Wp/4867/2024 Of Rama Trading Company v. Office Of The Assistant Commissioner Of Income Tax Circle 1

[ [337e ]] HIGH COURT FOR THE STATE OF IN THE HIGH COURT FOR THE STATE OFTELANGANA AT HYDERABAD(Special Original Jurisdiction) MONDAY, THE TWENTY SIXTH DAY OF FEBRUARYTWO THOUSAND AND TWENTY FOUR PRESENT THE HONOURABLE SRI JUSTICE P.SAM KOSHYTHE HoNouR$r-e sAtNJDuslcE N.TUKARAMJT WRIT PETITION NO:4867 OF 2024 Between: RAMA TRADING CO,lVlpANy, R"p,. by its partner, Avunoori Ravikumar S/oAvunooriVenkatesham ased. about _,ie yeirs, [-o[r']ir.rn..J ]i:i-i ob,"r,rrn-ir.r'tonoAvunooriVenkatesham ased. about _,ie yeirs, [-o[r']ir.rn..J ]i:i-i ob,"r,rrn-ir.r'tonoPEDDAPALLY, KARtMNAcAn orsr,-s6si 27, i;i;;srnr, rndia pAN. AAypA4 1 e8BAssessment Y ear. 2019-20Assessment Y ear. 2019-20 ...PET!T!ONER AND 1- office of the Assistant commissioner of lncome Tax circle 1, KARII!,|NAGAR,Telangana StateTelangana State 2 ll.:^l^rll"lpgf Cjrlef Commissioner of tncome Tax Tetangana and A.p,Hyoerabad, Towers, AC Guards, Masab Tank, Hyderlbad SOO OZg,Telangana.Hyoerabad, Towers, AC Guards, Masab Tank, Hyderlbad SOO OZg,Telangana. 3. The Central Board of Direct Taxes, Represented by its Chairman, Departmentof Revenue. Ministrv of Finance, Government-of-ti.'olr, s"ii"t.i;irIdr'idi;;",New Dethi - i 10 OOf.of Revenue. Ministrv of Finance, Government-of-ti.'olr, s"ii"t.i;irIdr'idi;;",New Dethi - i 10 OOf. 4. The National Faceless Assessment Center, lncome Tax Department, NewNational Faceless Assessment Center, lncome Tax Department, NewDelhi 5. The Union of lndia, Represente-d_ by its Secretary to the Government,Department of Revenue, frrtinistry of finin"e, f.f"* Delhi - 110 001.Department of Revenue, frrtinistry of finin"e, f.f"* Delhi - 110 001. ...RESPONDENTS Petition under Articre 226 of the c,onstitution of rndia praying that in the circumstances stated in the affidavit fired therewith, the High court may bepleased to issue an appropriate writ, order or direction more particurarry one inthe nature of writ of Mandamus decraring the order passed by the rncome TaxAuthorities (National Faceless E-Assessment centre completed the assessmentuls 147 r/w Section 144-8 of the rncome Tax Act, 1g61 vide DrN and Noticeuls 147 r/w Section 144-8 of the rncome Tax Act, 1g61 vide DrN and Notice No.dated O5-O2-2O24 in ITBA/AST/S/14712023-2411060515453(1) for theassessment year-2O19-2O determining the total income of Rs. 4,78,78,8111 asarbitrary, illegal, bad in law, without jurisdiction, void-ab-initio, violative of theprinciples of natural justice apart from being violative of Articles 1a, 19(1)(g) and265 of the Constitution of lndia and Sec. 148A of the lncome Tax Act, 196i, andconsequently set aside the same. Counsel for the Petitioner: SRI T.CHAITANYA KUMAR counser ror the Respondenr Nos.1 . .i8ll8y}.iffl,I""+:ymlb Counsel for the Respondent No.S: Dy. Solicitor General of lndia The Court made the following: ORDER THE HONOURABLE SRI JUSTTCE P.SAM KOSHY AND THE HONOURABLE SRI JUSTICE N.TUKARAMJIUIRIT PETITION No.4867 OF 2024 ORDER:@erHon'ble Sri Justice P.SAM KOSHY) The instant Writ Petition has been filed by thepetitioner under Articl e 226 of the Constitution of Indiaseeking for the following reliet "to [issue ]on oppropriate [writ ][order or direction ][more ][porticulorly ][one ][in]the noture of Writ ol Mondomus decloring the order [possed ]by thelncome Tox Authorities Notiondl Foceless E-Assessment Centrecompleted the ossessment U/S 147 r/w Section 1448 of the lncome ToxAct 1967 vide DIN ond Notice No doted 05/02/2024 inITBA/AST/S/147/202324/10ffi5154537 for the ossessment [yeor ]2019/20determining the totol income of Rs 4,78,78,811/- os orbitrory illegol badin low without [jurisdiction ]void ob initio violotive of the principles ofnotutol [justice ]oport from being violotive of Articles u 19(1)(9) ond 265ol the Constitution of lndio ond Sec 7484 of the lncome Tox Act 7967ond consequently set oside the some in the interests oJ [justice"-] 2. One of the contentions that the petitioner has raised "to [issue ]on oppropriate [writ ][order or direction ][more ][porticulorly ][one ][in]the noture of Writ ol Mondomus decloring the order [possed ]by thelncome Tox Authorities Notiondl Foceless E-Assessment Centrecompleted the ossessment U/S 147 r/w Section 1448 of the lncome ToxAct 1967 vide DIN ond Notice No doted 05/02/2024 inITBA/AST/S/147/202324/10ffi5154537 for the ossessment [yeor ]2019/20determining the totol income of Rs 4,78,78,811/- os orbitrory illegol badin low without [jurisdiction ]void ob initio violotive of the principles ofnotutol [justice ]oport from being violotive of Articles u 19(1)(9) ond 265ol the Constitution of lndio ond Sec 7484 of the lncome Tox Act 7967ond consequently set oside the some in the interests oJ [justice"-] 2. One of the contentions that the petitioner has raised in the present Writ Petition is that under the amendedprovisions of the Act which came into effect fromOl.O4.2O2l, the respondents, while proceeding underSection 148 of the Act, were required to issue notice underSection 148A and provide an opportunity of hearing to the PSI(,J d. JVIE J assessee. As per the amended provision of law, theproceedings to be drawn are also in a faceless manner.proceedings to be drawn are also in a faceless manner. 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.259O3 of 2022 &batch, dated 14.09.2023 wherein this Court disposed of thebatch of writ petitions to the limited extent. 4. On the other hard, learned Standing Counsel for therespondent-Department does not dispute that the saidobjection was decided in the aforesaid batch of WritPetitions. However, he further contended that apart fromtl.e 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-Department is concerned, this Bench, whiledisposing of said batch of writ petitions, had taken note of II the same at paragraph Nos.37 & 38 which are reproduced herein under: "37. The preliminary objection raised bg the petitioneris sustained and all tlese uit petitions stands ollowedon this very [jurisdictional ]issue. Since the impugnednoties and orders are getting quashed on tLrc [point ]ofjurisdiction, u)e are not inclined to proceed furtter anddecide the otler issues raised bg the petitioner whichstands reserued to be raised and contended in anapp ropiate p roceeding s. ["] "38. Since tle Hon'ble Supreme Court had, in [tLte ][case]of Ashish Aga nual, supro, as a one-time measureexercising tle pouers under Article 142 of theConstitution of India, permitted tte Reuenue to [proeed]under the substituted prouisions, and this Courtallowing tle petitions only on the procedural Jlaw, theright confened on tle Reuenue would remain resetuedto proceed furtler if tleg so uont from the stage of theorder of tlre Supreme Court in the case of AshishAganua\ supro.' 6. In view of the sarne, we are inclined to a-llow 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 [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] envisaged at paragraph Nos.37 & 3g of the said orderpassed in the batch of writ petitions. No order as tocosts.Consequently, miscellaneous passed in the batch of writ petitions. No order as tocosts.Consequently, miscellaneous petitionspending, if any,shall stand closed.any,shall stand closed. SD/- V. KAVITHAASSISTANT REGISTRAR-ASSISTANT REGISTRAR- //TRUE COPYII To, SECTION OFFICER 7. As has been held by this Bench in the aforesaid [batch]matters, the rights of the parties would stand reserved [as is] envisaged at paragraph Nos.37 & 3g of the said orderpassed in the batch of writ petitions. No order as tocosts.Consequently, miscellaneous passed in the batch of writ petitions. No order as tocosts.Consequently, miscellaneous petitionspending, if any,shall stand closed.any,shall stand closed. SD/- V. KAVITHAASSISTANT REGISTRAR-ASSISTANT REGISTRAR- //TRUE COPYII To, SECTION OFFICER I [*fr"ffff!fllucommissioner ][or ][lncome ][rax ][circre ][1, ][KARTMNAGAR,]2. The Principal Chief Commisgioner of lncome_ Tax .Telangana and A.p,2. The Principal Chief Commisgioner of lncome_ Tax .Telangana and A.p,iJfl?'r'rt#; [lr ][Towers, ][ec ][crrio.l'na"s?b"'ranr, ][Hyderabad ]s00 or8,3. The C-enkal Board of Direct Taxes, Represented4. i:['; I heh.National [jnl!#"6tzorFinance,6;5;;;;i;'?11::33I[iJi"?"f;,1ffi l:]Faceless Assessment Center, lncome Tax Department, New4. i:['; I heh.National [jnl!#"6tzorFinance,6;5;;;;i;'?11::33I[iJi"?"f;,1ffi l:]Faceless Assessment Center, lncome Tax Department, New 3 i:i#ff i:i#ff *{ H-i,fit;ffifu',.tl#i*;ff /. One CC to SRI T.CHA3 ?#s 33 il 3;[!:,*,; ;3;[!:,*,; ;KKS s HIGH COURT DATED:2610212024 ORDERWP.No.4867 of 2024 ALLOWING THE WRIT WITHOUT COSTS 0)t,o'a'b-;dd?, IH€ [$]14R(ooo0 4 APn IWlza**{+oFspATCrrEo