M/s. Sahrudaya Health Care Private Limited V. The Director of Income Tax (CPC- TR)

WP/39496/2022

AI Insights

The case involves M/s. Sahrudaya Health Care Private Limited, represented by its Managing Director, Sri Anil Krishna Gundala, who filed a writ petition under Article 226 of the Constitution of India against various officials of the Income Tax Department. The petitioner contested the adjustment and withholding of tax refunds for the assessment years 2021-22 and 2020-21 against alleged outstanding demands for earlier years, claiming these actions were illegal, arbitrary, and contrary to the provisions of the Act, CBDT Circular, and their own stay orders. The petitioner sought the court's intervention to direct the respondents to issue the withheld refunds along with interest. However, the petitioner later decided to withdraw the petition, seeking leave to approach the respondents directly for rectification.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 753096 (HC-TELANGANA)
• Appeal Type: Others
• Pronouncement Date: 09-01-2023
• Assessment Year: misc
• Laws Referred To: Article 226 of the Constitution of India
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: SAPNA REDDY
• Assessee Lawyers: A V RAGHURAM
• Keywords: Adjustment of Refund; CBDT Circular; Illegal and Arbitrary Action; Income Tax Refund; Stay order; Writ of Mandamus
• Section: 151; 39

Judgement Text

"[ 33,l1 I HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD (Special Original Jurisdiction) MONDAY, THE NINTH DAY OF JANUARY TWO THOUSAND AND TWENTY THREE THE HONOURABLE THE CHIEF JUSTICE UJJAL BHUYAN AND THE HONOURABLE SRI JUSTICE N.TUKARAMJI Between: M/s. Sahrudaya Health Care Private Limited, Plgt Nq 5 to 11, Survey No.78, Pakika Nagar, Madhapur, Hyderabad- 500081. Telangana, Rep. by its Managing Director Sri. Anil Krishna Gundala, S/o Sri. Hanuman Reddy Gundala. aged about 45years. ...PETITIONER AND 1 The Director of lncome Tax (CPC- TR), Central Processing Centre, lncome Tax Department, Bengaluru -560500, Karnataka. The Principal Commissioner of lncome Tax-1, 7th Floor, l.T.Towers, A.C.Guards, Hyderabad-500004 The Additional Commissioner of lncome Tax- Range 3, 7th Floor, Signature Towers, Kondapur Road, Hyderabad -500084, T.S. 4. The D Floor, eputy Commissioner of lncome Tax, Circle 3(1), Room No714, 7th Sign-ature Towers, Kondapur Road, Hyderabad -500084, T.S ...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 direction, especially one in the nature of WRIT OF MANDAMUS holding that (i) the action of the 1st Respondent in adjusting the refund of Rs.6, 14,54,400 due to the Petitioner for assessmenl yeat 2021-22 against the alleged demands outstanding for assessment years 2014-15 and 2017 -18 as being illegal, arbitrary and against the provisions of the Act, CBDT Circular and their own order granting stay and set aside the same, and consequently direct the Respondents to forthwith issue refund of Rs 6,14,54,400 to the Petitioner along with interest and (ii) the action of the 1st Respondent 2 3 PRESENT WRIT PETITION NO: 39496 OF 2022 I withholding refund rf Rs.12,43,04,410 due to the Petitioner ft t ass':ssment year 2O2O-21 for being ? djusted against the taxes allegedly due for assessment years 2014-15 and 2018-19 as being illegal, arbitrary and against tte provisions of the Act, CBDT Circula and their own order granting stay, and (:orlsequently direct the 1st Responden. to forthwith refund the amount of Rs.12,''il 04,410.00 to the Petitioner along wrt t tnterest. lA NO: 1 OF 2022 Petition und( r Order 39 Rule '1 & 2 of Section 151 CPC f,raying that in the circumstances stat:d in the affidavit filed in support of the petition, the High Court may be plea;ed to restrain the Respondents from adjl s;trng the refund of Rs. 12.43,04,410.0 ) due to the Petitioner for assessment yeat 20120-21 against the taxes allegedly due for assessment years 2014-15 and 2C18-19 which are either paid or apperrring erroneously or stayed by the Revenut,. Counsel for the Pe:itioner : SRl. A V RAGHU RAM Counsel forthe Re;pondents : Ms. SAPNA REDDY REP FOR SRl. J V PRASAD (SC FOR lt CrlME TAX) The Court made th ) following : ORDER I I THE HON'BLE THE CHIEF IUSTICI] UIIAL BHUYAN AND THE HON'BLE SRI II]STICE N.TUKARAMII W.P.No..19.196 of 2022 Fleard Mr. AV.Raghu Ram, leamed counsel for the petitioner and Ms. Sapna Reddy, leamed counsel represenring Mr. J.V.Prasad, leamed Standing Cor.rsel, Income Tax Department for the respondents. 2. This petition has been filed under Article 226 of the C-onstitution of India prayng for the following reliefs: (f the acdon of the 1\" respondent in adjusting the rcfund of Rs.6,14,54,400.00 due to the petitioner for assessmenr year 2021-22 against the alleged demands outstanding for assessment yeas 2014-15 and 2017-18 as being illegal, arbitrary and against the provisions of the Act, CBDT Circular and their own order granting stay and set aside the same and consequently, direct the respondents to fonhwfth tsue refund of Rs.6,14,54,400.00 to the petitioner along with interest; and (if the action of the 1\" respondent withholding refund of Rs.12,41,04,410.00 due to the petitioner for assessment yar 2020-21 for being adjuted against the taxes allegedly due for assessment )ears 2014-15 and 2018-19 as being illegal, art itrary and against the provisions of the Act, CBDT Circular t I _7 I 2 and their o'rm order gl\"nting stay and consequemly ii:ect the 1\" respondent to fonhwith refund the allount of Rs.12.41,04 410.C0 to the petitioner along widr interesr and pass such other rrder (s) as the Hon'ble Coun deems fir and proper in the inten st of justice. 3. kamed counsel for the petitioner strbrnits on instructiors that petitioner sants to withdraw the writ peririon rvith leave to approach the :espondents for rectification of eror in the interest calculation. 4. In view of above, (/rit Petition is dismissed c,l u,ithdrawal with libenyas rrayed for. No costs. As a se,1uel, miscellaneous peririons, pending if any, stand closed. SHAM /ITRUE COPY'I GIS R st:oTlo FFICER sD,-P.c-! NIGATBHU To, . 3H33[ 3li f\"\"ff'XtsUiSHi.:SEtT\"f'l' rcF' rcr 1 2 3 1 ti Two CD CoP as KAR BS Bst6- HIGH COURT DATE -t:0910112023 1 * E l-t 16 FEB 2M ,( i') .-o. , irr .i-i: WP.No.39 49'6 of 2022 DISMISSING THE WFII PETITION AS IVITl{DRAWN WITI.]OU'T COSTS 't c-dE I I I I I t1.l,r. '/' i "