Sri Sai Srinivasa Hospitals Private Limited, V. The Commissioner of Income Tax (Central),

WP/40575/2012

AI Insights

The case involved Sai Srinivasa Hospitals Private Limited and several doctors as petitioners, who filed a writ petition under Article 226 of the Constitution of India against the Commissioner of Income Tax and other officials. The petition challenged the adjustment of funds amounting to Rs. 88,60,680 towards the alleged tax liability of Dr. S.V. Prasad, and the levy of interest on Capital Gain Tax as arbitrary and illegal. The petition sought a refund of Rs. 99,03,820 along with statutory interest. However, before the court could deliberate on the substantive issues, the petitioners, through their counsel, requested to withdraw the petition, which was granted by the court.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 770421 (HC-ANDHRA_PRADESH)
• Appeal Type: Others
• Pronouncement Date: 08-07-2024
• Assessment Year: misc
• Laws Referred To: Article 226 of the Constitution of India, Article 265 of the Constitution of India, Article 300-A of the Constitution of India, Section 151 CPC
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: M V PRATAP KUMAR; J V PRASAD
• Assessee Lawyers: GUDURI RAO
• Keywords: Capital Gain Tax; Income Tax; Refund; Tax liability; Writ of Mandamus; Adjustment of Funds
• Section: 151; 265; 226; 300-A

Judgement Text

"/ IN THE HIGH COURT OF ANDHRA PRADESH :: (Special Original Jurisdiction) MONDAY, THE EIGHTH DAY OF JULY /! TWO THOUSAND AND TWENTY FOUR PRESENT AMARAVATI u & the HON’BLE SRI JUSTICE G.NARENDAR AND the HON’BLE SRI JUSTICE VENUTHURUMALLI GOPALA KRISHNA RAO WRIT PETITION NO: 40575 OF 2012 Between: 1. Sn Sai Srinivasa Hospitals Private Limited, Flat No.201, Swarnamrutha Apartments, Maternity Hospital Road, Opp : S.V,Balamandiram, Tirupati - 517 507. Rep by its Director, Dr.Jayashri 2. Dr. M.D.V.N. Nagesh Babu, S/o Occ ; Consultant Internal Medicine, Al Kindi Box No.75685, Kingdom of Bahrain. 3. Dr.Jayashri, W/o.Dr. M.D.V.N. Occ :Doctor, R/o.'605 Begumpet, Hyderabad. Dr.M.Obulapathi, aged about 52 years. Specialised Hospital, Post Nagesh Babu, aged about 48 Krishe Gardens, 1-8-373 years, to 378.& 380, 4. Dr.M.Obulapathi, S/o.late. M.Chenchu Obaiah, aged about 82 Occ. Doctor, Flat No.201, Swarnamrutha Apartments, Maternity Hospital Road, Opp ; S.V.Balamandiram, Tirupati - 517 507. 5. Dr.M.Raja, S/o.late. Dr.Thirupaiah, aged about 37 years, Occ Doctor R/o.50-50-33/1 years. besides Visakhapatnam - 530013. Rama Hospital, Seethammadara 6. Dr. Babu Rao, S/o.late . G.Venkateswarlu, Aged about 74 years, Occ: Doctor, R/o.572, Singareni Colony, Saidabad, Hyderabad - 59. ...PETITIONER(S) % AND 1V The Commissioner of Income Tax (Central), 7th Floor, Ayakar Bhavan ■4 'Basheer Bagh, Hyderabad. 2. Deputy Commissioner of Income Tax, Central Circle, Tirupati. 3. The Asst. Commissioner of Income Tax, Central Circle, K.T. Road Tirupati, 4. Dr. S.V. Prasad, S/o. Late. Sadu Venkatesu, aged about 54 years, Occupation : Doctor, Flat No.202, Swarnamrutha Apartments, Old Maternity Hospitals Road, Tirupati.- 517 507. 5. S.Amrutha Valli, W/o.Dr. S.V. Prasad, aged about 50 years, Flat No.202, Swarnamrutha Apartments, Old Maternity Hospitals Road, Tirupati- 517 507. ...RESPONDENTS Petition under Article 226 of the Constitution of India is filed praying that in the circumstances stated in the affidavit filed therewith, the High Court may be pleased to issue a Writ order or direction more particularly one in the nature of Writ of mandamus (A) declaring the action of the respondents No. 1 to 3 in adjusting the amount of Rs.88,60,680/- (Rs.87,12,600+Rs.6,48,080/- = Rs.93,60,680/- -Rs.5,00,000/-) belonging to the 1st Petitioner towards to the alleged tax liability of the 4th respondent as arbitrary, illegal, without jurisdiction and violative of Art.265 & 300-A of the Constitution of India. (B) declare the action of the respondents 1 to 3 in levying and collecting by way of adjustment from out of the amount retained by them an amount of Ris.10,43,130/- towards interest on the Capital Gain Tax payable by the 1st Petitioner as arbitrary & illegal and (C) consequently direct the respondents 1 to 3 to refund the amount of Rs.99,03,820/- to the 1st petitioner along with statutory interest on Rs.1,40,45,200/- from 28.11.2007 till 18.12.2009 on which date the Long Term Capital Gains tax payable was determined and there after on balance amount of Rs.99,03,820/- (Rs.1,40,45,200/ - Rs.41,41,380) till date of refund LA. NO: 1 OF 2012(WPMP. NO: 51458 OF 2012) Petition under Section 151 CPC is filed praying that in the circumstances stated in the affidavit filed in support of the petition, the High Court may be pleased to grant interim direction directing the respondents to refund the amount of Rs.99,03,820/- forth with pending disposal of the above Writ petition I.A. NO: 1 OF 2014(WPMP. NO: 47524 OF 2014) Petition under Section 151 CPC is filed praying that in the circumstances stated in the affidavit filed in support of the petition, the High Court may be pleased to take up Writ Petition No.40575/2012 for hearing on any day convenient to the Hon'ble Court in the interest of justice Counsel for the Petitioners: SRI GUDURI VENKATESWARA RAO Counsel for the Respondents No.4 and 5: M.V. PRATAP KUMAR Counsel for the Respondents No.1 to 3: J V PRASAD, SC FOR INCOME TAX The Court made the following: ORDER 1 > THE HON’BLE SRI JUSTICE G.NARENDAR AND ✓ » TK^. HON’BLE SRI JUSTICE V. GOPALA KRISHNA RAO Writ Petition No.40575 of 2012 ORDER: (per Hon’ble Sri Justice G.Narendar) Heard Sri N.Krishna Sai, learned counsel, representing Sri Guduri Venkateswara Rao, learned Counsel for the Petitioner, and Sri Vijhay K. Punna, learned Standing Counsel for Income-Tax Department, appearing for the Respondents. 2. Sri N.Krishna Sai, Learned Counsel, would submit that he has been instructed by Sri Guduri Venkateswara Rao, learned Counsel for the Petitioner, to make a mention praying leave of the Court to withdraw the Writ Petition. 3. The said submission of the learned Counsel is placed on record. 4. The Writ Petition is dismissed as withdrawn. No costs. Consequently, miscellaneous petitions, pending if any, shall stand closed. SD/- B. CHITTI JOSEPH ASSISTANT REGISTRAR SECTION OFFICER //TRUE COPY// To, 1. OneCCto SRI. GUDURI VENKATESWARA RAO Advocate [OPUC] 2. One CC to SRI. M.V. PRATAP KUMAR Advocate [OPUC] 3. One CC to SRI. J V PRASAD Advocate [OPUC] 4. Three CD Copies VS HIGH COURT l ’ 1 DATED:08/07/2024 ORDER WP.No.40575 of 2012 ANds:^ ,,5 0 6 JAN 2C:3 . Current Section . ^ *9, DISMISSING OF THE WP WITHOUT COSTS "