Wp/3776/2024 Of Minupala Malahal Rao v. The Assistant Commissioner Of Income Tax

HIGH COURT FOR THE STATE OF TELANGANAAT HYDERABAD(Special Original Jurisdiction) WEDNESDAY, THE FOURTEENTH DAY OF FEBRUARYTWO THOUSAND AND TWENTY FOUR PRESENTTHE HONOURABLE SRI JUSTICE P.SAM KOSHYANDTHE HONOURABLE SRl JUSTICE N.TUKARAMJI WRIT PETITION NO: 3776 OF 2024 Between: Minupala Malahal Rao, S/o. Vittal Rao, [Aged about ][63 ][Years, Occ. ][Business]H No. 4-106 Suddala Village, Sulthanbad Peddapally Karimnagar [505001 ],Telangana, lndia PAN. Assessment [Year. ]2016-17 ...PETITIONER AND 1The Assistant Commissioner Of lncome Tax, lncome tax circle [1, ][Karimnagar]TelanganaTelangana2The Principal Chief Commissioner of lncome Tax, [Telangana ][and A.P,]Hyderabad, lT Towers, AC Guards, Masab Tank, Hyderabad [- ]500 [028,]Telangana.Hyderabad, lT Towers, AC Guards, Masab Tank, Hyderabad [- ]500 [028,]Telangana.3The Central Board of Direct Taxes, Represented by [its ][Chairman, ][Department]of Revenue, Ministry of Finance, Government [of ][lndra, ][Secretariat ][Buildings,]New Delhi - 1 10 001 [.]of Revenue, Ministry of Finance, Government [of ][lndra, ][Secretariat ][Buildings,]New Delhi - 1 10 001 [.] 4The National Faceless Assessment Center, [lncome Tax Department, ][New]Delhi.Delhi.5The Union of lndia, Represented by its Secretary to [the Government,]Department of Revenue, Ministry of Finance, [New ][Delhi ][- ][1'10 ][001.]Department of Revenue, Ministry of Finance, [New ][Delhi ][- ][1'10 ][001.] ...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 an appropriate writ, order or direction [more particularly ][one ][in ][the]nature of Writ of Mandamus, [declaring ][the ][impugned ][order ][for ][A.Y. ][2016-17]passed u/s 147 r.w.s147 r/w Section [144-8 ][of ][the lncome ][Tax ][Act, ][1961 ][vide ] and Notice No.dated 29-12-2023 [in ] [114712023-2411059191056( ][1 ][) ][for]the assessmenl [year ]2016-17 [determining ][the ][total income ][of ][Rs. ][73.'14.269 ] [and] the consequential nolice u/s 148 Dt 30-03-2023 in tTBA/ASIlst148-1t2O2Z-2311051691603(1) for the Assessment Year 2O16-17 issued by the JAO(1=trespondent) instead of FAO(3'd respondent), as void, illegal, and contrary to theprovisions of lncome-tax Act and contrary to the Principles of Natural Justice lA NO: 1 OF 2024 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 tosuspend the order Under Section 147 rlw 144-B of the lncome Tax Act, 1961 vldeDIN and Notice No.dated 29-12-2023 in ITBA/AST/S114712O23-24t1059191056(1)for the assessment year 20'16-17 determining the total income of Rs. 73,14,269 Iand order and Demand notice u/s 156 of the Income Tax act 1961 , vide DIN andNotice No. ITBA/AST/S/15612023-2411059191118(1) DI. 29-12-2023 for theassessment year 2016-17notice Under Section 148 A(d) Dt. 29-03-2023 inITBA/AST/F/148A12022-2311O51616806(1 ) and notice under section 148 Dt. 30-03-2023 in ITBA/AST/S1148 112022- 2311051691603(1) for the Assessment Year2016-17, pending disposal of the above Writ Petition. Counsel for the Petitioner: SRI THANNERU CHAITANYA KUMAR Counsel for the Respondent No.1 to 4: SUNDARI R PISUPATI (Sr SC for lncome Tax Dept) counsel for the Respondent No.5: sRl GADI PRAVEEN KUMAR, DEPUTY SOLICITOR GENERAL OF INDIA The Court made the following: ORDER - THE HONOURABLE SRI [P.SAM KOSHY] AND THE HONOURABLE [JUSTICE N.TUKARAMJI]WRIT PETITION No.3776 oF [2024] ORDER:(per Ho n'ble [Sri ]Justice [P.SAM KOSflY)] The instant Writ Petition [has ][been ][filed ][by ][the]petitioner under Articl e 226 of [the ][Constitution ][of ][India]seeking for the [following relief:] Counsel for the Petitioner: SRI THANNERU CHAITANYA KUMAR Counsel for the Respondent No.1 to 4: SUNDARI R PISUPATI (Sr SC for lncome Tax Dept) counsel for the Respondent No.5: sRl GADI PRAVEEN KUMAR, DEPUTY SOLICITOR GENERAL OF INDIA The Court made the following: ORDER - THE HONOURABLE SRI [P.SAM KOSHY] AND THE HONOURABLE [JUSTICE N.TUKARAMJI]WRIT PETITION No.3776 oF [2024] ORDER:(per Ho n'ble [Sri ]Justice [P.SAM KOSflY)] The instant Writ Petition [has ][been ][filed ][by ][the]petitioner under Articl e 226 of [the ][Constitution ][of ][India]seeking for the [following relief:] "to issue an appropiate urit [order ][or ][direction ][more]-the particularty one in the nature of [Writ ][of Mandamus declanng]impugned order for A Y 201G17 possed u/ s 147 r uslsZ i/i Section 1448 of the Iname [Tox ][Act ][1961 ][uide ] and Notice .lVo dated 29122023 LnITBA/AST/S/147/202324/1059191056(1) for the-assessmenl gear 201617 [determining ][tlte total ][income ][oJ ][Rs]73 14 269 / and the consequential [notice ][u/s ][148 ][Dt]30032023 in ITBA/ AST/ S/ [1481/ ][2022 ][23/ ][10516916031 ]forthe Assessment Year [201617 issued ][bg ][the ] [tst]respondent tnstead of FAO3rd [respondent ][as ][uoid ][illegal and]contrary to the [proubions ][of ][Incom.e ][tox ][Act and contrary ][to]the Piiciptes of Nah;:al Justice [and ][pass ][such ][other ][orders" ]['] 2. One of the contentions [that ][the petitioner ][has ][raised] in the present Writ Petition [is ][that ][under ][the ][amended]provisions of the Act [which ][carne ][into ][effect ][from]O1.O4.2O21, the [respondents, ][while ][proceeding ][under]Section i48 of [the Act, ][were ][required to issue notice under] Section 148A and provide arr opportunity of hearing to theassessee. As per the amended provision of law, theproceedings to be drawn are a_lso in a faceless marrner. 3. Whereas, learned counsel for the petitionercontended that, in the instant case, reopening has beeninitiated by the Jurisdictional Assessing Officer. In supportof his contention, he relied upon the recent judgmentrendered by this very Bench in WP.No.25903 of 2022 &batch, dated 14.O9.2023 wherein this Court disposed of thebatch of writ petitions to the limited extent. 4. On the other hand, learned Standing Counsel for therespondent-Department does not dispute that the saidobjection was decided in the erforesaid batch of WritPetitions. However, he further contended that apart fromthe aforesaid objection, there have been other variousobjections also which the petitioner has raised in the writpetition. 5. So far as this contention of the learned counsel forthe respondent- Departmen t is concerned, this Bench, whiledisposing of said batch of s-nt petitions, had taken note of Ii Ii the same at [paragraph ][Nos.37 ][& ][38 ][which ][are ][reproduced] herein under: "37. The [pretiminary ][obiection ][raised bg ][the ][petitioner]is sustaiied and [o.ll ][these turit ][petitions ][stands ][alloued]on this uery [jurisdictional ][issue. ][Since ][the ][impugned]iotices ani irders [are getting quasLed on ][tle ][point ][of]jurisdiction, u)e are not inclined to [proceed ]further [and]d.ecide the otlrcr issues [raised bg ][the petition'er ][uhich]stand-s reserued to be [raised ][and ][contended ][in ][an]ap p ropiate [p ][r ]oceeding [s. ]["] "38. Since the Hon'bte [Supreme ][Court ][lnd, ][in ][the ][case]of Ashish Aganaol, [supra, ][as ][a ][one-time ][measure]ixercising the pouers [under ][Article ][142 ][of ][the]Constituiion of India, [permitted ][th.e ][Reuenue ][to ][proceed]under the substituted [prouisions, ][and ][this ][Court]allouing the [petitions ][onlg ][on ][the ][procedural ]flaw' [the]ight cinfened on the [Reuenue ][utould ][remain ][reserued]ti proceid [prtLer ][if ][they ][so utant ]from [the stage of ][the]orier o1 tie Supreme [Court ][in ][the ][case ][of ][Ashish]Aganual, suPra." "38. Since the Hon'bte [Supreme ][Court ][lnd, ][in ][the ][case]of Ashish Aganaol, [supra, ][as ][a ][one-time ][measure]ixercising the pouers [under ][Article ][142 ][of ][the]Constituiion of India, [permitted ][th.e ][Reuenue ][to ][proceed]under the substituted [prouisions, ][and ][this ][Court]allouing the [petitions ][onlg ][on ][the ][procedural ]flaw' [the]ight cinfened on the [Reuenue ][utould ][remain ][reserued]ti proceid [prtLer ][if ][they ][so utant ]from [the stage of ][the]orier o1 tie Supreme [Court ][in ][the ][case ][of ][Ashish]Aganual, suPra." 6. In view of the same, [we ][are inclined ][to ][allow ][the]present writ petition [also ][on ][similar terms' ][Accordingly, ][the]present Writ Petition stands [allowed on ][the objection of ][the]petitioner that the [proceedings ][have ][not ][been ][drawn ][in]accordance u'ith the [amended ][provision ][but ][under ][the]un-amended [provision which is ][otherwise ][not ][sustainable'] 7. As has been held by this [Bench ][in ][the ][aforesaid batch]matters, the rights of the [parties ][would stand ][reserved ][as is] 4PSI(,J & MTR,JW.P.No.3776 of 2O24 envisaged at paragraph [Nos.37 ][& ][38 of the ][said ][order]passed in the batch of writ [petitions. ][No ][order ][as ][to ][costs']Consequently, miscellaneous [petitions pending, ][if ][any,] shall stand closed. SD/. P. PADMANABHA ASSISTANT //TRUE COPY// SECTION To,1. The assistant [commissioner of income ][tax' ][lncome tax circle 1' Karimnagar], +f;5}?flt?ral [chief ][commissioner ][or ][lncome ][Tax ][.Telanqana ][and ][A'P']Hyderabad' [lT ][Towers, ][,ii"&"'#t' ][N'l;lir'i'nr' ][Hvoeribad ][- ][500 ][028']1. The assistant [commissioner of income ][tax' ][lncome tax circle 1' Karimnagar], +f;5}?flt?ral [chief ][commissioner ][or ][lncome ][Tax ][.Telanqana ][and ][A'P']Hyderabad' [lT ][Towers, ][,ii"&"'#t' ][N'l;lir'i'nr' ][Hvoeribad ][- ][500 ][028']a lf;5tt^1lhan, [The ][central ][Board of ][DrreclTaxes' ][Department of Revenue']Ministry of [Finance. ][r,o"!In'i""i ][oi ][india ][Secretarrat ][Burldinqs ][New ][Delhi ][-]Ministry of [Finance. ][r,o"!In'i""i ][oi ][india ][Secretarrat ][Burldinqs ][New ][Delhi ][-] o. +lg [Rl0a1.""1 ][Faceless Assessment ][center' ][lncome ][Tax ][Department' New] " u. ?f;Ib""r",rry n"i"rG, H,fiiistry of Ftnance Ftnance [to ][the-Government' The ]of Ftnance Ftnance New Delhi [Union^of ]110 [001][hdia' ][Department ][of][[ruma' ]][[Advocale ]][[{oPUCl]][[ruma' ]][[Advocale ]][[{oPUCl]] n"i"rG, H,fiiistry of Ftnance Ftnance 6. One CC [to ][Sri ][rnannettib"n-'iianya ][[ruma' ]][[Advocale ]][[{oPUCl]];. 6;; dc ;. 6;; dc 6nE dc 66 [[io ][s,i ]]-Sund3ri [ilErilii'iiis'' ][sc ][ror ][rncomsrix ][o*0,1?I;uStucf][[Praveen Kumar' Deputv ][Solicito]][[Solicito]];. 6;; dc ;. 6;; dc 6nE dc 66 [[io ][s,i ]]-Sund3ri [ilErilii'iiis'' ][sc ][ror ][rncomsrix ][o*0,1?I;uStucf][[Praveen Kumar' Deputv ][Solicito]][[Solicito]] ;. 6;; dc ;. 6;; dc 6nE dc 66 [[io ][s,i ]]i" [[s,i ]][5ii ][croi ]-Sund3ri [[Praveen Kumar' Deputv ][Solicito]][[Solicito]] 9. Two [CD CoPies]TJGJPD HIGH COURT DATED:1410212024 ORDER WP.No.3776 of [2024] ALLOWING THE WRIT WITHOUT COSTS. 469w 1HESTAreo(oo1 B ilAB 202{zoIttDesPA THe0