Wp/3312/2024 Of Mr. Dinesh Mohandas Lalwani v. The Income Tax Officer - Ward 10(1)

IN THE HIGH COURT FOR THE STATE OF TELANGANAAT HYDERABAD(Special Original Jurisdiction) THURSDAY, THE EIGHTH DAY OF FEBRUARYTWO THOUSAND AND TWENTY FOURTWO THOUSAND AND TWENTY FOUR PRESENT THE HONOURABLE SRI JUSTICE P. SAM KOSHYANDAND THE HONOURABLE SRI JUSTICE N. TUKARAMJI WRIT PETITION NO:3312 oF 2024 Between: It/lr Dinesh Mohandas Lalwani, S/o trrlr. Mohandas Bhawandas Lalwani aoed19 [Vq.t: ][Occ. Business, FIat ][No. ][503, 5th ][Floor, Krishna Kunj ][Apartmeits,]Street No. 4, West lvlaredpally, Secunderabad - 500 026, Telanghnd. ...PETITIONER AND 1The lncome Tax Offrcer - Ward 10(1), Hyderabad, l.T. Towers, AC Guards,lVlasab Tank, Hyderabad - 500 004, Teldngana.lVlasab Tank, Hyderabad - 500 004, Teldngana. 2The lncome lax Officer {lnternatronal Taxatron) - 1, Hyderabad, AayakarBhawan, Opposite LB Stadium. Basheerbagh. Hyderabad - 5OO 004,Telangana.Bhawan, Opposite LB Stadium. Basheerbagh. Hyderabad - 5OO 004,Telangana. 3The Principal Chief Commrssioner of Income Tax, Andhra pradesh andTelang_ana, Hyderabad Room No.. 922,gth Floor, 'B' Block, l.T.Towers, 10-2-3, AC Guards, Hyderabad - 500 004, TelanganaTelang_ana, Hyderabad Room No.. 922,gth Floor, 'B' Block, l.T.Towers, 10-2-3, AC Guards, Hyderabad - 500 004, Telangana 4The lncome Tax Officer - Ward ['11(1), ]Hyderabad, Signature Towers, Sy. No..6(P) of Kondapur Sy No. 37(P) of Kothiguda. Oppoiite Botanicat Gardens,Serlrngampally Mandal. Ranga Reddy Distnct. Hyderabad - 500 084,Telangana6(P) of Kondapur Sy No. 37(P) of Kothiguda. Oppoiite Botanicat Gardens,Serlrngampally Mandal. Ranga Reddy Distnct. Hyderabad - 500 084,Telangana 5The Central Board of Direct Taxes, Represented by its Chairman, Departmentof Revenue, lr,4rnistry of Finance, Goveinment of lnfoia, Secretariai Suitdings,New Delhi - 1 10 001of Revenue, lr,4rnistry of Finance, Goveinment of lnfoia, Secretariai Suitdings,New Delhi - 1 10 001 ...RESPONDENTS Petrtion under Article 226 of the Constrtution of lndia praying that in thecircumstances stated in the affidavit filed therewith, the High Court may bepleased to issue a Writ of l\/andamus or any other appropriate Writ, Order orDirection, declaring the Assessment Order passed by the 2nd Respondent, u/s144 r/w Sec. 144C(3) of the lncome Tax Act, ['1961, ]dated 17.O7.2023, bearingDlN. ITBA/AST 15114412023-24/1054393398( 1), for the Assessment yeat 2014 -144 r/w Sec. 144C(3) of the lncome Tax Act, ['1961, ]dated 17.O7.2023, bearingDlN. ITBA/AST 15114412023-24/1054393398( 1), for the Assessment yeat 2014 -'15, as arbitrary, illegal bad rn law, void-ab-initio, vrolative of the pnnciples ofnatural justrce, apart from being violative of Artictes 14, 19(1)(g) and 265 of thenatural justrce, apart from being violative of Artictes 14, 19(1)(g) and 265 of the Constitution of lndia & Sec 148A of the Income Tax Act, [1961, ][and ]toconsequently set aside the same in the interests of [justice] lA NO: 1 OF 2024 Petition under Section 151 CPC praying that in the circumstances statedin the affidavit filed in support of the petrtion, the High Court may be pleased tostay all further proceedings, including any recovery, [pursuant ]to the AssessmentOrder passed by the 2nd Respondent, uls 144 tlw Sec. 144C(3) of the lncomeTax Act, 1961 , dated 17.07.2023, beanng DIN lf BAlASf lsl144l2023-2411054393398(1), for the Assessment Year 2014 - 15, pending disposal of theabove Writ Petition, Counsel for the Petitioner: SRI A.V-A. SIVA KARTIKEYA Counsel for the Respondents: SRI J.V. PRASAD (Sr. SC FOR INCOME TAX) The Court made the following: ORDER THE HONOURABLE SRI HONOURABLE SRITICE P.SAM KOSHYTHE HONOURABLE S*# JUSTICE N.TUKARAMJI trIRITTION No.3312 0r. 2o24 ORDER: (per Hon,ble Sn,Iustice P.SAM KOSH?) The instalt Writ petition has been filed by thepetitioner under Articl e 226 of the Constitution of Indiahas been filed by thepetitioner under Articl e 226 of the Constitution of Indiaseeking for the following reiief Counsel for the Petitioner: SRI A.V-A. SIVA KARTIKEYA Counsel for the Respondents: SRI J.V. PRASAD (Sr. SC FOR INCOME TAX) The Court made the following: ORDER THE HONOURABLE SRI HONOURABLE SRITICE P.SAM KOSHYTHE HONOURABLE S*# JUSTICE N.TUKARAMJI trIRITTION No.3312 0r. 2o24 ORDER: (per Hon,ble Sn,Iustice P.SAM KOSH?) The instalt Writ petition has been filed by thepetitioner under Articl e 226 of the Constitution of Indiahas been filed by thepetitioner under Articl e 226 of the Constitution of Indiaseeking for the following reiief other;rii.o:X: frn*2' .of [Mandamus ][or ][ana ]Assessmen/ ora.r?'!t' ,or [Direction ][declaing ]t;144 r/ u.t s".. j44cPo""ed [by ][the ][2"t resoondeit, ]u/sd.ated. tz.oz.zl?sof 'n"^j::T' [r"*^a.t, ]igoi,rrBA/ ASr/ s/ assessmenr u.or t nn/ ,o.l_1 i6i s.z, ,.f, t rZ?#f* n, t rlj* r., yiltaw, uotd-ab_initio. uiotatiue."f "r^oriiii6l,llesar, bad intn. pii"ii't3 of naturat:;:';"?:f,[:tr !i:r3 .t^'"ii'";i [iiii"Z" ][, ]1 t e( t )(g)rn.o*.-rk'i;;i;';',":"":"1::::&:":;":,r::j!rlzsame in the interestord'ers as rn " ,tr'o!) e Lourt ,1[-justbe; mag deem [and ]fi.t [pZss ]and proper_.[such ]other 2. 2. One of the contentions that the petitioner has raisedin the present Writ petition is that under the amendedpror,rsions of the Act which came into effect fromO1.O4.2O21 the , respondents, while proceeding underSection 14g of the Act, were required to issue notice underSection 14gA and provide an opportunity of hearing to the PSK,J & [NTR'J]W.P.No.3372 [ol2024] assessee. As [per ][the ][amended ][provision ][of iaw' ][the]proceedings [to ][be ][drawn ][are also ][in ][a ][faceless ][manner'] 3. Whereas, learned [counsel ][for the ][petitioner]contended that, [in ][the ][instant ][case, reopening ][has ][been]initiated by [the ][Jurisdictional ][Assessing ][Officer' ][In ][support]of his contention, [he ][relied ][upon ][the ][recent ][judgment]rendered by [this ][very ][Bench ][in ][WP'No'25903 ][of ][2022 ][&']batch, dated [14.O9.2023 ][wherein ][this ][Court ][disposed of the]batch of writ [petitions ][to the ][limited ][extent'] 4. On the other [hand, ][learned Standing ][Counsel ][for ][the]respondent-Department [does ][not ][dispute ][that ][the ][said]was [decided ][in the ][a-foresaid ][batch ][of ][Writ]objection Petitions. [However, ][he further ][contended ][that ][apart ][from]the aJoresaid [objection, ][there have ][been ][other ][various]objections also [which the petitioner has ][raised ][in ][the ][writ]petition. 5. So far as this [contention of ][the ][learned counsel ][for]the respondent-Department [is ][concerned, ][this ][Bench' ][while]disposing of said batch [of ][writ ][petitions, had taken note ][of] II f -r.....-- PSX,J & MTR,J W.P.No.3372 of 2O24 the same at paragraph Nos.37 & 38 which are reproduced herein under: "37. The preliminory objection raised by the petitioneris sustained and all these uit petitions stands alloutedon this uery [juisdictional ]issue. Since the impugnednotices and orders are getting quashed on the point ofjurisdiction, LUe are not inclined to proceed further anddecide the other rssues raised bg tle petitioner u.'hichstands resented to be raised and contended in on"ap pro piate p ro cee ding s. "38. Since th-e Hon'ble Supreme Court had, in the caseof Ashish Agaru.tal, supra, as a one-time measl[eexercising the potuers under Article 142 of theConstitution of India, pennitted the Reuenue to proceedunder the substituted prouisions, and this Courtallouing the petitions only on the procedural flau.t, theight confened on the Reuenue u.tould remain reseruedto proceed further if they so uant from the stage of theorder of the Supreme Court in the case oJ AshishAgartuol, supro." "38. Since th-e Hon'ble Supreme Court had, in the caseof Ashish Agaru.tal, supra, as a one-time measl[eexercising the potuers under Article 142 of theConstitution of India, pennitted the Reuenue to proceedunder the substituted prouisions, and this Courtallouing the petitions only on the procedural flau.t, theight confened on the Reuenue u.tould remain reseruedto proceed further if they so uant from the stage of theorder of the Supreme Court in the case oJ AshishAgartuol, supro." 6. In view of the same, we are inclined to allow thepresent writ petition also on similar terms. Accordingly, thepresent Writ Petition stands allowed on the objection of thepetitioner that the proceedings have not been drawn inaccordance with the amended provision but under theun-arnended provision which is otherwise not sustainable 7. As has been held by this Bench in the aforesaid batchmatters, the rights of the parties would stand reserved as is I I PSK,J 6L NTR,J envisaged at paragraph Nos.37 & 38 of the said orderpassed in the batch of writ petitions. No order as to costsConsequently, miscellaneous petitions pending, if any,shall stand closed. SD/: G.SIREEsHAASSISTANT REGISTRARA _--sEclS( oFFtcER //TRUE COPYii To,The lncome IVlasab Tank, Tax Hyderabad Officer - Ward -1-0(1I - S00 004. Tel5ngana.Hyderabad, l.T Towers, AC Guards,The lncome IVlasab Tank, Tax Hyderabad Officer - Ward -1-0(1I - S00 004. Tel5ngana.Hyderabad, l.T Towers, AC Guards,2Ilg Bhawan. l19"ry. Opposite [Tax.Officel (tnternatronal ]LB Stadium. Basheerbagh. Hyderabad [Taxltron) ][- ][1, ][Hyderabad, Aayakar]_ 500 00,i,Telangana.Ilg Bhawan. l19"ry. Opposite [Tax.Officel (tnternatronal ]LB Stadium. Basheerbagh. Hyderabad [Taxltron) ][- ][1, ][Hyderabad, Aayakar]_ 500 00,i,Telangana.3The Principal Chief Commissioner of lncome Tax, Andhra pradesh andJ"l"lS:n?, J AU Guards, Hyderabad [Hyderabad ][Rgoq-lo ]_ 500 004. Telanqana.[922.9th ][Ftoor. ][A; ][Brocl, ] [Towers, ][10_2_]J"l"lS:n?, J AU Guards, Hyderabad [Hyderabad ][Rgoq-lo ]_ 500 004. Telanqana.[922.9th ][Ftoor. ][A; ][Brocl, ] [Towers, ][10_2_]4lhe lncome Tax Officer - Ward 1.1(1). Hydeiabad. Signature Towers. Sy. No.SfII :11_"-ldl,ptlr.: [sy; ]ryo-: [3z(p) of ][koiliasuoa, ][oppdsiie-sotanrcat ][Gar'deni,]berilngampalty Mandal. Ranqa Reddy Dislnct. Hyd'erabad - 500 0g4,TelanganaSfII :11_"-ldl,ptlr.: [sy; ]ryo-: [3z(p) of ][koiliasuoa, ][oppdsiie-sotanrcat ][Gar'deni,]berilngampalty Mandal. Ranqa Reddy Dislnct. Hyd'erabad - 500 0g4,Telangana 5L]l_9, _9!" 1Tl, [n, Department ][of ][Revenue, The ][Central ][Board ][of ][Drrect ][Taxes,]rvrrnrstry ot Frnance, Government of lndia, Secretariat Buildings, New Delhi _1 10 001L]l_9, _9!" 1Tl, [n, Department ][of ][Revenue, The ][Central ][Board ][of ][Drrect ][Taxes,]rvrrnrstry ot Frnance, Government of lndia, Secretariat Buildings, New Delhi _1 10 0016Qne QC [to ] [A. ][S|VA ][KART|KEYA ]Advocate IOpUCt7gne qq to sRt J V PRASAD (Sr SC FoR lrucOrr,ld rnxitopuclITwo CD Copies7gne qq to sRt J V PRASAD (Sr SC FoR lrucOrr,ld rnxitopuclITwo CD CopiesBNbJbJ ts re HIGH COURT DATED:0810212024 ORDERWP.No.33f 2 ol 2024 ALLOWING THE WRIT PETITIONWITHOUT COSTS Gg'*'' 6( ,1(Jco01 [l{ [202[]Bk-,,"1.,Ort-;5;- rl/" (