← Library
Madras High CourtWP/22402/2024disposed of

Tvs Credit Services Limited v. Deputy Commissioenr Of Income Tax

2025-06-24Honourable The Chief Justice,Honourable Mr.Justice Sunder Mohan8 pages

IN THE HIGH COURT OF JUDICATURE AT MADRAS

DATED: 24.06.2025

CORAM

THE HON'BLE MR.K.R.SHRIRAM, CHIEF JUSTICE AND THE HON'BLE MR.JUSTICE SUNDER MOHAN WP Nos.22402, 34604, 35731, 21945, 22410, 31769, 33052, 33054, 33105, 38637, 38726, 39268, 16630, 19267, 21942 of 2024; 13667, 13669 of 2023; 59 and 63 of 2025 and WMP Nos.13336, 13340, 13342 of 2023;

18249, 18251, 21131, 21132, 35814, 35815, 38592, 41846, 41847, 35817, 23925, 23929, 24404, 24409, 34519, 34520, 35818, 35860, 35861, 37528, 37531, 38591, 41930, 41931, 42530, 42531 of 2024 and 69, 72, 76 and 79 of 2025 WP No.22402 of 2024 TVS Credit Services Limited 12, Khader Nawaz Khan Road Chaitanya, Greams Road SO Nungambakkam Chennai 600 006 rep by its Chief Financial Officer : Petitioner Vs 1.Deputy Commissioner of Income Tax Corporate Circle 3(1) No.121, Nungambakkam High Road

Chennai-600 034 2.The Chief Commissioner Of Income Tax 1 No.121 Nungambakkam High Road Chennai 600 034.

: Respondents Prayer: Petition filed under Article 226 of the Constitution of India for issuance of a Writ of Certiorari to call for the records of the Petitioner on the file of 1st Respondent and quash the Impugned Order u/s.148A(d) of the Income Tax Act 1961, dated 01.05.2024 in DIN and Notice No.ITBA/ AST/F/148A/2024-25/1064547982(1) passed by the 1st respondent for the Assessment Year 2017-18 in PAN.AADCT0724A. along with batch cases Appearances :

Case Number For Petitioner For Respondents WP No.22402 of Mr.R.Venkatnarayanan, for M/s.Subbaraya Aiyar Padmanabhan Mr.AR.L.Sundaresan, A.S.G., assisted by Mr.V.Mahalingam WP Nos.13667, 13669 of 2023 Mr.M.Vijayan, for M/s.King and Partridge Mr.AR.L.Sundaresan, A.S.G., assisted by Dr.B.Ramaswamy WP No.38726 of Mr.G.Ashokapathy, for M/s.Pass Associates Mr.AR.L.Sundaresan, A.S.G., assisted by Dr.B.Ramaswamy WP No.19267 of Ms.Vandana Vyas Mr.AR.L.Sundaresan, A.S.G., assisted by Mr.V.Mahalingam WP No.33054 of Mr.A.S.Sriraman Mr.AR.L.Sundaresan, A.S.G., asst. by Mr.B.Ramana Kumar WP No.35731 of Mr.M.Varun Pandian Mr.AR.L.Sundaresan, A.S.G., assisted by Dr.B.Ramaswamy WP No.38637 of Mr.Rahul Sateeja Mr.AR.L.Sundaresan, A.S.G., assisted by Mr.V.Mahalingam WP No.31769 of Mr.R.Sivaraman Mr.AR.L.Sundaresan, A.S.G., assisted by Mr.V.Mahalingam WP No.33052 of Mr.A.S.Sriraman Mr.AR.L.Sundaresan, A.S.G.,

Case Number For Petitioner For Respondents asst. by Mr.B.Ramana Kumar WP No.33105 of Mr.N.V.Balaji Mr.AR.L.Sundaresan, A.S.G., assisted by Dr.B.Ramaswamy WP No.39268 of Mr.B.Sivaraman Mr.AR.L.Sundaresan, A.S.G., asst. by Mr.B.Ramana Kumar WP No.21945 of Ms.Vandana Vyas Mr.AR.L.Sundaresan, A.S.G., assisted by Mr.V.Mahalingam WP No.21942 of Ms.Vandana Vyas Mr.AR.L.Sundaresan, A.S.G., assisted by Mr.V.Mahalingam WP No.22410 of Mr.R.Venkat Narayanan, for M/s.Subbaraya Aiyar Padmanabhan Mr.AR.L.Sundaresan, A.S.G., assisted by Mr.V.Mahalingam WP No.34604 of Mr.N.V.Balaji Mr.AR.L.Sundaresan, A.S.G., assisted by Dr.B.Ramaswamy WP No.59 of 2025 Mr.B.Sivaraman Mr.AR.L.Sundaresan, A.S.G., assisted by Dr.B.Ramaswamy WP No.63 of 2025 Mr.B.Sivaraman Mr.AR.L.Sundaresan, A.S.G., assisted by Dr.B.Ramaswamy WP No.16630 of Mr.SP. Chidambaram Mr.AR.L.Sundaresan, A.S.G., assisted by Dr.B.Ramaswamy COMMON ORDER (Order of the Court was made by the Hon'ble Chief Justice) All these petitions got listed in view of difference of opinion between two learned Single Judges.

2. Learned Single Judge in order dated 20.12.2024 in WP Nos.25223 of 2024 held that it does not matter if the Jurisdictional Assessing Officer

(JAO) issues the notice and it is not mandatory that it should be issued by the Faceless Assessment Officer (FAO). Another learned Single Judge in order dated 21.04.2025 in WP No.22402 of 2024 and batch cases, followed what was held by the Bombay High Court in Hexaware Technologies Ltd vs. Assistant Commissioner of Income Tax1; and opined that it was mandatory for the FAO to issue notice and issuance of notice by JAO would make the notice invalid.

3. Learned Single Judge thereafter directed the matter to be placed before the Chief Justice for constituting a Division Bench to consider the divergent views. It is, therefore, all these matters were listed before us today.

4. We follow the law as laid down in Hexaware Technologies Ltd (supra), the said judgment was authored by one of us (Chief Justice), that it is mandatory for the FAO to issue the concerned notices and issuance thereof by the JAO would make the notice invalid. [2024] 162 taxmann.com 225 (Bombay)

5. Counsels for assessees are ad idem that the law as laid down in Hexaware Technologies Ltd (supra) will apply. Learned Additional Solicitor-General, however, submits that the Revenue does not accept the law as laid down in Hexaware Technologies Ltd (supra); and that there is a special leave petition filed against the order and judgment in Hexaware Technologies Ltd (supra) and the same is expected to be taken up after the Supreme Court reopens.

6. Admittedly, learned Additional Solicitor-General, in fairness, states that there is no stay. Therefore, the law as laid down by Hexaware Technologies Ltd (supra) applies.

7. It is clarified that if the Apex Court reverses the judgment of Hexaware Technologies Ltd (supra), parties will be governed by the decision of the Apex Court.

8. Keeping open all rights and contentions of parties, including liberty to apply to this Court, in case the Revenue succeeds before the Apex Court, for revival of these petitions, the notices issued in these petitions are

quashed and set aside.

9. In these petitions, apart from the issue of notices issued by JAO instead of FAO, all or many of the issues which were considered in Hexaware Technologies Ltd (supra) are involved.

10. To the extent the issues raised in Hexaware Technologies Ltd (supra) are not covered, those are kept open to be raised at the appropriate stage.

11. With the liberty as noted above, all petitions stand disposed of holding in favour of assessees. There will be no order as to costs. Consequently, the interim applications also stand disposed of. (K.R.SHRIRAM, CJ.) (SUNDER MOHAN, J.) 24.06.2025 Index : Yes/No : Yes/No tar Registry to note:

Registry shall type cause title, prayer etc.

in other writ petitions.

To 1.The Deputy Commissioner of Income Tax Corporate Circle 3(1) No.121, Nungambakkam High Road Chennai-600 034 2.The Chief Commissioner Of Income Tax 1 No.121 Nungambakkam High Road Chennai 600 034.

THE HON'BLE CHIEF JUSTICE AND SUNDER MOHAN , J.

(tar) 24.06.2025