Case Law Details
Uppariguda Primary Agricultural Cooperative Society Limited Vs Assessment Unit (Telangana High Court)
In a landmark judgment, the Telangana High Court invalidated reassessment notices issued under Section 148 of the Income Tax Act for failing to follow the modified procedure introduced by the Finance Act, 2021. The case, Uppariguda Primary Agricultural Cooperative Society Limited vs. Assessment Unit, Income Tax Department, highlights the critical importance of adhering to statutory changes and procedural mandates in tax reassessment processes.
Case Background: The case involves multiple writ petitions filed by Uppariguda Primary Agricultural Cooperative Society Limited against the Income Tax Department. The core issue revolves around the issuance of reassessment notices under Section 148 without adhering to the modified procedure mandated by the Finance Act, 2021. The petitioner’s counsel argued that the notices were invalid as they did not comply with the updated procedural requirements, making the subsequent reassessment orders legally untenable.
Arguments Presented: The learned counsel for the petitioner, Sri A.V.A.Siva Kartikeya, contended that the Finance Act, 2021, had introduced a revised procedure for issuing reassessment notices. This revised procedure was not followed by the Income Tax Department, rendering the notices and the consequential reassessment orders invalid. The respondents, represented by Ms. B. Sapna Reddy and other counsels, did not contest this procedural lapse, agreeing that the matter could be disposed of in terms of the earlier judgment in W.P.No.25903 of 2022 and connected cases.
High Court’s Judgment: The Telangana High Court, referencing its previous order dated September 14, 2023, in W.P.No.25903 of 2022, reiterated that any reassessment proceedings initiated without following the modified procedure under the Finance Act, 2021, are in contravention of the statute and directives issued by the Hon’ble Supreme Court in Ashish Agarwal’s case. The court emphasized that the procedural lapses in issuing notices under Section 148 and failing to follow the substituted provisions necessitated the quashing of these notices and all consequential reassessment orders.
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