The Meridian Educational Society V. The Principal Commissioner of Income Tax (Central) and 2 others

WP/1329/2020

AI Insights

The case involves the Meridian Educational Society, which challenged an order under Section 68 of the Income Tax Act, 1961, adding a sum of Rs. 31,93,53,906 to their income for the assessment year 2019-2020. The petitioner argued that this addition was illegal, arbitrary, and violated Articles 14 and 21 of the Constitution. The Income Tax Department was represented by the Principal Commissioner and the Assistant Commissioner of Income Tax. The High Court's decision to dismiss the writ petition was based on the procedural ground that the petitioner should first exhaust the appellate remedy available under the Income Tax Act before approaching the High Court.

• Counselvise Citation: [2021] 140 COUNSELVISE.COM (IT) 753462 (HC-TELANGANA)
• Appeal Type: Others
• Pronouncement Date: 01-12-2021
• Assessment Year: misc
• Laws Referred To: Article 226 of the Constitution of India, Section 68 of the Income Tax Act
• Result in Favour of: Revenue
• Court: HIGH COURT
• Department Lawyers: B NARASIMHA SARMA
• Assessee Lawyers: N NIYATHA
• Keywords: Arbitrary; Article 14; Article 21; Assessment Order; Illegal; Income Tax; Irrational; Section 68; Writ of Mandamus; Onerous
• Section: 143(3); 68

Judgement Text

"HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD (Special Original Jurisdiction) WEDNESDAY, THE FIRST DAY OF DECEI 4BER TWO THOUSAND AND TWENTY ONE PRESENT THE HONOURABLE SRI JUSTICE UJJAL BHUYAN AND THE HONOURABLE SMT JUSTICE P.MADHAVI DEVI WRIT PETITION NO: 1329 OF 2020 Betwee n: AND 1 The Meridian Educalional Society, A Society registered under the provisions of the AP. (T.A) Societies Registration Act, having its registered office bt H.No.8-2- 541, Road No. 7, Ban.jara Hills, Hyderabad Rep. by its President Smt. Latitha Naidu, W/o. Late l.V.Naidu ...PETITIONER The Principal Commissioner of lncome Tax (Central) and 2 others, 7th Floor, Ayakar Bhavan Basheerbagh Hyderabad The Principal Commissioner of lncome Tax, (Vl) 2nd Floor, A- Block, AC Guards lT Towers, Hyderabad Assistant Commissioner of lncome Tax, Circle 14(1 ), Hyderabad ...RESPONDENTS , 3 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 issue writ, order or direction more particularly one in the nature of Writ of Mandamus declaring the Order NO. ITBA/AST/S/143 (3)12019-2011023434223(1) dated 30.12.2019 in so far as the 3rd respondent has added a sum of Rs. 31,93,53,9061 under Section 68 of the LT. Act as illegal, arbitrary, onerous and irrational and against Article 14 and 21 of the Constitution and to consequently set aside lhe same. 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 all further proceedings pursuant to Order NO. ITBA/ASTlSl143(3)72019-20110234342 23 (1) dated 30J2.2019 in so far as the 3rd respondent has added a sum of Rs. 31,93,53,906/- under Section 68 of the l.T. Act, pending disposal of the writ petition. lA NO: 1 OF 2021 Between: '1 . The Principal Commissioner of lncome Tax (Central) and 2 others, 7th Floor, Ayakar Bhavan Basheerbagh Hyderabad 2. The Principal Commissioner of lncome Tax, (Vl) 2nd Floor, A- Block, AC Guards lT Towers, Hyderabad 3. Assistant Commissioner of lncome Tax, Circle 14(1 ), Hyderabad ...PETITIONERS/RESPONDENTS lA NO: 1 OF 2020 AND The tt4eridian Edu;ational Society, A Society registered under the provisions of the A.P. (T.A) Soc :ties Registratton Act, having its registered offic,: at H.No.8-2- 541 , Rodd Nb.7, BanjaraHills, Hyderabad, Rep. by its Presidertt Smt. Lalitha Naidu, W/o. Late I /.Naidu ...RESPONDENTTPETITIONER Petition under Se( tion 151 CPC praying that in the circumstances stated in the affidavit filed in support rf the petition, the High Court may be pleased to vacate the interim stay granted by his Hon'ble Court in l.A.No. 1 of 2o2o in W.P. No.1329 of 2020 dated 23t011202( in the interest of justice and equity as otherwise the petitioners herein will be put to irreparable loss and severe hardship Counsel for the Petitior er: M/S. N NIYATHA Counsel for the Respor dents: SRl. B NARASIMHA SARMA The Gourt made the foll rwing: order IHE HON'BLE SMT. JUSTICE P.MADHAVI DEVI RDER 'llle rl B an Heard Ms. N.Niyatha, leamed counsel for the petitioner and Mr. K.Raji Reddy, learned Senior Standing Counsel lor Income Tax Departmcnt. 2. On 24.1I .2021, we had passed the following order: \"Aftcr hcaring leamcd Senior Counsel Mr. S.Ravi for the petitioncr for some tirne, we are of the view that petitioner should file an appeal before the Comrnissioner of Income Tax (Appeals) against the impugned assessment order dated 30.12.201. At this stage, learned Senior Counsel submits that on other issues, petitioner has already filed appeal. However, Mr. K.Raji Reddy, leamed Senior Standing Counsel for Income Tax submits that in the appeal already filed, the issue highlighted in the writ petition is also one of the grounds ofappeal. Be that as it may, leamed Senior Counsel may obtain instructions from his client. List tlris matter as first item on 29.11 .2021 .\" 3. Today, learned counsel for the petitioner tried to argue the issue relating to additions made under Section 68 of the Income Tax Act, I 961 . 4. We are of the vierv that since petitioner has already filed an appeal before the Comnrissioner of lncor.ne Tax (Appeals) against the irnpugned assessment order, petitioner may also take up this ground in the pending appeal, ifnecessary by filing additional grounds ofappeal. 5. All contentions are kept open. THE HON'BLE SRI JUSTICE UJJAL BHUYAN AND W.P.NO.1329 0F 2020 (r. In \"'iew c f above, petitioner is relegated to the lbrurn of appeal befbre the Comrniss oner ol'lncome 'l-ax (Appeals). 7. Writ petiti )n is disposed of accordingly. 8. Interlocut rry applications pending, if any, shall stand r:losed. No order as to costs. //TRUE COPY' SE,/.K.VENKAIAH ASSISTAI.IT REGISTRAR SEC:TION OFFICER To, PIV 1. The Principal Cc.nmissioner of lncome Tax (Central)' 7th Floor' Ayakar Bhavan Basheerbagh H' derabad 2. The Principal C( mmissioner of lncome Tax' (Vl) 2nd Floor' A- Block' AC Guards lT Towers, HYde rabad 3. Assistant bomn issioner of lncome Tax' Circle 14(1 )' Hyderabad a. On\" CC to M/s. N Niyatha, Advocate [OPUC] ,^^. ;. o;; cc to sri. rt Naiasimha sarma, Advocate [oPUC] 6. Two CD CoPies 7. One SPare CoP 7' w HIGH COURT DATED:01 11212C21 ORDER WP.No.1329 o1 2020 Disposing of the WP f, li 3 J 03 Ia TA e e 0 .l Without costt;. 4 t I "