Andhra University Development Centre International Centre V. Union Of India

WP/30807/2024

AI Insights

The case involves the Andhra University Development Centre International Centre, which is part of Andhra University, contesting an income tax demand for the assessment year 2018-19. The petitioner argued that the university as a whole is exempt from paying income tax, and the amounts remitted to the petitioner's account were not considered properly by the tax department. The petitioner had previously received a favorable assessment for the year 2014-15, but the subsequent assessment for 2018-19 demanded a payment of 5% of a disputed tax demand, which the petitioner contested. The appeal against this assessment is pending, and the petitioner sought a stay on the payment demand during the appeal process.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 800795 (HC-ANDHRA_PRADESH)
• Appeal Type: Others
• Pronouncement Date: 07-01-2025
• Assessment Year: misc
• Result in Favour of: Applicant
• Court: HIGH COURT
• Department Lawyers: ANUP KARAVADI; PASALA RAO
• Assessee Lawyers: CKR ASSOCIATES
• Keywords: 5% payment directive; Appeal Pending; Assessment year 2018-19; Disputed Demand; Income tax exemption

Judgement Text

" APHC010591012024 IN THE HIGH COURT OF ANDHRA PRADESH TUESDAY, THE SEVENTH DAY OF JANUARY TWO THOUSAND AND TWENTY FIVE THE HONOURABLE SRI JUSTICE B KRISHNA MOHAN THE HONOURABLE SRI JUSTICE WRIT PETITION NO: 30807/2024 Between: Andhra University Development Centre International Centre Building, Union Of India and Others Counsel for the Petitioner: 1. CKR ASSOCIATES Counsel for the Respondent(S): 1. ANUP KOUSHIK KARAVADI 2. PasalaPonnaRao,DEPUTY SOLICITOR GENERAL OF INDIA IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI (Special Original Jurisdiction) TUESDAY, THE SEVENTH DAY OF JANUARY TWO THOUSAND AND TWENTY FIVE PRESENT THE HONOURABLE SRI JUSTICE B KRISHNA MOHAN THE HONOURABLE SRI JUSTICE NYAPATHY VIJAY WRIT PETITION NO: 30807/2024 Andhra University Development Centre International Centre AND Union Of India and Others ...RESPONDENT(S) Counsel for the Petitioner: CKR ASSOCIATES Respondent(S): ANUP KOUSHIK KARAVADI PasalaPonnaRao,DEPUTY SOLICITOR GENERAL OF INDIA IN THE HIGH COURT OF ANDHRA PRADESH [3516] TUESDAY, THE SEVENTH DAY OF JANUARY THE HONOURABLE SRI JUSTICE B KRISHNA MOHAN NYAPATHY VIJAY ...PETITIONER ...RESPONDENT(S) PasalaPonnaRao,DEPUTY SOLICITOR GENERAL OF INDIA 2 HBKM,J& HVN,J W.P.No.30807 of 2024 The Court made the following: ORDER:(Per Hon’ble Sri Justice B. Krishna Mohan) Heard the learned counsel for the petitioner and the learned Standing Counsel for the respondent Nos.2 to 5. 2. This writ petition is filed questioning the order in the application for stay of collection of disputed demand for the assessment year 2018-19, dated 27.11.2024 passed by the 2nd respondent directing the assessee to pay the 5% of the demand (Rs.80,55,67,987/-) i.e., Rs.4,02,78,400/- in ten installments as detailed in the said order. 3. The learned counsel for the petitioner submits that the petitioner is one of the wings and centers of the Andhra University and the University as a whole is exempted from the purview of paying income tax. But, as there are two different Pan Numbers for the petitioner and the University separately, certain amounts were remitted to the account of the petitioner and as such, the department without considering the undertaking given by the Registrar of the University proceeded with the assessment for the year 2018-19 directing to pay the income tax for the same. However, for the assessment year 2014-15 dated 16.03.2023, the assessing officer passed the assessment order accepting the claim of the petitioner. But, deviating from the same, the impugned assessment arises, 3 HBKM,J& HVN,J W.P.No.30807 of 2024 against which the petitioner preferred an Appeal before the 3rd respondent, which is pending for consideration. However, the Appellate Authority erroneously insisted payment of 5% of the demand as stated above. The petitioner has got a fit case in the Appeal to get total exemption from payment of income tax. 4. On the other hand, the learned Standing Counsel appearing for the respondent Nos.2 to 5 submits that the petitioner can submit the relevant material before the Appellate Authority and if so, the Appeal can be decided by following the due procedure by the 3rd respondent. 5. In view of the above said facts and circumstances, the 3rd respondent is directed to proceed with the Appeal pending before it, preferred by the petitioner for the assessment year 2018-19, dated 27.11.2024 and the same shall be decided strictly in accordance with law, giving due opportunity of hearing for both the parties and upon consideration of the material available on record, appropriate decision shall be taken on its own merits, as expeditiously as possible, preferably, within a period of four (4) months from the date of receipt of this order. In the meanwhile, there shall not be any insistence of payment of 5% of the demand as decided in the stay application of the petitioner by the Appellate Authority and there shall 4 HBKM,J& HVN,J W.P.No.30807 of 2024 not be any coercive action, pending disposal of the Appeal before the 3rd respondent Authority. 6. Accordingly, the Writ Petition is disposed of. There shall be no order as to costs. As a sequel, Interlocutory Applications pending, if any, shall stand closed. _________________________ JUSTICE B KRISHNA MOHAN ________________________ JUSTICE NYAPATHY VIJAY 07.01.2025 MDP "