BGS SGS SOMA Joint Venture V. Additional / Joint / Deputy / Assistant Commissioner of Income Tax

WP/8473/2023

AI Insights

The case involves BGS SGS SOMA Joint Venture, which filed a writ petition against the Income Tax Department challenging an order demanding 20% of a disputed tax liability of approximately Rs. 72.36 crores for the assessment year 2021-2022. The petitioner argued that the demand was arbitrary and violated Article 14 of the Constitution. The High Court, without delving into the merits of the case, directed the Principal Commissioner of Income Tax to expedite the hearing on the stay petition filed by the petitioner and to pass orders within two weeks post-hearing, while restraining any coercive recovery actions in the meantime.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 765693 (HC-TELANGANA)
• Appeal Type: Others
• Pronouncement Date: 10-04-2023
• Assessment Year: misc
• Laws Referred To: Article 226 of the Constitution of India, Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: J V PRASAD; GADI KUMAR
• Assessee Lawyers: S RAVI
• Keywords: Assessment Order; Coercive Steps; Income Tax; Stay of demand; Writ of Mandamus
• Section: 148; 143(3); 144B

Judgement Text

"HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD (Special Original Jurisdiction) MONDAY, THE TENTH DAY OF APRIL TWO THOUSAND AND TWENTY THREE PRESENT THE HONOURABLE THE CHIEF JUSTICE UJJAL.BHUYAN AND THE HONOURABLE SRI JUSTICE N.TUKARAMJI WRIT PETITION NO: 8473 OF 2023 [ 3311 ] ...PETITIONER {r BGS SGS SOMA Joint Venture, 8-2-623151111 , 14 Avenue 4, Road No.10, Banjara Hills, Hyderabad - 500 034 Represented by its Senior General Manager, Mr. N.V. Venkateswara Rao, S/o. Mr. N.V. Krishna Rao, Aged about 65 years, R/o. Hyderabad. Between: AND 1. Additional / Joint / Deputy i Assistant Commissioner of lncome Tax, National Faceless Assessment Centre, Room No. 4O1 ,2nd Floor, J.N. Stadium, Delhi - 1 10 003. 2.TheNationalFacelessAsSeSSment,Centre,RoomNo.401;2ndFloor,E- Ramp, Jawaharlal Nehru Stadium, Delhi - 't 10003 3. Union of lndia, Ministry of Finance lncome Tax Department Office of the Assistant Commissioner of lncome Tax Circle 6 (1), Hyderabad ...RESPONDENTS Petition Under Article 226 of the Constitution of lndia praying that in the circumstances stated in the affidavit filed therewith, the High Court may be pleased to issue a writ, direction or order more particularly in the nature of a writ of mandamus declaring the action of Respondent No. 3 in passing the order dated 211 O3l2O23 vide letter No. ITBA/RCV|F|17|2022-2311051043499 (1) calling upon the Petitioner to pay 2O percent of the disputed tax liability of about Rs. 72,36,39,7631(Rupees Seventy Two Crores, Thirty Six Lakh, Thirty Nine ThousaM, Seven Hundred and Sixty Three), pending disposal of the appeal of the Petitioner before the Respondent No. 2, for the Assessment Year 2021-2022' as arbitrary, illegal, violative of A(icle 14 of the Constitution of lndia and consequently set aside the same and further direct the Respondents not to take any coercive steps for recovery of the amounts under the assessment order dated 2711212022 a d lhe demand notice dated 2711212022 iill th€ disposal of the appeal filed by the t elitioner pending before the Responden. I'Jo.1i. |.A.NO:1 OF 2023 Petition Llnde in the affidavit f led stay all further p tTBA|RCVIF t17 t202 Petitioner to pay at on 27 /0312023 issu' a mou nts. - llection 151 CPC praying that in the oir lunrstances stated n support of the petition, the High Courl ma'/ be pleased to :<:eedings, including stay of the imgr.rgn:d notice No. '.-'.23/1051043499 (1) dated 21-03-2023, c:lling upon the e:rst 20olo of the tax liability (Rs. 72,36,: 9,76.)l-) by 2.00 PM d by the Respondent No. 3 along with rilay of collection of I.A.NO:2 OF 2023 Petition unde the affidavit f iled in receive the add ition 8473 of 2023. -Ihis relevant add itiona I r and which were not Section 151 CPC praying that in the cirourstances stated in s rpport of the petition, the High Court nray be pleased to rl material papers from Annexures P23 to P39 in W.P. No. additional affidavit is being filed to brir,g cnto record the raterial papers which were referred to irr tht: main affidavit ik:d due to inadvertence. Counsel for the Pet tioner : SRI.S.RAVI, ADV FOR SRI.R.S.LSSOCIATES Counsel for the Resp ,ndent Nos.1 & 2 : SRI.J.V.PRASAD (SC FOFI INCOME TAX) Counsel for the Res rcndent No.3 : SRI.GADI PRAVEEN KUM,AR, DEPUW SOLICITOR GENER T. OF INDIA The Court made the following ORDER ,-,---f B E H C EF E BL CE N.T BH W.P.No.8473 of 2023 ORDE (+, llr Hott'b/t rbc CliefJntrrae lJjlat Bltryan) Fleard lvfr. S.Ravi, leamed Senior Counsel for the peririoneq lvIr. J.V.Prasad, leamed Standing Counsel, Income Tax Depanment for respondents No.1 and2; andMr. Gadi praveen Kumar, Ieamed DepurySolicitor General of India for respondent No.j. 2. Petitioner is a joint venrure of three business enrities. Petitioner has suffered an assessment or.der dated 27.12.2022 for the assessmenr year 2O2t-2022 passed by respondent No.l. under Section 1a3(3) read with section 1448 of the Income Tax Act, 196l $iefly 'rhe Afi, hereinafter) whereby and whereunder incorne tax dues of the petitioner Las been assessed ar Rs.4,9 2,4 5,7 3,4 67 .OO. 3. Vtthout entering into the conrenrious issues raised in the writ petition, we maymention that petitioner has filed a petition for stay of demand for the assessrnenr year 2021_2022 on 27.03.2023 t I I I I AND - 2 belore the P incipal Commissioner ol- Inconre 'Ia>.I, Jvderabad (b rie f ly'P ri nt p al Commissio ner' hereinafte r). 4. On 28. )3.2023, we had called upon leamf 2023 DISPOSING ( )F THE W.P WITHOUT CC STS. -.2 =:'=.- zi:1'tt- srat'.- ()' 't, '. 'l B i ?n 2[23 I l':,o ii i t'-' tt. .'i, ' ) 't::: @ r$ 2,> "