Andhra Pradesh Housing Board V. Asst. Commissioner of Income Tax, Circle \\u2013 5(1)

WP/35787/2012

AI Insights

The case involves the Andhra Pradesh Housing Board (petitioner) contesting an income tax assessment for the year 2007-08, which amounted to approximately Rs.3.29 billion. The petitioner appealed the assessment, which was partly allowed, and subsequently sought a stay on the recovery of the tax demand from the Income Tax Appellate Tribunal. The Tribunal's rejection of the stay led to this writ petition, where the petitioner argued against the initiation of coercive recovery steps by the Income Tax Department. The court, considering the ongoing appeal and the Tribunal's assurance of an expedited process, decided against allowing any coercive recovery actions until the appeal is resolved.

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 796417 (HC-ANDHRA_PRADESH)
• Appeal Type: Others
• Pronouncement Date: 12-12-2012
• Assessment Year: misc
• Laws Referred To: Income Tax Act
• Result in Favour of: Revenue
• Court: HIGH COURT
• Department Lawyers: J V PRASAD
• Assessee Lawyers: S RAVI; CH KIRAN
• Keywords: Appeal; Assessment Year 2007-08; Coercive Steps; Income tax appellate tribunal; Income Tax Liability; Stay of recovery
• Section: 143(3)

Judgement Text

"THE HON’BLE SRI JUSTICE GODA RAGHURAM AND THE HON’BLE SRI JUSTICE M.S.RAMACHANDRA RAO WRIT PETITION No.35787 of 2012 Date: 12.12.2012 Between: M/s. Andhra Pradesh Housing Board, Hyderabad. … Petitioner AND Asst. Commissioner of Income Tax, Circle – 5(1), 6th Floor, Ayakar Bhavan, Basheerbagh, Hyderabad – 500 004. … Respondent THE HON’BLE SRI JUSTICE GODA RAGHURAM AND THE HON’BLE SRI JUSTICE M.S.RAMACHANDRA RAO WRIT PETITION No.35787 of 2012 ORDER (Per the Hon’ble Sri Justice Goda Raghuram): Heard Sri S. Ravi, the learned Senior Counsel instructed by Sri Ch.Pushyam Kiran, the learned counsel for the petitioner – the A.P Housing Board and Sri J.V. Prasad, the learned Standing Counsel for Income Tax for the respondent – Revenue. The petitioner in respect of the Assessment Year 2007-08 was assessed to an income tax liability of Rs.3,29,51,82,827/- vide Assessment order dated 31.12.2009. It preferred an appeal to the Commissioner of Income Tax (Appeals) – V, Hyderabad. The appeal was partly allowed by the order dated 17.02.2011. The petitioner preferred a further appeal to the Income Tax Appellate Tribunal, Hyderabad ‘A’ Bench and along therewith an application seeking stay of recovery of the demand of Rs.3,29,51,82,827/-. The impugned order dated 10.02.2012 was passed by the Tribunal rejecting the application for stay on the ground that the appeal itself would be disposed of early, preferably shortly after February, 2012 by which date the respective parties were directed to file paper books for facilitating disposal of the appeal. Even by December, 2012, the appeal has not been disposed of and meanwhile the respondents are initiating coercive steps for recovery of a substantial amount of nearly Rs.320 Crores from the petitioner, is the complaint. Sri J.V. Prasad, the learned Standing Counsel for the respondent Revenue states that in the facts and circumstances the petitioner be directed to deposit some amount while directing the Tribunal to dispose of the appeal-I.T.A.No.715/HYD/2011 expeditiously. We do not consider it appropriate to make a pronouncement as to the existence and otherwise of a prima facie case in favour of the petitioner in the appeal pending before the Tribunal as that would pre- judge the issue and might have a chilling effect on the exercise of appellate discretion. Since the Tribunal has already indicated that the appeal would be disposed of expeditiously, we consider it appropriate to direct the respondents not to initiate any coercive steps against the petitioner for recovery of the tax as assessed and to the extent confirmed by the Commissioner of Income Tax (Appeals), pending disposal of the appeal by the Tribunal. The Tribunal may consider expeditious disposal of the appeal. Since it is represented at the Bar that the appeal is listed for hearing on 27.12.2012, we do not feel it appropriate to fix any specific date. Suffice it to observe that the petitioner would not be entitled to any adjournment and the Tribunal may proceed with the hearing of the appeal on the date fixed. The writ petition is disposed of as above at the stage of admission. In the circumstances however, no order as to costs. JUSTICE GODA RAGHURAM Date: 12.12.2012 JUSTICE M.S.RAMACHANDRA RAO va THE HON’BLE SRI JUSTICE GODA RAGHURAM AND THE HON’BLE SRI JUSTICE M.S.RAMACHANDRA RAO WRIT PETITION No.35787 of 2012 (order of the Bench delivered by the Hon’ble Sri Justice Goda Raghuram) Date: 12.12.2012 va "