PAVAN AHUJA vs. ASSISTANT COMMISSIONER OF INCOME TAX DCIT

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WP/18424/2022HC TelanganaHBHC01023497202219 July 2022Author: SUREPALLI NANDA,UJJAL BHUYAN5 pages
AI SummaryRemanded

What did the High Court hold?

The High Court disposed of the writ petition in terms of the judgment delivered on 09.06.2022 in W.P.No.33919 of 2021 and batch (M/s.GSR Cold Storage Private Limited v. Income Tax Officer), which was based on the Supreme Court decision in Union of India v. Ashish Agarwal (2022 SCC Online SC 543). The court did not separately address the legality or vires of the Explanations in the notifications. The operative direction was to dispose of the writ petition in terms of the cited judgment. Miscellaneous applications, if any, were to stand closed. There was no order as to costs.

What were the facts?

The petitioner, Pavan Ahuja, filed a writ petition before the High Court for the State of Telangana at Hyderabad. The petition challenged a notice dated 29.06.2021 issued by the Assistant Commissioner of Income Tax (ACIT), Circle 5(1), Hyderabad, under Section 148 of the Income Tax Act, 1961, and the proceedings initiated pursuant thereto. The assessment year in question is 2015-16. The petitioner also sought to declare certain Explanations in Notification No. 20/2021 and Notification No. 38/2021 as illegal and ultra-vires. The petitioner sought a stay on further proceedings related to the impugned notice. The respondents were the ACIT, Principal Commissioner of Income Tax, and the Union of India.

What were the issues?

1. Whether the notice dated 29.06.2021 issued by the ACIT under Section 148 of the Income Tax Act, 1961, and the proceedings initiated pursuant thereto for AY 2015-16 are liable to be quashed? 2. Whether the Explanations in Notification No. 20/2021 dated 31.03.2021 and Notification No. 38/2021 dated 27.04.2021 are illegal and ultra-vires? Assessee's Contention: The petitioner sought to quash the Section 148 notice and proceedings, and to declare the Explanations in the specified notifications as illegal and ultra-vires. The petitioner relied on the Supreme Court decision in Union of India v. Ashish Agarwal (2022 SCC Online SC 543) and a judgment of the High Court in M/s. GSR Cold Storage Private Limited v. Income Tax Officer (W.P.No.33919 of 2021 and batch) delivered on 09.06.2022. Revenue's Contention: The judgment does not record specific contentions from the revenue. However, the revenue was represented by learned counsel.

Which sections of the Income-tax Act were involved?

Section 148

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances
HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD (Special Original Jurisdiction) TUESDAY, THE NINETEENTH DAY OF JULY TWO THOUSAND AND TWENTY TWO PRESENT WRIT PETITION NO:18424 OF 2022 Between: PAVAN AHUJA, S/o Late Sh. Jagat Ram Ahuj 24, Farm, Avenue Cassia Westend Greens, New Delhi, '1 10038, Delhi. ...PETITIONER AND 1. ASSISTANT COMMISSIONER OF INCOME TAX DCIT, Circle 5(1), Hyderabad, Room No. 344, D-Block, 3rd Floor, lT Tower, AC Guards, Masab Tank, Hyderabad. 2. PRINCIPAL COMMISSIONER OF INCOME TAX, Hyderabad, LB Stadiam RD, Band Colony , Hill Fort Road,Hyderabad , Telangana -500004. 3. UNION OF INDIA through Ministry of Finance, Department of Revenue, Room No. 46, North Block, New Delhi - 110 001. ...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: A. lssue a writ of and/or order and or direclions in the nature of Mandamus or any other appropriate writ, order or direction quashing impugned notice dated 29lOOl2O21 issued by Respondent No.1 under Section 148 oI the Act and proceedings initiated pursuant thereto. B.lssue a writ of and/or order and/or direction directing the Respondents to forebear from giving effect to and/or taking any step whatsoever pursuant to and/or in furtherance of the said purported notice under Section '148 of the Act and/or in any proceedings initiated thereunder for the AY 2015-16. THE HONOURABLE THE CHIEF JUSTICE UJJAL BHUYAN AND THE HONOURABLE MRS JUSTICE SUREPALLI NANDA il2il C.lssue any other Writ, order or Direction, the declaring that the Explanation in the Notification No.20l2021 dated 3110312021 and Notification No.38/2021 dated 2710412021 is illegal and ultra-vires in nature. lA NO: 1 OF 2022 Petition under Section 151 CPC praying that in the circumstances stated in the affidavit filed in support of the petition, the High Court may be pleased to stay all further proceedings with respect to the impugned notice dated 2910612021 issued u/s 148 of lncome Tax Act, 1961, including any consequential proceedings thereto, pending disposal of the present Writ Petition- Counsel for the Petitioner: SRl. PASHAM MOHITH Counsel for the Respondent Nos.1 & 2: SRI J.V. PRASAD (sc FoR tNcoME TAX) Counsel forthe Respondent No3: SRI NAMAVARAPU RAJESHWARA RAO, ASSISTANT SOLICITOR GENERAL

The Court made the following: ORDER

THE HON'BLE THE CHIEF JUSTICE UJJAL BHIIYAN AND THE HON'BLE MRS JUSTICE SUREPALLI NANDA WRIT PETITION No.18424 of 2o22 Heard Mr. Pasham Mohith, learned counsel for the petitioner; Mr. J.V.Prasad, learned Standing Counsel for Income Tax Department appearing for respondents No.1 and 2 and Mr. Namavarapu Rajeshwar Rao, learned Assistant Solicitor General of India for respondent No.3. 2. It is submitted that the present writ petition 1S covered by the judgment delivered on 09.06.2022 in W.P.No.339 19 of 2021 and batch (M/s.GSR Cold Storage Private Limited v. Income Tax Officer) on the basis ol Agarwal \ I 1 \

3.

Accordingly, the writ petition is disposed ol in terms of the aforesaid judgment. ORDER: Per tte l{on bte tte cttef Jusnce u)tot utason) Supreme Court decision in Union of India v. Ashish | 2022 SCC Online SC 543

4.

Miscellaneous applii:ations pending, if ar-iy, shall stand closed. However, there shal1 be no order as to co/s //II SD/-I.NAGALAKSHMI DEPUTY REGISTRAR SECTION OFFICER I To,

1.

THE ASS|STANT coMMrssroNER oF rNcoME TAX DCrr. circre 5(.r ) Hvdgrgpad' Room No. 344, D-Brock, 3rd Froor, tr rowei, Ac'cr"ii.l'rv(i"uo Tank, Hyderabad

2.

THE PRINCtPAL COMMTSSTONER OF TNCOME TAX, Hyderabad, LB ^ 9lgligT RD, Band g.o-tqlv , Hi[ Fort Road, Hyderabro, i6t"srrJ'_s-dooO+

3.

THE uNroN oF rNDrA thiough tr4nislry of'Firiance, oepartmeit or n-Jv"e"n-ue, Room No. 46, North Block, Niw Delhi : 110 001

4.

One CC tc SRt. PASHAM MOHTTH Advocate [OpUC]

5.

One CC to Sri J.V. Prasad, Senior S.C. for Cdmmercial Tax [OpUCl 6. one cc to Sri Namavarapu Rajeshwara nao, AJsiitani boriin-or-ciLerrr loPUCl

7.

Two CD Copies

8.

One Spare Copy CHR sw \u.- i I

HIGH COIURT DATED:1910712022 ORDER W.P.No.18424 of 2022 DISPOSING OF THE WRIT PETITION WITHOUT COSTS ftl{'n''o" 1- 2 [ SEP ?[fl- .4 \

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