THE PEDAPADU LARGE SIZED COOPERATIVE SOCIETY LIMITED V. THE INCOME TAX OFFICER

WP/2403/2025

AI Insights

The case involves M/s The Pedapadu Large Sized Cooperative Society Limited, which contested orders from the Income Tax Department requiring them to pay 20% of a disputed tax demand for the assessment year 2016-17, pending an appeal. The petitioner argued that the order was issued without a hearing and violated principles of natural justice and various constitutional provisions. The court referenced similar precedents and decided to remand the case for a fresh hearing on the stay application, emphasizing the need for a fair opportunity to be heard.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 759276 (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 2016-17; Coercive Action; 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 (Special Original Jurisdiction) TUESDAY, THE FOURTH DAY OF FEBRUARY, TWO THOUSAND AND TWENTY FIVE PRESENT THE HONOURABLE SRI JUSTICE B KRISHNA MOHAN AND THE HONOURABLE SRI JUSTICE NYAPATHY VIJAY WRIT PETITION NO: 2403 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, Ministjy of Finance, Government of India, Secretariat Buildings, New Ddhi - 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 Mahager, 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. V , - 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. ...Respondefrts Petition under Article 226 of the Constitution of India 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 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 2016-17 and b. 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 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, 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.2403 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 31.03.2023, vide DIN & Notice: ITBA/AST/S/148_1/2022-23/10517409 58(1), 17, pending disposal of the above Writ for the Assessment Year 2016 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 pleased to sus^nd 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 ad 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, 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.2403 of 2025. Counsel for the Petitioner: SRI. A V A SIVA KARTIKEYA Counsel for the Respondent Nos. 1 to 5: ANUP KOUSHIK KARAVADI The Court made the following order: APHC010040922025 IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI (Special Original Jurisdiction) .m [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: 2403/2025 Between: The Pedapadu Large Sized Cooperative Society Limited ...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 HBKM,J &HVN,J W.P.No.2403 of 2025 The Court made the following: —RDERj (Per Hon’ble Sri Justice B. Krishna Mohan) Heard the learned counsel for the petitioner and the learned Standing Counsel for the respondents. 2. 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 2016-17, 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. 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 3 HBKM,J & HVN,J W.P.No.2403 of 2025 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 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. r... 4 HBKM.J &HVN,J W.P.No.2403 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/- M PRABHAKAR RAO ASSISTANT REGISTRAR //TRUE COPY// SECTJP^<^1^ FICER To Income Tax Officer, Ward 1, Eluru, Income Tax Office, 23-B-4-6/4, 1. The 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. The Principal Chief Commissioner of Income Tax, Andhra Pradesh and Telangana, IT Towers, 10-2-3, AC Guards, Masab Tank, Hyderabad - 500 004, Telangana. 3. 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 Chairman, Central Board of Direct Taxes, Department of Revenue, Ministry of Finance, Government of India, Secretariat Buildings, New Delhi - 110 001. The Branch Manager, The District Cooperative Bank Limited, Eluru\" Bendapudi Vaari Veedi, RR Peta, Eluru - 534 002, Andhra Pradesh. The Branch Manager, Axis Bank, D. No 23B-5-94, Eadaravari Street, Ramachandra Rao Peta, Eluru - 534 002, Andhra Pradesh. 6. 7. The Branch Manager, State Bank of India, D. No. 997, Main Road, Pedapadu Village, Pedapadu Mandal West Godavari District - 534 437 Andhra Pradesh. 8. 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, 3-158, Gogunta Road, Vasanhawada, West Godavari District - 534 437, Andhra Pradesh 11. One CC to Sri. A V A Siva Kartikeya Advocate [OPUC] 12. One CC to Sri. Anup Koushik Karavadi Advocate [OPUC] 13. Three CD Copies GSC 'r^ t HIGH COURT DATE0:04/02/2025 ORDER WP.No.2403 of 2025 DISPOSING OF THE WP WITHOUT COSTS "