Allowed¶55

Dharmarao Kalluri v. the Union of India

Andhra Pradesh HC2 Feb 2026WP/3006/2026

Case brief

AI extract

What is this about?

Faceless assessment; Section 151A Income Tax Act 1961; Section 148 notice; Sections 147 r.w 144 and 144B; Jurisdictional Assessing Officer vs NFAC; notices set aside; liberty to reassess; Prameela Pasumarthi Vs CIT 2025 SCC Online AP 4052; common order W.P. No. 14681 of 2023 and batch dated 28.10.2025; AY 2019-20; AY 2017-18; DIN ITBA/AST/S/147/2024-25/1073786527(l); DIN ITBA/AST/S/147/2024-25/1073786485(l); Dharmarao Kalluri; W.P. Nos. 3006 & 3011 of 2026; High Court of Andhra Pradesh at Amaravati; decided 03.02.2026.

What did the court decide?

Writ Petitions allowed: Section 148 notices dated 03.04.2023 and 20.03.2024 and all consequential proceedings set aside; respondent authorities left free to initiate and complete assessments in accordance with law; no order as to costs; pending miscellaneous applications stand closed. ¶55

Dharmarao Kalluri Vs the Union of India — Income Tax | Andhra Pradesh HC (2026)

What the court decided

AI extract

Outcome

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Issue for consideration

Whether the final assessment orders dated 27.02.2025 (AY 2019-20 and AY 2017-18), arising from Section 148 notices issued by the Jurisdictional Assessing Officer while completion occurred under the faceless system, are without jurisdiction and violative of Section 151A of the Income Tax Act, 1961.

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Court's answer

Following the Division Bench judgment in Prameela Pasumarthi Vs. CIT, these Writ Petitions are allowed and the Section 148 notices dated 03.04.2023 and 20.03.2024 issued by the 2nd respondent, along with all consequential proceedings (including the final assessment orders dated 27.02.2025), are set aside.

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Ratio / Principle

The respondent authorities remain open/permitted to initiate and complete assessments afresh, in accordance with law.

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Detailed headnote1 paragraphs

High Court of Andhra Pradesh at Amaravati (R. Raghunandan Rao J authoring, T.C.D. Sekhar J on the Bench), common order dated 03.02.2026 in W.P. Nos. 3006 & 3011 of 2026 — ALLOWED. Dharmarao Kalluri challenged (i) Section 148 notices dated 03.04.2023 (AY 2019-20) and 20.03.2024 (AY 2017-18) issued by the 2nd respondent/Income Tax Officer and (ii) final assessment orders dated 27.02.2025 under Sections 147 r.w 144 and 144B of the Income Tax Act, 1961, contending they were arbitrary, illegal and issued without jurisdiction. Show-cause notices had been issued by the Jurisdictional Assessing Officer while the assessments were completed under the faceless system; the petitioner contended the orders were violative of Section 151A of the Act. Following the Division Bench common order in Prameela Pasumarthi Vs. CIT, 2025 SCC Online AP 4052 (W.P. No. 14681 of 2023 and batch, dated 28.10.2025), which held that initiation of assessment by notices issued by the Jurisdictional Assessing Authority violates the mandatory provisions of Section 151A (assessments being required to be initiated and completed only through the faceless system), the Court allowed the petitions, set aside both notices and all consequential proceedings, permitted the respondent authorities to initiate and complete assessments afresh in accordance with law, made no order as to costs, and closed pending miscellaneous applications.

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APHC010715602025

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[3529]

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IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI (Special Original Jurisdiction)

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TUESDAY, THE THIRD DAY OF FEBRUARY TWO THOUSAND AND TWENTY SIX

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PRESENT

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THE HONOURABLE SRI JUSTICE R RAGHUNANDAN RAO

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THE HONOURABLE SRI JUSTICE T.C.D.SEKHAR

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WRIT PETITION Nos.3006 & 3011 of 2026

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WRIT PETITION NO: 3006/2026

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Between:

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DHARMARAO KALLURI, , S/O. SAMBAMURTY KALLURI, AGED 53 YEARS, R/O. PARAPURAM, PARAPURAM VILLAGE, SALIVEEDHI KOTTURU TALUKA, SRIKAKULAM, 532455, ANDHRA PRADESH.

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...PETITIONER

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AND

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THE UNION OF INDIA, REPRESENTED BY ITS SECRETARY, DEPARTMENT OF REVENUE, MINISTRY OF FINANCE, G7X2 H7V, NEHRU PLACE, NEW DELHI, DELHI 110019 2.

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THE INCOME TAX OFFICER, INCOME TAX DEPARTMENT WARD 1, SRIKAKULAM, ANDHRA PRADESH, 532001 3.

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THE ASSESSMENT UNIT, NATIONAL FACELESS ASSESSMENT CENTRE, INCOME TAX DEPARTMENT, MAYUR BHAWAN, CONNAUGHT LANE, CONNAUGHT PLACE, NEW DELHI 110001.

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...RESPONDENT(S):

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Petition under Article 226 of the Constitution of India praying that in the circumstances stated in the affidavit filed therewith, the High Court may be pleased toPleased In the facts and circumstances of the instant case, to issue a Writ, Order or Direction more particularly one in the nature of a Writ of Mandamus, declaring the impugned notice issued by the 2nd Respondent u/s

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RRR,J & TCDS,J W.P.Nos.3006 & 3011 of 2026

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148 of the Act bearing DIN and Notice No. ITBA/AST/S/148_l/202324/1051861021(1) dated 03 - 04 - 2023 and the Final Assessment Order U/s. Sections 147 r.w 144 and 144B of the Act, bearing DIN No. ITBA/AST/S/147/2024-25/1073786527(l) dated 27 - 02 - 2025 for the Assessment Year 2019-20 as arbitrary, illegal, bad in law, issued without jurisdiction and as against the law laid down by this Honble High Courts common order in Writ Petition No. 14681 of 2023 and batch dated 28 - 10 - 2025 and to consequently set aside the same and pass

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IA NO: 1 OF 2026

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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 pleased Pending adjudication of the above Writ Petition, to further stay all the proceedings inpursuance of the Final Assessment Order U/s. Sections 147 r.w 144 and 144B of the Act, bearing DIN No. ITBA/AST/S/147/202425/1073786527(l) dated 27 - 02 - 2025 for the Assessment Year 2019-20 and pass

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WRIT PETITION NO: 3011/2026

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Between:

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DHARMARAO KALLURI, S/O. SAMBAMURTY KALLURI, AGED 53 YEARS, R/O. PARAPURAM, PARAPURAM VILLAGE, SALIVEEDHI KOTTURU TALUKA, SRIKAKULAM, 532455, ANDHRA PRADESH.

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...PETITIONER

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AND

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THE UNION OF INDIA, REPRESENTED BY ITS SECRETARY, DEPARTMENT OF REVENUE, MINISTRY OF FINANCE, G7X2 PLUS H7V, NEHRU PLACE, NEW DELHI, DELHI 110019

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THE INCOME TAX OFFICER, INCOME TAX DEPARTMENT WARD 1, SRIKAKULAM, ANDHRA PRADESH, 532001

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THE ASSESSMENT UNIT, NATIONAL FACELESS ASSESSMENT CENTRE, INCOME TAX DEPARTMENT, MAYUR BHAWAN, CONNAUGHT LANE, CONNAUGHT PLACE, NEW DELHI 110001.

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RRR,J & TCDS,J W.P.Nos.3006 & 3011 of 2026

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...RESPONDENT(S):

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Petition under Article 226 of the Constitution of India praying that in the circumstances stated in the affidavit filed therewith, the High Court may be pleased topleased to issue a Writ, Order or Direction more particularly one in the nature of a Writ of Mandamus, declaring the impugned Notice issued by the Respondent No. 2 U/s 148 of the Income Tax Act, 1961 bearing DIN and Notice No. ITBA/AST/S/148_l/2023-24/l062978426(1) dated 20 - 03 - 2024 and the Final Assessment Order U/s. Sections 147 r.w 144 and 144B of the Act, bearing DIN No. ITBA/AST/S/147/2024-25/1073786485(l), dated 27 - 02 - 2025, passed by the Respondent No. 3 for the Assessment Year 2017-18, as arbitrary, illegal, bad in law, issued without jurisdiction and as against the law laid down by this Honble High Court's common order in Writ Petition No. 14681 of 2023 and batch dated 28 - 10 - 2025 and to consequently set aside the same and pass

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IA NO: 1 OF 2026

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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 pleased Pending adjudication of the above Writ Petition, to further stay all the proceedings in pursuance of the Final Assessment Order U/s. Sections 147 r.w 144 and 144B of the Act, bearing DIN No. ITBA/AST/S/147/202425/1073786485(1), dated 27 - 02 - 2025, passed by the Respondent No. 3 for the Assessment Year 2017- 18 and pass

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Counsel for the Petitioner:

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1.T PRADYOTH

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Counsel for the Respondent(S):

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1.ANUP KOUSHIK KARAVADI

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RRR,J & TCDS,J W.P.Nos.3006 & 3011 of 2026

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The Court made the following Common Order:

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(per Hon’ble Sri Justice R. Raghunandan Rao)

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As both these Writ Petitions have been filed by the same petitioner and raise the similar issue, they are being disposed of, by way of this common order.

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The assessment proceedings were initiated against the petitioner, for the assessment year, 2019-2020, and for the assessment year, 2017-2018, by way of separate notices, under Section 148 of the Income Tax Act, 1961, (herein referred to as ‘the Act’) , dated 03.04.2023 & 20.03.2024. The proceedings initiated by these notices, culminated in a separate final assessment order, dated 27.02.2025. The show-cause notices were issued by the Jurisdictional Assessing Officer, while the assessments were completed under the faceless systems.

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The petitioner being aggrieved by these two orders of assessment, dated 27.02.2025, has approached this Court, with the contention that, the said orders of assessment are without jurisdiction and are violative of Section 151A of the Act.

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A Division Bench of this Court in the case of Prameela Pasumarthi Vs. CIT¹ and following the judgments of various other Hon’ble High Courts, had held that, any assessment initiated by issuance of notices, by the Jurisdictional Assessing Authority, would be violative of the mandatory

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1 2025 SCC Online AP 4052

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RRR,J & TCDS,J W.P.Nos.3006 & 3011 of 2026

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provisions of Section 151A of the Act, in as much as the said provision mandates that all such assessments should only be initiated and completed through the faceless systems.

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Following the said judgment, these Writ Petitions are allowed, setting aside the notices, dated 03.04.2023 & 20.03.2024, issued by the 2^nd respondent and all consequential proceedings. However, they shall be open to the respondent authorities to initiate and complete assessments, in accordance with Law. There shall be no order as to costs.

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As a sequel, pending miscellaneous applications, if any, shall stand closed.

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________________________

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R. RAGHUNANDAN RAO, J

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_________________

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T.C.D. SEKHAR, J

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Date:03.02.2026 KPV