Mr. Srinivasa Sharma Mokarala vs. The Income Tax Officer

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WP/29122/2024HC TelanganaHBHC01056540202429 April 2025Bench: P.SAM KOSHY,NARSING RAO NANDIKONDA4 pages
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What did the High Court hold?

The High Court, in its order dated September 7, 2026, acknowledged the writ petition and the interim stay application. The Court ordered that the writ petition be listed along with a batch of similar cases. Crucially, the Court granted an interim stay on the impugned order, referencing an order passed by the Hon'ble Supreme Court in Diary No. 2196 of 2026 and batch, decided on April 10, 2026. The specific grounds for the stay or the eventual outcome of the writ petition on merits are not detailed in this excerpt. The operative direction is the interim stay of the impugned order pending further proceedings.

What were the facts?

The petitioner, Mr. Srinivasa Sharma Mokarala, has filed a writ petition before the High Court for the State of Telangana at Hyderabad. The petition challenges an order passed by the 1st Respondent (Income Tax Officer, Ward 16(1), Hyderabad) under Section 147 read with Section 144B of the Income Tax Act, 1961, dated March 4, 2024, for Assessment Year 2015-16. The petitioner also challenges consequential penalty orders passed by the 1st Respondent under Section 271(1)(c) and Section 272A(1)(d) of the Act, dated September 23, 2024, and September 18, 2024, respectively, for the same assessment year. The petitioner seeks to declare these orders arbitrary, illegal, and void ab initio, violating principles of natural justice and constitutional provisions. An interim stay was sought on recovery proceedings pursuant to a notice under Section 148 issued by the 2nd Respondent (Income Tax Officer, Ward 15(1), Hyderabad) dated April 6, 2022, for Assessment Year 2015-16.

What were the issues?

1. Whether the order passed by the 1st Respondent under Section 147 read with Section 144B of the Income Tax Act, 1961, dated March 4, 2024, for Assessment Year 2015-16, is arbitrary, illegal, bad in law, void ab initio, and violative of the principles of natural justice and Articles 14, 19(1)(g), and 265 of the Constitution of India and Section 148A of the Income Tax Act, 1961. 2. Whether the consequential penalty orders passed by the 1st Respondent under Section 271(1)(c) and Section 272A(1)(d) of the Income Tax Act, 1961, dated September 23, 2024, and September 18, 2024, for Assessment Year 2015-16, are liable to be set aside. Assessee's Contentions: The petitioner argues that the impugned orders are arbitrary, illegal, bad in law, void ab initio, and violative of the principles of natural justice, as well as Articles 14, 19(1)(g), and 265 of the Constitution of India and Section 148A of the Income Tax Act, 1961. Revenue's Contentions: The judgment does not record specific contentions from the revenue.

Which sections of the Income-tax Act were involved?

Section 147,Section 144B,Section 271(1)(c),Section 272A(1)(d),Section 148A,Section 148

AI-generated summary — verify with the full judgment below

134471 IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD (Special Original Jurisdiction) MONDAY, THE SEVENTH 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:,29122 OF 2024 Between: Mr. Srinivasa Sharma Mokarala, S/o. Late Mr. M. Ramakrishna Sharma, aged 50 years, Occ. Purohit, R/o. 12-10-269, Pasupathinatha Temple Lane' Sitaphalmandi, Secunderabad - 500 061 , Telangana. .....PETITIONER AND 1. The lncome Tax Officer, Ward 16(1), Hyderabad, l.T. Tower, AC Guards, Masab Tank, Hyderabad - 500 004, Telangana. 2. The lncome Tax Officer, Ward 15(1), Hyderabad, l.T. Tower, AC Guards' Masab Tank, Hyderabad - 500 004, Telangana. 3. The Principal Chief Commissioner of lncome Tax, Andhra Pradesh and Telangana, Hyderabad, Room No.. 922,}th Floor,'B'Block, l.T.Towers, 10-2- 3, AC Guards, Hyderabad - 500 004, Telangana. 4- Assessment Unit, lncome Tax Department, National e-Assessment Center, New Delhi, Room No.. 4O1,2nd Floor, E-Ramp. Jawaharlal Nehru Stadium, New Delhi - 110 003. 5. The Principal Commissioner of lncome f ax - 4, Hyderabad' l.T.Towers, 10-2- 3, AC Guards, Hyderabad - 500 004, Telangana. ....,RESPONDENTS Petition Under Article 226 ot 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 of Mandamus or any other appropriate writ, order or Direction, declaring that a. the order passed by the 1st Respondent, uts 147 r/w sec. 1448 ol the lncome Tax Act, 196'1 , dated 04.03.2024, bearing DIN and Notice No ' tTBfuAST/S/l4712023-2411061983099(1), for the Assessment Year 2015 - 16 b.

consequential penalty order passed by the 1st Respondent, levying penalty u/s 271(1)(c) and Sec. 272A(1)(d) of the lncome Tax Act, 1961, dated 23.09.2024 and 18.09.2024, bearing DIN ITBA/ PNL/ F1271 (1) (c)12024- 2511068995120(1)llBA/PNL/F1271(1)(b)12024-25l1068849545(1) for the Assessment Year 2O15 - '16 as arbitrary, illegal, bad in law, void-ab-inltio, violative of the principles of natural justice, apart from being violative of Articles 14, 19(1)(g) and 265 of the Constitution of lndia and Sec 1 48A of the lncome Tax Act, 196'l , and to consequently set asrde the same in the interests of justice. l.A.NO:1 OF 2024 Petition Under Section 151 CPC praying that in the circumstances stated in the affidavit filed in s;upport 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 the Act, dated 06.04.2022, issued by the 2nd Respondent vide DIN and Notice. ITBA/AST/S/148 112022- 2311042594994(1). for the Assessment Year 2015 - 16, pending disposal of the above writ petition. Counsel for the Petitioner : SRI A.V.A.SIVA KARTIKEYA Counsel forthe Respondents: SRI KAMASANI SUDHAKAR REDDY, LEARNED SENIOR STANDING COUNSEL FOR THE INCOME TAX DEPARTMENT 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 2Q26 antl batch decided on 10.04.2026. //TRUE COPY// 1. The lncome l'ax Officer, Ward 16(1), Hyderabad, l.T. Tower, AC Guards, Masab Tank, llyderabad - 500 004, Telangana. 2. The lncome lax Officer, Ward 1b(i), Hyderabad, l.T. Tower, AC Guards, Masab Tank, l-lyderabad - S00 004, Telangana. 3. The Principal chief commissioner of rncome Tax, Andhra pradesh and Telangana, HyCerabad, Room No.. 922, glh Floor, 'B' Block, l.T.Towers, 10_2_ 3, AC Guards, Hyderabad - 500 004, Telangana. SD/. A.JAYASREE ASSISTANTEEGISTRAR \ sEclroN oFFtcER To

4.

The Assessment Unit, lncome Tax Department, National e-Assessment Center,NewDelhi,RoomNo.4O'l,2ndFloor,E-Ramp'JawaharlalNehru Stadium, New Delhi - 110 003. 5. The Principal Commissioner of lncome lax' 4, Hyderabad, l T'Towers, 10-2- 3, AC Guards, Hyderabad - 500 004, Telangana. 6. The Section Officer, Writ DB Section, High Court for the State of Telangana at Hyderabad. 7. Tlie Section Officer, Writ Posting Section, High Court for the State of Telangana at Hyderabad. 8. One CC to SRI A.V.A.SIVA KARTIKEYA, Advocate IOPUC] 9. One CC to SRI KAMASANI SUDHAKAR REDDY, LEARNED SENIOR STANDING COUNSEL FOR THE INCOI\/E TAX DEPARTIUENT IOPUC] 1 0. Two CD Copies SA TKSa

HIGH GOURT DATED: 0710912026 List along lYith batch ORDER WP.No.29122 of 2024 INTERIM STAY. 1r sEP 206 4t .t ,.. 1:i;2';:'. --'==';' HE ST4 1, ,i, ? LJ (-J * or: l3 GP'ice -T,? \1 aq\xb I

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