Valley and Villas, Rep. by its Karta V. Union of India, Ministry of Finance, Rep. by its Secretary and Principal Commissioner of Income Tax-4 and Income Tax Officer, Ward-9(1) and National Faceless Assessment Centre, Income Tax Department and National Faceless Appeal Centre, Income Tax Department and State Bank of India, Commercial Branch and Union Bank of India, Gowliguda Branch

WP/9042/2024

AI Insights

The case involves Valley and Villas, represented by its Karta, challenging an interim order issued by the Income Tax Department requiring a deposit of 20% of the outstanding tax demand for the Assessment Year 2014-15. The petitioner argued that the order was non-speaking and lacked reasoning. The High Court, after hearing the arguments and considering the pending substantive appeal, decided not to interfere with the interim order but directed the appellate authority to expedite the decision on the main appeal.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 804129 (HC-TELANGANA)
• Appeal Type: Others
• Pronouncement Date: 08-04-2024
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: HIGH COURT
• Department Lawyers: GADI PRAVEEN KUMAR; J V PRASAD
• Assessee Lawyers: P S S NATH
• Keywords: Faceless Appeal; Faceless assessment; Income tax assessment; Interim order; Non-speaking order; Writ of Certiorari; Writ of Mandamus
• Section: 220(6); 163

Judgement Text

"HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD (Special Original Jurisdiction) TMONDAY ,THE EIGHTH DAY OF APRIL TWO THOUSAND AND TWENTY FOUR PRESENT THE HONOURABLE SRI JUSTICE P.SAM KOSHY AND THE HONOURABLE SRI JUSTICE SAMBASIVARAO NAIDU WRIT PETITION NO: 9042 OF 2024 No.46, Sunrise District-500 048. [ 33se ] Valley and Villas, Rep. by its Karta Between: AND 1 2 Ravindra Kumar GuPta HUF, Villa Upperpally, Attapur, Ranga ReddY Mr.Ravinder Kumar Gupta. ...PETITIONER Union of lndia, Ministry of Finance, Rep. by its Secretary' Sastri Bhavan' New Delhi 3 4 Principal Commissioner of lncome f ax-4,2nd Floor' lT Towers, Shanthinagar, Masab Tank, Hyderabad. lncome Tax Officer, Ward-9(1). Hyderabad. National Faceless Assessnient ientre, lncome Tax Department, IVlinistry of Finance, Government of lndia, New Delhi - 1 10003 Rep by Assessment Officer. National Faceless Appeal Centre, lncome Tax Department' lvlinistry of Finance, Government 6f lndia, New Delhi - '1 10003, Rep. by Commissioner (Appeals) Stbie gank of lndia, Commercial Branch, Secunderabad, Surya Towers, Block No. 11-16-20. Sardar Patel Rd., Secunderabad, Telangana - 500003' Union Bank of lndia, Gowliguda Branch, 5121120, Putlibowli Rd., Risals Abdullah Colony, Jam Bagh, Hyderabad, Telangana 500095 ...RESPONDENTS tl 7 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 a writ, order or direction more particularly in the nature of a writ of certiorified [ /andamus, quashing the order dated 20112!2023 bearing F.No.lTO, W-9(1)/Hyd/AADHR34O58/2023-24 issued by the 3rd Respondent on behalf of the 2nd Respondent, and consequently drrect the 5th Respondent to adjudicate the appeal of the Petitioner bearing appeal No.NFAC/2013- 14110125067 in an expeditious manner L lA NO: 2 OF 2024 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 permit the Petitioner to operate its bank accounts bearing No. j()284054429 held with the 6 ' Respondent ancl account bearing no.395902010008050 held with the 7th Responclent lA NO: 3 OF 2024 Petition under Section 151 CPC praying that in the circrrmstances stated in the affidavit filed rn support of the petition, the High Court may be pleased to stay all further proceedings including recovery proceedings pursuant to the order dated 2011212023 bearing F No.lTO, W-9(1 )/Hyd/AADHR3405B/2023-24 issued by the 2nd Respondent Counsel for the Petitioner: SRl. P. S.S . KAILASH NATH Counsel for the Respondent No.1: SRI GADI PRAVEEN KUMAR, Dy. SOLICITOR GEN. OF INDIA Counsel for the Respondent Nos.2to5: SRI J.V. PRASAD, SC FOR TNCOME TAX Counsel for the Respondent Nos. 6to7:- The Court made the following: ORDER 7 THE HON'BLE SRI JUSTICE P.SAM KOSHY AND THE HON'BLE SRI JUSTICE SAMBASIVARAO NAIDU WRIT PETITION No.9O42 OF 2024 ORDER:(per Hon'ble Si Justice P.SAM KOSHY) Heard Mr.Kailash Nath P.S.S., learned counsel for the petitioner, Mr.Gadi Praveen Kumar, learned Deputy Solicitor General of India appearing for respondent No ' 1 and Mr.J.V.Prasad, Iearned Senior Stalding Counsel for Income Tax appearing for respondent Nos.2 to 5. Perused the material available on record. 2. The present writ petition is filed challenging the order, dated 20.12.2023 passed by respondent No.3 on behalf of respondent No.2. 3. Vide inpugned order, dated 20. 12 -2023 ' respondent No.3 has on an application under Section 220(6) of th'e Income Tax Act, 196 1 (for short, the Act') ordered for payment of 2OVo of the outstanding demand for the Assessment Year 2Ol4-15 as an interim measure to the 1 I I 2 appeal, rvhich has been filed against the Assessment Order, dated 27.03.2022 passed by the Assessing Officer for the Assessment Year 20 14- 1 5 1. To state the facts properly, the Assessmenl Order in the instant case for the year 2Ol4-15 was passed on 27 .O3.2022 and the petitioner immediately thereafter preferred an appeal before the sth respondent on 23.04.2022. After having preferred arl appeal belore the 5,r. respondent, the petitioner thereafter moved an application seeking interim protection against the Assessment Order and another- application, under Section 163 of the Act, before the 2\"d respondent. The order impugned now has been passed b1' the 3.d respondent for and on behalf of the 2..1 respondcnt on 20. 12.2023 whereby it has been ordered for depositing of 2Ook of the outstanding demand. The challenge primarily seems to be on the ground that the impugned order is a non-speaking order, no reasons have been assigned ald that there is no discussion on how the authoritl has reached to pay 2Ook of the outstanding demand ',vhile deciding the interim application. I- 3 5. Interim applications and interim orders are alu'ays decided by the concerned authority exercising their discretionar5i power, which are otherwise conferred upon them. Admittedly, substantive appeal of the petitioner herein is pending consideration before the 5't' respondent for almost two years now. The interim application now stands decided on 20.12.2023 directing the petitioner to deposit 2Ook of the outstanding demand. 6. Considering the entire factual matrix of the case, we are of the considered opinion that the impugned order which is arr order passed on an interim application under Section 220(61 of the Act by itself would not get vitiated for not having any detailed reasoned order, particularlv the appeal itself substantively pending consideration' The compliance of the interim order, dated 20.12.2023 undisputedly would be subject to the outcome of the main appeal which was already pending consideration with the respondent authorities. We' are of the view that the impugned order at this juncture, therefore, does not rvarrant interference. Nonetheless the fact that the appeal I 4 is pending consideration before the 5th respondent for about two years, ends of justice would be met if the Sth respondent is directed to ensure that the appeal itself is taken up on priority basis and decided at the earliest. The compliance macle by the petitioner to the impugned order, dated 20.12.2023 on his application under Section 220(61 of the Act would however be subject to the outcr;me of the appea,l to be decided by the gtt' respondent. 7. The Writ Petition is accordingly stands disposed of. No order as to costs. Consequently, miscellaneous applications pending, if any, shall stand closed. To, SD/- V. HARI PRASAD //rRUE coPY// ASSISTANT RIGI),RAR v SECTION OFFICER 1 The Secretary, Union of lndia, Ministry of Finance, Sastri Bhavan, New Delhi. 2. Principal Commissioner of lncome Ta'x-4,2nd Floor, lT iowerr, Snrrii,rrglr, I 4a sa b Tank, Hyderabad. 3 The lncome Tax Officer, Ward-9(1), Hyderabad. 4. The National Faceless Assessment Centre, lncome Tax Department. Ministrv of Finance, Government of tndia, New Delhi - 1 i 0003 Rep. 6t A;;;;;;;i''' Off icer. 5 The National Faceress Appear centre, rncome Tax Department, Ministrv of Finance, Government of lndia, New Delhi - .l 10003, nep. OV-Commia;il\";; (Appeals) 6 The State pan[ of lndia, Commer'al Branch, Secunderabad, Surya Towers, Block No. 1i-16-20. Sarda_r patet Rd., Secunderabad, Tela;;ana15000bi. ' 7. The Union Bank of rndia, Gowriguda Branch, srzh20, puttibiiii no., iiiiii, ^ Abdultah ColoJly. Jam Bagh. Hyderabad, Teianqani 500095 d une uu ro SRt. KATLAS_H NATH p S S ,Advocite lOpUCl e o1e cc to SRt. GAD| PRAVEEN KU[/AR,bt. SOtrclron cEN. OF rNDtA [OPUC] 10. Two CD Copies k BIV GJP i I i I HIGH COURT DATED:0810412024 ORDER WP.No.9042 of 2024 DISPOSING OF THE WRIT PETITION WITHOUT COSTS -..11 /..'>'' i, tt 1 a_: c,^l BE s ra r(:' l.l | ,'; 'r.')., 1. lr 'i 3 0 rlAY 202{ () I-.!t:... r it ..-l $tt& /il)' C9 "