Mr. Amar Dixit vs. The Income Tax Officer - Ward 1

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WP/33446/2023HC TelanganaHBHC01061273202311 December 2023Bench: P.SAM KOSHY,N.TUKARAMJI3 pages
AI SummaryPartly Allowed

What did the High Court hold?

The High Court, considering the interim protection already granted by the Hon'ble Supreme Court while disposing of the 'Faceless batch' of cases, was inclined to grant interim protection to the petitioner. Accordingly, the Court granted an interim stay on all further proceedings pursuant to the notice issued by the 1st Respondent under Section 148 of the Income Tax Act, 1961, until the next date of hearing. The matter was directed to be listed before the appropriate Bench having the roster. The Court did not decide the constitutional validity of Section 147A or the legality of the impugned order and notice on merits, but only granted an interim stay based on the Supreme Court's prior orders.

What were the facts?

The petitioner, Mr. Amar Dixit, filed a writ petition before the High Court for the State of Telangana at Hyderabad challenging the constitutional validity of Section 147A of the Income Tax Act, 1961, introduced retrospectively from April 1, 2021. The petitioner also challenged an order passed by the Income Tax Officer (ITO) under Section 148A(d) and a notice issued by the ITO under Section 148 of the Income Tax Act, 1961, both dated April 20, 2022, pertaining to Assessment Year 2015-16. The petitioner sought to declare Section 147A as ultra vires and the ITO's actions as arbitrary, illegal, barred by time, and violative of constitutional provisions and principles of natural justice. An interim application was filed seeking a stay on further proceedings pursuant to the Section 148 notice.

What were the issues?

1. Whether Section 147A of the Income Tax Act, 1961, introduced retrospectively from April 1, 2021, is ultra vires the Constitution of India and the Income Tax Act, 1961, and violative of the basic structure of the Constitution, including the rule of law and separation of powers? (Question of law) 2. Whether the order passed by the 1st Respondent under Section 148A(d) and the notice issued under Section 148 of the Income Tax Act, 1961, for Assessment Year 2015-16, are arbitrary, illegal, barred by time, bad in law, void-ab-initio, and violative of Articles 14, 19(1)(g), and 265 of the Constitution of India and Section 151A of the Income Tax Act, 1961? (Question of mixed law and fact) Assessee's Contentions: The petitioner argued that Section 147A is unconstitutional and that the impugned order and notice are illegal, time-barred, and violative of fundamental rights and principles of natural justice. The petitioner relied on the interim protection granted by the Supreme Court in a related batch of cases. Revenue's Contentions: The judgment does not record specific contentions from the revenue.

Which sections of the Income-tax Act were involved?

Section 147A,Section 148A,Section 148,Section 151A

AI-generated summary — verify with the full judgment below

[ 337e ] HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD THURSDAY, THE THIRTIETH DAY OF JULY TWO THOUSAND AND TWENTY SIX PRESENT: WP NO: 33446 OF 2023 Between lVr. Amar Dixit, Sio [t/r. Venkatesh Dixit .....PETITIONER AND 1. The lncome Tax Officer - Ward 1, l/ahbubnagar, lncome Tax Office, DEO Office Road, ttlahbubnagar - 509 001, Telangana. 2. The Principal Chief Commissioner of lncome Tax, Andhra Pradesh and Telangana, Hyderabad, Room No. 922, 9th Floor, 'B' Block, l.T.Towers, 10-2- 3, AC Guards, Hyderabad - 500 004, Telangana. 3. Assessment Unit, lncome Tax Department, National e-Assessment Center, New Delhi, Room No.. 401 ,2nd Floor, E-Ramp, Jawaharlal Nehru Stadium, New Delhi - 1 10 003. ....,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 lt is therefore prayed that, this Hon'ble Court be pleased to issue a Writ of Mandamus or any other appropriate Writ, Order or Direction. declaring: a. Sec. 147A of the lncome Tax Act, 1961. introduced vide Finance Act. 2026 (Act No.: 4 of 2026), with retrospective effect from 01.04.2021, as ultravires the Constitutionof lndiaandthelncomeTaxAct, l96l,apartfrombeingviolativeof the basic structure of the Constitution of lndia, including the rule of law and separation of powers; AND b. the order passed by the 1st Respondent, u/s 14BA(d) of the lncome Tax Act, 1961, dated 19.04.2022, bearing DIN and Notice No.: ITBA/ASTlFl148A12022- 2311042782401(1), for the Assessment Year 2015 - 16; & c. the notice dated 20.04.2022, issued bythe 1st Respondent, u/s 148 of the lncome Tax Act, 1961, dated 20.04.2022, bearing DIN and Notice No.: ITBA/ASTlsll49_112022-2311042784797(1), for the Assessment Year 2015 - 16; as arbitrary, illegal, barred by time, bad in law, void-ab-initio, violative of the principles of natural justice, apart from being violative of Articles 14, 19(1Xg) and 265 of the THE HONOURABLE SRI JUSTICE P.SAM KOSHY AND THE HONOURABLE SRI JUSTICE N.TUKARAMJI

Constitution of lndia & Sec 151A of the lncome TaxAct, 1961, and to consequently set aside the same in the interests of justice. (Prayer is amended as per Court Order dated 30.07.2026 vide !.A.No. 1 of 2026 in W.P.No.33446 ot 2023) l.A. NO: 1 OF 2023 Petition under Section 151 of C.P.C praying that in the circumstances stated in the affidavit filed in suppotl of the writ petition, the High Court may be pleased to stay all further proceedings, including any recovery, pursuant to the notice issued by the 1st Respondent, u/s 148 of the lncome Tax Act, 1961, dated 20.04.2022, bearing DIN and Notice No. ITBA/AST/S/148-112022- 2311042784797(1), for the Assessment Year 2015 - 16, pending disposal of WP No 33446 of 2023, 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 A V A SIVA KARTIKEYA Advocate for the Petitioner and tMrs. KAMASANI SUDHAKAR REDDY, Senior Standing Counsel for the Respondents, the Court made the following. ORDER Considering the interim protection already granted by the Hon'ble Supreme Court while disposing of the Faceless batch, we are inclined to grant interim protection to the petitioner herein as well. Accordingly, there shall be interim stay as prayed for, till the next date of hearing. Let the matter be listed before the appropriate Bench having roster. Sd/- T.SRINWASA REDDY eiblstenT REGTSTRAR tr<\& To, //TRUE COPY/ SECTI OFFICER 1. The lncome Tax Officer - Ward 1, lt/ahbubnagar, lncome Tax Office, DEO Office Road, li/ahbubnagar - 509 001, Telangana.[By SPAD] 2. The Principal Chief Commissioner of Income Tax, Andhra Pradesh and Telangana, Hyderabad, Room No.. 922, 9th Floor, 'B' Block, l.T.Towers, 10-2- 3, AC Guards, Hyderabad - 500 004, Telangana.[By SPAD] 3. Assessment Unit, lncome Tax Department, National e-Assessment Center, New Delhi, Room No.. 401 , 2nd Floor, E-Ramp, Jawaharlal Nehru Stadium, New Delhi - 110 003.[By SPAD] 4. One CC to Sri. A V A SIVA KARTIKEYA Advocate IOPUC] 5. Two spare copies

HIGH COURT PSK, J & NTR, J DATED: 30-07 -2026 ORDER WP.No.334/lG ot 2023 STAY $b

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