sanjay Rasiklal shah vs. The Deputy Commissioner of Income Tax

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WP/15235/2026HC TelanganaHBHC01030681202621 August 2026Author: P.SAM KOSHY,NARSING RAO NANDIKONDA7 pages
AI SummaryAllowed

What did the High Court hold?

The High Court held that the question of law regarding whether a notice under Section 148A of the Act, issued after midnight of March 31, 2021, would be treated as beyond the limitation period has already been decided by this Court in a batch of writ petitions (WP.No.18098 of 2022 and batch), reported in (2024) 465 ITR 129. This judgment was further confirmed by the Supreme Court, which dismissed three Special Leave Petitions (SLP.(C) Nos.17098 of 2025, 33918 of 2025, and 24389 of 2025) against the High Court's decision. Consequently, the impugned notice dated March 31, 2021 (issued on April 1, 2021), the assessment order dated March 23, 2022, and the subsequent order dated February 10, 2026, were held to be bad in law and were set aside/quashed. The Writ Petition was allowed.

What were the facts?

The petitioner, Mr. Sanjay Rasiklal Shah, filed a writ petition challenging a notice issued under Section 148 of the Income Tax Act, 1961, dated March 31, 2021 (issued on April 1, 2021), for Assessment Year 2014-15. The petition also challenged subsequent orders, including an assessment order passed under Section 147, dated March 23, 2022, and another order dated February 10, 2026. The primary contention was that the Section 148 notice was issued beyond the prescribed period of limitation. The petitioner sought to declare these notices and orders as arbitrary, illegal, and void ab initio, violating principles of natural justice and constitutional provisions.

What were the issues?

1. Whether a notice issued under Section 148 of the Income Tax Act, 1961, after midnight of March 31, 2021, would be considered beyond the period of limitation? (Question of law) Assessee's Contention: The notice under Section 148 was issued beyond the prescribed period of limitation, rendering it invalid. Revenue's Contention: Not recorded in the judgment.

Which sections of the Income-tax Act were involved?

Section 148,Section 147,Section 148A

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances
\ 134471 IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD (Special Original Jurisdiction) FRIDAY, THE TWENTY FIRST DAY OF AUGUST TWO THOUSAND AND TWENTY SIX PRESENT THE HONOURABLE SRI JUSTICE P.SAM KOSHY AND THE HONOURABLE SRI JUSTICE NARSING RAO NANDIKONDA WRIT PETITION NO: 15235 OF 2026 Between: Mr. sanjay Rasiklal shah, Aged 59 years Occ Business Fl/o. Flat No: 402, 3-4-2291230, Sri Gaurav Apts Near Jain temple Kachiguda Hyderabad - 500 001 Telangana ...PETITIONER AND 1. The Deputy Commissioner of lncome Tax, Circle 11 Hyderabad lT Tower AC Guards Masab Tank Hyderabad 2. Assessment Unit, lncome Tax Department, National e-Assessment Center, New Delhi,Room No. 40'l ,2nd Floor, E-Ramp,Jawaharlal Nehru Stadium, New Delhi -110003. 3. The Commissioner of lncome Tax Appeals, National Faceless Appeal Centre NFAC,lncome Tax Department, Delhi - 1'10 003. 4. The Principal Chief Commissioner of lncome Tax, Room No: 7'l 1,7th Floor, A Block, lT Tower, AC Guards, Masab Tank,Hyderabad - 500 0O4,Telanagana. ...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 a Wdt of Mandamus or any other appropriate Writ Order or Direction declaring: a. the notice issued by the l"tRespondent u/s 148 of the lncome Tax Act 196'1 , dated 31.03.2021 (issued on 01 .O4.2O21), bearing DIN & Notice No. TTBAJAST/S/1 4Bl 2020-21 I 1 03207 37 32( 1 ). b. the satisfaction note%pproval issued by the 4th Respondent u/s 151 of the lncome Tax Act 196'l dated 31 .03.2021 vide DIN & Document No. tTBtuAST/S/1 1 812020-21 I 1 031592382(1), -=.r e-t:tr!l -?rer+d7 c. the order passed by the 2nd Respondent disposing off the objections raised by the Petitioner during reassessment proceedings dated 30.12.2025 bearing Dl N: ITBtuAST lF I 17 12025-261 1 084204236(1 \, d. the Assessment Order passed by the 2nd Respondent, uls 144 r.w.s 250 r.w.s 144B of the lncome Tax Act, 1961, dated 10.02.2026, bearing Dl N : ITBA/AST I S I 1 441 2025-2611 085824898( I ), for the Assessment Year 2014 - 15 as arbitrary illegal cad in law void-ab-initio illative of the principles of natural .iustice apart from being violative of Articles 14 19(1Xg) and 265 of the Constitution of lndia and consequently set aside the same the lnterests of justice. l.A. NO: 1OF 2026 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 including any recovery pursuant to the notice u/s 148 of lncome Tax Act issued by the 1't Respondent vide DIN & Notice No. ITBA/AST/5114812020- 2111032073732(1), dated 31 ,03.2021 (issued on 01 .04.2021), for the Assessment Year 2O14 - 15 pending disposal of the above Writ Petition. Counsel for the Petitioner: MR. A. V. A. SIVA KARTIKEYA Counsel for the Respondents: MS. B. SAPNA REDDY, SENIOR SC FOR INCOME TAX

The Court made the following: ORDER

TN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD THE HONOURABLE SRI JUSTICE P.SAM KOSHY AND THE HONOURABLE SRI JUSTICE NARSING RAO NANDIKONDA W.P.No.l5235 of 2026 21.08.2026 Between: Mr. Sanjay Rasiklal Shah ...Petitioner AND The Deputy Commissioner of Income Tax, Circle 1(l), Hyderabad, IT 1-ower, AC Guards, Masab Tank, Hyderabad-500004, Telangana and 3 others . . . Respondents GDEB, (per Hon'ble Sri Justice P.Sam Koshyl Heard Mr.A.V.A.Siva Kartikeya, learned counsel appearing for the petitioner and Ms.B.Sapna Reddy, learned Senior Standing Counsel for Income Tax Department, appearing for the respondents. Perused the record.

2.

The challenge in the present writ petition is to the notice issued by the 1't respondent under Section 148 of the Income Tax Act, 1961 (for shot "the Act"), for the Assessment year 2014- 2015 which is dated 31.03.2021, which in fact was signed on - 2 31.03.2021 and which was issued and dispatched on 01.04.2021. The subsequent assessment order passed under Section 147 of the Act is also under challenge, which is dated 23.0).2022 and the subsequent order dated 10.02.2026. 3. The challenge in the present writ petition is that notice under Section 148 of the Act has been issued beyond the prescribed period ol limitation.

4.

Todav, when the matter is taken-up lbr hearing, it has been intbrmed that the question ol law involved in the instant case, so far as whether the notice under Section 148A of the Act, which stood issued after midnight of 31.03.2021 would be treated as bel ond thc limitation or not. stands decided in the batch of writ petitions decided b-'- this Court on 14.06.2024 in WP.No'18098 of 2022 and batch. which judgment is reported in (2024) 465 ITR 129 : 2024 SC'C Ont-ine TS 1617. It has also been informed that the aforesaid judgment rvas also subjected to challenge before the Supreme Court in three different SLPS i.e. SLP.(C) Nos.17098 of 2025, SLP(C).No.33918 of 2025 and SLP.(C) No.24389 of 2025

--ar--,, 3 To, and all of which have got dismissed vide orders dated28.04.2025, 0 1 .08.2025 and 29.08.2025 respecti vely.

5.

Given the fact that the issue involved in the present issue has already been adjudicated by this Bench, which stood confirmed by the Supreme Court, we are of the considered opinion that the impugned notice dated 31.03.2021 (issued on 01.04.2021), as also the consequential assessment order, dated 23.03.2022 and, subsequent order dated 10.02.2026, therefore, held to be bad in law and the same, therefore, deserves to be and are, accordingly, set aside/quashed.

6.

Accordingly, the Writ Petition stands allowed. There shall be no order as to costs. Miscellaneous applications pending, if any, shall stand closed. M. OSMAN ALI BAIG ASSISTANT REGISTRAR //// SECTION OFFICER

1.

The Deputy Commissioner of lncome Tax, Circle 11 Hyderabad lT Tower AC Guards Masab Tank Hyderabad 2, Assessment Unit, lncome Tax Department,National e-Assessment Center, New Delhi,Room No. 40'l ,2nd Floor, E-Ramp,Jawaharlal Nehru Stadium, New Delhi - 110 003. 3. The Commissioner of lncome Tax Appeals, Natlonal Faceless Appeal Centre NFAC,lncome Tax Department, Delhi - 110 003. 4. The Principal Chief Commissioner of lncome Tax 1, Room No711,7th Floor, A Block, lT Tower, AC Guards, Masab Tank,Hyderabad - 500 004,Telanagana.

5.

One CC to MR. A. V. A. SIVA KARTIKEYA Advocate [OPUC]

6.

One CC to MS B SAPNA REDDY, SENTOR SC FOR TNCOME TAX DEPARTIVENT, Advocate [OPUC]

7.

Two CD Copies AGK TKS w

HIGH COURT DATED: 2110812026 ORDER WP.No.15235 of 2026 \.- C,r:i: ,, t i-. \ 'q co 1 7 Sic ?u$ ,'ii ii' ALLOWING THE WRIT PETITION WITHOUT COSTS a-\ .r$4 \+

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