Ms. Naga Lakshmi Kancharla vs. The Income Tax Officer (Int Taxn)-1

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WP/28520/2024HC TelanganaHBHC01055364202430 April 2025Bench: P.SAM KOSHY,NARSING RAO NANDIKONDA3 pages
AI SummaryRemanded

What did the High Court hold?

The High Court, in its order dated September 29, 2026, did not decide the merits of the case. Instead, it directed that the Writ Petition be listed along with a batch of similar cases. In the interim, the Court granted a stay on the impugned order. This 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's order is procedural, providing temporary relief to the petitioner pending the final decision of the batch of cases. No findings were made on the validity of the Section 148 notice or the assessment order, nor were any specific issues decided on their merits. The operative direction was to list the matter with other cases and grant an interim stay.

What were the facts?

This case involves a Writ Petition filed by Ms. Naga Lakshmi Kancharla (the petitioner) against the Income Tax Department and its units (the respondents). The petitioner is challenging a notice dated April 7, 2022, issued by the Assessment Unit under Section 148 of the Income Tax Act, 1961, for the assessment year 2018-19. The petitioner also seeks to set aside the assessment order passed by the Income Tax Officer under Section 147 read with Section 144 of the Act. The petitioner contends that the notice under Section 148A and Section 149 of the Act, as well as the Section 148 notice itself, are without jurisdiction, arbitrary, illegal, void ab initio, and contrary to CBDT circulars and Section 151A of the Act. The High Court, in its order dated September 29, 2026, listed the petition along with a batch of similar cases and granted an interim stay of the impugned order, referencing an order from the Supreme Court.

What were the issues?

1. Whether the notice dated April 7, 2022, issued by the Assessment Unit under Section 148 of the Income Tax Act, 1961, is without jurisdiction, arbitrary, illegal, bad in law, and void ab initio. 2. Whether the said notice is violative of the provisions of Section 148A and Section 149 of the Income Tax Act, 1961. 3. Whether the said notice is contrary to the circulars issued by the CBDT and the provisions of Section 151A of the Income Tax Act, 1961. Assessee's Contentions: The petitioner argues that the notice under Section 148 is illegal, arbitrary, and without jurisdiction. Specifically, it is contended that the notice violates Sections 148A and 149 of the Act, and is also contrary to CBDT circulars and Section 151A of the Act. The petitioner seeks to quash the Section 148 notice and the subsequent assessment order passed under Section 147 read with Section 144 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 148A,Section 149,Section 151A

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 TWENTY NINTH DAY OF SEPTEMBER TWO THOUSAND AND TWENTY SIX PRESENT THE HONOURABLE SRI JUSTICE P.SAM KOSHY AND THE HONOURABLE SRI JUSTICE NARSING RAO NANDIKONDA WRIT PETITION NO: 28520 OF 2024 134471 AND Officer (lnt Taxn)-1, Aayakar Bhavan, Basheerbagh, National Faceless Assessment Centre, lncome Tax Between: Ms. Naga Lakshmi Kancharla, D/o. Sri K. Chandra Sekhar Reddy, aged about 41 years, Occupalion Private Employee, Plot No.565C, Road No.92, Jubilee Hills, Hyderabad - 5ooo33 .'.PETlrtoNER 1. The lncome Tax Hyderabad- 500004. 2. Assessment Unit, Department, Ministry of Finance, Room No. 401,2nd Floor, E-Ramp, Jawaharlal Nehru Stadium, Delhi-1 10 003. 3. The lncome Tax Officer, Ward -14(1), l.T. Towers, A.C. Guards, Masabtank, Hyderabad - 500004. ...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 pass an order or direction, especially one in the nature of WRIT OF MANDAMUS holding that the notice dated 07.04.2022 issued by 2nd Respondent under section 148 of the Act with DIN and Notice No.ITBA/AST/S1148 112022-2311042640611(1) as being without jurisdiction, arbitrary, illegal, bad in law, void ab initio, apart from being violative of provisions of section 148A and section 149 of the Act and also contrary to the circular

issued oy CBDT and provisions of section 15'1A of the Act, and consequently set aside the notice under section 148 dated 07 .04.2022 and the assessment order passed by 1 st Respondent under section 147 t.w.s 144 of the Actfor asst. year 2018-'19. Counsel for the Petitioner: SRI A.V.RAGHU RAM Counsel forthe Respondents: SRI VIJHAY K. PUNNA AND Ms. BOKARO SAPNA REDDY, SR. SC FOR INCOME TAX The Court made the following: ORDER List along with batch. 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. SD/- B.REKHA RANI ASSISTANT REGISTRAR //TRUE COPY// SECTION OFFICER To L The lncome Tax Officer (lnt Taxn)-1, Aayakar Bhavan, Basheerbagh, Hyderabad- 500004. 2. 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. 3. The lncome Tax Officer, Ward -14(1), l.T. Towers, A.C. Guards, Masabtank, Hyderabad - 500004. 4. Ms. Naga Lakshmi Kancharla, D/o. Sri K. Chandra Sekhar Reddy, aged about 41 years, Occupation Private Employee. Plot No.565C, Road No.92, Jubilee Hills, Hyderabad - 500033. 5. The Section Officer, Posting Section, High Court for the State of Telangana, at H vderabad. 6. The Section Officer, Writ Division Bench Section, High Court for the State of Telangana, at Hyderabad. 7. One CC to SRI A.V.RAGHU RAM, Advocate [OPUC] 8. One CC to Ms. BOKARO SAPNA REDDY, Sr. SC FOR TNCOIME TAX [OPUC] 9. One CC to SRI VIJHAY K. PUNNA, Sr. SC FOR TNCOME TAX [OPUC] 10. Two CD Copies PSK. TKS V. G

HIGH COURT DATED: 2910912026 2 DRAFTS NOTEi LIST ALONG WITH BATCH gE sfAr4. 1 'ii ( :l tz oct nza -+. :! ORDER WP.No.28520 of 2024 DIRECTION ,#& *"x"* I

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