Venkatesh Thota vs. The Assistant Commissioner of Income Tax

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WP/29575/2024HC TelanganaHBHC01056533202402 May 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 notice dated April 10, 2024, and all consequential proceedings. The Court has directed that the matter be listed along with a batch of similar cases. The interim stay has been granted in light of the order passed by the Hon'ble Supreme Court in Diary No. 2196 of 2026 and batch, decided on April 10, 2026. The specific findings on the merits of the issues raised by the petitioner, including the validity of the notice under Sections 148, 148A, 149, and 151A of the Act, and the applicability of the CBDT circular, are not decided at this interim stage. The operative direction is to grant an interim stay.

What were the facts?

The petitioner, Venkatesh Thota, has filed a writ petition before the High Court of Telangana challenging a notice dated April 10, 2024, issued by the Assistant Commissioner of Income Tax, Circle 1, Karimnagar, under Section 148 of the Income Tax Act, 1961. The petitioner contends that this notice, with DIN and Notice No. ITBA/AST/SI148_112024-25/1064032637(1), is without jurisdiction, arbitrary, illegal, and void ab initio. The petitioner also argues that the notice violates the provisions of Sections 148A, 149, and 151A of the Act, and is contrary to a CBDT circular. The petitioner seeks to set aside the impugned notice and all consequential proceedings. An interim stay application has also been filed seeking to halt the proceedings pending the disposal of the writ petition.

What were the issues?

1. Whether the notice dated April 10, 2024, issued by the Assistant Commissioner of Income Tax 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 violates the provisions of Section 148A of the Income Tax Act, 1961? 3. Whether the said notice violates the provisions of Section 149 of the Income Tax Act, 1961? 4. Whether the said notice is contrary to the circular issued by the CBDT and violates 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 void ab initio, violating Sections 148A, 149, and 151A of the Act, and is also contrary to CBDT circulars. The petitioner relies on the order of the Supreme Court in Diary No. 2196 of 2026 and batch decided on April 10, 2026. Revenue's Contentions: The judgment does not record any specific contentions made by the revenue at this stage, other than the appearance of Ms. J. Sunitha, SC for Income Tax.

Which sections of the Income-tax Act were involved?

Section 148,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) 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:29575 OF 2024 Between: Venkatesh Thota, S/o: Vaikuntam Thota, aged about 46, Rl/o 3- 6- 680 Flat No 102 Padmalaya Apartments, Street No 10, Himayatnagar Hyderabad 500029, Telangana, lndia. ...PETITIONER AND 1. The Assistant Commissioner of lncome Tax, Circle 1, Karimnagar 2. 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. Union of lndia, Rep. by its Secretary, Ministry of Finance, Department of Revenue, North Block, Central Secretariat, New Delhi- 110 001. ...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 an order or direction, especially one like WRIT OF MANDAMUS, holding that the notice dated 10- 04- 2024 issued by 1st Respondent under section 148 of the Act with DIN and Notice No. ITBA/AST|SI148_112024- 2511064032637(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 by CBDT and provisions of section 15'1A of the Act and consequently set aside the notice under section 148 DIN and Notice No. ITBA/AST/S/1 48 1 I 2024- 25 I 1 064032637 ( 1 ) dated't 0- 04- 2024.

l.A. NO: 1OF 2024 Petition under Section 151 CPC praying that in the circunlstances stated in the affidavit filed in support of the petition, the High Court may be pleased to stay the notice dated 10- 04- 2024 issued by 1st Respondent under section 148 of the Act with DIN and Notice No ITBAJAST/51148_112024- 2511064032637(1) and all consequential proceedings pending the disposal of the writ petition. Counsel for the Petitioner: SRI RAJA SHEKAR RAO SALVAJI Counsel for the Respondents: MS. J. SUNITHA, 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/. S.MALLIKARJUNA RAO ASSISTANT REGISTRAR //TRUE COPY// SECTION OFFICER To, 1. The Assistant Commissioner of lncome Tax, Circle 1, Karimnagar 2, Natro nal Faceless Assessment Centre lncome Tax Department, lVlinistry of Finance, Room No 401 2nd Floor E- Ramp, Jawaharlal Nehru Stadium, Delhi 1 10 003 3. The Secretary, Union of lndia, Ministry of Finance, Department of Revenue, North Block, Central Secretariat, New Delhi- 1 10 00'1 . 4. The Section Officer, Writ D.B. Section, High Court for the State of Telangana, at Hyderabad. 5. The Section Officer, Posting Section, High Court for the State of Telangana, at Hyderabad. 6. One CC to Sri Rala Shekar Rao Salvaji, Advocate [OPUCI 7. One CC to Ms J. Sunitha(Senior SC for lncome Tax) [OPJC] B. Two CD Copies Yt- l'J G

HIGH COURT PSK, J & NNR, J DATED: 0710912026 ORDER WP.No.29575 of 2024 INTERIM STAY TWO DRAFTS a $ c He li l' 1 t) '.7 1 7 SFt' \o':oPfe'A q- ,ffii6

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