Shanmukha Prasad Yalamanchili vs. Deputy Commissioner of Income Tax

PDF · subscribers
WP/10258/2024HC TelanganaHBHC01019829202419 April 2024Bench: N.TUKARAMJI,SUJOY PAUL4 pages
AI SummaryPartly Allowed

What did the High Court hold?

The High Court, in its order dated 16.09.2026, directed that the matter be listed for hearing before an appropriate Bench in light of the amendment and challenge made to the vires of Section 147A of the Income Tax Act, 1961. Pending further hearing, the Court granted an interim stay of the impugned order. This stay was granted in light of an order passed by the Supreme Court in a batch of cases. The Court also noted the amendment to the prayer in the writ petition. The judgment does not decide the merits of the issues raised but grants interim relief and directs further listing. Therefore, no finding on the specific issues of limitation, constitutional validity, or legality of the assessment order has been made at this stage.

What were the facts?

The petitioner, Shanmukha Prasad Yalamanchili, filed a writ petition before the High Court for the State of Telangana at Hyderabad. The petition challenges a notice under Section 148 dated 07.04.2022 for Assessment Year 2015-16, an assessment order dated 01.03.2024 passed by the Assessment Unit, National Faceless Assessment Centre, Delhi, and the constitutional validity of Section 147A of the Income Tax Act, 1961, which was inserted by the Finance Act, 2026. The petitioner sought to declare the notice barred by limitation, Section 147A unconstitutional, and the assessment order void and illegal. The petitioner also sought an interim stay of the assessment order. The respondents are various income tax authorities and the Union of India.

What were the issues?

1. Whether the notice under Section 148 dated 07.04.2022 for AY 2015-16 is barred by limitation, in light of the decision in Rajeev Bansal (supra)? (Question of law) 2. Whether Section 147A of the Income Tax Act, 1961, inserted by the Finance Act, 2026, is unconstitutional, ultra vires the Constitution of India, and void? (Question of constitutional law) 3. Whether the impugned Assessment Order dated 01.03.2024, passed consequent to the order under Section 148A(d) and the notice under Section 148, is void, illegal, contrary to the provisions of the Income-tax Act, and contrary to the Principles of Natural Justice? (Question of law and fact) Assessee's Contentions: - The notice under Section 148 is barred by limitation, relying on the Apex Court's decision in Rajeev Bansal. - Section 147A of the Income Tax Act, 1961, is unconstitutional and void. - The assessment order is void, illegal, and contrary to law and natural justice. Revenue's Contentions: - The judgment does not record any specific contentions made by the revenue.

Which sections of the Income-tax Act were involved?

Section 148,Section 147A,Section 147,Section 144,Section 148A

AI-generated summary — verify with the full judgment below

[ 3403 ] HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD WEDNESDAY, THE SIXTEENTH DAY OF SEPTEMBER TWO THOUSAND AND N/VENTY SIX :PRESENT: THE HONOURABLE SRI JUSTICE P. SAM KOSHY AND THE HONOURABLE SRI JUSTICE N.TUKARAMJI WP NO: 10258 OF 2024 Between Shanmukha Prasad Yalamanchili, S/o Venkata Ratnam Y .....PETITIONER AND 1. Eeputy Commissioner of lncome Tax, Circle 2(1), Signature Towers, Sy.No.6(P) of Kondapur, Sy.No.37(P) of Kothaguda, OPP. Botanical Gardens, Serlingampally, Ranga Reddy, Hyderabad, Telangana - 500084. 2. The Principal Chief Commissioner of lncome Tax AP and TS, 1Oth Floor, C- Block, l.T. Towers, 10-2-3, A.C. Guards, Hyderabad-500004. 3. The Assessment Unit, lncome Tax Department, National Faceless Assessment Centre, Delhi, It/inistry of Finance, Room No. 401, 2nd Floor, E-Ramp, Jawaharlal Nehru Stadium, Delhi-1 1 0003. 4. Union of lndia, Rep. by its Secretary, Ministry of Finance, Department of Revenue, North Block, New Delhi-110001. (Respondent No.4 is impleaded vide lA.No. 1 of 2026 as per C.O.dt. 16.09.2026 in WP.No. 10258 of 2024.) .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 writ, order or direction. more particularly one in the nature of Writ of Mandamus, declaring

(i) The impugned notice u/s 148 d1.07.04.2022 for the A.Y. 2015-16 is barred by limitation in the light of the decision of the Apex Court in the case of Rajeev Bansal (supra); (ii) Section 147A of the lncome Tax Act, 1961, inserted by the Finance Act, 2026, as unconstitutional, ultra vires the Constitution of lndia and void; (iii) The impugned Assessment Order dt. 01.03.2024 passed by the 3rd respondent u/s 147 r.w.s 144 I 1448 of the lncometax Act for A.Y. 2015-16 vide DIN No. ITBA/AST/S/1 4712023-2411061858888(1 ), consequent to the order passed u/s 148A(d) dt.06.04.2022 vide DIN No. ITBA/ASTlFl148N2022-2311042584751(1) and the notice u/s 148 dt.07.04.2022 vide DIN No. ITBA/AST/S/1 48_1t2022-23t1042646034(1 ), the same is void, illegal, and contrary to the Provisions of lncome-tax Act and contrary to the Principles of Natural Justice, and consequently set- aside/quash the same or may pass such other order(s) as this Hon'ble Court may deem fit and proper in the circumstances of the case. Prayer is amended as per C.O. dt. 16.09.2026 vide l.A.No.2 of 2026 in W.P.No.10258 ot 2024. l.A. NO: 1 OF 2024 Petition under Section 151 of C.P.C praying that in the circumstances stated in the affidavit filed in support of the writ petition, the High Court may be pleased to stay all further proceedings pursuant to the Assessment Order dt. 0'l .03.2024 passed by the 3rd respondent u/s 147 r.w.s 1448 of the lncome-tax Act for A.Y. 2015-16 vide DIN No. ITBA/ASTt$t14lt2o23-24t1061858888(1), pending disposal of WP No 10258 of 2024, on the file of the High Court. The petition coming on for hearing, upon perusing the petition and the grounds filed in support thereof and upon hearing the arguments of Sri Dundu Manmohan Advocate for the Petitioner and Ms. J. SUNITHA, (Sr. Sc For lncome Tax Dept) Advocate for the Respondents, the Court made the following. ORDER Let the matter be listed for hearing before an appropriate Bench in the light of amendment and challenge made to the vires of provisions contained in Section 147-A of the Income Tax Act, 1961.

Meanwhile, there shall be interim stay of the impugned order, in the light of the order granted by the Hon'ble Supreme Court vide its order in Diary No.2196 of 2026 and batch decided on 10.04.2026. Let the name of Ms.J.Sunitha, learned Senior Standing Counsel for the Income Tax, be reflected in the cause list in place of Ms.Sundari R.Pisupati, Iearned counsel. SD/. A. JAYASREE ASSISTANT REGISTRAR //TRUE COPY// SECTION 1. Deputy Commissioner of lncome Tax, Circle 2(1), Signature Towers, Sy.No.6(P) of Kondapur, Sy.No.37(P) of Kothaguda, OPP. Botanical Gardens, Serlingampally, Ranga Reddy, Hyderabad, Telangana - 500084.[By SPAD] 2. The Principal Chief Commissioner of lncome Tax AP and TS, 1Oth Floor, C- Block, l.T. Towers, 10-2-3, A.C. Guards, Hyderabad-500004 [By SPAD] 3. The Assessment Unit, lncome Tax Department, National Faceless Assessment Centre, Delhi, Ministry of Finance, Room No. 401, 2nd Floor, E-Ramp, Jawaharlal Nehru Stadium, Delhi-1 10003.[By SPAD] 4. The Section Officer, Writ (Non-service) Section, High Court at Hyderabad. 5. One CC to Sri. DUNDU tvlANlvlOHAN Advocate [OPUC] 6. Two spare copies b-- drrrceR To,

HIGH COURT PSK, J & NTR, J DATED: 16-09-2026 ORDER WP.No.10258 of 2024 INTERIM STAY {r'r{]' _'4r" li.; [ 0F CELL C $$ su\ +{ ,u1 + t-\ r .),

More judgments on Section 148

All 35,022 judgments and leading authorities on Section 148 →

Recent GST High Court judgments

Search GST case law →