Girijan Primary Co Operative Marketing Society Ltd, Chintapalli Main Road, Chintapalli, Visakhapatnam, Andhra Pradesh - 531111 V. UNION OF INDIA, through the Secretary, Department of Revenue Ministry of Finance, Govt, of India North Block, New Delhi-110001 and The Principal Commissioner of Income Tax, Vishakapatnam -1 and The Joint Commissioner of Income Tax, Rajamahendravaram Range, Rajamahendravaram and The Additional/Joint/Deputy/Assistant Commissioner of Income Tax, National Faceless/E-Assessment Centre, Delhi, Income Tax Department, Delhi, 2nd Floor, E-Ramp, Jawaharlal Nehru Stadium, Delhi- 110003 and The Income Tax Officer, Ward-1, Anakapalle and Senior Branch Manager, Union Bank of India, Chintapalli Mandal, ASRPaderu- 531111 and Branch Manager, Visakhapatnam- 531116 State Bank of India, Narsipatnam Bazar

WP/10602/2024

AI Insights

The case involves the Girijan Primary Cooperative Marketing Society Ltd (GPCMS) challenging a stay order imposed by the Income Tax authorities, which required a payment of 10% of a tax demand amounting to Rs.7,13,31,200. The petitioner argued that this order was arbitrary, illegal, and violated fundamental rights under Articles 14 and 21 of the Constitution, as well as being contrary to the provisions of the Income Tax Act, 1961. The High Court's intervention through interim directions led to the implementation of new orders, rendering the current writ petition infructuous as the matter is now being addressed in a different petition.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 699689 (HC-ANDHRA_PRADESH)
• Appeal Type: Others
• Pronouncement Date: 19-08-2024
• 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: VIJAY KUMAR PUNNA
• Assessee Lawyers: S V S S SIVA RAM
• Keywords: Fundamental rights; Income Tax; Stay order; Tax demand; Writ of Mandamus
• Section: 151 CPC

Judgement Text

"V i / ' t IN THE HIGH COURT OF ANDHRA PRADESH :: AMARAVATI (Special Original Jurisdiction) MONDAY, THE NINETEENTH DAY OF AUGUST TWO THOUSAND AND TWENTY FOUR PRESENT THE HONOURABLE SRI JUSTICE G.NARENDAR AND THE HONOURABLE SMT JUSTICE KIRANMAYEE MANDAVA WRIT PETITION NO: 10602 OF 2024 Between: Girijan Primary Co Operative Marketing Society Ltd, (GPCMS), Chintapalli Main Road, Chintapalli, Visakhapatnam, Andhra Pradesh - 531111. Rep. by its Manager/Secretary, Sri. P.Devaraju ...PETITIONER AND 1. UNION OF INDIA, through the Secretary, Department of Revenue Ministry of Finance, Govt, of India North Block, New Delhi-110001 2. .The Principal Commissioner of Income Tax, Vishakapatnam -1 3. .The Joint Commissioner of Income Tax, Rajamahendravaram Range, Rajamahendravaram 4. The Additional/Joint/Deputy/Assistant Commissioner of Income Tax, National Faceless/E-Assessment Centre, Delhi, Income Tax Department, Delhi, 2\"'^ Floor, E-Ramp, Jawaharlal Nehru Stadium, Delhi- 110003. 5. The Income Tax Officer, Ward-1, Anakapalle 5»y 6. Senior Branch Manager, Union Bank of India, Chintapalli Mandal, ASRPaderu- 531111 7. Branch Manager, Visakhapatnam- 531116 State Bank of India, Narsipatnam Bazar ...RESPONDENTS Petition under Article 226 of the Constitution of India praying that in the circumstances stated in the affidavit filed therewith, the High Court may be pleased to issue a Writ or and Order or Direction with more particularly in the nature of a Writ of Mandamus declaring the Stay Order bearing ITBA/COM/F/17/2024- 25/1064233738(1) dated 19.04.2024 passed by the 2nd Respondent to the extent of granting stay by imposing condition of payment of 10 percentage of tax demand amounting to Rs.7,13,31,200/- without considering the petitioners stay application and without providing any reasons, pending appeal before the 3'^'^ Respondent as arbitrary, illegal, colourable exercise of power and contrary to the provisions of the Income Tax Act, 1961 apart from being violative of the fundamental rights guaranteed to the Petitioner under Article 14 and 21 of the Constitution of India and consequently set aside the same and to grant stay of collection of tax demand of Rs. 71,33,12,154/- vide demand notice bearing ITBA/AST/S/156/2023- 24/1060262163(1) dated 30.01.2024 passed by the 4th Respondent, without imposition of any conditions. lA NO: 1 OF 2024 No. 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 direct the 4*'^ Respondent not to take any coercive steps pursuant to Assessment Order bearing ITBA/AST/S/147/2023-24 /1060262050 dated (1) 30.01.2024 and consequent demand notice vide 0^ ITBA/AST/S/156/2023- 24/1060262163(1) dated 30.01.2024 passed by the 4th Respondent pending disposal of the above Writ Petition. lA NO: 2 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 suspend the Attachment Notice issued by 5th Respondent vide Notice bearing No. ITBA/COM/F/17/2023- 24/1063683680(1) dated 30.03.2024 and subsequent Letter vide CTP/UB1/2023-24/IT dated 03.04.2024 and Email dated 30.04.2024 issued by 6*^ and 7**^ Respondents respectively pending disposal of the above Writ Petition. Counsel for the Petitioner(s):SRI. S.V.S.S.SIVA RAM Counsel for the Respondents: SRI VIJAY KUMAR PUNNA, SC for INCOME TAX The Court made the following: THE HONOURABLE SRI JUSTICE G.NARENDAR THE HONOURABLE SMT JUSTICE KIRANMAYEE MANDAVA ' WRIT PETITION NO: 10602/2024 ] ) / ORDER: {per Hon’ble Sri Justice G.Narendar) Learned counsel for the petitioner would submit that the Writ Petition has been rendered infructuous in view of the fact that the interim directions by this Court dated 06.5.2024 came to be implemented by passing fresh orders on the stay petition and the subsequent orders are now the subject matter of the Writ Petition 01. No. 17890 of 2024. 02. Sri Vijay Kumar Punna, learned counsel for the respondent, affirms the same. 03. The submissions are placed on record. The Writ Petition is disposed of having been rendered infructuous. As a sequel, miscellaneous applications, pending if any, shall stand closed. / Sd/- KJ RAJABABU ASSISTANT REGISTRAR I //TRUE COPY// SECTION OFFICER To, 1. The Secretary, Department of Revenue Ministry of Finance,UNION OF INDIA, Govt, of India North Block, New Delhi-110001 2. .The Principal Commissioner of Income Tax, Vishakapatnam -1 3. The Joint Commissioner of Income Tax, Rajamahendravaram Range, Rajamahendravaram 4. The Additional/Joint/Deputy/Assistant Commissioner of Income Tax National Faceless/E-Assessment Centre, Department, Delhi, 2nd Floor, E-Ramp, Jawaharlal Nehru Stadium Delhi- 110003. Delhi, Income Tax 5. The Income Tax Officer, Ward-1, Anakapalle 6. Senior Branch Manager, Union Bank of India, Chintapalli Mandal ASRPaderu- 531111 7. Branch Manager Visakhapatnam- 531116 State Bank of India, Narsipatnam Bazar 8. One CC to SRI. S.V.S.S.SIVA RAM Advocate [OPUC] 9. One CC to SRI VIJAY KUMAR PUNNA, SC for INCOME TAX [OPUC] Three CD Copies 10. svp PRK •. *M-. '•, i HIGH COURT DATED: 19/08/2024 ORDER WP.No.10602 of 2024 <5f ANDAy^ 2 2 JAN 2025 ^ . Current Section ^ O m «o O' THE W.P. IS DISPOSED WITHOUT COSTS "