Wp/40763/2022 Of Somna Entertainment Private Limited v. The Income Tax Officer Ward 3 (1) And Another

[ [33861] IN THE HIGH COURT FOR [TEI.ANGANA]AT HYDERABAD(Special Original Jurisdiction) THURSDAY, THE NINETEENTH [OTbCTOAEN]TWO THOUSAND AND PRESENT THE HONOURABLE SRI JUSTICE [P. ] ANDTHE HONOURABLE SRI JUSTICE WRIT PETITION NO: [40763OF 2022] Between: ving its registered office at [26A,]ad [-- ]50o026 Represented by [its]S/o Mr. Shiv Shankar [Misra, ][Occ] Somna Entertainment Private [Limited' ][Ha]Aashray, Sardar Patel [Road' ][Secunderab]Authoriled Reprentative, [Mr. ][Akshat ][lvlisra]Director, Aged about Yrs, [Fl/o ][Hyderabad.] ...PETIT!ONER AND '1. The lncome Tax Officer Ward 3 (1), Hyderabad, 727' Signature Towers,Sv.No.6(P) of Kondapur, Sv.37(P) [of Kothaguda, ][Opp-]Botanical Gardens,S6dingahially [(M), ][R.R. ][District' ][Hvderabad - ][500084]Sv.No.6(P) of Kondapur, Sv.37(P) [of Kothaguda, ][Opp-]Botanical Gardens,S6dingahially [(M), ][R.R. ][District' ][Hvderabad - ][500084] 2. Union of lndia, Ministry [of Finance, ][Department ][of-Revenue, Rep ]' [by its]Secretary [(Revenue), ][North Block ][- ][New ][Delhi ][- ][1 ][10OO1 ][']Secretary [(Revenue), ][North Block ][- ][New ][Delhi ][- ][1 ][10OO1 ]['] ...RESPONDENTS Petition under Article [226 ][of ][lhe ][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, [Direction ][or.order ][more ][in ][the ][nature ][of]Writ of Mandamus [seeking ][a.) ][Quashing ][of the ][lmpugned ][Order ][dated]2E.oT.2022andbearingDlNandorderNolTBfucoM/F/1712022.23t1044223g31(1) [for ][the ][Assessment ][Year ][2015-2016, ][passed ][by the ][1st]Respondent under clause [(d) ][of ][Section ][l48A ][of ][the ][lncome ][Tax ][Act. ][1961 ][as]being illegal, arbitrary, [and pass such ][other ][or ][further ][orders ][as ][this ][Honble ][court];;t d;# fit in the [iacts ][and ][circumstances ][of ][this ][case ][thus render ][justice. ][b.)]Orlrning of [the ][notice ][bearing ] [148-1 ] [2022-2311044248090(1)]iatea zd.ol .2022 [issued ][by ][tne ][tst ][Respondent ][u/s ][149 ][of ][the ][Act, ][as ][being]illegal, arbitrary [and ][violation of Principles ][of ][Natural ][Justice'] !A NO:2OF 2023 Petition under section [151 ] [praying ][that ][in ][the circumstances ][stated]in the affidavit filed [in ][support ][of ][the ][petition, ][the ][High Court may ][be ][qle-T9q ]-topermitthepetitionertoamendthewritpetilion'bearingW.P.No.4o763-oF.2o22io include/ add the [additional grounds: ][in ][addition to ][the ][Grounds ][A to ][G taken ][in] !A NO:2OF 2023 Petition under section [151 ] [praying ][that ][in ][the circumstances ][stated]in the affidavit filed [in ][support ][of ][the ][petition, ][the ][High Court may ][be ][qle-T9q ]-topermitthepetitionertoamendthewritpetilion'bearingW.P.No.4o763-oF.2o22io include/ add the [additional grounds: ][in ][addition to ][the ][Grounds ][A to ][G taken ][in] the Writ Affidavit H.) That the reassessment proceedings against the Petitionerfor the A.Y. 2015 -16 was initiated by the ['1 ]st Respondent who is the jurisdictionalassessing officer of the Petitioner herein. That in pursuance to the directions ofthe Hon'ble Supreme Court vide order dated 04.O5.2022 in the case of Union oflndia v Ashish Agarwal and Ors (2022 SCCOnline SC 543), the 1st Respondenthas proceeded in passing the lmpugned Order dated 28.07.2022 passed u/s148A(d) of the Act and has also issued the lmpugned Notice dated 28.07 _2022issued u/s 148 of the Act. l.) That in pursuance to the amendments to the Actwhich were introduced by the Finance Acl, 2021 reassessment proceedings arerequired to be initiated by the National Faceless Assessment Centre. That it isnot in dispute that the lmpugned Order dated 28.O7.2022 passed u/s 148A (d) ofthe lncome Tax Act ('the Act) and the lmpugned Notice dated 28.07.2022 issuedu/s 148 of the Act was issued by the 1st Respondent herein, who is theiurisdictional [assessing ][officer ][of the ][Petitioner ][herein. J.) ][That ][by ][virtue of the]order dated 14.09.2023 in the batch of Writ Petitions bearing WP No. 25903 of2022, this Hon'ble Court on a preliminary objection raised by the Petitionerstherein, has categorically held that subsequent to the amendments to theprovisions of s 1448 and ['151A ]of the Act as introduced under the Finance Act,2021 , only the National Faceless Assessment Centre (NFAC) can pass ordersu/s 1484 (d) of the Act and issue a Notice u/s 148 of the Act and that if suchorder or notice is issued by the jurisdictional assessing officer of the assessee,the same is neither tenable nor sustainable and consequently deserves to bequashed and set aside. That this order dated 14.09.2023 in WP No. 25903 of2022 passed by this Hon'ble Court squarely applies to the present case and thatthe relief given by this Hon'ble Court ought to be enended to the Petitionerherein and consequently the lmpugned Order and Notice dated 28.07.2022passed by the 1st Respondent deserves to be quashed and set aside as set outhere in above- lA NO: 1 OF 2022 Petition under Section 151 CPC praying that in the circumstances statedin the affidavit filed in support of the petition, the High Court may be pleased togrant stay of operation of the notice beaiing ITBA/AST/M/'14a 1n022-2311044248090(1) dated 28.O7.2022 issued by the 1"t Respondent in the interestof [justice.] lA NO: 1 OF 2023 Between: 1 . The lncome Tax Officer Ward 3 (1), Hyderabad, 727, Signature Towers,Sy.No.6(P) of Kondapur, Sy.37(P) of Kothaguda, Opp. Botanical Gardens,Serlingampally (M), R.R. District, Hyderabad - 500084Sy.No.6(P) of Kondapur, Sy.37(P) of Kothaguda, Opp. Botanical Gardens,Serlingampally (M), R.R. District, Hyderabad - 500084 2. The Secretary (Revenue), Union of lndia, Ministry of Finance, Department ofRevenue, North Block - New Delhi - 1 10001 .Revenue, North Block - New Delhi - 1 10001 . ...PETITIONERS/RESPONDENT No.1 & 2 AND Somna Entertainment [Private Limited, Having ][its ][registered office ][at ][26A,]Aashrav. Sardar Patel [Road, Secunderabad ][- ][500026 Represented ][by- ][its]Auttrorl6bO Reprentative, [Mr. ][Akshat ][Misra ][S/o ][Mr. ][Shiv ][Shankar Misra, ][Occ]Director, Aged about Yrs, [Fl/o ]Hyderabad. ...RESPONDENTSMRIT PETITIONER Petition under Section 151 CPC [praying ][that in ][the ][circumstances ][stated]in the affidavit filed in support of [the ][petition, ][the ][High Court ][may ][be ][pleased ][to]vacate the orders dated.OBl11l2O22 in [l.A.No.'l ][of ][2022 ][in ][W.P.No.40763 ][of]2022, in the interest of [justice.] ...PETITIONERS/RESPONDENT No.1 & 2 AND Somna Entertainment [Private Limited, Having ][its ][registered office ][at ][26A,]Aashrav. Sardar Patel [Road, Secunderabad ][- ][500026 Represented ][by- ][its]Auttrorl6bO Reprentative, [Mr. ][Akshat ][Misra ][S/o ][Mr. ][Shiv ][Shankar Misra, ][Occ]Director, Aged about Yrs, [Fl/o ]Hyderabad. ...RESPONDENTSMRIT PETITIONER Petition under Section 151 CPC [praying ][that in ][the ][circumstances ][stated]in the affidavit filed in support of [the ][petition, ][the ][High Court ][may ][be ][pleased ][to]vacate the orders dated.OBl11l2O22 in [l.A.No.'l ][of ][2022 ][in ][W.P.No.40763 ][of]2022, in the interest of [justice.] Counset for the Petitioner: SRI Counsel for the Respondent [No.1: ] [J.V. PRASAD] (sENloR sc FoR lNcoME TAX)Counsel forthe Respondent [No.2: ] [KUMAR' ] SOLICTTOR GENERAL OF The Court made the following: THE HON'BLE [P.SAM KOSHY]ANDTHE HON'BLE UIRIT PETITIO [No.4O763][oF ][2022] ORDER[(1t, ][, ][t ][lort ][l,lt' ][Srr./rrstrce ][P.Si.[l ][KOSHY,/] Heard Mr.Mamilla [Ashn'in ][Reddy, ][learned counsel ][for ][the] petitioner and Mr.J.V [Prasad, ][learned Senior Standing ][Counsel]for the respondents. [Perused ][the ][material ][on ][record']2. It has been [informed ][that ][one ][of ][the ][preliminary ][objections]raised b,r' the [petitioner ][has ][been ][recently ][answered ][by ][this]Division Bench [in ][W.P.No.25903 ][of ][2022 ][and ][batch which ][u'as]decided uide [order, dated ][14-O9.2023'] [n vieri' of the decision vieri' of the decision of the decision the decision decision [[of ][this ][Division Bench ][in ]][[this ][Division Bench ][in ]][[Division Bench ][in ]][[in ]][[the]] 3. [n vieri' of the decision vieri' of the decision of the decision the decision decision [[of ][this ][Division Bench ][in ]][[this ][Division Bench ][in ]][[Division Bench ][in ]][[in ]][[the]]aforesaid writ [Petitions, ][and ][since ][the ][preliminary ][objection]being the same, [the ][impugned ][notice ][ald ][the ][consequential]orders stands [set ][aside/quashed. ][However, ][the ][right ][of ][the]Department [rvould stand reserved as has ][been ][protected ][in ][the]batch matters [vt'hich ][were ][decided ][on ][14 ]['O9 ][2023 ][in]W.P.Nos.25903 [of 2022 ][and ][batch'] 4. Accordinglv, this [Writ ][Petition ][is ][allowed' ][No ][order as ][to]costs II X- 2PSK,J& LNA,JW.P.No.4O763 of 2022 5. As a sequel, miscellaneous applications pending il an-v [in] these writ petitions, sha-ll stand closed. SD/.N. SRIHARI ASSISTANT //TRUE COPY/'SECTIOICER To,1. ' ' The lncome Tax Officer Ward 3 (1), Hyderabad, 727' Signature Towers'(1), Hyderabad, 727' Signature Towers' 1. ' ' The lncome Tax Officer Ward 3 (1), Hyderabad, 727' Signature Towers'(1), Hyderabad, 727' Signature Towers'Sv No 6/Pl of Kondaour. Sv.37(P)'of (othaguda, Opp' Botanical Gardens'S6rrinqiirpatty [[(M), ][R.R. ][Districi, ]][[R.R. ][Districi, ]][[Districi, ]][Hvde.rabad ][- ][500084] S6rrinqiirpatty [[(M), ][R.R. ][Districi, ]][[R.R. ][Districi, ]][[Districi, ]]2. - ih; Revenue, S"";;J;dthdvenuel' ruo'rtn BncX - New Delhi [union ][ofindia ]- 110001 [Jr'inistry ]'[of ][Finance' ][Department ][of]3. il; Cc t" Sni [nrnrtrrur-A ][AsHWIN ][REDD-Y, ][Adrocate toPUCl]4. one cc to sRl i.v. [PRAbri6'iseruron-sd ]{on [lNco[IE rAX) ][[oPUCl ][- ][-];. il; 6d i; slii [cAor prixvEdr.r ][xiiMAn, ][oepurY ][sollcrroR ] OF INDIA [OPUCI6.Two CD CoPies BN GJP HIGH COURT DATED:1911012023 ORDER WP.No.40763 of 2022 ALLOWING THE WRIT PETITIONWITHOUT COSTS \iE €q-t50 i [Di[ ][2023]t)..-.. /+t \r,[w]