MS Agarwal Foundries Private Limited vs. Union of India and 2 others

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WP/34347/2022HC TelanganaHBHC01049931202213 December 2023Bench: P.SAM KOSHY,N.TUKARAMJI6 pages
AI SummaryAllowed

What did the High Court hold?

The High Court allowed the Writ Petition. The Court was informed that identical writ petitions, specifically W.P.Nos.9509 of 2022 and batch, had already been allowed and disposed of by an order dated 19.09.2023. In view of this precedent, the Court inclined to allow the present Writ Petition in terms of the order passed in W.P.No.9509 of 2022. The reasoning is based on the principle of parity and the prior decision of the same bench on identical matters. The impugned order and notice were set aside/quashed. The right of the Department was reserved as protected in the batch matters decided on 14.09.2023 in W.P.Nos.25903 of 2022 and batch. Miscellaneous applications pending in this writ petition were closed. No order as to costs.

What were the facts?

The assessee, M/s Agarwal Foundries Private Limited, filed a writ petition challenging an order dated 28.07.2022 passed by the Assistant Commissioner of Income Tax (ACIT) under Section 148A(d) and a notice dated 28.07.2022 issued under Section 148 of the Income Tax Act, 1961. These actions proposed to initiate reassessment proceedings for Assessment Year 2014-15. The assessee sought to declare these orders and notices as illegal, arbitrary, and contrary to the Act. The revenue, represented by the Union of India and the Principal Commissioner of Income Tax, filed an application to vacate any stay granted. The High Court was informed that identical writ petitions had already been allowed.

What were the issues?

1. Whether the order dated 28.07.2022 passed by the Respondent No. 3 under Section 148A(d) and the notice dated 28.07.2022 issued under Section 148 of the Income Tax Act, 1961, proposing reassessment proceedings for AY 2014-15, are illegal, arbitrary, and contrary to the provisions of the Income Tax Act? (Question of law and fact, concerning Sections 147, 148, and 148A of the Income Tax Act, 1961). Assessee's Contention: The assessee argued that the impugned order and notice were illegal and arbitrary. The judgment does not explicitly record the assessee's specific arguments beyond this general assertion. Revenue's Contention: The revenue filed an application to vacate the stay granted in the writ petition. The judgment does not explicitly record the revenue's specific arguments against the assessee's petition.

Which sections of the Income-tax Act were involved?

Section 148A,Section 148,Section 147

AI-generated summary — verify with the full judgment below

[ 337e ] HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD (Special Original Jurisdiction) WEDNESDAY, THE THIRTEENTH DAY OF DECEMBER TWO THOUSAND AND TWENTY THREE PRESENT THE HONOURABLE SRI JUSTICE P.SAM KOSHY AND THE HONOURABLE SRI JUSTICE N.TUKARAMJI WRIT PETITION NO: 34347 OF 2022 Between: MS Agarwal Foundries Private Limited, Having its Registered Office at 5-4-83, Rama Toweis, 2nd Floor Tsk Chambers, Opp. Raniguni Bus Depot, M.G. Road, Secunderabad TG 500003 lN and Rep. by its Authorized Signatory [\ilr. Pawan Kumar Sharma ...PET',.NER AND 1. Union of lndia, Ministry of Finance, North Block, New Delhi Rep. by its Secretary, 2. Principal Commissioner of lncome Tax, Aayakar Bhavan, Basheerbagh, Hyderabad. 3. Office of the Asst. Commissioner of lncome Tax, DCIT, Circle 5(1), Room No. 344. D- Block, 3rd Floor, lT Tower, AC Guards, lulasab Tank, Hyderabad, Telangana - 500004' ...RES'.NDENTS Petition under Article 226 of lhe Constitution of lndra 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 writ, direction, or directions lo declare the order daled 2810712022 passed by the Respondent No. 3 under Sectron 148-A(d) of the lncome Tax Act, 1961 and the notice dated 2810712022 issued by the Respondent No. 3 under Section 148 of the lncome Tax Act, 1961 proposing to carry forward the reassessment proceedings against the Petitioner under Sections 147 & 148 of the lncome Tax Act, 196'1 pertaining to the Assessment Year 2O14-15, as illegal, arbitrary and contrary to the provisions of the lncome Tax Act and to set aside the same.

lA NO: 1 OF 2022 Petition under Section 151 CPC praying that in the circumstances stated in the affidavit filed in support of the petition, the High Court may be pleased to grant stay of all further proceedings in pursuance to the order dated 2810712022 passed by the Respondent No. 3 under Section 148-A(d) of the lncome Tax Act, 1961 and the notice daled 28.O7.2O22 issued by the Respondent No. 3 under Section 148 of the lncome Tax Act, 1961 proposing to carry forward the reassessment proceedings under Sections 147 & 148 of the lncome Tax Act, 1961 lA NO: 2 OF 2022 Between: 1. Union of lndia, Ministry of Finance, North Block, New Delhi Rep. by its Secretary, 2. Principal Commissioner of lncome Tax, Aayakar Bhavan, Basheerbagh, Hyderabad. 3. Office of the Asst. Commissioner of lncome Tax, DCIT, Circle 5(1), Room No. 344, D-Block, 3'd Floor, lT Tower, AC Guards, Masab Tank,'Hyderabad, Telangana - 500004. ...PETITIONERS/RESPONDENT No.1 to 3 AND MS Agarwal Foundries Private Limited, Having its Registered Office at 5-4-83, Rama Towers, 2nd Floor Tsk Chambers, Opp. Ranigunj Bus Depot, M.G. Road, Secunderabad TG 500003 lN and Rep. by its Authorized Signatory Mr. Pawan Kumar Sharma ...RESPONDENT/WRIT PETITIONER Petition under Section 151 CPC praying that in the circumstances stated in the affidavit filed in support of the petition, the High Court may be pleased to vacate the orders dated O2lOgl2O22 in W.P.No.34347 ot 2022, in the interest of justice. Counsel for the Petitioner: SRI V. ANEESH Counsel forthe Respondent No.1: SMT. B. KAVITHA YADAV, S.C. FOR CENTRAL GOVERNMENT Counsel for the Respondent Nos.2 & 3: SRI J.V. PRASAD, Sr. S.C. FOR INCOME TAX The Court made the following: ORDER

To, NIP GJP THE HONOURABLE SRI JUSTICE P.SAM KOSHY AND THE HONOURABLE SRI JUSTICE N.TUNARAMJI WRIT PETITION No.34347 OF 2022 OR.DER: (per Hon'ble Si Justice P.SAM KOSHY) When the matter is taken up for hearing today, it has been informed by the parties that identical Writ Petitions i.e., W.P.Nos.9509 of 2022 and batch have already been allowed a-nd disposed of uide order, dated 19.O9.2023. 2. In view of the fact that the identical matters have already been allowed by this Court, we are inclined to allow this Writ Petition in terms of the order passed in W'P.No.95O9 of 2022 decided oo 19.O9.2023 on similar terms. 3. As a sequel, miscellaneous appLications pending if any in this Writ Petition, shall stand closed. No order as to costs. SD/. MOHD. SANAULLAH ANSARI ASSISTANT GIS R //TRUE COPY// SECTION OFFICER 1. The Secretary, Union of lndia, Ministry of Finance, North Block, New Delhi' 2. The Principal Commissioner of lncome Tax, Aayakar Bhavan, Basheerbagh' Hyderabad. 3. The Office of the Asst. Commissioner of lncome Tax, DCIT, Circle 5(1), Room - rlo. ea+ D- Block,3rd Floor, lT Tower, AC Guards, Masab Tank, Hyderabad, Telangana - 500004. 4 One CC to SRI V. ANEESH, Advocate [OPUC] 5. One CC to Smt. B.KAVITHA YADAV, S.C. for Central Government [OPUC] 6. One CC to SRI J.V. PRASAD, Sr. S.C- for lncome Tax [OPUC] 7. Two CD Copies Along with a copy of the Order dated 19.09.2023 in W.P.No 9509 of 2022 & Batch{jF"-

HIGH COURT DATED:1311212023 ORDER WP.No.34347 ol2O22 1 BE ST4 r.-c 3 0 JA|{ 2024 ( 4 Jo,J o\-v a', * .S P.,,-f a !r 'o DE ALLOWING THE WRIT PETITION WITHOUT COSTS 1N

THE HON'BLE SRI JUSTICE P.SAM KOSHY AND THE HON'BLE SRI JUSTICE LAXMI NARAYANA ALISHETTY WRIT PETITION Nos.9509 18133 1169l of2023 and 30891 of2022 COMMON ORDER:(pL,r Ilon'l e Sri Jtrsticc P.SAM KOSHY) Heard Mr.Manmohan Dundu,.leamed counsel for the petitioner in all these writ petitions and Mr.J.V.Prasad, leamed Senior Standing Counsel for the respondents. Perused the material on record. 2. It has been informcd that one of the preliminary objections raised by the petitioner has been recently answered by this Division Bench in W.P.No.25903 ol 2022 and batch which was decided vide order 14.09.2023 3. In view of the decision of this Division Bench in the aforesaid writ petitions, and since the prelirninary objection being the same, the impugned notice and the consequential orders stands set aside/quashed. However, the right of the Department would stand reserved as has been protected in the batch matters which were decided on 14.09.2023 in W.P.Nos.25903 of 2022 and batch. 4. Accordingly, thesc w'rit petitions are allowed. No order as to costs-

2 5. As a sequel, miscellaneous applications pending if any in these writ petitions, shall stand closed. No order as to costs. P.SAM KOSHY, J LAXMI NARAYANA ALISHETTY, J 19.o9.2023 Aqs/hfm

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