Nandyaia Radhika vs. Income Tax OfficerWard 1

t 3403I HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD (Special Original Jurisdiction) TUESDAY, THE SECOND DAY OF APRIL TWO THOUSAND AND TWENTY FOUR PRESENT THE HONOURABLE SRI JUSTICE SUJOY PAUL AND THE HONOURABLE SRI JUSTICE N.TUKARAMJI WRIT PETITION NOs: 8454 AND 8448 OF 2024 WRIT PETITION NO: 8454 OF 2024 Between: The Karlmnagar District Co Operative Marketing Society Limited, Rep. By Regulapati Venkateshwar Rao, aged 60, S/o. Sridhar Rao, Occ. Business Manager, Near Agricultural Market, Agriculture [\,4arket, Karimnagar 505001, Telangana ...PETITIONER AND 1 lncome Tax Officer, Ward 2, Karimnagar, AayakarBhavan, Near Natraj Theatre, Karimnagar, Telangana - 505001 The Principal Commissioner Of lncome Tax-2, Hyderabad, Signature Towers, Opp. Botanical Gardens, Kondapur, Hyderabad-500 084. 3. The Assessment Unit, lncome Tax Department, National Faceless Assessment Centre, Delhi, Ministry of Finance, Room No. 4O1 .2nd Floor, E- Ramp, Jawaharlal Nehru Stadium, Delhi-1 10003 ...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 appropriate writ order or direction more particularly one in the nature of Writ of Mandamus, declaring the Assessment Order d1.21 .O3.2024 passed by the 3'd respondent u/s 147 r.w.s 144F of the lncome-tax Act for A.Y. 2018-1 9 vide DIN No. ITBA/AST|S|147l2o23-24l1063112980(1), which is passed as a consequence of the order passed u/s 148A(d) dt.07.O4.2022 vide DIN No. ITBA/AST/F/148A12022-2311042621047(1) and the notice u/s148 dt.O7lO4l2O22 vide DIN No.ITBA/AST/S 1148 112022- 2311042640697(1 ), issued by the JAO(1St 2

respondent) instead of FAO(3rd respondent),as void, illegal, and contrary to the provisions of lncome-tax Act and contrary to the Principles of Natural Justice. lA NO: 1 OF 2024 Petition under Section 151 CPC praying that in the circumstances stateid in the affidavit filed in support of the petition, the High Court may be pleased to stay all further proceedings pursuant to the Assessment Order dt.2110312024 by the 3rd respdndent uls 147 r.w.s144B of the lncometax Act for A.Y. 2018-19 vide DIN No. ITBA/AST/5114712023-24/1063112980(1), and may pass such other order(s) as the Hon'ble court deems fit and proper in the interests of substantial justice, as otherwise the Petitroner would be put to irreparable loss and severe inju ry. Counsel for the Petitioner: SRI DUNDU MANMOHAN Counsel forthe Respondents: M/s. SUNITHA, REP. FOR M/s. SUNDARI R.PISUPATI, SC FOR INCOME TAX WRIT PETITION NO: 8448 OF 2024 Between: Nandyaia Radhika, W/o C Rama Seshu, Aggd about 59 years, O-cc Pvt. Empl5yee, Villa No. 51, Aakrithi ARV Viva, Osman Nagar Road, Tellapur, Sangareddy, Telangana - 502032. ...PETITIONER AND 1 lncome Tax Officer Ward 1, Sangareddy, lncome Tax Office, Veerabhadra Nagar, New Bus Stand, Sangareddy, Telangana - 502001. The Principal Chief Corrmissioner Of lncome Tax AP And TS, 1Oth Floor, C- Block, lT. Towers, 10 2 3, A.C. Guards, Hyderabad-500004. The Assessment Unrt, lncome Tax Department, National Faceless Assessment Centre, Delhi, Ivlinistry of Finance, Room No. 4O1 ,2nd Floor' E- Ramp, Jawaharlal Nehru Stadium, Delhi-1 10003. ...RESPONDENTS Petition under Article 226 of lhe Constitution of lndia praying that in the circumstances stated in the affidavit filed therewith, the High Court may be pleased to issue an appropriate writ order or direction more particularly one in the nature of Writ of lVlandamus, declaring the Assessment Order 2 3

,i I dt.13.O3.2o2apassed by the 3rdrespondent u/s 147 r.w.s144B of the lncome-tax Act for A.Y. 2016-17 vide DIN No. ITBA/AST/S/14712023- 2411062567015(1 ),which is passed as a consequence of the order passed u/s 1 48A(d ) dt.25.03.2023 vide Dl N No. ITBA/AST lF I 1 48 Al2o22-231 1 051 2907 1 7 (1 ) and the notice u/s 148 d1.25.03.2023 vide ,OiN No.tteRlASTtStl4B_1t2O22- 231105129177 5('1 ), issued by the JAO(1st respondent) instead of FAo(3rd respondent), that too contrary to the provisions of Sec. 149 of the Act, as void, illegal, and contrary to the provisions of lncome-tax Act and contrary to the Principles of Natural Justice. lA NO: 1 OF 2024 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 stay all further proceedings pursuant to the Assessment Order Dt.13.03.2024 passed by the 3'd respondent u/s 147 (.w.s1449 of the lncome{ax Act for A.Y, 2O16-17 vide DIN No. ITBA/ASTlsl14712023-2411062567015(1), and may pass such other orde(s) as the Hon'ble Court deems fit and proper in the interests of substantral Justice, as otherwise the Petitioner would be put to irreparable loss and severe in ju ry. Counsel for the Petitioner: SRI DUNDU MANMOHAN Counsel for the Respondents: M/s. SUNITHA, REP. FOR M/s. SUNDARI R.PISUPATI, SC FOR INCOME TAX The Court made the following: COMMON ORDER

THE HONOURABLE SRI JUSTICE SUJOY PAUL AND THE HONOURABLE SRI JUSTICE N. TUKARAMJI WRIT PETITION NOS.8454,AND 8448 OF 2024 COMMON ORDER (per Hon'ble SP,J) Heard Sri Manmohan Dundu, learned counsel for the petitioner(s) and Ms.Sunitha, representing Ms.Sundari R Pisupati, learned Standing Counsel for lncome Tax appearing on behalf of the respondents in both the writ petitions. 2 Regard being had to the similarity of the question involved, on the joint request of the parties, the matters are analogousll' heard and decided b1' this common order. 3. [t is common ground taken by the learned counsel for the petitioner(s) that in furtherance of Finance Act,2O2l, re- assessment process stood modified but the respondents have not taken care oI it and therefore notices issued under Section 148 of the lncome Tax Act, 196 I cannot sustain judicial scrutiny. Since notices are bad in [au', the consequential orders are also bad in I ar.r

I' 2 4 During the course of hearing, learned counsel for the parties agreed that curtains on this issue are finally drawn by this Court in a batch of writ petitions, W.P.No.259O3 of 2022 and other connected matters, decided by common order dated 14.Og.2023. The parties agreed that this matter may be disposed of in terms of the Common Order dated 14.09'2023' 5. This Court in the said order dated l4'O9'2O23 W.P.No.259O3 of 2022, held as under: "35. ln view of the aforesaid discussions, it is by now very clear that the procedure to be followed by the respondent-Department upon treating the notices issued for leassessment being under Section 148A, the subsequent proceedings was mandatorily required to be undertaken under the substituted provisions as laid down under the Finance Act, 2021. ln the absence of which, we are constrained to hold that the procedure adopted by the respondent-DePartment is in contrayention to the statute i'e. the Finance Acl, 2021, at the first instance. Secondly, it is also in direct contravention to the directives issued by the Hon'ble Supreme Court in the case of Ashish Aganral' supra. 36. For all the aforesaid reasons, the impugned notices issued and the proceedings drawn by the resPondentoepartment is neither tenable' nor sustainable-'The notices so issued and the procedure adopted being per ., tt"g"t, deseryes to be and are accordingly set aside/quashed. As a consequence, all the lmpugned orders getting quashed, the consequential ordels passed by the lespondent Department pursuant to the notices issued under Section 147 and 148 would also get quashed and it is ordered accordingly' The reason we are quashing the consequential order is on the princiPles that when the initiation of the proceedings itself was procedurally wrong, the subsequent orders also gets nullified automatically' 37. The preliminary obiection raised by the Petitioner is sustained and all these writ petitions stands allowed on this very jurisdictional issue' 1n

3 Since the impugned notices and orders are getting quashed on the point of jurisdiction, we are not inclined to Proceed further and decide the other issues raised by the petitioner which stands resewed to be raised and contended in an apProPriate Proceedings. 38. Since the Hon'ble Supreme Court had, in the case of Ashish Agarwal, suprar as a one-time measure exercising the powe6 undel Article 142 of the Constitution of lndia, permitted the Revenue to proceed under the substituted provisions, and this Court allowing the petitions only on the procedural flaw, the right conferred on the Revenue would remain reserved to proceed further if they so want from the stage of the order of the Supreme Court in the case of Ashish Agarwal, supra. 39. No order as to costs." 6 In view of the consensus arrived, the impugned Show Cause notices and consequential orders passed in this batch of writ petitions are set aside. Liberty is reserved to both the parLies to take respective stand and to proceed in accordance with law as per paragraph No.38 ol the order dated 14.09.2023 in W.P.No.25903 of 2022 7 The writ petitions are allon,ed. No costs. Interlocutory applications, if any pending, shall also stand closed SD/.B. SARASWATHI ASSISTANT REGISTRAR 'r'orD SEC"TION OFFICER 1 The lncome Tax Officer, Wa.d 2. Karrmnagar, AayakarBhavan, Near Natraj Theatre, Karimnagar. Telangana - 505001 2 The Principal Commisstoner Of lncome Tax-2, Hyderabad, Signature Towers, Opp. Botanical Gardens. Kondapur, Hyderabad-500 084. //TRUE COPY// To,

3 4 5 The Assessment Unit, !,]9gr" Iq, Department, National Facetess Assessment Cenrre, Dethi.. Minisrry_ot Finan.il nllii,'rrr". +tji",.iro iffi?E: Ramp, Jawahartat Nehru staoium, bLini-iJo'oob.'"""' lncome Tax Officer Ward ]: Srlgr,gdgY, lncome Tax Office, Veerabhadra Na ga r, New B us S ta nd, Sa nga redd"y, f "r.j,i gi;ri'l'dOioo r The Principar chief commissioner of lncome Tax Ap And rs, loth Froor. c- Btock. t:r rowers, 10_2_3, A C. cr*d;, iii;ilElfiooooa. One CC to SRt DUNDU TVANMOHAN, Advocate tOpUCl One CC to M/s. SUNDART R ptSUpATt, SC FOR TNCOME TAX [OPUC] Two CD Copies .\'*2 6 7 8 BSR GJP

\ HIGH COURT DATED: 0210412024 COMMON ORDER WP.Nos.8454 and 8448 of 2024 ALLOWING BOTH THE WRIT PETITION, WITHOUT COSTS \ \ G ; € :i i'- S 1 q ,o k oo ( + l 2 B IIIAY 2024 spATcHrp ( * \: