M/s The Pedapadu Large Sized Cooperative Society Limited No. E864, V. THE INCOME TAX OFFICER

WP/12256/2025

AI Insights

The case involves M/s The Pedapadu Large Sized Cooperative Society Limited, which filed a writ petition against the Income Tax Officer and others, challenging an order that required them to pay 20% of a disputed tax demand pending the appeal's resolution. The petitioner argued that the order was arbitrary, illegal, and violated principles of natural justice and constitutional rights. The court considered similar precedents and decided to stay the collection of the disputed tax demand until the appeal is resolved, citing potential financial hardship and disruption to the petitioner's activities.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 746459 (HC-ANDHRA_PRADESH)
• Appeal Type: Others
• Pronouncement Date: 07-05-2025
• Assessment Year: misc
• Other Referred Cases: Writ Petition No.27342 of 2024
• Laws Referred To: Income Tax Act, 1961, Constitution of India
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: VAMSI KRISHNA BODAPATI
• Assessee Lawyers: A V A KARTIKEYA
• Keywords: Audit Delay; Disputed Demand; Financial hardship; Income Tax; Natural Justice; Writ of Mandamus
• Section: 14; 148A; 265; 19(1)(g)

Judgement Text

"APHC010240072025 IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI (Special Original Jurisdiction) [3526] WEDNESDAY, THE SEVENTH DAY OF MAY TWO THOUSAND AND TWENTY FIVE PRESENT THE HONOURABLE SRI JUSTICE NINALA JAYASURYA THE HONOURABLE SRI JUSTICE TARLADA RAJASEKHAR RAO WRIT PETITION NO: 12256 OF 2025 Between: M/s The Pedapadu Large Sized Cooperative Society Limited No.E864, Pedapadu Village, Pedapadu Mandal, West Godavari District – 534437, Andhra Pradesh, Represented by its Chief Executive Officer, Mr.Damaraju Venkata Subbarao, S/o Mr.D.V.Rangarao. ...PETITIONER AND The Income Tax Officer and Others ...RESPONDENT(S) Counsel for the Petitioner: 1. A V A SIVA KARTIKEYA Counsel for the Respondent(S): 1. 2 This Court delivered the following ORDER: (per NJS,J) Heard Mr.A.V.A.Siva Kartikeya, learned counsel for the petitioner. Also heard Mr.Vamsi Krishna Bodapati, learned Junior Standing Counsel representing Mr.Anup Koushik Karavadi, learned Senior Standing Counsel for the Income Tax Department. 2. The writ petition is filed seeking the following relief: “… … to issue a Writ of Mandamus or any other appropriate Writ, Order or Direction, declaring the order passed by the 1st Respondent, dated 29.03.2025, vide DIN & Letter No.ITBA/COM/F/17/2024- 25/1075233468(1), in directing the petitioner to pay 20% of the disputed demand, pending disposal of the appeal of the petitioner before the 1st Appellate Authority, i.e., the 4th Respondent herein, for the Assessment Year 2015 - 16, as arbitrary, illegal, barred by limitation, bad in law, void-ab-initio, violative of the principles of natural justice, apart from being violative of Articles 14,19(1)(g) and 265 of the Constitution of India and Sec 148A of the Income Tax Act, 1961, and to consequently set aside the same in the interests of justice.” 3. The learned counsel for the petitioner, while making submissions with reference to various legal contentions raised in the writ affidavit, submits that since the Registrar of Co-operative Societies conducted the audit beyond the due date for filing the Return of Income under the Income Tax Act, 1961, they could not file the Return of Income. He further submits that the petitioner is not in a position to raise the demanded amount and if the Revenue is allowed to recover the amounts during the pendency of the appeal before the 1st Appellate Authority, it would cause great hardship to the petitioner and all its activities would get hampered by financially crippling the Assessee. He submits that the order passed by the respondent No.1 directing the petitioner to pay 20% 3 of the demanded amount, without considering the case of the petitioner, is not sustainable. He also submits that in similar circumstances a Coordinate Bench of this Court vide order dated 31.12.2024 in Writ Petition No.27342 of 2024 was pleased to dispose of the same with a direction to the Appellate Authority to dispose of the appeal within a period of six months and that during the pendency of the appeal, the Authorities shall not insist for the payment of the installments granted towards the outstanding amount. The learned counsel submits that in fact against the demands raised by the Assessing Authorities several writ petitions were filed and while entertaining the said writ petitions, interim orders were granted. 4. Whereas, the learned Junior Standing Counsel for the respondent Department submits that it is not the case of the writ petitioner that it is not capable of paying the 20% of the disputed demand and further that having availed the remedy of appeal, the writ petitioner is not justified in filing the writ petition. 5. Though the learned counsel for the petitioner raised several legal contentions and it is also not in dispute that several writ petitions challenging the demands raised by the Assessing Authorities were entertained, in the light of the orders passed in Writ Petition No.27342 of 2024, dated 31.12.2024, this Court is inclined to dispose of the writ petition on similar lines. 4 6. The respondent No.4–Appellate Authority shall dispose of the appeal preferred by the writ petitioner within a period of six months from the date of receipt of a copy of this order. Pending disposal of the appeal, no action to collect the outstanding tax demand/installments shall be initiated and the liability of the petitioner, if any, shall be subject to the decision of the Appellate Authority, in the appeal on merits. The petitioner is at liberty to file additional material, if any, before the Appellate Authority and it is needless to state that before passing orders as indicated above, the petitioner shall be afforded an opportunity of hearing. 7. With the above directions, the writ petition is disposed of. No order as to costs. Miscellaneous petitions pending, if any, shall stand closed. ____________________ NINALA JAYASURYA,J ____________________________ TARLADA RAJASEKHAR RAO,J 7th May, 2025 Ssv 5 THE HONOURABLE SRI JUSTICE NINALA JAYASURYA THE HONOURABLE SRI JUSTICE TARLADA RAJASEKHAR RAO WRIT PETITION NO: 12256 OF 2025 Date:07.05.2025 ssv "