M/s Prajay Properties Private Limited V. The Deputy Commissioner / Assistant Commissioner of Income Tax

WP/816/2025

AI Insights

The case involves M/s Prajay Properties Private Limited, which filed a writ petition against various income tax authorities concerning a disputed tax demand for the Assessment Year 2018-19. The petitioner challenged the notice from the first respondent requiring a 20% payment of the disputed demand to consider a stay application, claiming it was arbitrary and violative of natural justice. The court, after hearing the arguments and considering relevant Supreme Court and High Court judgments, set aside the impugned order and directed a rehearing on the stay application, emphasizing adherence to legal precedents and principles of natural justice.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 752631 (HC-TELANGANA)
• Appeal Type: Others
• Pronouncement Date: 09-01-2025
• Assessment Year: misc
• Other Referred Cases: Principal Commissioner of Income Tax v. LGI Electronics India Pvt. Ltd., Mrs. Kallakuri Dhana Lakshmi Katyayani v. Income-Tax Officer, Sudarshan Reddy Kottur v. Income Tax Officer
• Laws Referred To: Article 226 of the Constitution of India, Income Tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: HIGH COURT
• Department Lawyers: J V PRASAD
• Assessee Lawyers: A V A KARTIKEYA
• Keywords: Income Tax; Mandamus; Natural Justice; Stay Application; Writ petition
• Section: 226

Judgement Text

"HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD (Special Original Jurisdiction) THURSDAY, THE NINTH DAY OF JANUARY TWO THOUSAND AND T A/ENTY FIVE PRESENT THE HONOURABLE SRl JUSTICE SUJOY PAUL AND THE HONOURABLE DR. JUSTICE G.RADHA RANI wRIT PETITION NO: 816 OF 2025 [ 3430 ] Between: M/s Prajay Properties Private Limited, 1-10-63 and 64, Sth Floor, -Prajay_Corporate House, - Chiokoti Gardens, Begumpet, Hyderabad - 500 016' Telangana. Reopresented by its Authorised Signatory, Mr. Dantapalli Vijaysen Reddy' S/o Late Mr. D.Suryaprakash Reddy. ,....PET]TIONER AND 1. The Deputy Commissioner / Assistant Commissioner of lncome Tax, Circle 5(1), Hydeiabad, Room No. 224,2nd Floor, B-Block, lTTowers, 10-2-3' AC Guards', Masab Tank, Hyderabad - 500 004, Telangana. 2. The Additional / Joint / Deputy / Assistant Commissioner of lncome Tax / lncome Tax Officer, Presently, Assessment Unit, lncome Tax Department, National e-Assessment Cent6r, New Delhi, Room No.401, 2nd Floor, E- Ramp, Jawahadal Nehru Stadium, New Delhi - 110 003' 3. The Principal Commissioner of lncome Tax - 4, l.T. Towers, 10-2-3' AC Guards, Hyderabad - 500 0O4, Telangana. 4. The High Pitched Committee / Local Commiftees to deal with Taxpay-ers Grievaices from High-Pitch, O/o the Principal Chief Commissioner of lncome Tax, Andhra Pradesh and Telangana, Room No. 922,gth Floor, 'B'Block, l.T.Towers, 10-2-3, AC Guards, Hyderabad - 5O0 004, Telangana. 5. The Joint Commissioner (Appeals) / theComnrissioner of lncome Tax (Appeals), National Faceless Appea! Ce1!r9, ?ilhi, ThrouglJhe P.rincip-a|.. btiiit Commissioner of lncome Tax (NaFAC), Delhi, North Block, New Delhi - 1 '10 001 . 6. The Central Board of Direct Taxes, Represented by its Chairman' Department of Revenue, Ministry of Finance, Govemment of lndia, Secretariat Buildings, New Delhi - 1 10 001 . .....RESPONDENTS Petition Under Article 226 ot 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, Order or Direction, one, more particularly in the nature of Mandamus declaring the inaction of the 4th Respondent in disposing off the Grievance Petition, daled 02.12.2022, tiled by the Petitioner and b. the notice of the 1st Respondent, dated 13.12.2024, vide DIN and Notice No. ITBA/COM/F/1712024-2511071214852(1), uls 226 of the lncome Tax Act, 1961, directing the Petitioner to pay 20percent of the disputed demand, for considering the stay application filed by the Petitioner, pending disposal of its appeal before the 1 st Appellate Authority, i. e.,the 5th Respondent herein, for the Assessment Year 2018 - 19 as arbitrary, illegal, bad in law, bereft of any reasons, violative of principles of natural justice and consequently grant stay of recovery, pending disposal of the Petitioner's appeal before the 1st Appellate Authority, i.e., the 5th Respondent herein, in the interests of justice. i.A.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 pllased to grant stay of all further proceedings, including any recovery, pending disposal of the above writ petition. Counsel for the Petitioner : SRI A.V.A.SIVA KARTIKEYA Counsel for the Respondents : SRI J.V.PRASAD (Sr. SC FOR INCOME TAX) The Court made the following OROER THE HOITOT'RABLE SRI JUSTICE SUJOY PAUL II.ITD THE HON'BLE DT. WSTICE G. R.ADHA RANI WRIT PETITIOII No.816 of 2o25 ORDER (pr Hon'bLe SP,J) Sri A.V.A. Siva Kartikeya, learned counsel for the petitioner and Ms.B.Sapna Reddy, learned Junior Standing Counsel representing Sri J.V. Prasad, learned Senior Standing Counsel for Income Tax Department, for the respondents. 2. With the consent, finally heard. 3 During the course of hearing, learned counsel foi the. parties reached to a consensus. [t is agreed that: The impugned order dated 13.12.2024 (Annexure- P2l) is founded upon the CBDT O.M. in F.No.4O4 / 72 /93-ITCC dated 31.07.2017. By placing reliance on the judgment of Supreme Court Prfurcipal Commissioner of Income Tax v. LGi Electronics India Rrt. Ltd.r and the judgments of t]lis Court in Mrs. Kallakuri Dhana Lakshmi Katyayani v. Income-Tax Oflicer2 and Sudarshan Reddy Kottur '(mtg) rz lrR-ot 334 (sc) ' 120221 a+a trn :rs (Telangana) 2. v. Income Tax Officer3, it is agreed that said order, which is passed without considering the said judgments, may be set aside and respondent No.I may be directed to rehear the parties and pass a fresh order on stay application in accordance with law. The said exercise be completed within a period of 15 days from the date of production of copy of this order. The petitioner shall appear before respondent No.1 on 2O.O1.2O25 for which no separate notice will be required to be issued. It is also agreed that the appeal of the petitioper is pending before respondent No.5 and the said authority may be directed to decide the said appeal expeditiously, preferably lt,ithin t t o months. It is accordingly ordered- The stay application of the petitioner is pending before respondent No.4 and it is agreed that said respondent may be directed to decide the stay application, provided such application is pending, expeditiously, preferablv u'ithin trvo u,eeks. It is ordered accordingly. II. III. '1zoz:y ass rrR 750 (Telangana) 3 ,j./ // I 4. In view of consensus arrived at, the Writ Petition is disposed of without expressing any opinion on the merits of the case. Parties shall act in accordance with their stand taken hereinabove' No costs. Interlocutory applications, if any pending, shall also s closed. SD/.K. MA.JI ASSISTANT REG //TRUE COPY// SECTION OFFICER to ,. ,n\" Deputy Commissioner / Assistant-Commissioner of lnmme Tax' Circle '*\"]'d$i#4s\"ttx:'r jrlg,';au,'-.:':\"\"t*l'1\"rs'10':x:c 2. The Additionat I .toint'/ de\"p\"uiliir.iGn1 commiss-ioner of lncome Tb< / lncome Tax omcer, ptJs\"e'niri' niiiii'ent-Unit' lncome Tax Defartment' National e-Rssess.enil!\"i6'', rtr\"*-o\"mi'.Room No 401' 2nd Floor' E- iiliiip,l\"*\"r,1dal Nehru stadium' New Delhi - 110 003' 3. i#Eh;;6;ic;;ril;;;;i1;;\";; rax-a' rr rowers' 10-2-3' Ac -' Guards, Hyderabad - 500 004' Telang-ana ... +. ii; Hieiti Fict \"o co.rittlL i locar committees to deal with Taxpayers Grievances from nEh'i;;iiii, ot\" tne Frincipat cnief commissione_r of.lncome Tax, Andhra pt\"o\".tt''no\"iLi'\"g;\";' iooi' No szz' gth Floor' ts'Block' r.ii6*'\"*lo-2-3, ACGuards, Fyderabad - 500 004' Telangana'- 5. The Joint Commissron-eiffip\"''iti I tnt Commissioner of lncome Tax \" ($p;i$, i;ir\";;l i;;;i;::JdpZar'Cenlie' D-erhi rhrouoh the Principar chief commisston\"|. ;r'irilon1\" ?;in#Aa),-Delhi, NorttiBlock, New Delhi - ;'. 110 001. 6. The Central Board of Direct Taxes' Represented bv its Chairman' Department of Revenue, ruinist.yo\"r'i:ia;;;, 6\";;ffi;;t of lntia, secretariat Build'ngs, New Delhi - 110 001 . z. iriiJ 6E io siir n\"v.A.sIvA KARrIKEYA' Advogqte-[oPUCl 8. one cc to sRl J.v.pRA6i;ii;. s;iij'c iNcoMe'rnxl Advocate{oPUCl 9. Two CD CoPies SA BS (A- t I I I I i i l HIGH COURT DATED:091O112025 ORDER WP.No.816 of 2025 DISPOSING OF THE W.P WITHOUT COSTS. Y t+- 6E S T4 i.e, 1 ( -) 01 i,tlr 2[25 ( i ' L-// :.-_fF --,1 r, ' ' 1 _-',.' '---....--.--.- lL 7,, 2A I LeV-$> --) I "