IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD THE HON’BLE THE CHIEF JUSTICE SRI APARESH KUMAR SINGH AND THE HON’BLE SRI JUSTICE G.M.MOHIUDDIN WRIT PETITION No. 40361 of 2025 Dated: 05.01.2026 Between:

Mohammed Kaleem Ullah …Petitioner and Principal Chief Commissioner of Income Tax, North Block, New Delhi, and another.

…Respondents

ORDER:

Learned counsel Ms. Himangini Sanghi appears for the petitioner.

Ms. Bokaro Sapna Reddy, learned Senior Standing Counsel for Income Tax Department, appears for the respondents.

2. The present writ petition relates to the assessment year 2024-2025 wherein the petitioner, who is the assessee, has assailed the assessment order dated 22.12.2025 passed after his case was selected for scrutiny under the Computer-Assisted Scrutiny Selection (CASS) as per the notice under Section 143(2) of the Income Tax Act, 1961 (hereinafter referred to as, “the Act”). In response to the notice dated 13.08.2025 issued under Section 142(1) of the Act, the petitioner requested to file the updated Income Tax Return (ITR) under Section 139(8A) of the Act, which was rejected and the Assessing Officer, however, proceeded with the assessment under Section 143(3) read with Section 144B of the Act and disallowed exemptions under Section 10 of the Act and the deduction claimed in the ITR as per the chart contained at para 4.8 of the assessment order, which is extracted hereunder:

“4.8 Conclusion drawn:-

Based on the material available on records and submission of the assessee dated 26/08/2025, 03/12/2025 and 14/12/2025, it is concluded that the assessee has failed to furnish documentary evidences in support of the following amount of exemption and deductions claimed in the ITR for the year under consideration:

Particulars of exemption and deductions	Amount in Rs.
Exemption claimed u/s 10 of the Act	401869
80C of the Act	150000
80CCD(1B) of the Act	50000
80D of the Act	75000
80DDB of the Act	100000
80G (Donation to charitable institution)	650000
Total	1426869

In view of the above facts, an exemption of Rs.4,01,869/- claimed under the provision of Section 10 of the Act and deduction of Rs.10,25,000/- claimed in the ITR are disallowed and added back to the total income of the assessee for the relevant assessment year. Further, penalty proceedings u/s 270A(9)(a) of the Act is also initiated separately for under reporting of income in consequence of misreporting thereof.”

3. The penalty proceedings under Section 270A(9)(a) of the Act were also directed to be initiated for under-reporting of income. Separate computation of income and demand notice under Section 156 of the Act was issued. The assessment order has been challenged on the ground that the Assessing Officer refused to allow filing of updated return in terms of Section 139(8A) of the Act.

4. During the course of submissions, learned counsel for the petitioner has also referred to the Press Release dated 23.12.2025, wherein the identified taxpayers were intimated through SMS and e-mail and they have been given an opportunity to review their ITRs, verify the correctness of their deductions and exemption claims and revise their returns, if required, within the prescribed time by 31^st December, 2025.

5. Learned counsel for the petitioner prays that the petitioner may also be allowed to file the updated return in view of the Press Release issued by the Department of Revenue, Central Board of Direct Taxes, dated 23.12.2025. The assessment order was passed on 22.12.2025. It is submitted that the petitioner is a salaried employee and had disclosed other income which were not related to his employment in Form-16.

The proceedings for assessment were issued on account of alleged exemption and deduction claimed inadvertently by the petitioner. Under Section 139(8A) of the Act, the assessee can file the updated return of his income within forty-eight months from the end of the relevant assessment year, which period has not yet elapsed. Therefore, l

Click Here to Read the rest of this document