APR JEWELLERS PRIVATE LIMITED (Pan No. AALCA3233D) V. The Commissioner of Income Tax

WP/31826/2021

AI Insights

The case involves Apr Jewellers Private Limited, which filed a writ petition against the Commissioner of Income Tax (Appeals), the Income Tax Officer, and two branches of the State Bank of India. The petitioner challenged the non-disposal of their appeal and stay petition regarding an assessment order that significantly increased their assessed income for the year 2017-18. The petitioner argued that the issuance of demand and garnishee notices during the pendency of their appeal and stay petition was illegal and violated principles of natural justice, as well as Articles 14 and 19(1)(g) of the Constitution of India. The court's decision focused on ensuring the timely consideration of the stay petition by the appellate authority.

• Counselvise Citation: [2021] 140 COUNSELVISE.COM (IT) 692018 (HC-TELANGANA)
• Appeal Type: Others
• Pronouncement Date: 03-12-2021
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961, Constitution of India
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: B SARMA; M S PEARL LAW ASSOCIATES
• Assessee Lawyers: S CHAKRAPANI
• Keywords: Assessment Order; Garnishee notice; Income Tax; Principles of natural justice; Stay Petition; Writ of Mandamus
• Section: 143(3); 226(3)

Judgement Text

"Apr Jewellers Private Limited (Pan No.AALCA3233D), Rep. Sri Rama Krishna Reddy Ambati, Office at H.No.3 - 6 - 290, Sai Tirumala Towers, Opp. Hotel Central Park, Hyderguda, HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD (Special Original Jurisdiction) PRESENT THE HONOURABLE SRI JUSTICE UJJAL BHUYAN AND THE HONOURABLE SMT JUSTICE P. MADHAVI DEVI WRIT PETITION NO: 31826 OF 2021 Between: by its lvlanaging Director Flat No.3, Ground Floor, Hyderabad -500029. ..,PETITIONER AND 1 . The Commissioner of lncome Tax, (Appeals) Hyderabad - l. 2. The lncome Tax Officer, Ward 1(2), lncome Tax Department, Hyderabad. 3. State Bank of lndia, City Center Branch, Rep. By its Branch Manager, Road No.1, Banjarahills, Hyderabad 4. State Bank of lndia, Tadipatri Branch, Rep. By its Branch Manager, H.No.15-658, R.F.Road, Tadipatri, Anatapuramu District, A.P. .,.RESPONDENTS Petition under Article 226 of lhe Constitution of lndia praying that in the circumstances stated in the affidavit filed therewith, the High Court may be pleased to pass an order or orders or a writ more particularly one in the nature of Writ of Itrlandamus and declare the action of the Respondent No.1 in not disposing the Appeal dt. 2010112020 and Stay Petition dt.O510412021 filed by the Petitioner against the Assessment DIN and Order No.ITBA/AST/S/143(3y2019 - 2011022824094(1) dl .2111212019 of the Respondent No.2 and further declare the action of the Respondent No.1 in issuing Notices d|.2310112020 and d1.2010212020 under Sec.226(3) of lT Act to the Respondent No.3 and 4 and subsequent recovery proceedings during the pendency of Appeal and stay petition of the Petitioner before the Respondent No.1 as illegal, arbitrary and against Principles of Natural Justice and in violation of Article 14 and 19(1)(g) of the Constitution of lndia and consequently set aside the Attachment Notice No.|TBA/RCV/S/226(3)_112019-2011024172573 (1) dt.2310112020 and Notice No ITBA/COM/F I 17 12019-201 102547 4605(1) d|.2010212020, lA NO: 1 OF 2021 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 of all further recovery proceedings of the Respondent No.2 till the disposal of the Appeal pending before the Respondent No.1 . lA NO: 2 OF 2021 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 FRIDAY, THE THIRD DAY OF DECEIVBER TWO THOUSAND AND TWENTY ONE Attachment Notice No.lT 3A/RCV/S/226(3)_112019-2011024172573(1) ci.23t 0112020 issued by the Responder t No.2 to the Respondent No.3. lA NO: 3 OF 2021 Petition under Sec ion '1 51 CPC praying that in the circumstancer; stated in the affidavit filed in support o the petition, the High Court may be pleased to suspend the Notice No.lTBA/COM/F, 1712O19-2011025474605(l) dl.2Ol02l2O20 iss;ued by the Respondent No.2 to the I lespondent No.4. Counsel for the Petition(,rs: SRI S. CHAKRAPANI FOR SRI. CHALLA GUNARANJAN Counsel for the Responr lent Nos.1 & 2: SRI B. NARASISMHA SARMA, SENIOR S.C. FOR INCOME TAX l,EPARTMENT FOR A. RADHA KRISHNA Counsel for the Responr ent Nos.3 & 4: M/s. PEARL LAW ASSOCIATE:S The Court made the follr wing: ORDER HONOURABLE SRI JUSTICE UJJAL BHUYAN AND HONOURABLE SMT. JUSTICE P. MADHAVI DEVI W.P.No.31826 OF 2021 . fpn, gon'ble SriJusrice Lliial Bhuyan) Heard Mr.S.Chakrapani, learned counsel representing Mr.Challa Gunaranjan, learned counsel for the petitioner and Mr.B.Narasimha Sartra, learned Senior Standing Counsel lbr the lncome 'l'ax Depaftrlent for re spondents Nos. I and 2. 2. Petitioner is an assessee under the Income Tax Act, I 961 (briefly, 'the Act' hereinafter), assessed to tax within the jurisdiction of respondent No.2. 3. For the assessment year 2017-18, respondent No.2 passed the assessment order dated 21.12.2019 under Section 1a3(3) of the Act making additions under Section 69-,4' of the Act and thereafter assessed the income of the petitioner at Rs.1,50,03,952.00, as against income returned by the petitioner at Rs.1,78,860.00. 4. Aggrievcd by the albresaid order of assessment, petitioner has filed appeal befbre the Commissioner of Income Tax (Appeals), Hyderabad-l i.e., respondent No. I on 20.01.2020. 'l-he said appeal is presently pending lbr hearing. 5. In the tneanwhile, demand notices were issued to the petitioner which were {bllowed by garnishee notices. In such situation, petitioner filed a stay petition dated 05.04.2021 before the Appellate i 2 Authority i.e., espondent No.1. With the grievance that the said stay petition has no been taken up for consideration, but at the :;ame time petitioner is fa :ing the demand with gamishee notices. prr:sent writ petition has bee n filed. 6. After he rring learned counsel for the parties an(l on due consideration. ' ie are ol-the view that it would meet the ends ofjustice ila direction is issued to the Appellatc Authority i.c., rcspon,Cent No. I to take up the s ay petition o1'the petitioner dated 05.04.202 I and pass appropriate orc:rs thereon in accordance with larr,. 'e' erre ol the furrher opinion that the said stay'peririon should be decidecl w'ithin a period ol six u eeks lrom the date of receipt ol a copy of this order Till such time the dernand pursuant to assessment order dated 21.12.2019 sha I remain stayed. 7. Writ peti ion is disposed of. 8. Miscellar eous applications, if any pending, shall stand closed 9. No costs I To, //TRUE COPY// SD/. T.TIRUMALA DEVI ASSISTANT REGISTRAR -- SECTION OFFICER 1. The Commissioner of lncome Tax, (Appeals) Hvderabad - l. 2 The rncome Tax o 'icer. ward 1(21,'rriiom;i;i Deparrment, Hvderabad. 3. The Branch Manac rr, state Bani 6i i\"oi, citv'b\";i\"; ii;;;;h' 'A;;;xt::1 Banjarahills, Hvdei rbad 4. The Branch Minao .rr, State Bank of lndia, Tadipatri Branch. H.No.15_658, _ ! F [oad, Tadipari enatiprra., ol;;;;i. A:F' b. Une CC to Sri Chal a Gunaranjan, Advocate tOpUCl 6. one cc to Sri B. N, rrasimha s'irmr, s\"nioidlc. ioi'tn\"or\" Tax Department loPUcl I. Qn\" CC to Sri A. R; dha Krishna, Advocate tOpUCl 8. One CC to M/s. pei rt Law Asao;iai;a;l;io,\"-\"t\"-1cjeucl 9. Two CD Cooies 10. One Spare boov CHR {tlr I HIGH COURT DATED:0311212(21 ORDER W.P.No.31826 ( f 2021 DISPOSING OT THE WRIT PETITION WITHOUT COS TS E STATs t- c. ,l 03 JAll 2022 * q% L/ X{ Y '-(l "