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

WP/2359/2025

AI Insights

The case involves 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 pending an appeal. The petitioner argued that the order was issued without a proper hearing and violated principles of natural justice and constitutional rights. The High Court referenced similar cases and precedents, emphasizing the need for a fair hearing and proper legal procedure in such matters. The court's decision to remand the case for a fresh consideration of the stay application underscores the importance of procedural fairness in tax disputes.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 764952 (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 KOUSHIK KARAVADI
• Assessee Lawyers: A V A SIVA KARTIKEYA
• Keywords: Assessment Order; Garnishee notice; Income Tax; Natural Justice; Stay Application; Writ of Mandamus
• Section: 143(3); 14; 144B; 148A; 265; 226(3); 19(1)(g)

Judgement Text

"IN THE HIGH COURT OF ANDHRA PRADESH :: AMARAVATI (Special Original Jurisdiction) TUESDAY, THE FOURTH DAY OF FEBRUARY TWO THOUSAND AND TWENTY FIVE PRESENT HONOURABLE SRI JUSTICE B. KRISHNA MOHAN AND HONOURABLE SRI JUSTICE NYAPATHY VIJAY WRIT PETITION NO: 2359 OF 2025 Between: 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, 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, Teiangana. 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, RamachandraRao 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. lO.The Branch Manager, Union Bank of India, 3-158, Gogunta Road, Vasanhawada, West Godavari District - 534 437, Andhra Pradesh. ...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 of Mandamus or any other appropriate Writ, Order or Direction, declaring a. the order of the 1st Respondent, dated 28.01.2025, vide DIN and 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 1®* Appellate Authority, i.e., the 4*'' Respondent herein, for the Assessment Year 2020 -21 and Letter No. b. the garnishee notices issued by the Respondent, dated 03.01.2025, vide i.DIN and Notice No. ITBA/RCV/S/226(3)_1/2024- 25/1071861512(1) ii. DIN and Notice No. ITBA/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. ITBA/RCV/S/226(3)_1/2024 - 25/1071860602(1) and V. DIN and Notice No. ITBA/RCV/S/226(3)1/2024- 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 as arbitrary, 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. illegal, bad in law, void-ab- (Maln prayer was amended as per c.o.dt.04.02.2025 Vide I.A.No.3 of 2025 in W.P.No.2359 of 2025) lA NO: 1 OF 2025 Petition under Section 151 CPC is filed praying that in the circumstances stated in the affidavit filed in support of the writ petition, the High Court may be pleased to stay all further proceedings, including any recovery, pursuant to the Assessment Order passed by the 2^^ Respondent, u/s 143(3) r/w Sec. 144B of the Act, dated 25.09.2022, vide DIN: ITBA/AST/S/143(3)/2022- 23/1045936161(1), for the Assessment Year 2020 - 21, pending disposal of the above Writ Petition. lA NO: 2 OF 2025 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 suspend the garnishee notices issued by the 1®* Respondent, dated 03.01.2025, vide i. DIN and Notice No. ITBA/RCV/S/226(3)_1/2024-25/1071861512(1) ii. DIN and Notice No. ITBA/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. ITBA/RCV/S/226(3)_1/2024-25/1071860602(1) V. DIN and Notice No. ITBA/RCV/S/226(3)1/2024-25/1071860375(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 of I.A.No.2 of 2025 was amended as per c.o.dt.04.02.2025 vide I.A.No.3 of 2025 IN W.P.N0.2359 of 2025) Counsel for the Petitioner: SRI A. V. A. SIVA KARTIKEYA Counsel for the Respondent Nos.1 to 5 : SRI ANUP KOUSHIK KARAVADI, SC FOR CENTRAL GOVT. Counsel for the Respondent Nos.6 to 10 : NONE APPEARED The Court made the following; ORDER w APHC010040862025 IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI (Special Original Jurisdiction) S:*S [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: 2359/2025 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.AVASIVAKARTIKEYA Counsel for the Respondent(S): 1.ANUP KOUSHIK KARAVADI 2 HBKM.J & HVN.J W.P.No.2359 of 2025 The Court made the following: ORDER: (Per Hon'bte 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 2020-21. 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 grant deposit orders of HBKM,J & HVN.J W.P.No.2359of2025 20% lesser amount, pending the Appeal. Recording the said submission of the learned Additional Solicitor General, the said Appeal was disposed of by the Hon’ble Apex Court. Following the same, the Division Bench of the High Court for the State of Telangana in the case of Mr. Sudarshan Reddy Kottur v. Income Tax Officer and another, dated 30.01.2023 reported in 2023 458 ITR 750 (Telangana), remanded the matter back to the 1®' respondent therein for passing a fresh order in accordance with law after giving due opportunity of hearing to the petitioner by setting aside the impugned order therein dated 16.01.2023 by fixing the time limit of six (6) weeks from the date of receipt of a copy of the said order. Further, the respondents therein were directed not to take coercive steps for realizing the outstanding demand for the assessment year 2017-18 during the aforesaid period of six (6) weeks. Accordingly, the said writ petition was allowed. 4. The learned Standing Counsel appearing for the respondents in this case submits that this Appeal can also be disposed of in a time bound manner. In view of the above said facts and circumstances and upon following the above said decisions on the stay applications before the authorities concerned, this Court deems it fit and proper to remand the matter directing the 1®* respondent to consider afresh the 5. f •••.' 4 HBKM,J & HVN.J W.P.No.2359 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. Accordingly, the Writ Petition is disposed of. There shall be 6. no order as to costs. As a sequel. Interlocutory Applications pending, if any, shall stand closed. Sd/- B CHITTI JOSEPH ASSISTANT REGISTRAR //TRUE COPY// SECTION OFFICER To, 1. The Income Tax Officer, Ward 1, Eluru, Income Tax Office KKS Towers RR Pet, Eluru - 534 002, Andhra Pradesh. 2. Assessment Unit, Income Tax Department, Room No.401, 2\"^^ Floor, E- Ramp, Jawaharlal Nehru Stadium, New Delhi - 110 003. , 23-B-4-6/4, 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, RamachandraRao 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. One CC to Sri A. V. A. Siva Kartikeya, Advocate [OPUC] One CC to Sri Anup Koushik Karavadi, Advocate [OPUC] Three C.D. Copies. 10. 11. 12. 13. Cnr sree HIGH COURT DATED:04/02/2025 15 MAY 2025 ORDER f|3C ml coll 9: ^£ffSPATCtf^ WP.No.2359 of 2025 DISPOSING OF THE W.P. WITHOUT COSTS "