Acharya Nagarjuna University, Rep by its Registrar V. Union of India, Rep. by its Secretary, Ministry of Finance, Department of Revenue, Income Tax Department, New Delhi and The Commissioner of Income Tax (Exemptions), Hyderabad and The Joint Commissioner of Tax, Central Circle, Vijayawada and The Divisional Commissioner of Income Tax, Central Circle, Vijayawada and The Asst Commissioner of Income Tax, Vijayawada

WP/1677/2024

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The case involves Acharya Nagarjuna University, represented by its Registrar, filing a writ petition against various income tax authorities, including the Union of India and the Commissioner of Income Tax (Exemptions), Hyderabad. The university challenged the computation and demand for payment of Rs. 30,00,00,000 for the assessment years 2015-2016 and 2018-2019, claiming it was illegal, arbitrary, and violative of natural justice, specific sections of the Income Tax Act, and the Constitution of India. The court's decision was influenced by an interim order that addressed the university's concerns, leading to the disposal of the writ petition and directing the matter to be adjudicated by the appellate authority within six months.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 697902 (HC-ANDHRA_PRADESH)
• Appeal Type: Others
• Pronouncement Date: 13-11-2024
• Assessment Year: misc
• Laws Referred To: Income Tax Act, Information Technology Act, 2000, Constitution of India
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: Y V KUMAR; Y N VIVEKANANDA
• Keywords: Assessment orders; Income tax exemption; Legal Violation; Natural Justice; Writ of Mandamus
• Section: 14; 282; 10(23)(iiiad); 21; 2(b); 12(3); 10(23)(iiiab)

Judgement Text

"IN THE HIGH COURT OF ANDHRA PRADESH :: AMARAVATI (Special Original Jurisdiction) WEDNESDAY, THE THIRTEENTH DAY OF NOVEMBER^^^^g^^I^ TWO THOUSAND AND TWENTY FOUR PRESENT THE HONOURABLE SRI JUSTICE G.NARENDAR AND THE HONOURABLE SRI JUSTICE T.C.D.SEKHAR WRIT PETITION NO: 1677 OF 2024 Between; Acharya Nagarjuna University, Rep by its Registrar, Door No.1, Acharya Nagarjuna University, NH5, Nagarjuna Nagar, Guntur, Guntur, Andhra Pradesh. ...Petitioner AND 1. Union of India, Rep., by its Secretary, Ministry of Finance, Department of Revenue, Income Tax Department, New Delhi - 110001. 2. The Commissioner of Income Tax (Exemptions), (Hyderabad)Aayak ar Bhawan, 2\"'^ Floor, Annexure Building. Basheerbagh, Hyderabad- 500004. 3. The Joint Commissioner of Tax, Central Circle. Vijayawada. Revenue Colony. Siddhartha Public School Road, Mogalrajapuram, Vijayawada, Andhra Pradesh - 533401. 4. The Divisional Commissioner of Income Tax, Central Circle, Vijayawada, Revenue Colony, Siddhartha Public School Road, Mogalrajapuram, Vijayawada, Andhra Pradesh - 533401. 5. The Asst Commissioner of Income Tax, Vijayawada. ...Respondents Petition under Article 226 of the Constitution of India praying that in ^ the circumstances stated in the affidavit filed therewith, the High Court may be pleased to issue a Writ, One in the nature of a Writ of MANDAMUS or any other appropriate Writ, declaring that the computation in (1) DIN and Dct No. ITBA/AST/S/115/2022-23/1051078424(1) dt.21.3.2023 for 2015- 2016, (2). DIN and Dct No ITBA/AST/S/185/2022-23/1051078027 (1) dt.21.3.2023 for 2018-19 and (3) consequential orders of the 2nd respondent on petitioners appeal vide DIN and Letter. No. ITBA/COM/F/17/2023- 24/1055556301 (1) dt.29.8.2023 demanding to pay a sum of Rs, 30,00,00,000/- as being illegal, arbitraiy, violative of the principles of natural justice. Section 10 (23) (iiiab) and (iiiad), 282 of the Income Tax Act and rules framed there under and Ss 2(b) R/w 12(3) of Information Technology Act, 2000 and is also violative of Article 14 and 21 of the Constitution of India and consequentially set-aside the order passed by the Respondents. ! lA NO: 2 OF 2024 Petition under Section 151 CPC praying that in the circumstances stated in the affidavit filed in support of the petition, the High Court may be pleased to stay all consequential proceedings including the demand notice dated 21/03/2023 issued U/S. 156 of the Act, pending disposal of the Writ Petition and pass lA NO: 1 OF 2024 Petition under Section 151 CPC praying that in the circumstances stated in the affidavit filed in support of the petition, the High Court may be pleased to suspend the operation of the Assessment Orders dt.21.3.2023 for 2015-2016 & 2018-19 and consequential orders of the 2nd respondent in DIN ScLetter. No. ITBA/COM/F/17/2023- 24/1055556301(1) dt.29.8.2023 r '’demanding to pay a sum of Rs, 30,00,00,000/- pending disposal of the Writ Petition. Counsel for the Petitioner: SRI. SPECIAL GOVERNMENT PLEADER I Counsel for the Respondent No. 1: SRI Y V ANIL KUMAR (Central Government Counsel) Counsel for the Respondent No. 2 to 5: SRI Y N VIVEKANANDA, SC FOR INCOME TAX DEPARTMENT The Court made the following order: r; HONOURABLE SRI JUSTICE G. NARENDAR AND HONOURABLE SRI JUSTICE T.C.D. SEKHAR WRIT PETITION No.1677 of 2024 ORDER: (per Hon’ble Sri Justice G. Narendar) There is no representation on behalf of the petitioner. We have heard Sri Y.N. Vivekananda, learned Senior Standing Counsel for Income Tax Department. The instant writ petition is preferred with the following prayer: 2. “For the reasons stated in the accompanying affidavit, it is hereby prayed that this Hon’ble Court may be pleased to issue a Writ, One in the nature of a Writ of MANDAMUS or any other appropriate Writ, deciaring that the computation in (1) DIN & Dct No. ITBA/AST/S/115/2022-23/1051078424 (1) dt. 21.3.2023 for 2015-2016, (2) DIN & Dct No. ITBA/AST/S/185/2022-23/1051078027 (1) dt. 21.3.2023 for 2018-19 and (3) consequential orders of the 2^^ respondent on petitioner’s appeai vide DIN & Letter No.lTB/VCOM/F/l 7/2023- 24/1055556301 (1) dt.29.8.2023 demanding to pay a sum of Rs.30,00,00,000/- as being iliegai, arbitrary, violative of the principles of natural justice. Section 10(23)(iiiab) & (iiiad), 282 of the Income Tax Act and rules framed thereunder and Ss 2(b) R/w 12(3) of Information Technology Act, 2000 and is also violative of Article 14 and 21 of the Constitution of India and consequentially set- aside the order passed by the Respondents and pass such other order or orders as this Hon’bie Court may deem fit and proper in the circumstances of the case.’’ We have perused the interim order dated 29.02.2024. The order, though an interim order, is detailed and virtually addresses the issue raised in the writ petition in toto. In that view of the matter and keeping in view the fact that the petitioner is a State-run University and has asserted that it is exempt from the purview of Income Tax Act, 1961, we deem it appropriate to dispose of the writ petition in terms of the interim order dated 29.02.2024 and relegate the parties to have the matter adjudicated merits at the earliest before the appellate authority. We further direct the appellate authority to expedite the hearing and disposal of the appeal in order to let the parties know, more particularly, the writ petitioner as to whether it is liable for payment of any income tax or not. The consideration and disposal of the appeal shall be within an outer limit of six months from the date of receipt of a copy of this 3. 4. on order. The writ petition stands disposed of accordingly. As a sequel, pending interlocutory applications, if any, shall stand closed. There 5. SDI- SHAIK MOHD. RAFi ASSISTANT REGISTRAR shall be no order as to costs. //TRUE COPY// SECTION OFFICER To, 1. The Secretary, Union of India, Ministry of Finance, Department of Revenue, Income Tax Department, New Delhi - 110001. 2. The Commissioner of Income Tax (Exemptions), (Hyderabad) Aayakar Bhawan, 2\"'^ Floor, Annexure Building. Basheerbagh, Hyderabad- 500004. 3. The Joint Commissioner of Tax, Central Circle. Vijayawada. Revenue # Colony. Siddhartha Public School Road, Mogalrajapuram, Vijayawada, Andhra Pradesh - 533401. 4. The Divisional Commissioner of Income Tax, Central Circle, Vijayawada, Revenue Colony, Siddhartha Public School Road Mogalrajapuram, Vijayawada, Andhra Pradesh - 533401. 5. The Asst Commissioner of Income Tax, Vijayawada. 6. One CC to Special Government Pleader Advocate [OPUC] 7. One CC to Sri. Y V Anil Kumar (Central Government Counsel) [OPUC] 8. One CC to Sri. Y N Vivekananda SC for Income Tax Department [OPUC] 9. Three CD Copies GSC HIGH COURT DATED:13/11/2024 ORDER 5^and7^ WP.No.1677 of 2024 0 5 DEC m Curreni aaciion DISPOSING OF THE WP WITHOUT COSTS "