Wp/8448/2024 Of Nandyaia Radhika v. Income Tax Officerward 1

t [3403I] HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD(Special Original Jurisdiction) TUESDAY, THE SECOND DAY OF APRILTWO THOUSAND AND TWENTY FOUR PRESENT THE HONOURABLE SRI JUSTICE SUJOY PAUL ANDTHE HONOURABLE SRI JUSTICE N.TUKARAMJI WRIT PETITION NOs: 8454 AND 8448 OF 2024 WRIT PETITION NO: 8454 OF 2024 Between: The Karlmnagar District Co Operative Marketing Society Limited, Rep. ByRegulapati Venkateshwar Rao, aged 60, S/o. Sridhar Rao, Occ. BusinessManager, Near Agricultural Market, Agriculture [\,4arket, Karimnagar 505001,Telangana ...PETITIONER AND 1lncome Tax Officer, Ward 2, Karimnagar, AayakarBhavan, Near NatrajTheatre, Karimnagar, Telangana - 505001Theatre, Karimnagar, Telangana - 505001 2The Principal Commissioner Of lncome Tax-2, Hyderabad, Signature Towers,Opp. Botanical Gardens, Kondapur, Hyderabad-500 084.Opp. Botanical Gardens, Kondapur, Hyderabad-500 084. 3. The Assessment Unit, lncome Tax Department, National FacelessAssessment Centre, Delhi, Ministry of Finance, Room No. 4O1 .2nd Floor, E-Ramp, Jawaharlal Nehru Stadium, Delhi-1 10003Assessment Centre, Delhi, Ministry of Finance, Room No. 4O1 .2nd Floor, E-Ramp, Jawaharlal Nehru Stadium, Delhi-1 10003 ...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 particularly one inthe nature of Writ of Mandamus, declaring the Assessment Order d1.21 .O3.2024passed by the 3'd respondent u/s 147 r.w.s 144F of the lncome-tax Act for A.Y.2018-1 9 vide DIN No. ITBA/AST|S|147l2o23-24l1063112980(1), which is [passed]as a consequence of the order passed u/s 148A(d) dt.07.O4.2022 vide DIN [No.]ITBA/AST/F/148A12022-2311042621047(1) and the notice u/s148 [dt.O7lO4l2O22]vide DIN No.ITBA/AST/S 1148 112022- 2311042640697(1 ), issued by the JAO(1St respondent) instead of FAO(3rd [respondent),as ][void, illegal, and ][contrary ][to ][the]provisions of lncome-tax Act and contrary [to ][the ][Principles of ][Natural Justice.] lA NO: 1 OF 2024 Petition under Section 151 [praying ][that ][in ][the ][circumstances ][stateid]in the affidavit filed in support [of the ][petition, ][the ][High ][Court ][may be pleased ][to]stay all further [proceedings pursuant ][to the ][Assessment ][Order ][dt.2110312024 by]the 3rd respdndent [uls ][147 ][r.w.s144B ][of the ][lncometax Act ][for ][A.Y. ][2018-19]vide DIN No. ITBA/AST/5114712023-24/1063112980(1), [and ][may ][pass ][such ][other]order(s) as the [Hon'ble ][court ][deems ][fit and ][proper in ][the ][interests ][of ][substantial]justice, as otherwise the Petitroner would be [put ]to irreparable [loss ][and ][severe]inju ry. Counsel for the Petitioner: Counsel forthe Respondents: [M/s. SUNITHA, REP. ] M/s. SUNDARI R.PISUPATI,SC FOR INCOME TAX WRIT PETITION NO: 8448 Between: Nandyaia Radhika, W/o C Rama Seshu, [Aggd about ][59 ][years, ][O-cc ][Pvt.]Empl5yee, Villa No. 51, Aakrithi [ARV Viva, Osman ][Nagar Road, ][Tellapur,]Sangareddy, Telangana [- ]502032. ...PETITIONER AND 1lncome Tax Officer Ward [1, ][Sangareddy, lncome ][Tax ][Office, ][Veerabhadra]Nagar, New Bus Stand, Sangareddy, [Telangana - ][502001.]Nagar, New Bus Stand, Sangareddy, [Telangana - ][502001.] 2The Principal Chief Corrmissioner Of [lncome ][Tax AP ][And ][TS, ][1Oth ][Floor, ] Block, lT. Towers, [10 ][2 ][3, ][A.C. Guards, Hyderabad-500004.]Block, lT. Towers, [10 ][2 ][3, ][A.C. Guards, Hyderabad-500004.] 3The Assessment Unrt, lncome [Tax ][Department, ][National ][Faceless]Assessment Centre, [Delhi, ][Ivlinistry ][of ][Finance, ][Room ][No. ][4O1 ][,2nd ][Floor' ] Ramp, Jawaharlal Nehru Stadium, [Delhi-1 ][10003.]Assessment Centre, [Delhi, ][Ivlinistry ][of ][Finance, ][Room ][No. ][4O1 ][,2nd ][Floor' ] Ramp, Jawaharlal Nehru Stadium, [Delhi-1 ][10003.] ...RESPONDENTS AND 1lncome Tax Officer Ward [1, ][Sangareddy, lncome ][Tax ][Office, ][Veerabhadra]Nagar, New Bus Stand, Sangareddy, [Telangana - ][502001.]Nagar, New Bus Stand, Sangareddy, [Telangana - ][502001.] 2The Principal Chief Corrmissioner Of [lncome ][Tax AP ][And ][TS, ][1Oth ][Floor, ] Block, lT. Towers, [10 ][2 ][3, ][A.C. Guards, Hyderabad-500004.]Block, lT. Towers, [10 ][2 ][3, ][A.C. Guards, Hyderabad-500004.] 3The Assessment Unrt, lncome [Tax ][Department, ][National ][Faceless]Assessment Centre, [Delhi, ][Ivlinistry ][of ][Finance, ][Room ][No. ][4O1 ][,2nd ][Floor' ] Ramp, Jawaharlal Nehru Stadium, [Delhi-1 ][10003.]Assessment Centre, [Delhi, ][Ivlinistry ][of ][Finance, ][Room ][No. ][4O1 ][,2nd ][Floor' ] Ramp, Jawaharlal Nehru Stadium, [Delhi-1 ][10003.] ...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 order [or ][direction more particularly ][one ][in]the nature [of Writ of ][lVlandamus, ][declaring ][the ][Assessment ][Order] dt.13.O3.2o2apassed by the 3rdrespondent u/s 147 r.w.s144B of the lncome-taxAct for A.Y. 2016-17 vide DIN No. ITBA/AST/S/14712023-Act for A.Y. 2016-17 vide DIN No. ITBA/AST/S/14712023-2411062567015(1 ),which is passed as a consequence of the order passed u/s1 48A(d ) dt.25.03.2023 vide Dl N No. ITBA/AST lF I 1 48 Al2o22-231 1 051 2907 1 7 (1 )and the notice u/s 148 d1.25.03.2023 vide No.tteRlASTtStl4B_1t2O22-,OiN 231105129177 5('1 ), issued by the JAO(1st respondent) instead of FAo(3rd,OiN 231105129177 5('1 ), issued by the JAO(1st respondent) instead of FAo(3rdrespondent), that too contrary to the provisions of Sec. 149 of the Act, as void,illegal, and contrary to the provisions of lncome-tax Act and contrary to thePrinciples of Natural Justice.Principles of Natural Justice. lA NO: 1 OF 2024 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 tostay all further proceedings pursuant to the Assessment Order Dt.13.03.2024passed by the 3'd respondent u/s 147 [(.w.s1449 ]of the lncome{ax Act for A.Y,2O16-17 vide DIN No. ITBA/ASTlsl14712023-2411062567015(1), and may [pass]such other orde(s) as the Hon'ble Court deems fit and proper in the interests ofsubstantral Justice, as otherwise the Petitioner would be put to irreparable lossand severe in [ju ]ry. Counsel for the Petitioner: SRI DUNDU MANMOHAN Counsel for the Respondents: M/s. SUNITHA, REP. FOR M/s. SUNDARI R.PISUPATI,SC FOR INCOME TAX The Court made the following: COMMON ORDER THE HONOURABLE SRI JUSTICE ANDTHE HONOURABLE SRI JUSTICE [N. ] WRIT PETITION NOS.8454,AND 8448 [2024] COMMON ORDER[(per ][Hon'ble ][SP,J)] Heard Sri Manmohan Dundu, learned counsel [for ][the] petitioner(s) and Ms.Sunitha, representing [Ms.Sundari ][R]Pisupati, learned Standing Counsel for [lncome Tax appearing on]behalf of the respondents in both [the ][writ ][petitions.] 2Regard being had to the similarity of the [question]involved, on the [joint ]request of the [parties, ]the matters [are]analogousll' heard and decided b1' this common [order.] [t is common is common common ground taken by the learned counsel forby the learned counsel forlearned counsel forcounsel for 3. [t is common is common common ground taken by the learned counsel forby the learned counsel forlearned counsel forcounsel forthe petitioner(s) that in furtherance of Finance Act,2O2l,[ re-]assessment process stood modified but the [respondents ][have ][not]taken care oI it and therefore notices issued under Section [148]of the lncome Tax Act, 196 I cannot sustain [judicial ][scrutiny.]Since notices are bad in [au', the consequential orders are [also]bad in I ar.r 2Regard being had to the similarity of the [question]involved, on the [joint ]request of the [parties, ]the matters [are]analogousll' heard and decided b1' this common [order.] [t is common is common common ground taken by the learned counsel forby the learned counsel forlearned counsel forcounsel for 3. [t is common is common common ground taken by the learned counsel forby the learned counsel forlearned counsel forcounsel forthe petitioner(s) that in furtherance of Finance Act,2O2l,[ re-]assessment process stood modified but the [respondents ][have ][not]taken care oI it and therefore notices issued under Section [148]of the lncome Tax Act, 196 I cannot sustain [judicial ][scrutiny.]Since notices are bad in [au', the consequential orders are [also]bad in I ar.r 4During the course of hearing, [learned counsel ][for ][the]parties agreed that curtains on [this ][issue are ][finally ][drawn ][by]this Court in a batch [of ][writ ][petitions, ][W.P.No.259O3 ][of ][2022]and other connected [matters, ][decided ][by ][common ][order ][dated]The [parties ][agreed ][that this matter ][may ][be ][disposed]14.Og.2023. of in terms of [the ][Common Order ][dated 14.09'2023'] 4 5. This Court in the [said order ][dated ][l4'O9'2O23]1nW.P.No.259O3 of [2022, held ][as ][under:] "35. ln [view ][of ][the ][aforesaid ][discussions, ][it is ][by ][now very ][clear ][that]the procedure to be [followed ][by the ][respondent-Department ][upon]treating the notices [issued ][for ][leassessment ][being ][under ][Section]148A, the subsequent [proceedings ][was ][mandatorily required ][to ][be]undertaken [under ][the substituted provisions as laid down ][under the]Finance Act, [2021. ][ln the absence ][of which, ][we ][are ][constrained ][to ][hold]that the [procedure ][adopted ][by ][the ][respondent-DePartment ][is ][in]to [the ][statute ][i'e. ][the ][Finance ][Acl, ][2021, ][at the first]contrayention instance. Secondly, [it ][is ][also in ][direct ][contravention ][to the ][directives]issued by the [Hon'ble ][Supreme ][Court in ][the ][case ][of ][Ashish ][Aganral']supra.36. For all [the aforesaid reasons, ][the ][impugned ][notices ][issued and ][the]proceedings drawn by the [resPondentoepartment ][is ][neither tenable']nor sustainable-'The [notices ][so ][issued and ][the ][procedure ][adopted]being per ., tt"g"t, [deseryes ][to ][be ][and ][are ][accordingly ][set]As a [consequence, ][all the ][lmpugned ][orders ][getting]aside/quashed. quashed, the consequential [ordels ][passed ][by ][the ][lespondent]Department [pursuant to the notices issued under ][Section ][147 ][and ][148]would also [get ][quashed ][and ][it ][is ordered accordingly' The ][reason we]are [quashing ]the [consequential ][order ][is ][on the ][princiPles ][that ][when]the initiation of the [proceedings ][itself was ][procedurally ][wrong, ][the]subsequent orders [also gets ][nullified automatically']37. The [preliminary obiection ][raised by ][the Petitioner ][is ][sustained ][and]all these writ [petitions ][stands allowed on ][this ][very ][jurisdictional ][issue'] Since the impugned notices and orders are getting [quashed ]on thepoint of jurisdiction, we are not inclined to Proceed further and decidethe other issues raised by the [petitioner ]which stands resewed to beraised and contended in an apProPriate Proceedings.38. Since the Hon'ble Supreme Court had, in the case of AshishAgarwal, suprar as a one-time measure exercising the [powe6 ]undelArticle 142 of the Constitution of lndia, permitted the Revenue toproceed under the substituted provisions, and this Court allowing thepetitions only on the procedural flaw, the right conferred on theRevenue would remain reserved to proceed further if they so wantfrom the stage of the order of the Supreme Court in the case of AshishAgarwal, supra. 39. No order as to costs." In view of the consensus arrived, the impugned Show 6 39. No order as to costs." In view of the consensus arrived, the impugned Show 6 Cause notices and consequential orders passed in this batch ofwrit petitions are set aside. Liberty is reserved to both the parLiesto take respective stand and to proceed in accordance with lawas per paragraph No.38 ol the order dated 14.09.2023 inW.P.No.25903 of 2022 The writ petitions are allon,ed. No costs. Interlocutory 7applications, if any pending, shall also stand closed To, SD/.B. SARASWATHIASSISTANT REGISTRAR'r'orDSEC"TION OFFICER //TRUE COPY// 1 The lncome Tax Officer, [Wa.d 2. ][Karrmnagar, ][AayakarBhavan, Near ][Natraj]Theatre, Karimnagar. [Telangana ][- ][505001]Theatre, Karimnagar. [Telangana ][- ][505001] 2 The Principal Commisstoner [Of ][lncome Tax-2, Hyderabad, Signature ][Towers,]Opp. Botanical Gardens. [Kondapur, Hyderabad-500 ][084.]Opp. Botanical Gardens. [Kondapur, Hyderabad-500 ][084.] 3The Assessment Unit, Department, National FacetessDepartment, National FacetessAssessment Cenrre, Dethi.. Minisrry_ot !,]9gr" Iq, Finan.il nllii,'rrr". +tji",.iro iffi?E:Ramp, Jawahartat Nehru staoium, bLini-iJo'oob.'"""'Ramp, Jawahartat Nehru staoium, bLini-iJo'oob.'"""'4lncome Tax Officer Ward Srlgr,gdgY, lncome Tax Office, VeerabhadraNa ga r, New B us S ta nd, Sa nga ]: redd"y, f "r.j,i [gi;ri'l'dOioo ][r]Na ga r, New B us S ta nd, Sa nga ]: redd"y, f "r.j,i [gi;ri'l'dOioo ][r]5Btock. The Principar t:r rowers, chief 10_2_3, commissioner A C. cr*d;, of lncome Tax iii;ilElfiooooa.Ap And rs, loth Froor. c- 6 One CC to SRt DUNDU TVANMOHAN, Advocate tOpUCltOpUCl 7One CC to M/s. SUNDART R ptSUpATt, SC FOR TNCOME TAX 8Two CD Copies .\'*2 BSR GJP \ HIGH COURT DATED: 0210412024 ,oG:i [i'- ] [1 ][q]; €k+((oo2 B IIIAY 2024l*spATcHrp COMMON ORDERWP.Nos.8454 and 8448 of 2024 ALLOWING BOTH THE WRIT PETITION, WITHOUT COSTS \: \\