Challenges to reassessment notices issued under unamended Section 148 after the amended regime commenced were disposed of in terms of the Supreme Court's decision in Ashish Agarwal. No costs were ordered, and pending miscellaneous applications were closed.
Petitions disposed of in terms of Ashish Agarwal; no order as to costs.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
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HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD (SPecial Original Jurisdiction)
IMONDAY ,THE THIRTEENTH DAY OF JUNE TWO THOUSAND AND TWENTY TWO
PRESENT
THE HONOURABLE THE CHIEF JUSTICE UJJAL BHUYAN AND
THE HONOURABLE MRS JUSTICE SUREPALLI NANDA
WRIT PETITION NOS: 20529 2053'l 20581 20655 29015 29122 AND 29532 0F 202't AND 8245 & 6244 0F 2022
WP No: 20529 ol 2021:
Between:
Sri Mohan Rao Gandra, S/o. Sri G.Raghavendra Rao, Rl/o. Villa No.54A, Ektha Prime Highland Park, Financial District, Nanakramguda, Gachibowli, Hyderabad- 500032.
...PETITIONER
AND
...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 pass an order or writ especially one in the nature of writ of mandamus declaring
a) that the Notification No. 2Ol2021lF No 3701421351202OTPL dated 3'110312021 and Notification No. 38i2021 lF No 3701421351202OTPL daled 271O412021 issued by the 2nd Respondent extending the time limit under the pre-amended provisions as not applicable after 0110412021 after declaring the same as ultra vires the provisions of the lncome Tax Act 1961 and
b) that the notice dated 2310412021 issued by the 3rd Respondent with DIN and Notice No. ITBAiAST/S/14812021-2211032624765(1)proposing to reopen the
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assessment of the Petitioner for the Assessment Year 2017-18 as being arbitrary, illegal, bad in law, barred by limitation and withoutjurisdiction being contrary to the provisions of the lncome Tax Act 1961 and consequently to set aside the same in the interest ofjustice.
lA NO: 1 OF 20el
Petition under Section 15'1 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 on the file of 3rd Respondent pursuant to issuance of the notice dated 2310412021 with DIN and Notice No. ITBA/ASTlSl148l2O212211032624765(1) calling upon the Petitioner to file return of income for asst. year 2017-18.
Counsel for the Petitioner:SRl. A V RAGHU RAM
Counsel forthe Respondent No. 1: SRl. NAMAVARAPU RAJESHWAR RAO, ASST. SOLICITOR GENERAL
Counsel for the Respondent Nos. 2 & 3: SRl. K. RAJI REDDY, SC FOR CT
WP NO: 20531 OF 2021
Between:
Smt. Geetha Rani Gandra, W/o. Sri Gandra Mohan Rao, R/o. Villa No.54A, Ektha Prime Highland Park. Financial District, Nanakramguda, Gachibowli, Hyderabad- 500032.
...PETITIONER
AND
...RESPONDENTS
Petition under Article 226 ol the Constitution of lndiapraying that in the circumstances stated in the affidavitfiled therewith, the High Courtmay be pleased to pass an order or writ especially one in the nature of writ of mandamus declaring
a). that the Notification No. 20l2O21lFNo 370142/35/202OTPL dated31 .O3.2O21 and Notification No. 38/2021 lF No 37O142135/2020TP1 dated 27.04.2021 issued
7/
by the 2nd Respondent extending the time limit under the pre-amended provisions as not applicable after 01 .O4.2O21 after declaring the same as ultra vires the provisions of the lncome Tax Act'1961 and ]
b). that the notice dated 2310412021 issued by the 3rd Respondent with DIN and Notice No. ITBA/AST/S/14812021-2211032624760(1) proposing to reopen the assessment of the Petitioner for the Assessment Year 2017-18 as being arbitrary, illegal, bad in law, barred by limitation and without jurisdiction being contrary to the provisions of the lncome Tax Act 1961 and consequently to set aside the same in the interest ofjustice.
lA NO: 1 OF 2021
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 on the file of 3rd Respondent pursuant to issuance of the notice dated 23.04.2021 with DIN & Notice No. ITBAJAST/S/148120212211032624760(l) calling upon the Petitioner to file return of income for asst. year 2017-18.
Counsel for the Petitioner:SRl. A V RAGHU RAM
Counsel for the Respondent No. 1: SRl. NAMAVARAPU RAJESHWAR RAO, ASST. SOLICITOR GENERAL
Counsel forthe Respondent Nos.2 & 3: SRl. K. RAJI REDDY, SC FOR CT
WP NO: 20581 OF 2021
Between:
Sri Mohan Rao Gandra, S/o. Sri G.Raghavendra Rao, Rl/o. Villa No.54A, Ektha Prime Highland Park, Financial District, Nanakramguda, Gachibowli, Hyderabad- 500032.
..,PETITIONER
AND
...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 pass an order or writ especially one in the nature of writ of mandamus declaring.
a) that the Notification No. 20l2O21lF No 37O14213512020TPL dated 31103/2021 and Notification No. 38/2021lF No 370142135/2020TP1 dated.27l04l2021 issued by the 2nd Respondent extending the time limit under the pre-amended provisions as not applicable after 01 .04.2021 after declaring the same as ultra virus the provisions of the lncome Tax Act 1961 and
b) that the notice dated.23l04l2o21 issued by the 3rd Respondent with DIN and Notice No. ITBA/AST/S/'14812021-2211032624766(1) proposing to reopen the assessment of the Petitioner for the Assessment Year 2O16-17 as being arbitrary, illegal, bad in law, barred by limitation and withoutjurisdiction being contrary to the provisions of the lncome Tax Act 1961 and consequently to set aside the same in the interest ofjustice.
lA NO: 1 OF 2021
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 on the file of 3rd Respondent pursuant to issuance of the notice dated 2310412021 with DIN and Notice No. ITBA/ASTlSl148l2O212211032624766(1) calling upon the Petitioner to file return of income for asst. year 2016-17.
Counsel for the Petitioner:SRl. A V RAGHU RAM
Counsel for the Respondent No.'l: SRl. NAMAVARAPU RAJESHWAR RAO, ASST. SOLICITOR GENERAL
Counsel for the Respondent Nos. 2 & 3: SRl. K. RAJI REDDY, SC FOR CT
WP NO: 20655 OF 2021
Between:
Sri Vikas Kumar, S/o. Sri Satish Kumar, No. 21-2-94, Gulzar House Charkaman, Hyderabad- 500002.
...PETITIONER
AND
3 ASSISTANT COI\IMISSlONER OF INCOME TAX, Circle 8(1), Signature Towers, Opp. Botanical Gardens, Kondapur, Hyderabad- 500084
,..RESPONDENTS
Petition under Article 226 ol the Constitution of lndia praying that in the circumstances stated in the affidavit filed therewith, the High Court may be pleased to pass an order or writ especially one in the nature of writ of mandamus declaring.
a) that the Notification No. 2Ol2021lF No 370142l35l2O2OfPL daled 3110312021 and Notification No. 38/2021|F No 370142l35l2O2OfPL dated 2710412021 issued by the 2nd Respondent extending the time limit under the pre-amended provisions as not applicable after 0110412021 after declaring the same as ultra virus the provisions of the lncome Tax Act 1961, and
b) that the notice dated 2910612021 issued by the 3rd Respondent with DIN and Notice No. ITBA/AST/Si14812021-2211033851500(1) proposing to reopen the assessment of the Petitioner for the Assessment Year 2014-15 as being arbitrary, illegal, bad in law, barred by limitation and withoutjurisdiction being contrary to the provisions of the lncome Tax Act 196'1 and consequently to set aside the same in the interest ofjustice.
lA NO: 1 OF 2021
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 on the file of 3rd Respondent pursuant to issuance of the notice dated 29lOOl2O21 with DIN and Notice No. ITBA/AST/S/148120212211033851500(1) calling upon the Petitioner to file return of income for asst.year 2014-15.
Counsel for the Petitioner:SRl. A V RAGHU RAM
Counsel for the Respondent No. 1: SRl. NAMAVARAPU RAJESHWAR RAO, ASST. SOLICITOR GENERAL
Counsel forthe Respondent Nos.2 & 3: SRl. K. RAJI REDDY, SC FOR CT
WP NO: 29015 OF 2021
Between:
Suryalakshmi Cotton Mills Ltd, Registered office at Surya Towers, 6th floor 105 Sardar Patel Road, Secunderabad - 500003 Rep. by its Authorised Signatory Pan No.AAECS1921 R
...PETITIONER
AND
...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 Writ Order or Direction more particularly in the nature of Writ of Certiorari quashing the impugned Notice No.ITBA/ASTiS l'148120212211032703737(1)dated 2810412021 issued by the 1St respondent under section 148 ofthe lncome Tax Act, 1961 for A.Y.2015-'16 as being withoutjurisdiction. without authority of law, beyond period of limitation, contrary to provisions of lncome Tax Act, arbitrary and illegal.
lA NO: 1 OF 2021
Petition under Section 151 CPC praying that in the circumstances stated in the affidavit filed in support of the petition, the High Court may bepleased to stay the impugned Notice No.lTBA/AST/S114812021- 22110327O3737(1) dated 2810412021 issued by the 1st respondent under section 148 of the lncome Tax Act, 1961 for A.Y.2015-16 and all further proceedings pursuantto impugned notice
Counsel for the Petitioner:SRl. C V NARASIMHAM
Counsel for the Respondent No. 1: SRl. A RADHA KRISHNA
Counsel for the Respondent No. 2: SRl. N. RAJESHWAR RAO, ASST. SOLICITOR GENERAL
WP NO: 29122OF 2021
Between:
Suryalakshmi Cotton Mills Ltd., Registered office at Surya Towers, 6th floor 105 Sardar Patel Road, Secunderabad 500003 Rep. by its Authorised Signatory Pan No.AAECS1921 R
...PETITIONER
AND
...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 Writ Order or Direction more particularly in the nature of Writ of Certiorari quashing the impugned Notice No.ITBA/AST/S 1148120212211032476846(1) dated 16-04-2021 issued by the 1st respondent under section 148 of the lncome Tax Act, 1961 for A.Y.2014-15 as being without jurisdiction, without authority of law, beyond period of limitation, contrary to provisions of lncome Tax Act, arbitrary and illegal.
lA NO: 1 OF 2021
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 the impugned Notice No.ITBAIAST/S/148/2021- 2211032476846(1 ) dated 16-042021 issued by the 1st respondent under section 148 of the lncome Tax Act, 1961 lor A.Y.2O14-15 and all further proceedings pursuant to impugned notice.
Counsel for the Petitioner:SRI. C V NARASIMHAM
Counsel for the Respondent Nos. 'l & 2: SRl. A. RADHA KRISHNA
Counsel for the Respondent No. 3:SRl. N. RAJESHWAR RAO, ASST. SOLICITOR GENERAL
WP NO: 29532 OF 2021
Between:
Suryalakshmi Cotton Mills Ltd, Registered office at Surya Towers, 6th floor 105 Sardar Patel Road, Secunderabad - 500003 Rep. by its Authorised Signatory Pan No.AAECS1921 R
...PETITIONER
AND
...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 Writ Order or Direction more particularly in the nature of Writ of Certiorari quashing the impugned Notice No.ITBA/AST/S l14Bl2O212211032264340( 1 )dated 0710412021 issued by the 1st respondent under section 148 of the lncome Tax Act, 1 961 tor A.Y .2O17-18 as being withoutjurisdiction, without authority of law, beyond period of limitation, contrary to provisions of lncome Tax Act, arbitrary and illegal.
lA NO: 1 OF 2021
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 the impugned Notice No.lTBA/AST/S114812021- 2211032264340(1) dated 07 10412021 issued by the 1 st respondent under section 1 48 of the lncome Tax Act. 1961 for A.Y.201 7-1 8 and all further proceedings pursuant to impugned notice
Counsel for the Petitioner:SRl. C V NARASIMHAM
Counsel for the Respondent Nos. 1 & 2: SRl. A RADHA KRISHNA
Counsel for the Respondent No. 3: SRl. N. RAJESHWAR RAO, ASST. SOLICITOR GENERAL
WP NO: 8245 OF 2022
Between:
SRI. BRIJESH CHANDWANI, SON OF CHANDRA PRAKASH CHANDWANI, AGED ABOUT 49 YEARS, Fl/o. 67/C, IVLA COLONY, ROAD NO. 12, BANJARA HILLS, HYDERABAD- 5OO 034
..,PETITIONER
AND
...RESPONDENTS
Petition under Article 226 of the Constitution of lndia praying that in the circumstances stated in the affidavit filed therewith, the Hiqh Court may be pleased to issue a writ, order or direction in the nature of writ of Certiorari or direction in the nature of a writ of certiorariquashing the notice issued under the
provision of section 148 of the lncome-tax Act, 196'l issued by the Respondent No. 1 as enclosed and marked as Annexure-A vide No. ITBA/AST/S/1481202120221 1 033882366( 1 ) dated 30 I 06 I 2021 for the A.Y. 201 6-20 17 .
b) Declare that the Explanation below clause (A) in the Notification bearing No.20120211 F. No.370'14213512020-fPL daled 3110312021 herein marked as Annexure-B and No.38/2021|F. No.3701421351202O-TPL dated 2710412021 herein marked as Annexure-C issued by the Respondent No.2 is ultra vires the provisions of the lncome-tax Act, 1961 and the provisions of the Taxation And Other Laws (Relaxation and Amendment of Certain Provisions) Act,2020, and thus bad in law
c) Declare that in the event it is beinE held that the impugned Notifications bearing No.20l2o21l F. No.37014213512O2O-TPL dated 3110312021 herein marked as Annexure-B and No.38/2021lF. No.3701421351202O-TPL daled 2710412021 herein marked as Annexure-C issued by the Respondent No.2 enable the Respondents and the lncome{ax authorities to dispense with the requirement to comply with the conditions precedent that are set out in Section'148A of the lncome-tax Act, 1961 before issuing any notice under Section 148 of the lncome{ax Act, 1961 , the said Notifications are ultra vires the provisions of the lncome{ax Act, 1961 and the provisions of the Taxation And Other Laws (Relaxation and Amendment of Certain Provisions) Act,2O2O, and thus bad in law
d) Declare that the extension of time limit by the Taxation And Other Laws (Relaxation and Amendment of Certain Provisions) Act,2020 does not apply to notices issued under erstwhile section 148 of the lncome-tax Act, 1 961 after o110412021
e) Declare that the impugned proceedings initiated by the Respondent No.1 under the lncome-tax Act, 1961 , are illegal and without the authority of law.
lA NO: 1 OF 2022
Petition under Section 15 1 CPC praying that in the circumstances stated in the affidavit filed in support of the petition, the High Court may be pleased to issue an ad-interim order to.
a) Stay the operation of the notice issued under the provision of section 148 of the lncome-tax Act, 1961 issued by the Respondent No. 1 , as enclosed and marked as Annexure-A vide no. ITBA/AST/S/14812021-202211033882366(1) dated 3010612021 for the A.Y. 2O16-2017.
b) Grant such
Counsel for the Petitioner:SRl. T. ARCHAN KUMAR
Counsel forthe RespondentNos. 1 & 3: SRl. K. RAJI REDDY, SC FOR lT
Counsel forthe Respondent No.2: SRl. N. RAJESHWAR RAO, ASST. SOLICITOR GENERAL
..'.------------
WP NO: 6244 OF 2022
Between:
...PETTTTONER(S)
AND
...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 toto issue a Writ, Order or direction more particularly in the nature of a Writ of Mandamu(declaring part of the Clause A(a) relating to section 148 and the Explanation therein in Notification no.2012021 dated 31 .3.2021 and part of the Clause A(b) relating to section 148 and the Explanation therein in Notification no.3812021 dated 27.4.2021 issued by the 1st Respondent as unconstitutional, illegal and ultra vires the lncome tax Act, 1961 and the Constitution of lndia, and consequently quash the impugned notice under section 148 in DIN and Notice No.ITBA/AST/Sl14Bl2O21-2211033918482(1) dated 30.06.2021for the Assessment yeat 2016-17.
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 an order of lnterim stay of part of the Clause A(a) relating to section 148 and the Explanation therein in Notification no.2Ol2O21 dated 31.3.2021 and part of the Clause A(b) relating to section 148 and the Explanation therein in Notification no.3812021 dated 27.4.2021 pending disposal of this writ Petition and thus render justice.
Counsel for the Petitioner:SRl. M NAGA DEEPAK
Counsel for the Respondents: NONE APPEARED
The Court made the following:
THE HONOURABLE SR I JUSTICE UJJAL BHUYAN AND THE HONOURABLE MRS JUSTICE SUREPALLI NANDA
WRIT PETITION Nos.20529 20531 20581 20655 29015 29122 and 29532 of 2021 and 8245 & 6244 of 2022
COMMON ORDER: (Pct Han bte Sn Jushcc ulat Bhuyan)
Heard Mr. T.Archan Kumar, Mr. A.V.Raghu Ram, Mr. C.V.Narasimham and Mr. M.Naga Deepak, learned counsel for the petitioners. We have also heard Mr.B.Narasimha Sarma, Mr. J.V.Prasad and Mr. A.Radha Krishna, learned Standing Counsel for lncome Tax Department for the respondents as well as Mr. B.Mukher.jee, learned counsel appearing on behalf of Mr. N,Rajeshwar Rao, Iearned Assistant Solicitor General of lndia for Union of lndia.
officer is required to conduct an enquiry with the approval of the specified authority with respect to the information suggesting thal income chargeable to tax has escaped assessment prior to issuing any notice under Section 148 of the Act. He is also required to provide an opportunity of hearing to the assessee and to consider a reply of the assessee. Thereafter, under Section 14BA(d) of the Act, he has to take a decision on the basis of the available materials including reply of the assessee as to whether it is a fit case for reopening and only thereafter and if he is satisfied that it is a fit case for reopening, then notice under Section 148 of the Act is required to be issued.
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more particularly the provasions contained in Section 148A of the Act, Supreme Court observed as follows:
01 .O4 2021 . under the unamended section 148 ln our view the same ought not to have been issued under the unamended Act and ought to have been issued under the substituted provisions of sections 1 47 to 1 5'1 of the lT Act as per the Frnance Act, 2021 . There appears to be genuine non-application of the amendments as the officers of the Revenue may have been under a bonafide belief that the amendments may not yet have been enforced. Therefore, we are of the opinion that some leeway must be shown in that regard which the High Courts could have done so. Therefore, instead of quashing and setting aside the reassessment notices issued under the unamended provision of lT Act, the High Courts ought to have passed an order construing the notices issued under unamended AcU unamended provision of the lT Act as those deemed to have been issued under section 1484 of the lT Act as per the new provision section 1484 and the Revenue ought to have been permitted to proceed further with the reassessment proceedings as per the substituted provisions of sections 147 to 151 of the lT Act as per the Finance Act, 2021 , subject to compliance of all the procedural requirements and the defences, which may be available to the assessee under the substituted provisions of sections 147 to 151 of the lT Act and which may be available under the Finance Ac|,2021 and in law. Therefore, we propose to modify the judgments and orders passed by the respective High Courts as under:-
The respective impugned section 148 notices issued to the respective assessees shall be deemed to have been issued under section 148A of the lT Act as substituted by the Finance Act, 2021 and treated to be show-cause noticesin
terms of section 148A(b). The respective assessing officers shall within thirty days from today provide to the assessees the information and material relied upon by the Revenue so that the assessees can reply to the notices within two weeks thereafter;
The requirement of conducting any enquiry with the prior approval of the specified authority under section 148A(a) be dispensed with as a one{ime measure vis-a-vis those notices which have been issued under Section 148 of the unamended Act from 01 .04.2021 till date. including those which have been quashed by the High Courts;
The assessing officers shall thereafter pass an order in terms of section 14BA(d) after following the due procedure as required under section 148A(b) in respect of each of the concerned ASSESSEES;
All the defences which may be available to the assessee under section 149 andlor which may be available under the Finance Acl,2021 and in law and whatever rights are available to the Assessing Officer under the Finance Act, 2021 are kept open and/or shall continue to be available and;
The present order shall substitute/modify respective judgments and orders passed by the respective High Courts quashing the Siifi'ria r nolices issued under unamended sectron'148 of
the lT Act irrespectiveof whether theyhave been assailed before this Courl or not."
the various High Courts have been modified and substituted as under:
The requirement of conducting any enquiry, if required, with the prior approval of specified authority under section 14BA(a) is hereby dispensed with as a one-time measure vis-d-ys those notices which have been issued nder section 148 of the unamended Act from
)
U.A4.2021 till date, including those which have been quashed by the High Courts.
Even otherwise as observed hereinabove holding any enquiry with the prior approval of specified authority is not mandatory but it is for the concerned Assessing Officers to hold any enquiry, if required;
The assessing officers shall thereafter pass orders in terms of section 148A(d) in respect of each of the concerned assessees; Thereafter after following the procedure as required under section 148A may issue notice under section 148 (as substituted);
All defences which may be available to the assesses including those available under section 149 of the lT Act and all rights and contentions which may be available to the concerned assessees and Revenue under the Finance Act, 2021 and in law shall continue to be available."
1
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Act are set aside and shall be governed by the present order and shall stand modified to the aforesaid extent. The present order is passed in exercise of powers under Article 142 of the Constitution of lndia so as to avoid any further appeals by the Revenue on the very issue by challenging similar judgments and orders, with a view not to burden this Court with approximately 9000 appeals. We also observe that present order shall also govern the pending writ petitions, pending before various High Courts in which similar notices under Section 148 of the Act issued after 01.O4.2021 are under challenge-"
'13. As a sequel, miscellaneous applications pending, if any, in these Writ Petitions, shall stand closed.
SD/.K.VENKAIAH ASSISTANT REGISTRAR //TRUE COPY// ( tt)
SECTION OFFICER
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P[.4 11 --SWN"
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HIGH COURT
DATED:131OG12022
COMMON ORDER
WP.No.20529 20531 , 20581 , 20655, 29015, 29122 & 295320F 2021 AND 8245 &62440F 2022
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Disposing of the WPs Without costs.
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1 issue framed by the court
How should challenges to reassessment notices issued after 01.04.2021 under unamended Section 148 be disposed of following Ashish Agarwal?
Colour shows how this judgement treated each authority
Union of lndia vs. Ashish AgarwalApplied¶204
Union of lndia vs. Ashish Agarwal
3 provisions across 2 enactments
Mohan Rao Gandra
Union of India
CENTRAL BOARD OF DIRECT TAXES
INCOME TAX OFFICER, Ward 14(1), Hyderabad
Geetha Rani Gandra
Vikas Kumar
UJJAL BHUYAN
SUREPALLI NANDA
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
