, 1961 and theprovisions of the Taxation And Other Laws (Relaxation and Amendment of CertainProvisions) Act,2O2O, and thus bad in law d) Declare that the extension of time limit by the Taxation And Other Laws(Relaxation and Amendment of Certain Provisions) Act,2020 does not apply tonotices issued under erstwhile section 148 of the lncome-tax Act, 1 961 aftero110412021 e) Declare that the impugned proceedings initiated by the Respondent No.1 underthe lncome-tax Act, 1961 , are illegal and without the authority of law. lA NO: 1 OF 2022 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 issuean ad-interim order to. a) Stay the operation of the notice issued under the provision of section 148 of theas lncome-tax Annexure-A Act, 1961 issued by vide no. ITBA/AST/S/14812021-202211033882366(1) the Respondent No. 1 , as enclosed and markeddated3010612021 for the A.Y. 2O16-2017. b) Grant such Counsel for the Petitioner:SRl. T. ARCHAN KUMAR Counsel forthe RespondentNos. 1 & 3: SRl. K. RAJI REDDY, SC FOR lT Counsel forthe Respondent No.2: SRl. N. RAJESHWAR RAO, ASST.SOLICITOR GENERAL WP NO: 6244 OF 2022 Between: 1. Xilinx lndia Technology Services Private Limited, Block A, B, C, 13TH FloorMeenakshi Tech Park, Survey No. 39, Gachibowli Hyderabad 500084 ,Telangana Represented by its Director Mr.Praveen Reddy Shyamala, S/o.Janardhan Reddy Shyamala aged about 50 YearsMeenakshi Tech Park, Survey No. 39, Gachibowli Hyderabad 500084 ,Telangana Represented by its Director Mr.Praveen Reddy Shyamala, S/o.Janardhan Reddy Shyamala aged about 50 Years ...PETTTTONER(S) AND 1. The Central Board of Direct Tax, lncome tax department New Delhi 2. The Assistant Commissioner of lncome Tax, Circle 8(1), Hyderabad ...RESPONDENTS Counsel forthe Respondent No.2: SRl. N. RAJESHWAR RAO, ASST.SOLICITOR GENERAL WP NO: 6244 OF 2022 Between: 1. Xilinx lndia Technology Services Private Limited, Block A, B, C, 13TH FloorMeenakshi Tech Park, Survey No. 39, Gachibowli Hyderabad 500084 ,Telangana Represented by its Director Mr.Praveen Reddy Shyamala, S/o.Janardhan Reddy Shyamala aged about 50 YearsMeenakshi Tech Park, Survey No. 39, Gachibowli Hyderabad 500084 ,Telangana Represented by its Director Mr.Praveen Reddy Shyamala, S/o.Janardhan Reddy Shyamala aged about 50 Years ...PETTTTONER(S) AND 1. The Central Board of Direct Tax, lncome tax department New Delhi 2. The Assistant Commissioner of lncome Tax, Circle 8(1), Hyderabad ...RESPONDENTS Petition under Article 226 of the Constitution of lndia praying that in thecircumstances stated in the affidavit filed therewith, the High Court may bepleased toto issue a Writ, Order or direction more particularly in the nature of aWrit of Mandamu(declaring part of the Clause A(a) relating to section 148 and theExplanation therein in Notification no.2012021 dated 31 .3.2021 and part of theClause A(b) relating to section 148 and the Explanation therein in Notificationno.3812021 dated 27.4.2021 issued by the 1st Respondent as unconstitutional,illegal and ultra vires the lncome tax Act, 1961 and the Constitution of lndia, andconsequently quash the impugned notice under section 148 in DIN and NoticeNo.ITBA/AST/Sl14Bl2O21-2211033918482(1) dated 30.06.2021for the Assessmentyeat 2016-17. lA NO: 1 OF 2022 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 to grantan order of lnterim stay of part of the Clause A(a) relating to section 148 and theExplanation therein in Notification no.2Ol2O21 dated 31.3.2021 and part of theClause A(b) relating to section 148 and the Explanation therein in Notificationno.3812021 dated 27.4.2021 pending disposal of this writ Petition and thus renderjustice. Counsel for the Petitioner:SRl. M NAGA DEEPAK Counsel for the Respondents: NONE APPEARED The Court made the following: I \ THE HONOURABLE SR I JUSTICE UJJAL BHUYANANDTHE HONOURABLE MRS JUSTICE SUREPALLI NANDA WRIT PETITION Nos.205292053120581 2065529015 29122 and29532 of 2021 and 8245 & 6244 of 2022 COMMON ORDER: (Pct Han bte Sn Jushcc ulat Bhuyan) Heard Mr. T.Archan Kumar, Mr. A.V.Raghu Ram, Mr. C.V.Narasimhamand Mr. M.Naga Deepak, learned counsel for the petitioners. We have alsoheard Mr.B.Narasimha Sarma, Mr. J.V.Prasad and Mr. A.Radha Krishna,learned Standing Counsel for lncome Tax Department for the respondents aswell as Mr. B.Mukher.jee, learned counsel appearing on behalf ofMr. N,Rajeshwar Rao, Iearned Assistant Solicitor General of lndia for Union oflndia. 2. ln all the writ petitions in this bunch, challenge has been made tothe legality and validity of notices issued by the assessing officer underSection 148 of the lncome Tax Act, 1961 (briefly referred to hereinafter as the'Act'). All the notices are post 01.04.2021 , but issued under the un-amendedprovision of Section 148 of the Act. 3. By the aforesaid notices, assessing officer proposed toassess/re-assess income of the petitioners for the respective assessmentyears on the ground that he has reasons to believe that income chargeable totax had escaped assessment. 4. 4. Contention of the petitioners is that Section 14BA of the Act has(been inserted in the Act by way of recent amendment and which has comeinto effect trom 01.O4.2021. As per Section 14BA of the Act, the assessing 2. ln all the writ petitions in this bunch, challenge has been made tothe legality and validity of notices issued by the assessing officer underSection 148 of the lncome Tax Act, 1961 (briefly referred to hereinafter as the'Act'). All the notices are post 01.04.2021 , but issued under the un-amendedprovision of Section 148 of the Act. 3. By the aforesaid notices, assessing officer proposed toassess/re-assess income of the petitioners for the respective assessmentyears on the ground that he has reasons to believe that income chargeable totax had escaped assessment. 4. 4. Contention of the petitioners is that Section 14BA of the Act has(been inserted in the Act by way of recent amendment and which has comeinto effect trom 01.O4.2021. As per Section 14BA of the Act, the assessing officer is required to conduct an enquiry with the approval of the specifiedauthority with respect to the information suggesting thal income chargeable totax has escaped assessment prior to issuing any notice under Section 148 ofthe Act. He is also required to provide an opportunity of hearing to theassessee and to consider a reply of the assessee. Thereafter, underSection 14BA(d) of the Act, he has to take a decision on the basis of theavailable materials including reply of the assessee as to whether it is a fit casefor reopening and only thereafter and if he is satisfied that it is a fit case forreopening, then notice under Section 148 of the Act is required to be issued. 5. The impugned notices have been challenged in the presentbatch of writ petitions on the ground that the procedure laid down underSection 148,4 of the Act has not been followed, which has rendered theimpugned notices null and void. 6. ln all the writ petitions, notices were issued and the impugnednotices have been stayed. 7. lt may be mentioned that several High Courts had [passed]judgments setting aside such notices including the High Court of Judicature atAllahabad in Writ Tax No.52412021 , against which Union of lndia filed SpecialLeave Petitions. On leave being [granted, ]Civil Appeal No.3005/2022 [(Union]of lndia vs. Ashish Agarwal) along with other connected Civil Appeals wereheard by the Supreme Court and decided vrde the [judgment ]and order dated04.05.2022, which has since been reported [in ]2O22 SCC Online [543.]\\ Afler analysing the provisions of the Act from Sections 147 lo 151 of the [Act,] r { J more particularly the provasions contained in Section 148A of the Act,Supreme Court observed as follows: 7Thus, the new provisions substituted by the FinanceAct,2021 being remedial and benevolent in nature andsubstituted with a specific aim and object to protect therights and interest of the assessee as well as and thesame berng in public interest, the respective HighCourts have raghtly held that the benefit of newprovisions shall be made available even in respect ofthe proceedings relating to past assessment years,provided section 148 notice has been issued on orafter lst Aprll, 2021 . We are in complete agreementwith the view taken by the various High Courts inholding so."Act,2021 being remedial and benevolent in nature andsubstituted with a specific aim and object to protect therights and interest of the assessee as well as and thesame berng in public interest, the respective HighCourts have raghtly held that the benefit of newprovisions shall be made available even in respect ofthe proceedings relating to past assessment years,provided section 148 notice has been issued on orafter lst Aprll, 2021 . We are in complete agreementwith the view taken by the various High Courts inholding so." 8. However, taking the view that judgments of the High Courtswould result in no re-assessment proceedings at all, Supreme Court proposedto modify the [judgments ]and orders passed by various High Courts in thefollowing manner: 8. However, taking the view that judgments of the High Courtswould result in no re-assessment proceedings at all, Supreme Court proposedto modify the [judgments ]and orders passed by various High Courts in thefollowing manner: B. However, at the same time, the judgments of the severalHigh Courts would result in no reassessmentproceedings at all, even if the same are permissibleunder the Finance Act, 2021 and as per substitutedsections 147 to 151 of the lT Act. The Revenue cannotbe made remediless and the object and purpose ofreassessment proceedings cannot be frustrated. lt istrue that due to a bonafide mistake and in view ofHigh Courts would result in no reassessmentproceedings at all, even if the same are permissibleunder the Finance Act, 2021 and as per substitutedsections 147 to 151 of the lT Act. The Revenue cannotbe made remediless and the object and purpose ofreassessment proceedings cannot be frustrated. lt istrue that due to a bonafide mistake and in view of/,'subsequent extension [of time ]vide various notifications,the Revenue issued the impugned notices under section148 after the amendment was enforced w.e.f.the Revenue issued the impugned notices under section148 after the amendment was enforced w.e.f. 01 .O4 2021 . under the unamended section 148 ln ourview the same ought not to have been issued under theview the same ought not to have been issued under theunamended Act and ought to have been issued underthe substituted provisions of sections 1 47 to 1 5'1 of thelT Act as per the Frnance Act, 2021 . There appears tobe genuine non-application of the amendments as theofficers of the Revenue may have been under a bonafidebelief that the amendments may not yet have beenenforced. Therefore, we are of the opinion that someleeway must be shown in that regard which the HighCourts could have done so. Therefore, instead ofquashing and setting aside the reassessment noticesissued under the unamended provision of lT Act, theHigh Courts ought to have passed an order construingthe notices issued under unamended AcU unamendedprovision of the lT Act as those deemed to have beenissued under section 1484 of the lT Act as per the newprovision section 1484 and the Revenue ought to havebeen permitted to proceed further with the reassessmentproceedings as per the substituted provisions of sections147 to 151 of the lT Act as per the Finance Act, 2021 ,subject to compliance of all the procedural requirementsand the defences, which may be available to theassessee under the substituted provisions of sections147 to 151 of the lT Act and which may be availableunder the Finance Ac|,2021 and in law. Therefore, wethe substituted provisions of sections 1 47 to 1 5'1 of thelT Act as per the Frnance Act, 2021 . There appears tobe genuine non-application of the amendments as theofficers of the Revenue may have been under a bonafidebelief that the amendments may not yet have beenenforced. Therefore, we are of the opinion that someleeway must be shown in that regard which the HighCourts could have done so. Therefore, instead ofquashing and setting aside the reassessment noticesissued under the unamended provision of lT Act, theHigh Courts ought to have passed an order construingthe notices issued under unamended AcU unamendedprovision of the lT Act as those deemed to have beenissued under section 1484 of the lT Act as per the newprovision section 1484 and the Revenue ought to havebeen permitted to proceed further with the reassessmentproceedings as per the substituted provisions of sections147 to 151 of the lT Act as per the Finance Act, 2021 ,subject to compliance of all the procedural requirementsand the defences, which may be available to theassessee under the substituted provisions of sections147 to 151 of the lT Act and which may be availableunder the Finance Ac|,2021 and in law. Therefore, wepropose to modify the judgments and orders passed bythe respective High Courts as under:-the respective High Courts as under:- The respective impugned section 148 noticesissued to the respective assessees shall bedeemed to have been issued under section 148Aof the lT Act as substituted by the Finance Act,2021 and treated to be show-cause notices [in] terms of section 148A(b). The respectiveassessing officers shall within thirty days fromtoday provide to the assessees the informationand material relied upon by the Revenue so thatthe assessees can reply to the notices within twoweeks thereafter; The requirement of conducting any enquiry withthe prior approval of the specified authority undersection 148A(a) be dispensed with as a one{imemeasure vis-a-vis those notices which havebeen issued under Section 148 of theunamended Act from 01 .04.2021 till date.including those which have been quashed by theHigh Courts; The assessing officers shall thereafter pass anorder in terms of section 14BA(d) after followingthe due procedure as required under section148A(b) in respect of each of the concernedASSESSEES; All the defences which may be available to theassessee under section 149 andlor which may beassessee under section 149 andlor which may beavailable under the Finance Acl,2021 and in lawand whatever rights are available to theAssessing Officer under the Finance Act, 2021are kept open and/or shall continue to beavailable and;and whatever rights are available to theAssessing Officer under the Finance Act, 2021are kept open and/or shall continue to beavailable and; The present order shall substitute/modifyrespective judgments and orders passed by therespective High Courts quashing the Siifi'ria rnolices issued under unamended sectron ['148 ]of 9. Finally, the Civil Appeals were allowed in part and judgments ofthe various High Courts have been modified and substituted as under: "10. ln view of the above and for the reasons stated above,the present Appeals are ALLOWED lN PART. Theimpugned common judgments and orders passed by theHigh Court of Judicature at Allahabad in W.T. No.52412021 and other allied tax appeals/petitions, is/arehereby modified and substituted as under.-the present Appeals are ALLOWED lN PART. Theimpugned common judgments and orders passed by theHigh Court of Judicature at Allahabad in W.T. No.52412021 and other allied tax appeals/petitions, is/arehereby modified and substituted as under.- The impugned section ['148 ]notices issued to therespective assessees which were issued underunamended section 148 of the IT Act, which werethe subject matter of writ petitions before thevarious respective High Courts shall be deemedto have been issued under section 148A of the lTAct as substituted by the Finance Act, 2021 andconstrued or treated to be show-cause notices interms of section 148A(b). The assessing officershall, within thirty days from today provide to therespective assessees information and materialrelied upon by the Revenue, so that the asseseescan reply to the show-cause notices within twoweeks thereafter;respective assessees which were issued underunamended section 148 of the IT Act, which werethe subject matter of writ petitions before thevarious respective High Courts shall be deemedto have been issued under section 148A of the lTAct as substituted by the Finance Act, 2021 andconstrued or treated to be show-cause notices interms of section 148A(b). The assessing officershall, within thirty days from today provide to therespective assessees information and materialrelied upon by the Revenue, so that the asseseescan reply to the show-cause notices within twoweeks thereafter; The requirement of conducting any enquiry, ifrequired, with the prior approval of specifiedauthority under section 14BA(a) is herebydispensed with as a one-time measure vis-d-ysthose notices which have been issued ndersection 148 of the unamended Act fromrequired, with the prior approval of specifiedauthority under section 14BA(a) is herebydispensed with as a one-time measure vis-d-ysthose notices which have been issued ndersection 148 of the unamended Act from The requirement of conducting any enquiry, ifrequired, with the prior approval of specifiedauthority under section 14BA(a) is herebydispensed with as a one-time measure vis-d-ysthose notices which have been issued ndersection 148 of the unamended Act fromrequired, with the prior approval of specifiedauthority under section 14BA(a) is herebydispensed with as a one-time measure vis-d-ysthose notices which have been issued ndersection 148 of the unamended Act from U.A4.2021 till date, including those which havebeen quashed by the High Courts.been quashed by the High Courts. Even otherwise as observed hereinaboveholding any enquiry with the prior approval ofspecified authority is not mandatory but it is forthe concerned Assessing Officers to hold anyenquiry, if required; The assessing officers shall thereafter passorders in terms of section 148A(d) in respect ofeach of the concerned assessees; Thereafterafter following the procedure as required undersection 148A may issue notice under section 148(as substituted);orders in terms of section 148A(d) in respect ofeach of the concerned assessees; Thereafterafter following the procedure as required undersection 148A may issue notice under section 148(as substituted); All defences which may be available to theassesses including those available under section149 of the lT Act and all rights and contentionswhich may be available to the concernedassessees and Revenue under the Finance Act,2021 and in law shall continue to be available."assesses including those available under section149 of the lT Act and all rights and contentionswhich may be available to the concernedassessees and Revenue under the Finance Act,2021 and in law shall continue to be available." 10. Supreme Court also clarified that its decision in Ashish Aganival (supra) rendered on 04.05.2022 was an order passed under Article 142 of lheConstitution of lndia and would be binding in all cases where similar noticeshave either been set aside by the High Courts or are pending adjudicationbefore the High Courts. lt has been held as follows. )1. [fhe ][present order shall ][be ][applicable PAN INDIA and ][all]judgments and orders passed by different High Courtson the issue and under which similar notices which wereissued after 01 .04.2021 issued under section 148 of thejudgments and orders passed by different High Courtson the issue and under which similar notices which wereissued after 01 .04.2021 issued under section 148 of the \ To, Act are set aside and shall be governed by the presentorder and shall stand modified to the aforesaid extent.The present order is passed in exercise of powers underArticle 142 of the Constitution of lndia so as to avoid anyfurther appeals by the Revenue on the very issue bychallenging similar judgments and orders, with a viewnot to burden this Court with approximately 9000appeals. We also observe that present order shall alsogovern the pending writ petitions, pending before variousHigh Courts in which similar notices under Section 148of the Act issued after 01.O4.2021 are under challenge-" 11. Mr. J.V.Prasad, learned Standing Counsel has placed before uslnstruction No 0112022 dated 1 1.05.2022 issuep by the Central Board ofDirect Taxes (CBDT) issuing instructions to the assessing officers regardingimplementation of the [judgment ]of