Andhra Pradesh Pollution Control Board V. Union of India, Ministry of Finance, Department of Revenue, Central Board of Direct Taxes and Assessment Unit, Income-tax Department, New Delhi and National Faceless Appeal Centre, New Delhi and The Commissioner of Income Tax (Exemptions), Hyderabad, Telangana State and The Deputy / Assistant Commissioner of Income Tax, Exemption Circle, Vijayawada, NTR District

WP/28408/2024

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The case involves the Andhra Pradesh Pollution Control Board ( petitioner) seeking a writ of mandamus to compel the Central Board of Direct Taxes (respondent) to act on their application for tax exemption under Section 10(46) of the Income Tax Act, 1961, for the financial years 2021-22 to 2025-26. The petitioner argued that their application, filed on 08.09.2022, was still pending and that similar applications had previously been granted. The respondents acknowledged the pending application but argued that the assessment order dated 26.03.2024 could be rectified once the exemption was granted. The court decided in favor of the petitioner, emphasizing the need for a timely response from the CBDT and halting any coercive actions based on the pending application.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 800490 (HC-ANDHRA_PRADESH)
• Appeal Type: Others
• Pronouncement Date: 11-03-2025
• Assessment Year: misc
• Other Referred Cases: Writ Petition No.3356 of 2025
• Laws Referred To: Article 226 of the Constitution of India, Section 10(46) of the I.T. Act
• Result in Favour of: Revenue
• Court: HIGH COURT
• Department Lawyers: PASALA RAO; Y N VIVEKANANDA
• Assessee Lawyers: B V S RAO
• Keywords: Assessment Order; Coercive Action; Income tax exemption; Pending Application; Writ of Mandamus
• Section: 10(46)

Judgement Text

"IN THE HIGH COURT OF ANDHRA PRADESH :: AMARAVATI (Special Original Jurisdiction) TUESDAY. THE ELEVENTH DAY OF MARCH TWO THOUSAND AND TWENTY FIVE PRESENT THE HONOURABLE SRI JUSTICE NINALA JAYASURYA AND THE HONOURABLE SRI JUSTICE TARLADA RAJASEKHAR RAO WRIT PETITION NO: 28408 OF 2024 Between: Andhra Pradesh Pollution Control Board Paryavaran Bhavan, APIIC Colony Road, Autonagar, Vijayawada-520010. Rep. by Member Secretary Sri Shanmugam Sri Saravanan, S/o.Sri A.Shanmugam, aged about years, R/o. APIIC Colony Road, Autonagar, Vijayawada-520 010. 51 ...PETITIONER AND 1. Union of India, Ministry of Finance, Department of Revenue Board of Direct Taxes, North Block, New Delhi. 2. Assessment Unit,Income-tax Department, New Delhi. 3. National Faceless Appeal Centre, New Delhi. 4. The Commissioner of Income Tax (Exemptions), Hyderabad, Telangana State. 5. The Deputy / Assistant Commissioner of Income Tax, Exemption Circle, Vijayawada, NTR District. Central ...RESPONDENTS Petition under Article 226 of the Constitution of India praying that in the circumstances stated in the affidavit filed therewith be pleased to issue the High Court may an appropriate Writ, Order or Direction particularly one in the nature of Writ of Mandamus to respondent No.1 to notify the petitioner under Section 10(46) of the I.T. Act more directing the for the financial years commencing from 2021-22 to 2025-26 relevant to asst, years 2022-23 to 2026-27 under PAN N0.AAAJAI6IOQ. 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 stay all income tax proceedings and recovery proceedings for assessment years 2022-23 to 2026-27 in the case of petitioner bearing PAN N0.AAAJAI6IOQ, pending disposal of the above writ petition. Counsel for the Petitioner: SRI B. V, S. CHALAPATI RAO Counsel for the Respondent N0.I: SRI PASALA PONNA RAO, DEPUTY SOLICITOR GENERAL OF INDIA Counsel for the Respondent Nos.2 to 5:SRI Y.N. VIVEKANANDA, SR. SC FOR INCOME TAX The Court made the following: ORDER r- APHC010524432024 IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI (Special Original Jurisdiction) [3526] TUESDAY, THE ELEVENTH DAY OF MARCH TWO THOUSAND AND TWENTY FIVE PRESENT THE HONOURABLE SRI JUSTICE NINALA JAYASURYA THE HONOURABLE SRI JUSTICE TARLADA RAJASEKHAR RAO Writ Petition No:28408 of 2024 Between: Andhra Pradesh Pollution Control Board Paryavaran Bhavan APIIC Colony Road, Autonagar, Vijayawada-520010. Rep. by Member Secretary Sri Shanmugam Sri Saravanan, S/o. Sri A.Shanmugam, aged about 51 years, R/o. APIIC Colony Road, Autonagar, Vijayawada- 520 010. ...Petitioner AND Union of India, Ministry of Finance, Department of Revenue, Central Board of Direct Taxes, North Block, New Delhi and 4 others Counsel for the Petitioner: Mr. B V S Chalapati Rao Counsel for the Respondents: 1. Mr. Pasala Ponna Rao, Deputy Solicitor General of India 2. Mr. Y N Vivekananda, Senior Standing Counsel for Income Tax Department. ...Respondents The Court made the following Order: (per NJS,J) Heard Mr. Dammalapati Srinivas, learned Advocate General, appearing on behalf of the writ petitioner. Also heard Mr. Y N Vivekananda, learned Senior Standing Counsel for Income Tax Department appearing on behalf of the respondent Nos.2 to 5. Contd... NJS,J & TRR,J . W.PNo.28408 of 2024 learned Advocate General referring to the relief sought for in the writ inter alia that the Andhra Pradesh Pollution Control 2. The petition made submissions Board filed an application under Section 10(46) of the Income Tax Act, on 08.09.2022, seeking exemption by issuing notification. He submits that so far action has been taken on the said application and in fact on the earlier no considered and appropriate notifications occasions similar applications were were issued and one such notification is dated 24.08.2022. of this Court to the counter-affidavit filed on behalf Nos.2 to 5 and also to the orders of a Division Bench of the for the State of Telangana dated 11.02.2025 in Writ Petition he submits that pending consideration of the application for Drawing the attention of the respondent High Court No.3356 of 2025, renewal of exemption, no coercive action, pursuant to the assessment order dated 26.03.2024 for the assessment year 2022-2023 may be resorted to. 3. learned Senior Standing Counsel for the Income Tax Department, made submissions, drawing the attention of this Court to 4. The on the other hand the relevant portions of the Notice of Demand dated 26.03.2024 and that, as observed by the Assessing Officer, as and when the assessee gets approval Section 10(46) from the competent authority, rectification of the order under can be sought for by the assessee. 5. We have considered the submissions made and perused the material on record. As is evident from the Notice of Demand dated 26.03.2024 and the counter-affidavit of the respondent Nos.2 to 5, there is no dispute that the petitioner made an application seeking renewal of exemption under Section 10(46) of the Income Tax Act on 08.09.2022, for a further period of five years and the same is pending disposal by the Central Board of Direct Taxes/respondent No.1. The counter-affidavit also goes to show that the revised report^fo^ renewal of exemption was submitted on 07.08.2024 through proper channel. Thus, it is clear that appropriate action has to be taken by the 6. Contd... NJS,J & TRR,J W.P No. 28408 of 2024 t> 3 respondent No.1 with regard to the application made by the petitioner. As seen from the Gazette Notification dated 24.08.2022, it is discernible that in respect of the financial years 2016-2017 to 2020-2021, an exemption notification was issued subject to the outcome of the Special Leave Petition filed by the Central Board of Direct Taxes vide SLP(C) No.014351/2022. In so far as, the orders in Writ Petition No.3356 of 2025, the reference out by the learned Advocate General is that there was no demand raised by the department and the application which was filed by the Telangana Pollution Control Board seeking extension of exemption was pending, and the department was directed to take action within a period of three (03) weeks from the date of the order. Be that as it may. There is no dispute that the application of the petitioner which was made in the year 2022 is pending. Therefore, this Court deems it appropriate to dispose of the writ petition with a direction to the Central Board of Direct Taxes/respondent No.1 to take appropriate action on the same, in accordance with law, as expeditiously as possible. Till appropriate action is taken on the application of the petitioner, no coercive action pursuant to the Assessment order/Notice of Demand dated 26.03.2024 shall be taken. The petitioner also submit a copy of the application dated 08.09.2022 to the 1 along with the order passed by this Court. With the above direction, this writ petition is disposed of. No costs. Miscellaneous petitions pending, if any, shall stand closed. 7. as pointed 8. may respondent 9. N OFFICER SECTIOI //TRUE COPY// To, Union of India, Ministry of Finance, Department of Revenue, Central Board of Direct Taxes, North Block, New Delhi. Assessment Unit, Income-tax Department, New Delhi. National Faceless Appeal Centre, New Delhi. 1. 2. 3. or Ji* Commissioner of Income Tax (Exemptions), Hyderabad, Telangana 4. The State. 5. The Deputy Vijayawada, NTR District. 6. One CC to Sri B. V. S. Chalapati Rao, Advocate [OPUC] Sri Pasala Ponna Rao, Deputy Solicitor General of India, / Assistant Commissioner of Income Tax, Exemption Circle, 7. OneCCto High Court of A.P. [OPUC] 8. One CC to Sri Y.N.Vivekananda, Sr. SC for Income Tax[OPUC] 9. Three CD Copies. ssb HIGH COURT DATED:11/03/2025 ORDER g 2 5 MAR 2025 ? ^ . Current section WP.No.28408 of 2024 e9 DISPOSING OF THE W.P. WITHOUT COSTS "