Girijan Primary Co-operative Marketing Society Ltd V. Union of India and Principal Commissioner of Income Tax, Vishakapatnam -1 and Joint Commissioner of Income Tax, Rajamahendravaram Range and Additional/Joint/Deputy/Assistant Commissioner of Income Tax, National Faceless/E-Assessment Centre, Delhi and Income Tax Officer, Ward-1, Anakapalle and Senior Branch Manager, Union of India, G Madugula Branch

WP/27355/2024

AI Insights

The case involves M/s Girijan Primary Co-operative Marketing Society Ltd, which filed a writ petition against the Union of India and other respondents challenging a stay order that required the payment of 5% of a tax demand amounting to Rs. 13,25,31,635 for the assessment year 2018-19. The petitioner argued that the stay order was passed without considering their application and was contrary to established instructions and fundamental rights under Articles 14 and 21 of the Constitution. The court heard arguments from both sides and decided to allow the appeal to be heard by the Appellate Authority without the condition of the 5% payment.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 800872 (HC-ANDHRA_PRADESH)
• Appeal Type: Others
• Pronouncement Date: 31-12-2024
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961, Constitution of India
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: PASALA RAO; ANUP KARAVADI
• Assessee Lawyers: CKR ASSOCIATES
• Keywords: Fundamental rights; Income Tax; Stay order; Tax demand; Writ of Mandamus
• Section: 147; 144; 151; 144B; 226

Judgement Text

"IN THE HIGH COURT OF ANDHRA PRADESH AMARAVATI (Special Original Jurisdiction) TUESDAY, THE THIRTY FIRST DAY OF DECEMBER TWO THOUSAND AND TWENTY FOUR If PRESENT THE HONOURABLE SRI JUSTICE B KRISHNA MOHAN AND THE HONOURABLE SRI JUSTICE NYAPATHY VIJAY WRIT PETITION NO: 27355 OF 2024 Between; M/s Girijan Primary Co-operative Marketing Society Ltd, (GPCMS), G Madugula Main Road, G Madugula, Visakhapatnam, Andhra Pradesh - 531 111. Represented by its Authorized Signatory Nandoli Kondababu, S/o. Late Nandoli Bojjana, aged about 55 years, R/o D. No. 11-32, Lochaliputtu Colony, Paderu Post, Paderu Mandal, ASR District ...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, 2nd Floor, E-Ramp, Jawaharlal Nehru Stadium, Delhi-110003. 5. The Income Tax Officer, Ward-1, Anakapalle. 6. Senior Branch Manager, Union of India, G Madugula Branch, G Madugula Mandal, Alluri Seeta Ramaraju District. ...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 Order or Direction with more particularly in the nature of a Writ of Mandamus declaring the Stay Order bearing No. ITBA /COM /F/17/2024-25 /1070130215(1) dated 06.11.2024 passed by the 2nd Respondent to the extent of granting stay by imposing condition of payment of 5percent of tax demand amounting to Rs. 13,25,31,635/- for A.Y. 2018-19 without considering the petitioner's stay application and without providing any reasons, pending appeal before the 3rd Respondent and contrary to Instruction No. 1914, dated 02.02.1993 amended from time to time 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. 13,25,31,635/- vide demand notice bearing ITBA /AST IS /156/2023- 24/1058388150(1) dated 01.12.2023 passed by the 4th Respondent, without imposition of any conditions. 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 direct the 4th Respondent not to take any coercive steps pursuant to Assessment Order bearing ITBA /AST /S /147 /2023- 24/1058388103(1) dated 01.12.2023 for A.Y. 2018-19 and consequent demand notice bearing ITBA /AST /S /156/2023- 24/1058388150(1) dated 01.12.2023 passed by the 4th Respondent pending disposal of the above Writ Petition. lA NO: 2 OF 2024 0 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 /1062699259(1) dated 15.03.2024 pending disposal of the above Writ Petition. / Counsel for the Petitioner: M/s CKR ASSOCIATES Counsel for the Respondent Nos. 1&6: SRI PASALA PONNA RAO DEPUTY SOLICITOR GENERAL OF INDIA Counsel for the Respondent Nos. 2 to 5: SRI ANUP KOUSHIK KARAVADI SC FOR INCOME TAX The Court made the following order: / APHC010526802024 IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI (Special Original Jurisdiction) [3516] TUESDAY ,THE THIRTY FIRST DAY OF DECEMBER TWO THOUSAND AND TWENTY FOUR PRESENT THE HONOURABLE SRI JUSTICE B KRISHNA MOHAN THE HONOURABLE SRI JUSTICE NYAPATHY VIJAY WRIT PETITION NO: 27355/2024 Between; ...PETITIONER M/s Girijan Primary Co-operative Marketing Society Ltd AND ...RESPONDENT(S) Union Of India and Others Counsel for the Petitioner; 1.CKR ASSOCIATES Counsel for the Respondent(S); 1 .ANUP KOUSHIK KARAVADI 2.PASALA PONNA RAO (SC FOR CENT GOVT.) The Court made the following; ORDER: {perHon’ble Sri Justice B. Krishna Mohan) Heard the learned counsel for the petitioner and the learned Standing Counsel for the respondents. This writ petition is filed against the order passed on Stay respondent directing to pay 5% of the tax demand 2. nd application by the 2 (Rs.13,25,31,635/-) i.e., Rs.66,26,600/- in five (5) installments as detailed in the Stay Order of the 2\"^ respondent. 2 3. Both the learned counsels admitted that the main appeal is pending before the 2'''' respondent authority against the assessment order passed under Section 147 r/w Section 144 r/w Section 144B of the Income Tax Act, dated 01.12.2023. 4. In view of the above said pendency of the appeal as the additional material was also supplied by the petitioner in this writ petition, the same can be placed before the Appellate Authority for consideration on merits in accordance with law, after hearing both the parties giving due opportunity, the appeal can be disposed of, as expeditiously as, possible preferably within a period of six (06) months from the date of receipt of this order. During the pendency of the appeal, the imposing of 5% of the tax demand shall not be insisted and the liability of the petitioner/appellant, if any shall be considered in the final decision of the Appellate Authority on its merits. 5. Accordingly, the Writ Petition is disposed of. There shall be no order as to costs. As a sequel. Miscellaneous Petitions pending, if any, shall stand closed. Sd/- M PRABHAKAR RAO ASSISTANT^EGISTRAR //TRUE COPY// ^5' SECTION OFFICER To. The Secretary, Department of Revenue Ministry of Finance, Union of India, Govt, of India North Block, New Delhi-110001 The Principal Commissioner of Income Tax, Vishakapatnam -1 The Joint Commissioner of Income Tax, Rajamahendravaram Range Rajamahendravaram. 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. The Income Tax Officer, Ward-1, Anakapalle. 1. 2. 3. 4. 5. The Senior Branch Manager, Union of India, G Madugula Branch, G '■ 6. Madugula Mandal, Alluri Seeta Ramaraju District. 7. One CC to Sri. CKR Associates Advocate [OPUC] w' 8. One CC to Sri. PasaJa.Pbnna Rao Deputy Solicitor General of India [OPUC] One CC to Sri. Anup Koushik Karavadi SC for Income Tax [OPUC] 9. Three CD Copies 10. GSC HIGH COURT DATED:31/12/2024 ORDER WP.No.27355 of 2024 DISPOSING OF THE WP WITHOUT COSTS "