Wp/5629/2024 Of Primary Agricultural Coop Credit Society Limited v. Office Of The Assistant Commissioner Of Income Tax

HIGH COURT FOR THE STATE OF TELANGANAAT HYDERABAD(Special Original Jurisdiction) MONDAY, THE FOURTH DAY OF MARCHTWO THOUSAND AND TWENTY FOUR PRESENT THE HONOURABLE SRI JUSTICE P.SAM KOSHYANDTHE HONOURABLE SRI JUSTICE N.TUKARAMJI WRIT PETITION NO: 5629 OF 2024 Between: Primary Agricultural Coop Credit Society Limited., Ellanthakunta, [represented]by its Secietary of the Society Chitti Ravinder Reddy, S/o: [Vittal ][Reddy, ][aged]aboul 47 years, Primary Agricultural Coop Credit Society [Limited ], [2-25114,]Ellanthakuhta, Karimnagar, Karimnagar 505402, [Telangana, ][lndia ][PAN.]AABAPS12 l F Assessment Year. 2018-1 9 ...PETITIONER AND 1Office of The Assistant Commissioner of lncome [Tax, Circle ][1 ], [Karimnagar]Telangana State.Telangana State. The 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. ,The Central Board of Direct Taxes, Represented by its Chairman, [Department]of Revenue, Ministry of Finance, Government of lndia, Secretariat [Buildings,]New Delhi - 1 10 001 .of Revenue, Ministry of Finance, Government of lndia, Secretariat [Buildings,]New Delhi - 1 10 001 . 4The National Faceless Assessment Center, lncome Tax Department, [New]Delhi.Delhi. qThe Union of lndia, Represented by [its ]Secretary to the Government,Department of Revenue, N/inistry of Finance, New Delhi [- ][1 ][10 ][001 ][.]Department of Revenue, N/inistry 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 order [passed ][by ][the ][lncome ][Tax]Authorities (National Faceless E-Assessment [Centre ][completed ][the ][assessment]UIS 147 r/w Section 144-8 of the lncome [Tax ][Act, ][1961 ][vide ] [and ][Notice] No.dated 3O-O1-2024 in ITBAJAST/Si14712023-2411060279365(1) for theassessment year 2018-19 determining the total income of Rs. 13,24,63,143/-asarbitrary, illegal, bad in law, without [jurisdiction, ]void-ab-initio. violative of theprinciples of natural .lustice apart from being violative of Articles I a, [1 ]9(1 Xg) and265 of the Constitution of lndia and Sec ['148A ]of the lncome Tax Act, 1961, andconsequently set aside the same in the interests of [justice.] Counsel for the Petitioner: SRI THANNERU CHAITANYA KUMAR Counsel for the Respondents: SUNDARI R PISUPATI(Sr SC for lncome Tax Dept) The Court made the following: ORDER THE HONOURABLE SRI JUSTICE P.SAM KOSHYAND THE HONOURABLE SRI JUSTICE N.TUKARAMJIWRIT PETITION No.5629 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. Pisupati, learned SeniorStanding Counsel for the Income Tax Department forrespondents. Perused the material available on record. 2. The instant Writ Petition has been filed by thepetitioner under Article 226 of the Constitution of Indiaseeking for the following relief: "to issue on oppropriote writ order or direction more pdrticulorly one inthe noture of Writ ol Mondomus declaring the order [possed ]by thelncome Tox Authorities Notionol Foceless E-Assessment Centrecompleted the ossessment U/s 147 r/w Section 1448 of the lncome ToxAct 1961 vide DIN ond Notice No.doted 30.01.2024 inITBA/AS|/S/147/2023 24/1060279365(1) for the ossessment yeor 2018-19 determining the totol income of Rs.13,24,63,14i/ -os drbitrory,illegal, bod in low, without [jurisdiction, ]void ob initio, violotive oI theprinciples of noturol [justice ]oport from being violotive of Articles 14,19(1)(q) ond 265 of the Constitution of lndio ond Sec 148A of the lncomeTox Act 1967 ond consequently set oside the some in the interests ofjustice". "to issue on oppropriote writ order or direction more pdrticulorly one inthe noture of Writ ol Mondomus declaring the order [possed ]by thelncome Tox Authorities Notionol Foceless E-Assessment Centrecompleted the ossessment U/s 147 r/w Section 1448 of the lncome ToxAct 1961 vide DIN ond Notice No.doted 30.01.2024 inITBA/AS|/S/147/2023 24/1060279365(1) for the ossessment yeor 2018-19 determining the totol income of Rs.13,24,63,14i/ -os drbitrory,illegal, bod in low, without [jurisdiction, ]void ob initio, violotive oI theprinciples of noturol [justice ]oport from being violotive of Articles 14,19(1)(q) ond 265 of the Constitution of lndio ond Sec 148A of the lncomeTox Act 1967 ond consequently set oside the some in the interests ofjustice". PSI(,J & JVTR,JW.P.No.5629 of 2O24 3. One of the contentions that the petitioner has raisedin the present Writ Petition is that under the amendedprovision s of the Act which came into effect fromOl .04.2021 , the respondents, while proceeding underSection i48 ol the Act, were required to issue notice underSection 14BA and provide an opportunity of hearing to theassessee. As per the amended provision of law, theproceedings to be drawn are also in a faceless manner. 4. Whereas, learned counsel for the petitionercontended that, in the instalt 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.O9 .2023 wherein this Court disoosed of thebatch of writ petitions to the limited extent. 5. On the other hand, learned Standing Counsel for therespondent-Department does not dispute that the saidobjection was decided in the aforesaid bal ch of WritPetitions. However, he further contended that apart fromthe aforesaid objection, there have been other various \ objections also which the petitioner has raised in the writpetition.petition. 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 reproducedherein under: "37. The preliminary objection roised by tte petitioneris sustained and all these turit petitions stands allouedon this uery [jurisdictional ]issue. Since the impugnednotices ond orders ore getting quashed on the point ofjuisdiction, u)e are not inclined to proceed further anddecide the other issues roised by the petitioner whichstands reserued to be raised and contended in an"ap p ro p riate p roce eding s. "38. Since the Hon'ble Supreme Court had, in the caseof Ashish Agarutal, supra, ds a one-time meosureexercising the pouters under Article 142 of theConstitution of India, permitted the Reuenue to proceedunder tLrc substituted prouisions, ond this Courtallowing tlrc petitions only on the procedural Jlau, theight confened on the Reuenue Luould remoin reseruedto proceed further if theg so u.tant from the stage of theorder of the Supreme Court in tle case of AshishAgaruta| supra." 7. In view of the same, we a-re inclined to allow thepresent writ petition also on simiiar terms. Accordingly, thepresent Writ Petition stands allowed on the objection of the petitioner that the proceedings have not been drarvn inaccordance u,ith the amended provision but under theun-alnended provision which is otherwise not sustainable. 8. As has been held by this Bench in the aforesaid batchmatters, the rights of the parties u,ould stand reserved as isenvisaged at paragraph Nos.37 & 38 ol the said orderpassed in the batch of writ petitions. No order as to costs.Consequently, misceilaneous petitions pending, if any,shall stand closed. SD/.K.SREERAMA MURTHYASSISTANT REGIS-TRARVSECTION OFFICER ,TRUE COPY// To, 1. Office of The Assistant Commissioner of lncome Tax, Circle l,KarimnagarTelangana State.Telangana State. petitioner that the proceedings have not been drarvn inaccordance u,ith the amended provision but under theun-alnended provision which is otherwise not sustainable. 8. As has been held by this Bench in the aforesaid batchmatters, the rights of the parties u,ould stand reserved as isenvisaged at paragraph Nos.37 & 38 ol the said orderpassed in the batch of writ petitions. No order as to costs.Consequently, misceilaneous petitions pending, if any,shall stand closed. SD/.K.SREERAMA MURTHYASSISTANT REGIS-TRARVSECTION OFFICER ,TRUE COPY// To, 1. Office of The Assistant Commissioner of lncome Tax, Circle l,KarimnagarTelangana State.Telangana State. 2. The Principal Chief Commissioner of lncome Tax -Telangana and A.P.,Hyderabad, lT Towers, AC Guards, Masab Tank, Hyderabad - 500 028,Telangana.3. The Chairman, The Central Board of Direct Taxes, Department of Revenue,tVinistry of Finance, Government of lndia, Secretariat Buildings, New Delhi [-]110 001.4. The National Faceless Assessment Center, lncome Tax Department, NewDelhi.5. The Secretary to the Government, The Union of lndia, Department ofRevenue, Ivlinistry of Finance, New Delhi - 110 001. 6. One CC to Sri Thanneru Chaitanya Kumar, Advocate 7. One CC to Sri Sundari R Pisupati (Sr SC for lncome Tax Dept) B. Two CD CopiesTJKKSv a:: HIGH COURT DATED:0410312024 ORDER WP.No.5629 of 2024 ALLOWING THE WRIT PETITIONWITHOUT COSTS. -, r HEI4:(,3 0 [t'tAY ]2024 :\l.i.. .--!..,_;.i:ir.l lri