RAMA TRADING COMPANY vs. Assessment Unit

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WP/17028/2025HC TelanganaHBHC01034087202520 June 2025Bench: P.SAM KOSHY,NARSING RAO NANDIKONDA3 pages
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What did the High Court hold?

The High Court, in its interim order, has granted a stay on the impugned order. The Court listed the matter for further hearing on August 27, 2026, along with a batch of similar cases. The interim stay was granted in light of an order passed by the Hon'ble Supreme Court in Diary No. 2196 of 2026 and batch, decided on April 10, 2026. The High Court has not made any final determination on the merits of the case at this stage. The operative direction is to list the matter for further hearing and to grant an interim stay on the impugned order. No specific issue was left undecided, as the court is yet to hear the matter on merits.

What were the facts?

The assessee, Rama Trading Company, represented by its partner, filed a writ petition before the High Court for the State of Telangana. The petition challenges a notice issued by the Income Tax Officer under Section 148 dated March 7, 2024, for Assessment Year 2020-21, and a consequential order passed by the Assessment Unit, National Faceless Assessment Centre, under Section 147 read with Sections 144 and 144B of the Income-tax Act, dated December 4, 2024. The assessee contends that these actions are arbitrary, illegal, and violative of principles of natural justice and constitutional provisions. The petition also seeks a stay on further proceedings and demand notices pursuant to the impugned order. The High Court, in its interim order, granted a stay on the impugned order in light of a Supreme Court order.

What were the issues?

1. Whether the notice issued by the 2nd Respondent under Section 148 dated 07.03.2024 for the Assessment Year 2020-21 and all consequential orders/notices passed/issued by the 1st Respondent under Section 147 read with Section 144 read with Section 144B of the Income-tax Act, dated 04.12.2024, are arbitrary, illegal, bad in law, void ab initio, and violative of principles of natural justice, Articles 14, 19(1)(g), and 265 of the Constitution of India, as well as Sections 148A and 149 of the Act and CBDT circulars and Section 151A of the Act. Assessee's Contentions: The assessee argued that the notice and consequential order are arbitrary, illegal, bad in law, void ab initio, and violative of principles of natural justice. They also contended that these actions violate Articles 14, 19(1)(g), and 265 of the Constitution of India. Furthermore, the assessee argued that the proceedings violate the provisions of Section 148A and Section 149 of the Act, are contrary to CBDT circulars, and violate Section 151A of the Act. 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 147,Section 144,Section 144B,Section 148A,Section 149,Section 151A,Section 156

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD (Special Original Jurisdiction) TUESDAY, THE ELEVENTH 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: 17028 OF 2025 Between: RAMA TRADING COMPANY, Rep.by Partner AVUNOORIRAVI KUMAR S/o VENKATESHAM AVUNOORI Aged about 49 years, Occupation. Business, R/o. 3-1- 105, Main Road Peddapally, Peddapally Dist 505172, Telangana, lndia PAN.AAGFR7989F, Assessment Year. 2020'21 ...PETITIONERS AND 't. Assessment Unit, National Faceless Assessment Centre, lncome Tax Department, Ministry of Finance, Room No. 401 , 2nd Floor, E-Ramp' Jawaharlal Nehru Stadium, Delhi -110 003. 2. The lncome Tax Officer, Ward 2, Karimnagar lncome Tax Office, Aayakar Bhavan, Near Natraj Theatre, Karimnagar Telangana, 505001 3. Union of lndia, Rep. by Secretary, Ministry of Finance North Block, New Delhi - 110001. ...RESPONDENTS Petition under Anicle 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 an appropriate writ, order or direction more particularly one in the nature of WRIT OF MANDAMUS holding that the notice issued (JAO) by 2nd Respondent under section 148 Dated 07.03.2024 vide DIN No ITBA/AST/S/148-112023- 2411062160862(1) for the Assessment Year 2020-21and all the consequential orders/notices passed/issued by the 1st respondent u/s. seclion 147 r.w.s 144 rcad with section 1448 of the lncome-tax Act Date of Order 0411212024' DlN. ITBA/AST/S/147t2024-2511070901657(1), as arbitrary, illegal, bad in law, void ab initio, violation of principles of natural justice apart from violation of Articles 14, 19 (1 )(g) and 265 of constitution of lndia apart from being violative of provisions of section '148A and section 149 of the Act and also contrary to the circular issued by CBDT and provisions of section '151A of the Act, and consequently set aside the order passed by

t.A. NOi 1 0F 2025 Petition under section 151 CPC praying that in the circumstances stated in the affidavit filed in support of the petition, the FiigfiCourt may be plearsed to stay all.further proceedings, including ,ny l..or"ry pur-suant to .the order passed by the 1st -C".ponO""nt ,ls. secti;n 1i7 r w.s 144 ead with section 1448 of the lncome-tax Act oateof oroer 04 122024,DIN ITBA/ASTlst147t2024-25/1O7O.c'01657(1)andstayof Demand notice under section 156 Dated: 04.1i'' 2024 vide DIN No ITBA/AST/S 1156t2024-25t1070902076(1) for the Assessment Year 2020-21 Counsel for the Petitioner: SRI THANNERU CHAITANYA KUMAR Counsel for the Respondents: Ms. J. SUNITHA, Senior SG t'OR INCOME TAX The Court made the following: ORDER "List on 27 .08.2026 along with batch. Meanwhile, there shall be interim stay of the impugned order, in the tight of the order granred by the Hon'ble Supreme court vide its order in Diary No.2l96 of 2026 and batch decided on 10.04.2026'" SD/. A.H S.GOWRI SHANKAR ASSISTANT REGISTRAR //TRUE COPY// / ' (\ ) sFcTroN OFFICER To, lstRespondentU/S.Sectionl4Tl.w.sl44readwithsection,l44Bofthelncome.tax n"i orii "r oro er 04122024, DtN ;rBA/ASTtst147t2124-25/1cr70901657(1) for the n.."...""tYear2O2O-2landallconsequentialproceedingSpulsuantthereto' 1. Assessment Unit, National Faceless Assessment Centre, lncome Tax Department, Ministry of Finance, Room No' 401 , 2nd Floor, E-Ramp' Jawaharlal Nehru Stadium, Delhi -'1 10 003. 2. Union of lndia, Ministry of Finance North Block' New Dt:lhi 3. The lncome Tax Officer, Ward 2, Karimnagar lncome Tax Office' Aayakar Bhavan, Near Natrai Theatre, Karimnagar Telan^gana, ti0500'l + ite Seition-Officer,'The Posting Sectidn' High Court fc'r the State of Telangana, Hyderabad. 5. The Section Officer, The Writ DB Section, High Oourt for the State of Telangana, Hyderabad 6 One Ct to Snt THANNERU CHAITANYA KUMAR, Advocate [oPUC] 7. One CC to Ms. J SUNITHA, Senior SC FOR INCOME TAX [OPUCI 8. One CC to SRI N. BHUJANGA RAO, Deputy Solicitor (jeneral of lndia [oPUC] 9. Two CD Copies BN .-- TKS I

HIGH COURT DATED: 1110812026 ORDER WP.No.17028 ol 2025 INTERIM STAY TWO DRAFTS NOTE: LIST ON 27.08.2026 ALONG WITU BATCH TA 21SEP ffi gC * Sr'afCt-. a' PZ C) .J c) LJ tor ,J-T, j jl t I \ ;1. 1

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