Wp/4926/2024 Of Daram Veernath v. Office Of The Income Tax Officer Ward-2

HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD(Special Original Jurisdiction) IVONDAY, THE TWENTY SIXTH DAY OF FEBRUARYTWO THOUSAND AND TWENTY FOUR PRESENT THE HONOURABLE SRI JUSTICE P.SAM KOSHYANDTHE HONOURABLE SRI JUSTICE N.TUKARAMJI WRIT PETITION No.4926 OF 2024 Between: Daram Veernath, S/o Chandra l\,4ohan, aged about 59 years, Occupation: Business,H.No. 1-10-201, Near Bus Stand, Main Road t\,4etpally, Jagtial 505325, Telangana,lndia PAN. AAKPD94l7C Assessment Year: 2O14-15 ...PETITIONER AND 1Office of the lncome Tax Officer Ward-2, Karimnagar Telangana State. 2The 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. 3. The Central Board of Direct Taxes, Represented by its Chairman, Departmentof Revenue, IVinistry of Finance, Government of lndia, Secretariat Buildings,New Delhi - 1 10 001 .of Revenue, IVinistry of Finance, Government of lndia, Secretariat Buildings,New Delhi - 1 10 001 . 4. The National Faceless Assessment Center, lncome Tax Department, NewDelhi.Delhi. 5. The Union of lndia, Represented by its Secretary to the Government,Department of Revenue, [rlinistry of Finance, New Delhi - 1'10 001 [.]Department of Revenue, [rlinistry of Finance, 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 an appropriate writ, order or direction more particularly one inthe nature of Writ of [/landamus or any other appropriate declaring the [order]passed by the lncome Tax Authorities (National Faceless E-Assessment Centrecompleted the assessment U/S ['147 ]r/w Section 144-8 of the lncome [Tax ][Act,] 1961 vide DIN and Notice No. dated 25-02-2023 in |TBA/ASfN147|2O22-2311050131267(1) for the assessment year 2014-15 determining the total incomeof Rs.3,27,27,054/- as arbitrary, illegal, bad in law, without jurisdiction, void-ab-of Rs.3,27,27,054/- as arbitrary, illegal, bad in law, without jurisdiction, void-ab-initio, violative of the principles of natural justice apart from being violative ofArticles 14, 19(1)(9) and 265 of the Constitution of lndia and Sec. 14BA of thelncome Tax Act, 1961 , and consequently set aside the same in the interests ofjustice.Articles 14, 19(1)(9) and 265 of the Constitution of lndia and Sec. 14BA of thelncome Tax Act, 1961 , and consequently set aside the same in the interests ofjustice. Counsel for the Petitioner: SRI THANNERU CHATTANYA KUMAR Counsel for the Respondent Nos. 1 to 4: M/s. SUNDARI R PlSUpATl,SENIOR S.C. FOR INCOME TAX DEPARTMENTSENIOR S.C. FOR INCOME TAX DEPARTMENT Counsel for the Respondent No.5: SRI GADI PRAVEEN KUMAR,DEPUTY SOLICITOR GENERAL OF INDIA The Court made the following: ORDER THE HONOURABLE SRI JUSTTCE P.SAM KOSHYAND THE HONOURABLE SRI JUSTICE N.TUKARAMJIWRIT PETITION No.4926 OF 2024 ORDER:(per Hon'ble Si Justice P.SAM KOSHY) The instant Writ Petition has been filed bv thepetitioner under Articl e 226 of the Constitution of Indiaseeking for the following relief:seeking for the following relief: 'to issue an appropiate u-tit order or direction moreparticularlg one in the noture of Writ of Mandamus or anaother appropiale declaing the order passed bg the IncomeTox Authoities National Faceless D Assessment Centrecompleted the assessment U/S 147 r/ u.t Section 1448 of theIncome Tox Act 1961 uide DIN and Notice No dated25022023 in ITBA/ AS'l'/ S/ 147/202223/ 10501312671 forfhe assessment year 201415 determining the totol income ofRs 3,27,27,054/ as arbitrory iltegal bad in Laut utithoutjuisdtction uoid ab initio uiolattue of the pinciples of naturaljustice apart from being uioLotiue of Articles 1a 19(1)(9) and265 of the Constitution of India and Sec 1481' of the IncomeTax Act 1961 and consequently set aside the same in theinterests of justice". 'to issue an appropiate u-tit order or direction moreparticularlg one in the noture of Writ of Mandamus or anaother appropiale declaing the order passed bg the IncomeTox Authoities National Faceless D Assessment Centrecompleted the assessment U/S 147 r/ u.t Section 1448 of theIncome Tox Act 1961 uide DIN and Notice No dated25022023 in ITBA/ AS'l'/ S/ 147/202223/ 10501312671 forfhe assessment year 201415 determining the totol income ofRs 3,27,27,054/ as arbitrory iltegal bad in Laut utithoutjuisdtction uoid ab initio uiolattue of the pinciples of naturaljustice apart from being uioLotiue of Articles 1a 19(1)(9) and265 of the Constitution of India and Sec 1481' of the IncomeTax Act 1961 and consequently set aside the same in theinterests of justice". 2. One of the contentions that the petitioner has raisedin the present Writ Petition is that under the amendedprovisions of the Act which carne into effect fromOl .O4 .2027 , the respondents, while proceeding underSection 148 of the Act, were required to issue notice under \i=r..r%& PSK,J & IVTR,JW,P.No.4926 of 2O24 Section 14BA and [provide ]an opportunity [of ][hearing ][to ][the]assessee. As [per ]the amended [provision ]of [law, ][the]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 [judgment]rendered by this very Bench in WP.No.259O3 of 2022 &batch, dated 74.O9.2023 r,vherein 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 aforesaid 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 Department is concerned, this Bench, whiledisposing of said batch of writ petitions, had taken note of the same at paragraph Nos.37 & 38 which are reproduced herein under: ?7 [Tru preliminary ][objection ][raised. ][by ][the ][petitioner]is sustained and all these writ petitions itands allotuedon thi-s uery jurisdictional issue. Sincr- the impugned?ot:ce? [and ][orders are getting quashed ][on ][the ][point of]jurbdiction, u)e are not inclined to proceed. furth-er anddecide the other issues raised bg the petitioner uhichstands reserued to be raked and contended, irt onapprop riote p ro cee ding s.', "38. Since the Hon'ble Supreme Court had, in the caseof Ashish Agarual, supra, as a one-time measureexerci.sing the potters under Article 142 of theConstitution of India, permitted the Reuenue to proceedunder the substituted prouisions, and this Courtallotting the petitions onlg on the procedural flau,t, theright conferced on the Reuenue uould remain reserued.to proceed further if theg so utant from the stage of theorder of the Supreme Court in the case of AshishAganaa| supra. " 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 inaccordalce with the amended provision but under theun-amended provision which is otherwise not sustainabie. 7 . As has been held by this Bench in the aforesaid batchmatters, the rights of the parties would stand reserved as ismatters, the rights of the parties would stand reserved as is \ PSK,J & JVTR,JW.P.No.4926 of 2024 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,]shali stand closed. SD/-K.AMMAJIASSISTANT REGISTRAR//TRUE COPY//c.--SECTITN OFFICER To, '1 . The Office of the lncome Tax Officer Ward-2, Karimnagar, [Telangana State'] 7 . As has been held by this Bench in the aforesaid batchmatters, the rights of the parties would stand reserved as ismatters, the rights of the parties would stand reserved as is \ PSK,J & JVTR,JW.P.No.4926 of 2024 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,]shali stand closed. SD/-K.AMMAJIASSISTANT REGISTRAR//TRUE COPY//c.--SECTITN OFFICER To, '1 . The Office of the lncome Tax Officer Ward-2, Karimnagar, [Telangana State'] 2. - The Uyo"iaorol-rr Principal Chief iowers, [Commissioner ]AC Guards, Masab [of ][lncome ]Tank, [Tax, ]Hyderabad [Telangana ]500 9E 028'{i'Telangana.Telangana. 3'TheChairman,DepartmentofRevenue'MinistryofFinance,CentralBoardof- oiiect iir"i GorernrnJni ot tnaia, [S6cretariai Buildings, New Delhi ][- ][110]001.oiiect iir"i GorernrnJni ot tnaia, [S6cretariai Buildings, New Delhi ][- ][110]001. 4. The National Faceless [Assessment ][center, ][lncome ][Tax ][Department, ][New]DelhiDelhi 5. The Secretary to [the ][Government, ][De,partment ][of ][Revenue, Ministry ][of]Finance, Unioh of lndia, [New ][Delhi ][- ][110 001']Finance, Unioh of lndia, [New ][Delhi ][- ][110 001'] 6. One CC to SRI [KUMAR, ][Advocate ][ ] 7. One CC to M/s. [PISUPATI, ][Senior ] [C' ][for ][lncome ][Tax]Department Department B. One CC to SRI [GADI PRAVEEN KUMAR, Deputy Solicitor General ][of ][lndia]loPUClloPUCl 9. Two CD CoPies MP & CoPl'9C' HIGH COURT PSK,J&NTR,J DATED:2610212024 STAr6(tI.)i-)15APfl2024o'.. [,)_].li+\.?*\... I\\t-ETcEc) ORDER WP.No.4926 o12024 ALLOWING THE WRIT PETITIONWITHOUT COSTS