Girijan Primary Co Operative Marketing Society LTD V. Union Of India and The Principal Commissioner of Income Tax, Vishakapatnam -1 and The Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), New Delhi and The Additional/Joint/Deputy/Assistant Commissioner of Income Tax, National Faceless/E-Assessment Centre, Delhi and The Income Tax Officer, Ward - 2(5), Visakhapatnam

WP/36/2025

AI Insights

The case involves the Girijan Primary Cooperative Marketing Society Ltd., which filed a writ petition against the Union of India and other respondents concerning a tax demand for the assessment year 2018-19. The petitioner challenged an order that required the payment of 5% of the tax demand as a condition for stay on the collection of the tax demand pending an appeal. The High Court referenced a similar case previously decided and directed that the appeal in this case should also be handled in a similar manner, emphasizing the need for an expedited decision without insisting on the 5% payment during the appeal's pendency.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 695931 (HC-ANDHRA_PRADESH)
• Appeal Type: Others
• Pronouncement Date: 03-01-2025
• Assessment Year: misc
• Other Referred Cases: W.P.No.27342 of 2024
• Laws Referred To: Income Tax Act, 1961, Article 226 of the Constitution of India
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: PASALA RAO; ANUP KARAVADI
• Assessee Lawyers: CKR ASSOCIATES
• Keywords: Appeal; Assessment Order; Income Tax; Stay of collection; Tax demand; Writ of Mandamus
• Section: 147; 144; 151; 144B; 226

Judgement Text

"IN THE HIGH COURT OF ANDHRA PRADESH :: AMARAVATI (Special Original Jurisdiction) FRIDAY ,THE THIRD DAY OF JANUARY TWO THOUSAND AND TWENTY FIVE PRESENT HONOURABLE SRI JUSTICE B KRISHNA MOHAN AND HONOURABLE SRI JUSTICE NYAPATHY VIJAY WRIT PETITION NO: 36 OF 2025 Between: Girijan Primary Co Operative Marketing Society LTD, (GPCMS), Main Road, Paderu, Visakhapatnam, Andhra Pradesh - 531024. Represented by its Authorized Signatory Bukka Venkatesh. ...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 Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), New Delhi. 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. 1» 5. The Income Tax Officer, Ward - 2(5), Visakhapatnam ...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 Order vide ITBA/COM/F/17/2024- 25/1070476117(1) dated 20.11.2024 passed by the 2nd Respondent to the extent of granting stay of collection of demand for the AY 2018-19 by imposing condition of payment of 5 percent of tax demand amounting to Rs. 87,67,260/- pending appeal before the 3rd Respondent as wholly arbitrary, illegal, colourable exercise of power and contrary to Instruction No. 1914, dated 02.02.1993 amended from time to time and also the provisions of the Income Tax Act, 1961 apart from being violative of Article 14, 19(1)(g) and 21 of the Constitution of India and consequently set aside the same, and to grant stay of collection of tax demand of Rs. 87,67,260/- vide demand notice bearing ITBA/AST/S/156/2023- 24/1063441891(1) dated 27.03.2024 passed by the 4th Respondent, without imposition of any conditions. lA NO: 2 OF 2025 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 all further proceedings pursuant to the Order vide ITBA/COM/F/17/2024-25 /1070476117(1) dated 20.11.2024 passed by the 2nd Respondent to the extent of granting stay of collection of demand for the AY 2018-19 by imposing condition of payment of 5 percent of tax demand amounting to Rs. 87,67,260/- pending disposal of the above Writ Petition. lA NO: 1 OF 2025 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 0 pleased to direct the 5th Respondent not to take any coercive steps pursuant to Assessment Order bearing ITBA /AST /S/147/2023- 24/1063441701(1) dated 27.03.2024 for A.Y. 2018-19 and consequent demand notice bearing ITBA/AST/S/156/2023- 24/1063441891(1) dated 27.03.2024 Writ Petition.pas^d by the 4th Respondent pending disposal of the above Counsel for the Petitioner(s): SRI. CKR ASSOCIATES Counsel for the Respondent No.1: SRI PASALA PONNA RAO, SC FOR CENTRAL GOVERNMENT Counsel for the Respondent Nos.2 to 5: SRI ANUP KOUSHIK KARAVADI, SC FOR INCOME TAX The Court made the following: ORDER ! : APHC010606392024 IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI (Special Original Jurisdiction) [3516] FRIDAY, THE THIRD 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: 36/2025 Between: Girijan Primary Co Operative Marketing Society Ltd ...PETITIONER AND Union Of India and Others ...RESPONDENT{S) Counsel for the Petitioner: 1.CKR ASSOCIATES Counsel for the Respondent(S): 1. > 2 m HBKMJ & HVN,J W.P.No.36 of 2025 The Court made the following: ORDER: (perHon’ble Sri Justice B. Krishna Mohan) Heard the learned counsel for the petitioner and the learned Standing Counsels for the respondents. 2. This writ petition is filed against the order passed in the Stay application respondent directing to pay 5% of the tax demand (Rs.17,53,45,188/-) i.e., Rs.87,67,260/- in five (5) installments as detailed in the Stay Order of the 2\"'^ respondent. nd by the 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 27.03.2024. 1 4. However, both the learned counsels submit that the similar matter is already disposed of by the Division Bench of this court in W.P.No.27342 of 2024 dated 31.12.2024. 5. In terms of the same, this writ petition is also disposed of with the following direction: “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 3 HBKM,J&HVN,J , W.P.No.36of2025 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 merits.” on its 6. The Registry is directed to append the copy of the order passed i W.P.No.27342 of 2024 dated 31.12.2024 to this order, order as to costs. in There shall be no As a sequel. Interlocutory Applications pending, if any, shall stand closed. Sd/- K KASIRAO ACHARI ASSISTANT REGISTRAR ' SECTION OFFICER //TRUE COPY// To, 1. The Secretary UNION OF INDIA, 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 Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), New Delhi. 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. One CC to Sri Pasala Ponna Rao, SC for Central Government [OPUC] 6. One CC to Sri Anup Koushik Karavadi, SC for Income Tax [OPUC]. 7. Three CD Copies AL % HIGH COURT DATED:03/01/2025 ORDER WP.No.36 of 2025 DISPOSING OF THE W.P. WITHOUT COSTS APHC010526762024 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: 27342/2024 Between: M/s Girijan Primary Co-operative Marketing Society Ltd ...PETITIONER AND Union.Of India and Others ...RESPONDENT(S) 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 application by the 2\"*^ respondent directing to pay 5% of the tax demand (Rs. 14,95,50,966/-) i.e., Rs.74,77,550/- in five (5) installments as detailed in the Stay Order of the 2'^'^ respondent. 2. % 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 30.11.2023. 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 the final decision of the Appellate Authority on its merits. in 5. Accordingly, the Writ Petition is disposed of. There shall be order as to costs. no As a sequel. Miscellaneous Petitions pending, if any, shall stand closed. JUSTICE B KRISHNA MOHAN JUSTICE NYAPATHY VIJAY Dated: 31.12.2024 MSI "