Mr. Shivam Reddy Gujjala, vs. The Income Tax Officer,

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WP/6203/2026HC TelanganaHBHC01012209202615 April 2026Author: P.SAM KOSHY,NARSING RAO NANDIKONDA6 pages
AI SummaryAllowed

What did the High Court hold?

The High Court allowed the Writ Petition. The Court accepted the submission of the Revenue that the notice dated 23.04.2022, issued under Section 148 of the Income Tax Act, 1961, for the Assessment Year 2015-16, was indeed issued beyond the period of six years and was therefore barred by limitation. Consequently, the Court set aside and quashed the impugned notice dated 23.04.2022. As a consequential relief, the assessment order also stood set aside and quashed. No order as to costs was made. Any pending miscellaneous applications were also closed.

What were the facts?

The petitioner, Mr. Shivam Reddy Gujjala, challenged a notice dated 23.04.2022 issued under Section 148 of the Income Tax Act, 1961, for the Assessment Year 2015-16. The petitioner also challenged the consequent assessment order and penalty orders passed by the Income Tax Officer and the order of the Commissioner of Income Tax Appeals. The primary grounds for challenge were that the notice was barred by limitation, being issued beyond the six-year period prescribed, and that it was arbitrary, illegal, and violative of natural justice and constitutional provisions. The petitioner sought a writ of Mandamus to set aside these orders. The High Court heard arguments from both sides.

What were the issues?

1. Whether the notice dated 23.04.2022 issued under Section 148 of the Income Tax Act, 1961, for Assessment Year 2015-16 is barred by limitation, considering it was issued beyond the period of six years from the end of the relevant assessment year. Assessee's Contention: The notice is barred by limitation as it was issued on 23.04.2022, which is beyond the six-year period within which it could have been issued (i.e., by 31.03.2022 for AY 2015-16). The petitioner also argued that the notice was arbitrary, illegal, and violative of natural justice and constitutional provisions. Revenue's Contention: The Senior Standing Counsel for the Income Tax Department, upon instructions and considering the stand taken by the Solicitor General before the Supreme Court, accepted that the notice was indeed issued beyond the period of six years and is therefore barred by limitation.

Which sections of the Income-tax Act were involved?

Section 148,Section 147,Section 144,Section 271F,Section 250,Section 14BA

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) WEDNESDAY, THE FIFTEENTH DAY OF APRIL TWO THOUSAND AND TWENTY SIX PRESENT THE HONOURABLE SRI JUSTICE P.SAM KOSHY AND THE HONOURABLE SRIJUSTICE NARSING RAO NANDIKONDA WRIT PETITION NO: 6203oF 2026 Between: Mr Shivam Reddy Gujlala, S/o. Late Mr.Gujjala Laxma Reddy aged. 54 years, occ-. Private Employee Frat No. 306, sri Baraji Heights, Near Baraji liospital, D.NCL Enclave, Pakalakunta, Alwal, Hyderabad - 500 067, Telangana. presently working at Kaefer LLC, 1'10, First Floor, Cubes park Building, 83, 141h Street, M Z'5, Uusaftan lndustrial Area, P.O.Box 28803, Abu Dhabi, United Arab Emirates. AND .....PETIT!ONER The lncome Tax Officer, Ward - 10(1),Hyderabad, I T Tower, AC Guards, Masab Tank. Hyderabad - 500 004,Telangana. The Principal Chief Commissioner of lncome Tax, Andhra pradesh and Telangana, Hyderabad lT Towers, AC Guards, Masab Tank, Hyderabad _ 500 004, Telangana. Assessment Unit, lncome Tax Department, National e-Assessment Center, New Delhi, Room No. 401 ,2nd Floor, E-Ramp, Jawaharlal Nehru Stadium, New Delhi - 110 003 The Commissioner of Income Tax Appeals, National Faceless Appeal Centre NFAC, lncome Tax Department, Delhi - 1 1O OO3. .....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 a writ of Mandamus or any other appropriate wrlt, order or Direction, declaration that. a.the Assessment order passed by the 3rd Respondent, uts 147 tlwls 1448 of the lncome Tax Act, 1961, dated 26.02.2024, bearing DlN.. ITBtuAST/S/'14712023-24I1061503783(1), for the Assessment year 2015 _ 16 1 2 3 4 rF- b'consequentiar penarty orders passed by the 3rd Respondent, revying penarties u/s 271F of the Income Tax Act. 1961 , dated j2.0g.2024, bearing DlN Nos lrBAlPNLtFl2TlF/2024-2sr1067534360(1), for the Assessment year 201s - r6. and cthe order of the 4th Respondent dated 0g.01.2025, vide DrN and order No. lrBA/NFAC/s/250/2024-2sr1o71gg771z(1), passed u/s 250 of the rncome Tax Act, 196'1 as arbitrary iregar barred by rimitation, bad in raw, void-ab-initio, vrorative of the principres of naturar justice, apart from being viorative of Articres 1a, 1g(1)(g) and 265 0f the constitution of rndia and Sec 14BA of the rncome Tax Act, 1g61 , and consequently set aside the same in the interests of justice. |.A.NO:1 OF 2026 Petition Under Section 151 cpc praying that in the circumstances stated in the affidavit fired in support of the petrtion, the High court may be preased to stay a, further proceedings. rncluding any recovery, pursuant to the notice u/s .14g of the Act. dated 23042022 bearing DIN and Notice No rrBtuAST/s/14I 1t2022- 2311042830455(1), pendrng disposat of the above writ petition. Counsel for the petitioner : SRI A.V.A.SIVA KARTIKEYA 9:ll:-"] for the Respondents : Ms BOKARO SAPNA REDDY (SENIOR SC rNcoME TAX)

The Court made the following ORDER

EA:!- j:A:37 IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD THE HONOI]RABLE SRI JUSTICE P.SAM KOSHY AND THE HONOURABLE SRI JUSTICE NARSING RAO NANDIKONDA !Y.P.No.6203 of 2026 Date215.04.2026 Between: Mr.Shivam Reddy Gujjala .- Petitioner And The Income Tax Officer, Hyderabad and others ...Respondents ORDER (per Hon'ble Sri Justice P.Sam Koshy) Heard Mr.A.V.A.Siva Kartikeya, learned counsel for the petitioner and Ms.B.Sapna Reddy, learned Senior Standing Counsel for the Income Tax Department, for the respondents

2.

The present is the case where notice dated23.04.2022 issued under Section 148 ofthe Income Tax Act, 1961, is under challenge

3.

The Assessment Year in the present case is 2015-2016- In addition to the challenge to the said notice being given by the amendment brought to the Income Tax Act with effect from 0l.O4.2O2l,learned counsel for the petitioner had also challenged the same on being baned by limitation, as the notice has been T issued admittedly beyond the period of six years. The assessment

- 2 year being 2015-2016, time limit within which notice could have becn issued on 31 .03.2022 and in the instant case, the notice has been issr-red admittedly beyond the period of six years i.e. on 23.04.2022. 4. On thc previous date of hearing, learned Standing Counsel for the Department had taken time to seek instructions.

5.

Upon instructions, learned Senior Standing Counsel for the Income Tax Department taking into consideration the stand taken b1,the leamed Solicitor General before the Hon'ble Supreme Court, more particularly, in respect of the assessment year 2015-2016 accepts that noticc has been infact issued beyond the period of six vears. As such, the notice is barred by limitation

6.

Accordingly, the Writ Petition stands allowed. Notice dated 23.01.2022 stands set aside/quashed and the consequent assessment order also stands set aside/quashed. No order as to costs. Miscellaneous applications pending, if any, shall stand c Iosed SD/-T, SRINIVASA R AS ISTANT //// SECTION OFFICER

1.

The lncome Tax Officer, Ward 10(1),Hyderaba T Tower, AC Guards, Andhra Pradesh and TankHyderabad - 500 Masab Tank Hyderabad - 5OO 004 ,Telangana

2.

The Principal Chief Commissioner of lncome Tax, Telangana, Hyderabad lT Towers AC Guards, Masab 004, Telangana TRAR To, 3 Assessment Unit, rncome r^ax D_epartment, Nationar e_Assessment center, il:* j":li : fio"[,0]" 4o1,2nd rri,",, i-n,,s''iailan,a,r ruer,,, staoiuir,

4.

The Commissioner of lncome Tax Appeals, National Faceless Appeal Centre NFAC,lncome Tax Department, Delhi - 'l'10 003. 5 One CC to SRI A.V.A.SIVA KARTIKEYA, Advocate [OPUC]

6.

One CC to Ms. BOKARO SAPNA REDDY (SENIOR SC INCOME TAX) Advocate [OPUC]

7.

Two CD Copies SA BS%

HIGH COURT DATED: 1510412026 ORDER WP.No.6203 of 2026 ALLOWING THE W.P WITHOUT COSTS. -"1itE 5Ia //,.v ,,\ ,,.t' Jc 17 'ittl iltzu I 'I L) t Dt t Cr * /-)€SPATCJ.. ( 06

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