Wp/5358/2024 Of Primary Agriculture Co-Operative Society Limited Nancherla v. Office Of The Income Tax Officer

HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD(Special Original Jurisdiction) THURSDAY, THE TWENTY NINTH DAY OF FEBRUARYTWO THOUSAND AND TWENTY FOUR PRESENT THE HONOURABLE SRI JUSTICE P,SAM KOSHYANDTHE HONOURABLE SRI JUSTICE N.TUKARAMJI WRIT PETITION NO: 5358 OF 2024 Between: PRIMARY AGRICULTURE CO-OPERATIVE SOCIETY LIIV1ITEDNANCHERLA, represented by its Secretary of the Society Routhu MadhukarS/o. Routhu lVlallaiah aged about 48 years, PRIIVARY AGRICULTURE CO-OP, NANCHERLA POST and VILL PEGADAPALLY MDL KARIN/NAGARDIST 505532, Telangana PAN. AABAP7426[V| Assessment Year. 2019-20 ...PETITIONER AND 1OFFICE OF THE INCOIVIE TAX OFFICER, WARR-2, KARIIVNAGAR,Telangana State. 2. The Principal Chief Commissroner 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, I\,4inistry of Finance, Government of lndia, Secretariat Buildings,New Delhi - 110 001.of Revenue, I\,4inistry of Finance, Government of lndia, Secretariat Buildings,New Delhi - 110 001. 4. The National Faceless Assessment Center, lncome Tax Department, NewDelhi.Delhi. 5. The Union Of lndia, Represented By lts Secretary, to The Government,Department of Revenue, Ministry of Finance New DelhiDepartment of Revenue, Ministry of Finance New Delhi ...RESPONDENTS Petition under Article 226 of the 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 pa(icularly one inthe nature of Writ of l\zlandamus, declaring the impugned order for A.Y. 2019-20passed u/147 r/w Section 144-8 of the lncome Tax Act, 1961 vide DIN andNotice No.dated O8-O2-2O24 in ITBA lASTlsl14712023-2411060646066(.1 ) for the assessment year 2019-20 determining the totar income of Rs. 7,32,6g,S7gl_andthe consequentiar notice u/s 148 Dt. 23-03-2023 in ,rBA/AST /5/148 112022-23/1o51153010 (1)issued by the JAO(1st respondenr) insread iOOiarOrespondent), as void, illegal, and contrary to the provisions of lncome_tax ", Act andrespondent), as void, illegal, and contrary to the provisions of lncome_tax ", Act andcontrary to the principles of Natural Justice. Counsel for the petitioner: SRI THANNERU CHAITANYA KUMAR Counsel for the Respondent No.1 to 4: M/s. SUNDARI R.plSUpATl, Sr SC for lncome Tax Dept Counsel for the Respondent No.s: SRI GADI PRAVEEN KUMAR,DEPUTY SOLICITOR OCr,rCNiEr- OF INDIADEPUTY SOLICITOR OCr,rCNiEr- OF INDIA The Court made the following: ORDER f THE HONOURABLE SRI JUSTICE P.SAM KOSHYANDTHE HONOURABLE SRI JUSTICE N.TUKARAMJIWRIT PETITION No.5358 OF 2024 ORDER:1per Hon'ble Sri Justice P.SAM KOSHY) Heard Mr.T.Chaitanya Kumar, learned counsel [for] the petitioner and Ms.Sundari R. Pasupati, learned [Senior]Standing Counsel for the Income [Tax ][Department ][for]respondents. Perused the material [available on record.] The instalt Writ Petition has been filed by instalt Writ Petition has been filed by Petition has been filed by has been filed by been filed by filed by by [[the]] 2. The instalt Writ Petition has been filed by instalt Writ Petition has been filed by Petition has been filed by has been filed by been filed by filed by by [[the]]petitioner under Articl e 226 of the Constitution of Indiaseeking the following relief; f THE HONOURABLE SRI JUSTICE P.SAM KOSHYANDTHE HONOURABLE SRI JUSTICE N.TUKARAMJIWRIT PETITION No.5358 OF 2024 ORDER:1per Hon'ble Sri Justice P.SAM KOSHY) Heard Mr.T.Chaitanya Kumar, learned counsel [for] the petitioner and Ms.Sundari R. Pasupati, learned [Senior]Standing Counsel for the Income [Tax ][Department ][for]respondents. Perused the material [available on record.] The instalt Writ Petition has been filed by instalt Writ Petition has been filed by Petition has been filed by has been filed by been filed by filed by by [[the]] 2. The instalt Writ Petition has been filed by instalt Writ Petition has been filed by Petition has been filed by has been filed by been filed by filed by by [[the]]petitioner under Articl e 226 of the Constitution of Indiaseeking the following relief; "...to issue an appropriate [writ, ][order ][or ][directron]more particularly one in the nature of Writ [of]Mandamus declaring the impugned order for [A.Y.]2Ol9-2O passed under Section [147 ][read. ][with ][Section]144-8 of the Income Tax Act 1961 [vide DIN ][and]Notice, dated o8lo2/2o24 in ITBA IAST/SIl47 I2023-24 /1060646066(1) for the assessment [year]2Ol9-2O determining the total income [of]Rs.7,32,68,578/ - and the consequential [notice ][under]Section 148, d.ated 2310312023 in ITBA/AST/S/t48 ll2022-2311O5t is301O(1) issued [by ][theJAO](1"t respondent) instead of FAO [(3'd ]respondent) asvoid, illegal and contrary to the [provisions ]of [Income]tax Act and contrary to the Principles of [Natural]Justice.. ."more particularly one in the nature of Writ [of]Mandamus declaring the impugned order for [A.Y.]2Ol9-2O passed under Section [147 ][read. ][with ][Section]144-8 of the Income Tax Act 1961 [vide DIN ][and]Notice, dated o8lo2/2o24 in ITBA IAST/SIl47 I2023-24 /1060646066(1) for the assessment [year]2Ol9-2O determining the total income [of]Rs.7,32,68,578/ - and the consequential [notice ][under]Section 148, d.ated 2310312023 in ITBA/AST/S/t48 ll2022-2311O5t is301O(1) issued [by ][theJAO](1"t respondent) instead of FAO [(3'd ]respondent) asvoid, illegal and contrary to the [provisions ]of [Income]tax Act and contrary to the Principles of [Natural]Justice.. ." eOne of the contentions that the [petitioner has ][raised] inthe present Writ Petition is that under [the ][amended] PSICJ da IV1IR,JW.P.No.5358 of 2024 provisions of the Act which came into effect fromOl.O4.2O2l, the respondents, while proceeding underSection 148 of the Act, were required to issue notice underOl.O4.2O2l, the respondents, while proceeding underSection 148 of the Act, were required to issue notice underSection 148A and provide arr opportunity of hearing to theassessee. 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. 4. Whereas, learned counsel counsel for the petitionercontended that, in the instant case, reopening has beeninitiated by the Jurisdictional Assessing Ofhcer. In supportof his contention, he relied upon the recent judgmentrendered by this very Bench in Wp.No.259O3 of 2022 &,batch, dated 14.O9.2023 wherein this Court disposed of thebatch of writ petitions to the limited extent. Whereas, learned counsel counsel for the petitioner 5. On the other hand, learned Standing Counsel for thethe other hand, learned Standing Counsel for thelearned Standing Counsel for thetherespondent-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 a,lso which the petitioner has raised in the rvritpetition. On the other hand, learned Standing Counsel for thethe other hand, learned Standing Counsel for thelearned Standing Counsel for thethe t 6. 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 ofthe same at paragraph Nos.37 & 38 which are reproduced herein under 5. On the other hand, learned Standing Counsel for thethe other hand, learned Standing Counsel for thelearned Standing Counsel for thetherespondent-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 a,lso which the petitioner has raised in the rvritpetition. On the other hand, learned Standing Counsel for thethe other hand, learned Standing Counsel for thelearned Standing Counsel for thethe t 6. 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 ofthe same at paragraph Nos.37 & 38 which are reproduced herein under "37. The preliminary objectton raised by thepetitioner is sustained and all these wit petttionsstands allouted on this uery juisdictional issue.Since the impugned notices and orders are gettingquashed on the point of jurisdiction, u.te are notinclined to proceed further and decide the otherissues ralse d by the petitioner tuhich standsreserued to be raised and contended in anapproprtate proceeding s.' "38. Since the Hon'ble Supreme Court had, in tLLecase of Ashish Agarutal, supra, as a one-timemeasure exercising the potuers under Article 142 ofthe Constitution of India, permitted the Reuenue toproceed under the substituted prouisions, and thi.sCourt allowing the petitions only on the proceduralflau, [tLe ][ight ][confened ][on ][the ][Reuenue tuould]remain reserued to proceed further tf theg so Laantfrom [the ][stage ][of ][tlle ][order of the ][Supreme ][Court in]the case of Ashish Agaru.tal, supra." 7. 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 in accordance with the arnended provision but under theun-amended provision which is otherwise not sustainable. B. As has been held by this Bench in the aforesajd batchmatters, the right of the parties would stand reserved as isenvisaged at paragraph Nos.37 & 3g of the said orderpassed in the batch of writ petitions. No order as to costs.9. Consequently, miscellaleous petitions pending, if anyshall stand closed. SD/- P. PADMANABHA REDDYASSISTANT REGISTRAR //TRUE COPY// SECTION OFFICER To, 1. OFFICE OF THE INCOME TAX OFFICER, WARR-2, KARIIMNAGAR,Telangana State.Telangana State. 2. The Principal Chief Commissioner of lncome Tax, Telangana and A-P,Hyderabad, lT Towers, AC Guards, ltrlasab Tank, Hyderabad - 500 028,Telangana.Hyderabad, lT Towers, AC Guards, ltrlasab Tank, Hyderabad - 500 028,Telangana. 3. The Chairman, Central Board of Direct Taxes, Department of Revenue,Ministry of Finance, Government of lndia, Secretariat Buildings, New Delhi -110 001.Ministry of Finance, Government of lndia, Secretariat Buildings, New Delhi -110 001. 4. The National Faceless Assessment Center, lncome Tax Department, NewDelh i.Delh i. 5. The Secretary, to The Government, Department of Revenue, Ministry ofFinance, New Delhi, Union Of lndia,Finance, New Delhi, Union Of lndia, 6. One CC to SRI THANNERU CHAITANYA KUIVAR, Advocate 7. One CC to [r4/s. SUNDARI R.PISUPATI, Sr SC for lncome Tax Dept B. One CC to SRI GADI PRAVEEN KUMAR, DEPUTY SOLICITOR GENERIALOF lND|A, High Court for the State of Telangana at Hyderabad B. One CC to SRI GADI PRAVEEN KUMAR, DEPUTY SOLICITOR GENERIALOF lND|A, High Court for the State of Telangana at Hyderabad 9- Two CD Copies BSRKKS Luv HIGH COURT DATED: 2910212024 ORDER WP.No.5358 of 2024 ALLOWING THE WRIT PETITION,WITHOUT COSTS ($rr-tv,..,.,\"tt,\-./ \/ , \ [/]$'