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2025 Supreme(Online)(Tel) 11314
IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD
P. SAM KOSHY, Sri Narsing Rao Nandikonda, JJ
Income Tax Department – Appellant
Versus
A.V.A. Siva Kartikeya – Respondent
WRIT PETITION No.18534 of 2025
For the Appellants/Petitioners: Mr. A.V.A. Siva Kartikeya
For the Respondents: Mr. K. Sudhakar Reddy
Proceedings under Sections 148A and 148 of the Income Tax Act must adhere to the faceless manner requirement as established by Finance Act, 2021, leading to quashing of non-compliant proceedings.
Headnote:(A) Income Tax Act, 1961 - Sections 148A and 148 - Proceedings under these sections were challenged for not being issued in a faceless manner, violating the amendment by Finance Act, 2021 requiring faceless proceedings - Multiple High Courts held similar proceedings bad and quashed them based on jurisdictional flaws (Paras 4, 5, 36, 37).
(B) Administrative conduct of the Income Tax Department in disregarding established judgments and continuing proceedings is alarming, leading to excessive litigation which strains judicial resources (Paras 10, 12).
(C) Court allows writ petition, quashing impugned notices and orders under Sections 148A and 148, subject to the outcome of pending appeals before the Supreme Court (Para 19).
| Table of Content |
|---|
| 1. challenges regarding issuance of notices under income tax act. (Para 2 , 3) |
| 2. previous case law supports the petitioner's position. (Para 4 , 5) |
| 3. ongoing litigation trend analyzed by the court. (Para 10 , 12) |
| 4. court's decision to quash notices based on jurisdictional non-compliance. (Para 15 , 17) |
| 5. decision subject to supreme court's determination. (Para 19) |
ORDER : (per Hon’ble Sri Justice Narsing Rao Nandikonda)
Heard Mr.A.V.A.Siva Kartikeya, learned counsel for the petitioner and Mr.K.Sudhakar Reddy, learned Senior Standing Counsel for the Income Tax Department appearing 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, [10[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 GOPAL DALMIA vs. UNION OF INDIA & ORS (M.A.T 1690 of 2023), decided on 25.09.2024.
6. Even though the same issue
