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2025 Supreme(Telangana) 15
IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD
P.SAM KOSHY, NARSING RAO NANDIKONDA, JJ.
Mr. T.Chaitanya Kumar - Appellant
Versus
Ms.B.Sapna Reddy - Respondent
Writ Petition No.14927 of 2025
Decided On : 09-06-2025
Advocate Appeared:
For the Appellant : THANNERU CHAITANYA KUMAR
For the Respondent: GADI PRAVEEN KUMAR Deputy Solicitor General of India
The Income Tax Department must issue notices under Sections 148 and 148A in a faceless manner as per amendments; failure to do so renders such notices illegal.
Headnote:(A) Income Tax Act, 1961 - Sections 148 and 148A - Writ petition challenging notices and assessment orders under Sections 148A and 148 for non-compliance with the faceless proceedings requirement as per Finance Act, 2021 - Court found the impugned notices and orders to be illegal and quashed them, emphasizing adherence to judicial precedents. (Paras 4, 17, 36-38)
(B) Judicial discipline - Revenue authorities are bound by the decisions of appellate authorities and cannot disregard them simply because they are under appeal. (Paras 14)
Facts of the case:
The petitioner challenged notices issued under Sections 148A and 148, arguing they were not issued in a faceless manner as mandated by recent amendments. The court noted similar issues had been resolved in favor of the petitioners in earlier rulings.
Findings of Court:
The court quashed the impugned notices and orders, ruling they were procedurally incorrect, thus nullifying subsequent actions.
Issues: The main issues included whether the notices were issued in compliance with the amended provisions and the implications of ongoing SLPs in the Supreme Court.
Ratio Decidendi: The court held that the Income Tax Department's failure to comply with established judicial precedents and procedural requirements led to the quashing of the notices, reiterating the importance of following judicial discipline.
Result: Writ petition allowed.
| Table of Content |
|---|
| 1. challenge to notices under income tax act. (Para 2 , 3) |
| 2. petitioner argues violations of recent amendments. (Para 4 , 5 , 6) |
| 3. high volume of similar petitions indicates systemic issues. (Para 7 , 8 , 10) |
| 4. court's concern over continued non-compliance by the revenue. (Para 9 , 11 , 12 , 13) |
| 5. judicial discipline emphasized; adherence to higher court rulings required. (Para 14 , 15) |
| 6. outcome subject to pending supreme court decisions. (Para 16 , 18) |
| 7. writ petition allowed based on jurisdictional issues. (Para 17 , 19) |
ORDER :
P. Sam Koshy, J.
Heard Mr. T.Chaitanya Kumar, learned counsel for the petitioner and Ms.B.Sapna Reddy, learned Senior Standing Counsel for the Income Tax Department for the respondents. Perused the record.
2. This is a writ petition where the proceedings are either challenged to the notices which were issued under Section 148A and 148 of the Income Tax Act, 1961 (for short ‘the Act’) or the assessment orders those have been passed under Section 147 of the Act which have been assailed.
3. This writ petition is being taken up today only on one of the grounds, that the notices issued under Section 148A of the Act and the subsequent initiation of proceedings under Section 148 of the Act by the jurisdictional Assessing Officer, whereas in terms of the amendment that was brought to the Income Tax Act by way of Finance Act, 2021 w.e.f., 01.04.2021 onwards, proceedings under Section 148A of the Act as also under Section 148 of the Act ought to have also been issued and proceeded in a faceless manner.
4. The contention of the petitioner is that the issue of proceedings being in violation of the Finance Act, 2021 i.e., the impugned notices under Section 148A and Section 148 of the Act not being issued in a faceless manner, have already been dealt with and decided by this Court in the case of KANKANALA RAVINDRA REDDY vs. INCOME-TAX OFFICER , [(2023) 156 taxmann.com 178 (Telangana)] decided on 14.09.2023 whereby a batch of writ petitions were allowed and the proceedings initiated under Section 148A as also under Section 148 of the Act were held to be bad with consequential reliefs on the ground of it being in violation of the provisions of Section 151A of the Act read with Notification 18/2022 dated 29.03.2022. The said judgment passed by this Court has also been subsequently followed in a large number of writ petitions which were allowed on similar terms.
5. Down the line, we find that the same issue has also been decided against the Revenue by various High Courts i.e., by the Bombay High Court in the case of HEXAWARE TECHNOLOGIES LTD., vs. ASSISTANT COMMISSIONER OF INCOME TAX & OTHERS, [[2024] 464 ITR 430 (Bom)], Gauhati High Court in the case of RAM NARAYAN SAH vs. UNION OF INDIA , [[(2024) 156 taxmann.com 478 (Gauhati)]], Punjab and Haryana High Court in the case of JATINDER SINGH BANGU vs. UNION OF INDIA , [[(2024) 165 taxmann.com 115 (Punjab & Haryana)]], and Telangana High Court in the case of SRI VENKATARAMANA REDDY PATLOOLA vs. DEPUTY COMMISSIONER OF INCOME TAX , [[2024) 167 taxmann.com 411 (Telangana)]] where the issue was in respect of international taxation, Bombay High Court in the case of ABHIN ANILKUMAR SHAH vs. INCOME TAX OFFICER, INTERNATIONAL TAXATION, [[2024) 166 taxmann.com 679 (Bombay)]] which is again on international taxation and central circle, High Court of Himachal Pradesh in the case of GOVIND SINGH vs. INCOME TAX OFFICER, [[2024) 165 taxmann.com 113 (Himachal Pradesh)]], Gujarat High Court in the case of MANSUKHBHAI DAHYABHAI RADADIYA vs. INCOME TAX OFFICER, WARD 3(3)(5), [82024 SCC OnLine Guj 4012], Jharkand High Court in the case of SHYAM SUNDAR SAW vs. UNION OF INDIA, [2025 SCC OnLine Jhar 287], Rajasthan High Court in the case of SHARDA DEVI CHHAJER vs. INCOME TAX OFFICER & ANOTHER and batch of writ petitions, [2023: RJ-JD:4984-DB]] which stood decided on 19.03.2024. Similar views have also been taken by the Division Bench of Calcutta High Court in the case of GIRDHAR G
