Baskara Rab Gandam Vs Assessment Unit (Telangana High Court)
Telangana High Court held that department failed in complying with modified income tax reassessment proceedings as laid down under the Finance Act, 2021. Accordingly, show cause notice and consequential order passed set aside.
Facts- Vide the present writ petitions, it is common ground taken by the learned counsel for the petitioner(s) that in furtherance of Finance Act, 2021, re-assessment process stood modified but the respondents have not taken care of it and therefore notices issued under Section 148 of the Income Tax Act, 1961 cannot sustain judicial scrutiny. Since notices are bad in law, the consequential orders are also bad in law.
Conclusion- Held that the procedure to be followed by the respondent-Department upon treating the notices issued for reassessment being under Section 148A, the subsequent proceedings was mandatorily required to be undertaken under the substituted provisions as laid down under the Finance Act, 2021. In the absence of which, we are constrained to hold that the procedure adopted by the respondent-Department is in contravention to the statute i.e. the Finance Act, 2021, at the first instance.
FULL TEXT OF THE JUDGMENT/ORDER OF TELANGANA HIGH COURT
Sri A.V.A. Siva Kartikeya, learned counsel appears for the petitioner(s), Sri Vijhay K Punna, learned Senior Standing Counsel appears for the respondents-Income Tax Department in W.P.No.12975 of 2024 and Ms. J. Sunitha, learned Junior Standing Counsel represents Ms. Sundari R. Pisupati, learned Senior Standing Counsel for the respondents-Income Tax Department in W.P.Nos.12985, 13023 84 13028 of 2024.
