HBL Power Systems Limited vs. The Deputy Commissioner of Income-tax and 2 others

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WP/17295/2022HC TelanganaHBHC01023142202227 September 2022Bench: C.V. BHASKAR REDDY,UJJAL BHUYAN6 pages
AI SummaryWithdrawn

What did the High Court hold?

The High Court, in a common order, noted that the learned counsel for both parties were in agreement that the writ petitions had become infructuous. This agreement was based on the decision of the Supreme Court in the case of Union of India v. Ashish Agarwal (2022 SCC OnLine SC 543). Consequently, the High Court disposed of the writ petitions as infructuous. No specific finding was given on the merits of the challenge to the reassessment notices. Miscellaneous applications, if any, were also closed, with no order as to costs.

What were the facts?

The petitioner, HBL Power Systems Limited, filed three writ petitions (WP Nos. 17241, 17288, and 17295 of 2022) before the High Court of Telangana at Hyderabad. These petitions challenged notices issued by the Deputy Commissioner of Income-tax, Circle 2(1), for reassessment proceedings under Section 148 of the Income-tax Act. The notices were dated April 8, 2021, and pertained to Assessment Years 2013-14, 2014-15, and 2015-16. The petitioner argued that these notices were issued without following due procedure and by taking shelter under explanations inserted by CBDT notifications dated March 31, 2021, and April 27, 2021. The petitioner sought a declaration that the notices were void, illegal, contrary to the Income-tax Act, and ultra vires the Constitution. They also sought suspension of the reassessment proceedings.

What were the issues?

1. Whether the impugned notices issued by the first respondent for reassessment under Section 148 of the Income-tax Act, for Assessment Years 2013-14, 2014-15, and 2015-16, are void, illegal, and contrary to the provisions of the Income-tax Act and the Constitution of India, by virtue of not following the due procedure and relying on explanations inserted by CBDT notifications dated March 31, 2021, and April 27, 2021. Assessee's Contention: The petitioner argued that the notices were issued without following the due procedure of law and that the reliance on the explanations inserted by the aforementioned CBDT notifications rendered the notices illegal and void. The petitioner sought a writ of Mandamus declaring the notices as such. Revenue's Contention: The judgment does not record specific arguments from the revenue's side regarding the validity of the notices. However, the revenue, represented by the Deputy Commissioner of Income-tax and the Central Board of Direct Taxes, was the respondent issuing the notices.

Which sections of the Income-tax Act were involved?

Section 148

AI-generated summary — verify with the full judgment below

t 32e5 I HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD (Special Original Jurisdiction) TUESDAY, THE TWENTY SEVENTH DAY OF SEPTEMBER TWO THOUSAND AND TWENTY TWO PRESENT THE HON'BLE THE CHIEF JUSTICE UJJAL BHUYAN AND THE HON'BLE SRI JUSTICE C. V. BHASKAR REDDY WRIT PETITION NOS: 17241 17288 AND 172950F 2022 wP NO.17241 0F 2022: Between: HBL Power Systems Limited, 8-2-601 , 10, Banjara Hills, Hyderabad-500034. Represented by its Managing Director' ...pETrroNER AND 1. The Deputy Commissioner of lncome-tax, Circle 2(1), 514, Sth Floor, Signature Towers, Sy. No. 6(P) of Kondapur, Sy. 37(P) of Kothaguda, Opp. Botanical Gardens, Serlinganrpally, Hyderabad - 500084 2. The Central Board of Direct Taxes, Department of Revenue, Ministry of Finance, Govt. of lndia, Secretariat Buildings, New Delhi - 110001. Represented by its Chairman. 3. The Union of India, Ministry of Finance, Central Secretariat, North Block, New Delhi-l 10001 . Represented by its Secretary ..RES'.NDENTS 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 a writ, order or direction, more particularly one in the nature of Writ of Mandamus, by declaring the impugned notice issued by the 1st respondent vide Document ldentification No.(DlN) ITBA/AST/S/14812021-2211032302231(1) dt.0810412021, for the Assessment Year 2013-14, without following the due procedure of law, that too by taking shelter under the explanations inserted in CBDT notification nos. 2012021 dL.3110312021 and 3812021 dt.2710412021, as, void, illegal and contrary to the provisions of lncome-tax Act and ultra vires the Constitution of lndia, 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 pleased

HBL Power Syr tenrs Limited, 8-2-601 , 10, Banjara Hills, Hyderabad-500034. Represented br its Managing Director. ...pETt,oNER AND 1. The Deputy Co ntnissioner of lncome-tax, Ctcle2(1),514, Sth Floor, _ Signature Towe rs, Sy. No. 6(P) of Kondapur, Sy. 37(P) of Kothaguda, Opp. Botanical Gardr ns, Serlingampally, Hyderabad - 500084 2. The Central Bo rnj of Direct Taxes, Department of Revenue, Ministry of Finance, Govt. rf lndia, Secretariat Buildings, New Delhi - 1 10001 . Represented b1 its Chairman. 3. The Union of ln lia, Ministry of Finance, Central Secretariat, North Block, New Delhi-1 10001 . I epresented by its Secretary ..RES'.NDENTS Petition under Alicle 226 of the Constitution of lndia praying that in the circumstances statec in the affidavit filed therewith, the High Court may be pleased to issue a w it. order or direction, more particularly one in the nature of Writ of Mandamus, by declaring the impugned notice issued by the 1st respondent vide Document ldent fit;ation No.(DlN) ITBA/AST/Si 14812021- 2211032302218(1) dt. 08.04.2021, for I rer Assessment Year 2014-15, without following the due procedure of law, thi t too by taking shelter under the explanations inserted in CBDT notification no 2012021 dt. 31.03.2021 and 3812021 dt. 27.04.2021, as, void, illegal and contr ary to the provisions of lncome-tax Act and Ultra vires the Constitution of lndia, to suspend the reassr s:;ment proceedings initiated by issuing notice u/s 148 of the Act vide Docur r€nt ldentification No.(DIN) ITBA/AST/S/14812021- 22t1032302231(1) dt 03t04t2021 , WP NO: 17288 OF 20 2t Betweer: lA NO: 1 OF 2022 Petition under I ;ection 151 CPC praying that in the circumstances stated in the affidavit filed in t upport of the petition, the High Court may be pleased to suspend the reasses: ment proceedings initiated by issuing notice u/s 148 of the Act vide Docun enl ldentification No.(DlN) ITBAJAST/S/14812021- 2211032302218(1) dt 0tt.04.2021 , and may pass such other orde(s) as the Honble Court deems f t and proper in the interests of substantial justice, as otherwise the Petitionr'r would be put to irreparable loss and severe injury

AND HBL Power Systems Limited, 8-2-601, 10, Banjara Hills, Hyderabad-500034. Represented by its Managing Director. ...pETrroNER IA NO: 10F 2022 1. The Deputy Commissioner of lncome-tax, Circle 2(1),514, Sth Floor, Signature Towers, Sy. No. 6(P) of Kondapur, Sy. 37(P) of Kothaguda, Opp. Botanical Gardens, Serlingampally, Hyderabad - 500084 2. The Central Board of Direct Taxes, Department of Revenue, Ministry of Finance, Govt. of lndia, Secretariat Buildings, New Delhi - 1'10001 . Represented by its Chairman. 3. The Union of lndia, Ministry of Finance, Central Secretariat, North Block, New Delhi-1 '10001 . Represented by its Secretary ..RES,'NDENT' Petition under Article 226 of lhe Constitution of India praying that in the circumstances stated in the affidavit filed therewith, the High court may be pleased to issue a writ, order or direction, more particularly one in the nature of writ of Mandamus, by decraring the impugned notice issued by the 1st respondent vide Document of ldentification No.(DlN) ITBA/AST/S/14 Bt2O21_ 2211032302225(i) dt.08.04.2021 , for the Assessment year 20.15_.16, without following the due procedure of raw, that too by taking sherter under the expranations inserted in GBDT notification nos. 20t2021 dt. 31 .03.2021 and 3812021 dt 27.04.2021, as, void, iregar and contrary to the provisions of Income_ tax Act and ultra vires the Constitution of lndia petition under Section 151 cpc praying that in the circumstances stated in the affidavit fired in support of the petition, the High court may be preased to suspend the reassessmer Act vide Document proceedings initiated by issuing notice u/s 14g of the 22r103230222s(1) dt. oB.o4_2ldentification No'(DlN) lrBA/AST/s/'r4 Bt2o21- ff :iir'"til'liilo",','iliJi''sRTDUNDUMANM.HAN Counsel for Respondent No 1 and 2 : Ms. K. MAMA ff :lTL';,.X?j.,?,f,"Ji'., ;:i:lltl,Y:l*:, "# The Court made the following: COMMON ORDER WP NO: 17295 OF 2022 Between:

THE I CN'BLE THE CHIEF JUSTICE UJJAL BHUYAN THE, T()II'BLE SRI JUSTICE C.V.BHASKAR REDDY WRIT PETI I.[ON Nos. 1724L, L7288 and, L7295 of 2022 COMMON OF DERi ger tne rlon ble the Chief Justice lljjal Bhulan) Heard Mr. D.Sashank Manmohan, learned counsel fo the petitioner and Ms' K'Mamata Chowdary, l::rrned Standing Counsel for Income Tax Department aopearing for respondents No- | and 2' 2 Learnet I counsel for the parties are in agreement that the u rit petitions have become infructuous following thr tlt:cision of the Supreme Court in Union of India v. A shish Agarrrall' In view of the above, writ petitions are disposed of as infructuor rs,. | 2022 SCC Onlin SIC 543 AND J

2 Miscellaneous applications pending, if any, shail stand closed. However, there shall be no order as to costs. SD/-K.SAILESHI DEPUTY REGISTRAR //TRUE COPY// Ap SECTION OFFICER To BC N/ 1 2 3 4( One CC to Sri Dundu Manmohan Advocate TOPUCI One CC to Assistant Solicitor General Of lndia [OpUC] One CC to Ms. K. Mamata Chowdary. SC for lncom-e fax [OPUC] Two CD Copies One Spare Copy SW &s( a

HIGH COURT DATED: 2710912022 t s rAr[ () { i rl lril [fJ I ,j COMMON ORDER WP rlCtS: 17241, 17288 AND 17295 OF 2022 DISPOSING OF THE WRIT PETITIONS WITHOUT COSTS b ,x\* g>A- NA

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