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

WP/17924/2024

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 imposed a condition of payment of 5% of a tax demand without considering the petitioner's stay application or previous court directions. The petitioner argued that the stay order was arbitrary, illegal, and violated fundamental rights under Articles 14, 21, and 300A of the Constitution of India. The court referenced a similar matter previously decided and directed that the current appeal be handled in accordance with the law, providing a fair opportunity for all parties to present their case.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 800802 (HC-ANDHRA_PRADESH)
• Appeal Type: Others
• Pronouncement Date: 07-01-2025
• Assessment Year: misc
• Other Referred Cases: W.P.No.10602 of 2024, W.P.No.27342 of 2024
• Laws Referred To: Income Tax Act, 1961, Constitution of India
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: P PONNA RAO; VIJAY PUNNA
• Assessee Lawyers: S V S S SIVA RAM
• Keywords: Fundamental rights; Income Tax; Stay order; Tax demand; Writ of Mandamus
• Section: 147; 144; 151; 144B; 226

Judgement Text

"'* Ji: IN THE HIGH COURT OF ANDHRA PRADESH :: AMARAVATI (Special Original Jurisdiction) TUESDAY, THE SEVENTH DAY OF JANUARY^,>;^^V®^ TWO THOUSAND AND TWENTY FIVE PRESENT THE HON’BLE SRI JUSTICE B KRISHNA MOH AND THE HON’BLE SRI JUSTICE NYAPATHY VIJAY WRIT PETITION NO: 17924 OF 2024 Between: M/s Girijan Primary Co-operative Marketing Society Ltd (GPCMS), Chintapalli Main Road, Chintapalli, Visakhapatnam, Andhra Pradesh - 531111. Rep. by its Authorized Signatory, 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, 2nd Floor, E-Ramp, Jawaharlal Nehru Stadium, Delhi- 110003. 5. The Income Tax Officer, Ward-1, Anakapalle 6. Senior Branch Manager, Union Bank of India, Chintapalli Mandal, ASR Paderu- 531111 7. Branch Manager, State Bank of India, Narsipatnam Bazar, Visakhapatnam- 531116 ...RESPONDENTS Petition under Article 226 of the Constitution of India praying that irii^/ 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 the nature of a Writ of Mandamus declaring the Fresh Stay Order bearing No. ITBA/COM/F/17/2024- 25/1065521519(1) dated 10.06.2024 passed by the 2nd Respondent to the extent of granting stay by imposing condition of payment of 5percent of tax demand amounting to Rs. 3,56,65,600/- without considering the petitioner's stay application and the directions of this Hon'ble Court in W.P. No. 10602 of 2024 and without providing any pending appeal before the 3rd Respondent as arbitrary, illegal, colourable, exercise of power and contrary to Instruction No. 1914, dated 02.02.1993 amended from time to time and contrary to the provisions of the Income Tax Act, 1961 (hereinafter the Act or IT Act) besides being violative of the fundamental rights guaranteed to the Petitioner under Article 14, 21 and 300A 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. in reasons lA NO: 1 OF 2024 Petition under Section 151 CPC praying that in the circumstances stated in the affidavit filed in support of the writ 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 /1060262050 (1) dated 30.01.2024 and consequent demand notice vide ITBA /AST/S/156/2023- 24/1060262163(1) dated 30.01.2024 passed by the 4th Respondent pending disposal of the above Writ Petition. Counsel for the PetitionerSRI. S.V.S.S.SIVA RAM Counsel for the Respondent No,1: SRi P PONNA RAO{CENTRAL GOVT COUNSEL) Counsel for the Respondents No.2 to 5: SRI VIJAY KUMAR PUNNA Counsel for the Respondents No.7,8: —- The Court made the following: ORDER I APHC010350832024 IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI (Special Original Jurisdiction) [3516] TUESDAY ,THE SEVENTH DAY OF JANUARY TWO THOUSAND AND I VVENTY FIVE PRESENT THE HONOURABLE SRI JUSTICE B KRISHNA MOHAN THE HONOURABLE SRI JUSTICE NYAPATHY VIJAY WRIT PETITION NO: 17924/2024 Between: M/s Girijan Primary Co-operative Marketing Society Ltd (gpcms), ...PETITIONER AND ...RESPONDENT(S) Union Of India and Others Counsel for the Petitioner; 1.S.VSSS1VA RAM Counsel for the Respondent(S): 1.MALLAMPALLI SRlNlVAS(CENTRAL GOVT COUNSEL) 2.V1JAY KUMAR PUNNA 2 HBKMJ & HVN,J W.P.No.l7924 of2024 The Court made the following: ORDER: (perHon'ble Sri Justice B. Krishna Mohan) Heard the learned counsel for the petitioner Counsels for the respondents. and the learned Standing order passed in the Stay application of the tax demand ten (10) installments as detailed in 2. This writ petition is filed against the by the 2 (Rs.71,33,12,154/-)i.e. the Stay Order of the 2\"^ respondent respondent directing to pay 5% Rs.3,56,65,600/- in nd learned counsels admitted that the main appeal is pending assessment order passed ^44B of the Income Tax Act, 3. Both the respondent authority against the nd before the 2 under Section 147 r/w Section 144 r/w Section ( /' / dated 30.01.2024. counsels submit that the similar matter is W.P.No.27342 of However, both the learned disposed of by the Division Bench of this court in 4. already 2024 dated 31.12.2024. , this writ petition is also disposed of with the In terms of the same 5. following direction; said pendency of the appeal as the supplied by the petitioner in this writ placed before the Appellate Authority for with law, after hearing both “In view of the above additional material was also petition, the same can be consideration on merits in accordance the parties giving due opportunity, the appeal can be disposed of, as expeditiously, as possible preferably within a period of s.x (06) 3 HBKM,J & HVN,J ^ W.P.No.17924 of 2024 ' 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.” 6. The Registry is directed to append the copy of the order passed in W.P.No.27342 of 2024 dated 31.12.2024 to this order. There shall be no order as to costs. As a sequel, Interlocutory Applications pending, if any, shall stand closed. Sd/- G HELA NAIDU ASSISTANT REGISTRAR //TRUE COPY// SECTION OFFICER To 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 Additionai/Joint/Deputy/Assistant Commissioner of Income Tax, National Faceless/E-Assessment Centre, Delhi, Income Tax Department, Delhi, 2nd Floor, E-Ramp, Jawaharlai Nehru Stadium, Delhi- 110003. 5. The Income Tax Officer, Ward-1, Anakapalle 6. Senior Branch Manager, Union Bank of India, Chintapalli Mandal, ASR Paderu- 531111 7. Branch Manager, State Bank of India, Narsipatnam Bazar, Visakhapatnam- 531116 8. One CC to SRI. S.V.S.S.SIVA RAM Advocate [OPUC] 9. One CC to SRI. P. PONNA RAO,(CENTRAL GOVT COUNSEL) Advocate [OPUC] 10. One CC to SRI. VIJAY KUMAR PUNNA, Advocate [OPUC] 11. Three C.D.Copies (along with the copy of the order dated 31-12-2024 in WP.No.27342 of 2024) nm high court DATED;07/01/2025 ORDER WP.No. 17924 of 2024 disposing of the wp without COSTS APHC010526762024 IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI (Special Original Jurisdiction) 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 [3516] 0 r 4 Between: M/s Girijan Primary Co-operative Marketing Society Ltd AND ...PETITIONER 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: QEDEEL(perHon’ble Sri Justice B. Krishna Mohan) Heard the learned counsel for the Counsel for the respondents. ...RESPONDENT(S) petitioner and the learned Standing 2. This writ petition is filed against the order passed application by the 2 an Stay respondent directing to pay 5% of the tax demand (Rs.14.95.50.966/-) i.e.. Rs.74.77.550/- in five (5) installments the Stay Order of the 2\"'\" respondent. nd as detailed in 2 learned counsels admitted that the main appeal is respondent authority against the assessment order 3. Both the pending before the 2 passed under Section 147 r/w Section 144 r/w Section 144B of the Income nd Tax Act, dated 30.11.2023. above said pendency of the appeal as the additional material was also supplied by the petitioner in this writ petition, the placed before the Appellate Authority for consideration on merits after hearing both the parties giving due opportunity, be disposed of, as expeditiously as, possible preferably within from the date of receipt of this order. During the of 5% of the tax demand shall not be and the liability of the petitioner/appellant, if any shall be considered in In view of the 4. same can be in accordance with law the appeal can a period of six (06) months pendency of the appeal, the imposing insisted 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. JUSTICE B KRISHNA MOHAN JUSTICE NYAPATHY VIJAY Dated: 31.12.2024 MSI ...... = "