Rayalaseema Bullion and Commtrade Private Limited V. The Commissioner of Income Tax

WP/30496/2021

AI Insights

The case involves Rayalaseema Bullion and Commtrade Private Limited, represented by its director, challenging the assessment order and subsequent demand and penalty notices issued by the Income Tax Department. The petitioner argued that the assessment was arbitrary and violated principles of natural justice and constitutional rights under Articles 14 and 19(1)(g). The High Court's intervention was sought to expedite the appeal and stay petition process pending before the Commissioner of Income Tax (Appeals). The court did not delve into the merits of the case but focused on procedural fairness, ensuring the appellate authority addresses the stay petition promptly.

• Counselvise Citation: [2022] 140 COUNSELVISE.COM (IT) 753455 (HC-TELANGANA)
• Appeal Type: Others
• Pronouncement Date: 03-01-2022
• Assessment Year: misc
• Laws Referred To: Income Tax Act 1961, Article 226 of the Constitution of India, Article 14 of the Constitution of India, Article 19(1)(g) of the Constitution of India, Section 151 CPC
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: A RADHA KRISHNA
• Assessee Lawyers: CHALLA GUNARANJAN
• Keywords: Assessment Order; Demand notice; Natural Justice; Penalty notice; Stay Petition; Writ of Mandamus
• Section: 143(3); 69A; 274; 271AAC

Judgement Text

"Between: Rayalaseema Bullion and Commtrade Private Limited, (PAN No. AECR3|49J) Rep. by its Director N/r. Rama Krishna Reddy Ambati, Office at l-10-35, Flat No.402, Ashok Nagar, Legend Apts., Ashok Nagar, Hyderabad, - 500029. ...PETITIONER AND 1. The Commissioner of lncome Tax, (Appeals) Hyderabad-lii. 2. The lncome Tax Officer, Ward 3(2), lncome Tax Department, Hyderabad. ...RESPONDENTS Petition under Article 226 of the Constitution of lndia praying that in the circumstances stated in the affidavit filed therewith, the High Court may be pleased to pass an order or orders or a writ more particularly one in the nature of Writ of Mandamus and direct the Respondent No. 1 to dispose the Appeal and Stay Petition filed on d|.3110112020 filed by the Writ Petitioner against the Assessment DIN and Order No.lTBA/AST/S/143(3)l2O1S- 2011023514295 (1) dt. 31112/2019 of the Respondent No.2 and rarsing Demand DIN and Notice No.ITBA/AST/S/156/ 2019- 2011023514369(1) dt. 3111212019 and also passing the Penatty Notice dt. 2311212020 Uls.274 rlw.27lAAC (1) of lncome Tax Act as illegal, arbitrary and against Principles of Natural Justice and in violation of Article 14 and 1g(1Xg) of the Constitution of lndia and consequently set aside the Demand Notice No.ITBA/AST/S115612019-2011023514369(1) dt 3111212019 and Penatty Notice dt. 2311212020 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 is Notice No.ITBA/RCV/F11712021-2211036189003 (1) dt. 06110t2021 issued by the 2nd Respondent. 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 of all other proceedings till the disposal of the Appeal pending before the by the 1st Respondent. Counsel for the Petitioner: SRl. CHALLA GUNARANJAN Counsel for the Respondent Nos.1 & 2: SRI A. RADHA KRISHNA, SC FOR INCOME TAX The Court made the following: ORDER HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD (Special Original Jurisdiction) MONDAY, THE THIRD DAY OF JANUARY TWO THOUSAND AND TWENTY TWO PRESENT THE HONOURABLE SRIJUSTICE UJJAL BHUYAN AND THE HONOURABLE SRI JUSTICE A.VENKATESHWARA REDDY WRIT PETITION NO: 30496 OF 2021 lA NO: 1 OF 2021 lA NO: 2 OF 2021 HONOURABLE SRI JUSTICE UJJAL BHUVAN AND HONOURABLE SRI J USTICE A.VE N KATESI-IWA RA RE D DY w.P.No.3 04960F202l o RDEIT: (Per Hon'ble Sri Justice Ujjal Bhuyun) Heard Mr.Challa Gunaranjan, learned counsel for the petitioner and Mr.A.Radha Krishna' leamed counsel for the respondents' 2. Petitioner is assessee under the Income Tax Act l96l (briefly, 'the Act' hereinafter) assessed to tax within the jurisdiction ofrespondent No'2. 3. For the assessment year 2Ol7-18, respondent No'2 had passed assessment order dated 3l'lZ'2019 under Section 143(3) of the Act' making certain additions under Section 69A ofthe said Act' Though petitioner had disclosed income of Rs'88'44'590'00 in the return of income, in view of the additions, the income was computed at Rs.17,14,79,480.00 as per the assessment order' 4. Aggrieved by the said order of assessment' petitioner has filed appeal before the Commissioner of Income Tax (Appeals)-Ill' Hyderabad i.e', respondent No' i on 30'01'2020' lt is stated that along with the appeal petitioner has also filed a petition for stay on 21.Ol.2OZl. Both the appeal and the stay petition are pending' In the meanwhile, respondent No.2 is pressing the petitioner for payment of the tax dues as per the order of assessment and in this connection issued demand notice dated 06' 1 0'2021 ' 5. Hence the writ Petition. 2 6. After hearing learned counsel for the parties and on due consideration, we are olthe view that it would meet the ends ofjustice il a direction is issued to the Appetlate Authority i.e., respondent No.l to take up the stay petition stated to have been filed by the petitioner on 2l .01.2021 and pass appropriate order(s) thereon in accordance with law. We make it clear that we have not expressed any opinion either on merit or the prayer for stay. All contentions are kept open. However, we direct that the said stay petition should be decided by respondent No. I within a period of six weeks from the date of receipt ol a copy o1' this order by respondent No.1. Till such tin.re, the de tnand, pursuant to the assessment order dated 31.12.2019, shall remain stayed. 7. Writ petition is, accoldingly, disposed of. Miscellaneous applications, if any pending, shall stand closed No costs. 8 9 //TRUE COPY' Sd/. I.NAGALAKSHMI ASSISTANT REGIST]RAR .[r ,. SECTION OFFICER To, 1. The Commissioner of lncome Tax, (Appeals) Hyderabad-lii. 2. The lncome Tax Officer, Ward 3(2), lncome Tax Department, Hyderabad 3. One CC to SRl. CHALLA GUNARANJAN, Advocate [OPUC] 4. One CC to SRI A. RADHA KRISHNA, SC for lncome Tax [OPUC] 5. Two CD Copies 6. One Spare Copy PB NPJ q HIGH COURT DATED: 0310112022 ORDER WP.No.30496 ot 2021 DISPOSING OF THE WRIT PETITION WITHOUT COSTS .1tti s ; a,.4-l ? c,. 1: F 1 ? ,J @qq\"q &m- <6* "