THE HONOURABLE SRI JUSTICE P.SAM KOSHY AND THE HONOURABLE SRI JUSTICE SUDDALA CHALAPATHI RAO WRIT PETITION Nos.19335 & 19336 OF 2025 COMMON ORDER : (per Hon’ble Sri Justice P.Sam Koshy)

Heard Ms.K.Srilatha, learned counsel for the petitioners and Ms. J.Sunitha, learned Senior Standing Counsel for the Income Tax Department for the respondents. Perused the record.

2. These are the two writ petitions which has been filed assailing the notice issued by the respondents under Section 179 of the Income Tax Act 1961 (for short ‘the Act’), dated

02.04.2025.

3. Since the matter involves common question of law and facts, these two matters have been proceeded and decided by way of this common order.

4. The primary contention raised by the petitioner at the first instance was that the petitioner was earlier on 14.07.2022 had issued with notice under Section 179 of the Act for the same assessment year 2017-18 and subsequently, the respondents themselves have dropped the proceedings dated 28.10.2022.

Subsequent to the dropping of proceedings, there does not seem to be any further order passed recalling the dropping of proceedings under Section 179 of the Act as it stood on 14.07.2022. Abruptly, another notice under Section 179 of the Act has been issued on

02.04.2025, which is under challenge in the present writ petition.

5. It is worth taking note of the fact that in between after the earlier proceedings had been dropped on 28.10.2022, the respondents had again issued a demand notice on 12.08.2024 to which also the petitioner had given a detailed reply on 16.09.2024. However, there was no progress made on the said demand notice and it appears that the respondents were convinced with the reply submitted by the petitioner. Meanwhile, they have issued another notice on 28.01.2025 which again was not processed further and meanwhile now yet another notice under Section 179 of the Act was issued on 02.04.2025 which is under challenge in the present writ petition.

6. On the previous date of hearing, this Bench had directed the learned Senior Standing Counsel for the Income Tax Department to seek instructions in respect of the earlier dropping of the proceedings and the dropping of proceedings having not been recalled by the Revenue and in the teeth of the earlier proceedings having been dropped under what circumstances the subsequent fresh notice under Section 179 of the Act is issued.

7. Today, the learned Senior Standing Counsel for the Income Tax Department on instructions would submit that there appears to be some error at the end of the Department insofar as the issuance of fresh notice under Section 179 of the Act is concerned.

8. Given the said submission made by the learned Senior Standing Counsel for the Income Tax Department appearing for the respondents, more particularly, taking note of the ground reality of the earlier notice having been issued on 14.07.2022 and which stood dropped on 28.10.2022 for the same assessment year i.e., 2017-18, we are of the considered opinion that the impugned notice under Section 179 of the Act per se is without jurisdiction and bad in law. The impugned notice accordingly stands set aside / quashed.

9. Accordingly, the instant writ petition stands allowed There shall be no order as to costs.

Consequently, miscellaneous petitions pending, if any, shall stand closed.

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P.SAM KOSHY, J _______________________________ SUDDALA CHALAPATHI RAO, J

05.08.2025 AQS