The Pedapadu Large Sized Cooperative Society Limited No. E864, V. The Income Tax Officer,

WP/2358/2025

AI Insights

The case involves M/s The Pedapadu Large Sized Cooperative Society Limited, which filed a writ petition against various income tax authorities challenging an order that required them to pay 20% of a disputed tax demand for the assessment year 2015-16, pending the appeal. The petitioner argued that the order was made without hearing their submissions and violated principles of natural justice and various constitutional provisions. The court referenced decisions from the Supreme Court and other High Courts, which emphasized the need for a fair hearing and the authority's discretion to grant deposit orders based on individual case facts. The court decided to set aside the impugned order and remand the matter for a fresh decision on the stay application.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 747521 (HC-ANDHRA_PRADESH)
• Appeal Type: Others
• Pronouncement Date: 04-02-2025
• Assessment Year: misc
• Other Referred Cases: Principal Commissioner of Income Tax and others v. LG Electronics India Pvt. Ltd., Mr. Sudarshan Reddy Kottur V. Income Tax Officer and another
• Laws Referred To: Income Tax Act, 1961, Constitution of India
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: ANUP KARAVADI
• Assessee Lawyers: A V A KARTIKEYA
• Keywords: Assessment Year 2015-16; Garnishee notice; Income Tax; Natural Justice; Writ of Mandamus
• Section: 14; 148A; 265; 226(3); 19(1)(g)

Judgement Text

"IN THE HIGH COURT OF ANDHRA PRADESH AMARAVATI,^^P^ (Special Original Jurisdiction) TUESDAY, THE FOURTH DAY OF FEBRUARY TWO THOUSANDAND TWENTY FIVE o ■V * PRESENT THE HONOURABLE SRI JUSTICE B KRISHNA MOHAN AND THE HONOURABLE SRI JUSTICE NYAPATHY VIJAY WRIT PETITION NO: 2358 OF 2025 Between: M/s The Pedapadu Large Sized Cooperative Society Limited No. E864, Pedapadu Village, Pedapadu Mandal, West Godavari District - 534 437, Andhra Pradesh. Represented by its Chief Executive Officer, Mr. Damaraju Venkata Subbarao, S/o. Mr. D.V.Rangarao. ...Petitioner AND 1. The Income Tax Officer, Ward 1, Eluru, Income Tax Office, 23-B-4-6/4, KKS Towers, RR Pet, Eluru - 534 002, Andhra Pradesh. 2. Assessment Unit, Income Tax Department, National e-Assessment Center, New Delhi, Room No. 401,2nd Floor, E-Ramp, Jawaharlal Nehru Stadium, New Delhi - 110 003. 3. The Principal Chief Commissioner of Income Tax, Andhra Pradesh and Telangana, IT Towers, 10-2-3, AC Guards, Masab Tank, Hyderabad - 500 004, Telangana. 4. The Joint Commissioner (Appeals) / the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi, Through the Principal Chief Commissioner of Income Tax (NaFAC), Delhi, North Block, New Delhi - 110 001. 5. The Central Board of Direct Taxes, Represented by its Chairman, Department of Revenue, Ministry of Finance, Government of India, Secretariat Buildings, New Delhi - 110 001. 6. The Branch Manager, The District Cooperative Bank Limited, Eluru, Bendapudi Vaari Veedi, RR Peta, Eluru - 534 002, Andhra Pradesh. 7. The Branch Manager, Axis Bank, D. No.23B-5-94, Eadaravari Street, Ramachandra Rao Peta, Eluru - 534 002, Andhra Pradesh. 8. The Branch Manager, State Bank of India, D. No. 997, Main Road, Pedapadu Village, Pedapadu Mandal West Godavari District - 534 437, Andhra Pradesh. 9. The Branch Manager, Indian Bank, Pedapadu Village, Pedapadu Mandal, West Godavari District - 534 437, Andhra Pradesh. The Branch Manager, Union Bank of India, 3-158, Gogunta Road, Vasanhawada, West Godavari District - 534 437, Andhra Pradesh. 10. ...Respondents Petition under Article 226 of the Constitution of India praying that in the circumstances stated in the affidavit filed therewith, the High Court be pleased to issue a Writ of Mandamus or any other appropriate Writ, Order or Direction, declaring a. the order of the 1st Respondent, dated 28.01.2025, vide DIN may and Letter No. ITBA/COM/F/17/2024- 25/1072603103(1), in directing the Petitioner to pay 20 percentage of the disputed demand, pending disposal of its appeal before the 1st Appellate Authority, i.e., the 4th Respondent herein, for the Assessment Year 2015-16 and b. the garnishee notices issued by the 1st Respondent 03.01.2025, dated DIN and Notice No.lTBA/RCV/S/226(3)_1/2024- 25/1071861512(1) ii. DIN and Notice No.lTBA/RCV/S/226(3)_1/2024- 25/1071861054(1) iii. DIN and Notice No. ITBA/RCV/S/226(3)1/2024 - 25/1071861320(1) iv. DIN and Notice No.lTBA/RCV/S/226(3)_1/2024- 25/1071860602(1) and V. DIN and Notice No. ITBA/RCV/S/226(3)1/20 24- 25/1071860375(1) u/s 226(3) of the Income Tax Act, 1961, attaching the bank accounts of the Petitioner held with Respondents 6 to 10, i.e., the vide i. 7/ / Bankers of the Petitioner, as arbitrary, illegal, 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 consequently set aside the same in the interests of justice. (Main prayer was amended as per c.o.dt.04.02.2025 Vide I.A.No.3 of 2025 in W.P.No.2358 of 2025.) lA NO: 1 OF 2025 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, including any recovery, pursuant to the notice issued by the 1st Respondent, under Sec. 148 of the Act dated 04.04.2022, vide DIN & Notice; ITBA/AST/S/148_1/2022-23/10425017 06(1), for the Assessment Year 2015 - 16, pending disposal of the above Writ Petition. lA NO: 2 OF 2025 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 garnishee notices issued by the 1st Respondent, dated 03.01.2025, vide i. DIN and Notice No.lTBA/RCV/S/226(3)_1/2024- 25/1071861512(1) ii. DIN and Notice No.lTBA/RCV/S/226(3)_1/2024- 25/1071861054(1) iii. DIN and Notice No. ITBA/RCV/S/226(3)1/2024 - 25/1071861320(1) iv. DIN and Notice No.lTBA/RCV/S/226(3)_1/2024- 25/1071860602(1) and V. DIN and Notice No. ITBA/RCV/S/226(3)1/20 24- 25/1071860375(1) u/s 226(3) of the Income Tax Act, 1961, attaching the bank accounts of the Petitioner held with Respondents 6 to 10, i.e., the Bankers of the Petitioner, pending disposal of the above writ petition. (Prayer was amended in I.A.No.2 of 2025 as per c.o.dt.04.02.2025 vide I.A.No.3 of 2025 in w.p.No.2358 of 2025. ) Counsel for the Petitioner: SRI. A V A SIVA KARTIKEYA Counsel for the Respondent Nos. 1 to 5: SRI ANUP KOUSHIK KARAVADI The Court made the following order: APHC010040792025 IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI (Special Original Jurisdiction) [3516] TUESDAY, THE FOURTH DAY OF FEBRUARY TWO THOUSAND AND TWENTY FIVE PRESENT THE HONOURABLE SRI JUSTICE B KRISHNA MOHAN THE HONOURABLE SRI JUSTICE NYAPATHY VIJAY WRIT PETITION NO: 2358/2025 Between: The Pedapadu Large Sized Cooperative Society Limited No. E864, ...PETITIONER AND The Income Tax Officer and Others ...RESPONDENT(S) Counsel for the Petitioner: 1.A VASIVA KARTIKEYA Counsel for the Respondent(S): 1.ANUP KOUSHIK KARAVADI 2 HBKM,J & HVN,J W.P.No.2358 of 2025 The Court made the following: ORDER: (Per Hon’ble Sri Justice B. Krishna Mohan) Heard the learned counsel for the petitioner and the learned Standing Counsel for the respondents. The learned counsel for the petitioner submits that the Statutory Appeal is pending before the 4*^^ respondent/Appellate Authority against the assessment made for the year 2015-16. Pending the above said Appeal, the stay application was filed before the 1®* respondent and without hearing the submissions of the writ petitioner, the said application was disposed of by the said authority vide order dated 28.01.2025 directing the petitioner to pay 20% of the total demand immediately, pending consideration of the above said Appeal. 2. 3. The learned counsel for the petitioner refers to the order of the Hon’ble Apex Court in the case of Principal Commissioner of Income Tax and others v. LG Electronics India Pvt. Ltd. dated 20.07.2018 reported in 2018 12 ITR-OL 334 (SC), wherein, it was observed by recording the submission of the learned Additional Solicitor General appearing for the appellant therein that the administrative circular will not operate as a fetter on the Commissioner since it is a quasi-judicial authority and it is only needed to clarify that in all cases like the present, it is open to the authorities on the facts of individual cases, to orant deposit orders of 3 HBKM.J&HVNj W.P.No.2358of2025^ the said Solicitor General, the said Apex Court. Following the 20% lesser amount, pending the Appeal. Recording submission of the learned Additional Appeal was disposed of by the Hon’ble same, the Division Bench of the Telangana in the case of Mr. Sudarshan Reddy Officer and another, dated 30.01.2023 High Court for the State of Kottur V. Income Tax reported in 2023 458 ITR 750 matter back to the respondent therein (Telangana). remanded the for passing a fresh order i in accordance with law after giving due aside the impugned opportunity of hearing to the petitioner by setting order therein dated 16.01.2023 by fixing the time limit of six (6) copy of the said order. Further, the were directed not to take weeks from the date of receipt of respondents therein coercive steps for the assessment year 2017-18 SIX (6) weeks. Accordingly, the said realizing the outstanding demand for during the aforesaid period of si writ petition was allowed. 4. The learned Standing Counsel in this case submits that this Appeal time bound manner. appearing for the respondents can also be disposed of in a 5. In view of the above said facts following the above said decisions the authorities and circumstances and upon on the stay applications before concerned, this Court deems it fit remand the matter directing the 1 and proper to respondent to consider afresh the , 4 HBKM.J & HVN.J W.P.No.2358 of 2025 Stay application of the writ petitioner by giving due opportunity of hearing for both the parties to decide the same on merits, pending the Appeal of the writ petitioner before the appellate authority concerned, for which, the impugned order dated 28.01.2025 passed on the stay application is set-aside enabling the said respondent to consider the application afresh on merits, as expeditiously as possible, preferably, within a period of eight (8) weeks from the date of receipt of this order. Pending consideration of the stay application before the said authority, there shall not be any coercive action including the enforcement of garnishee order. In view of the orders passed by this Court, as directed above, it is open for the petitioner to make an application before the said authority along with the stay application to consider the incidental reliefs. 6. Accordingly, the Writ Petition is disposed of. There shall be no order as to costs. As a sequel, Interlocutory Applications pending, if any, shall stand closed Sd/- A VIJAYA BABU ^^^TRAR ASSISTANT //TRUE COPY// SECTION OFFICER To, 1. The Income Tax Officer, Ward 1, Eluru, Income Tax Office, 23-B-4-6/4 KKS Towers, RR Pet, Eluru - 534 002, Andhra Pradesh. 2. Assessment Unit, Income Tax Department, National e-Assessment Center, New Delhi, Room No. 401,2nd Floor, E-Ramp, Jawaharlal Nehru Stadium, New Delhi - 110 003. . I MC VV I-/OII M I I J J J J. 3. The Principal Chief Commissioner of Income Tax Telangana, IT Towers, 10-2-3, AC Guards, 500 004, Telangana. 4. The Joint Commissioner (Appeals) / the Commissioner of (Appeals), National Faceless Appeal Centre, Delhi, Principal Chief Commissioner of Income Tax (NaFAC) Block, New Delhi - 110 001. 5. The Chairman, Central Board of Direct Taxes Ministry of Finance, Government of India Delhi - 110 001. , Andhra Pradesh and Masab Tank, Flyderabad - Income Tax Through the Delhi, North Department of Revenue Secretariat Buildings, New 6. The Branch Manager, The District Cooperative Bank Bendapudi Vaari Veedi, RR Peta, Eluru Limited, Eluru, - 534 002, Andhra Pradesh. 7. The Branch Manager, Axis Bank D. N0..23B-5-94, Eadaravari Street, Ramachandra Rao Peta, Eluru - 534 002, Andhra Pradesh. 8. The Branch Manager, State Bank of India, D. No. 997, Main Road Pedapadu Village, Pedapadu Mandal West Godavari Andhra Pradesh. District - 534 437 9. The Branch Manager, Indian Bank, Pedapadu Village, Pedapadu Mandal, West Godavari District - 534 437, Andhra Pradesh. 10. The Branch Manager, Union Bank of India Vasanhawada, West Godavari District One CC to Sri. A V A Siva Kartikeya Advocate One CC to Sri. Anup Koushik Karavadi Advocate Three CD Copies 3-158, Gogunta Road - 534 437, Andhra Pradesh. 11. [OPUC] 12. fOPUC] 13. GSC I HIGH COURT DATED;04/02/2025 ORDER WP.No.2358 of 2025 DISPOSING OF THE WP WITHOUT COSTS HIGH COURT DATED:04/02/2025 ORDER WP.No.2358 of 2025 DISPOSING OF THE WP WITHOUT COSTS "