M/s. Zoos and Parks Authority of Telangana V. The Commissioner of Income Tax (Exemptions)

WP/8794/2023

AI Insights

The case involves the M/s. Zoos and Parks Authority of Telangana challenging an order by the Commissioner of Income Tax (Exemptions) under Section 220(6) of the Income Tax Act, 1961. The order required the petitioner to pay Rs. 5 crores as a condition for staying a total demand of Rs. 41,38,07,520 for the assessment years 2016-17 to 2021-22. The petitioner argued that this demand was illegal and arbitrary. The High Court had previously set aside a similar order and remanded the matter for a fresh decision, which led to the current order being challenged.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 753032 (HC-TELANGANA)
• Appeal Type: Others
• Pronouncement Date: 04-04-2023
• Assessment Year: misc
• Laws Referred To: Article 226 of the Constitution of India, Income Tax Act, 1961
• Result in Favour of: Revenue
• Court: HIGH COURT
• Department Lawyers: K MAMATA CHOUDARY
• Assessee Lawyers: S RAVI
• Keywords: Assessment years; Income Tax Exemptions; Mandamus; Stay of demand; Writ petition
• Section: 143(1); 156; 220(6); 246 A

Judgement Text

"[ 3311 I HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD (Special Original Jurisdiction) IUESDAY, THE FOURTH DAY OF APRIL TWO THOUSAND AND TWENTY THREE PRESENT THE HONOURABLE THE CHIEF JUSTICE UJJAL BHUYAN AND THE HONOURABLE SRI JUSTICE N.TUKARAMJI WRIT PETITION NO: 8794 OF 2023 Between: M/s. Zoos and Parks Auth_ority - of Jelangana, Nehru Zoological park, Bahadurpura, Hy_derabad - 500064, Telang-ana. Rep. by its iuritor, Sii Prashant Bajirao Patil, S/o. Sri Bajira6 Madha-vrao patill ...PETITIONER AND 1. The commissioner of rncome Tax (Exemp-tions), 2nd Froor Annexe, Aayakar - Efavan, Basheerbagh, Hyderabad - SO0d04 2. The Assistant Commissioher of lncome Tax (Exemptions). Circle _ 1(1 .2nd Floor, Aayakar Bhavan, Basheerbagh, Hydeiabad-'500064.- - - ...RESPONDENTS 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 pass an order or direction, especially one in the nature of wRlr oF MANDAMUS holding that the order of the 1st Respondent dated 24.03.2023 with DIN and Letter No. lrBA/coM/F/1ztzo2z-z3t'r0i1219016(1) granting stay of demand subject to payment of Rs.5 crores of the total demand of Rs.41,3g,07,520 for the assessment years 2016.17 to 2021-22 by 30th March 2023 as being illegal, arbitrary and against the provisions of the Act and GBDT circular and set aside the same, and consequently direct the Respondents not to insist for payment of disputed demands raised for assessment years 2016-17 lo 2021-22 lill lhe disposal of first appeals filed for respect asst. years. lA NO: 1 OF 2023 Petition Undet lection 151 CPC praying that in the circ- l'rstzlnces stated in the affidavit file,J rn s; pport of the petition, the High Court rna'r )e rrleased to stay the collection of disl: rted taxes of Rs.41 ,38,07,520 quantifiet \"rs p ayable for the assessment years .20 6-17 lo 2021-22. Counsel for the Petil oner: SRI S.RAVI counsel for the Resl ondents: M/s. K.MAMATA CHOUDARY, Sic FoR INcOME TAX The Court made the rllowing: ORDER THE HON'BLE THE CHIEF IUSTICE UTIAI BHI'YAN AND THE HON'BLE SRI JUSTICE N.TUKARAMJI W.P.No.8794 of 2023 RDER. (Per the Hoz'bb the Clief lutte U1a/ Bhuyan) Heard Mr. S.Ravi, learned Scnior Counsel for the petitioner and IMs. K.Mamata Choudary, Iearned Senior Standing Counsel, Income Tax Department for the rcspondents 2. By fiIing this petinon undcr Articlc 226 ol the Consdrudon of India, petitioner has assailed lcgaiiry and validity of the order dated 24.03.2023 passed br respondent No.1 under Scction 220(6) of the Incomc 'lax Act, 1961 (briefly 'the Act' hereinafter) directr.ng the petidoner to pa r an amount of Rs.5 crores with the respondents bv 30.03.2023 upon which the demand raised by the Income Tax Department amountmg to Rs.41,38,07,520.00 would remain s tayed. 3. !7e may mention that peridoner- M/s. Zoos and Parks Authoriry o[ Telangana is AN ASSCS SC under the Act for six [rrrnr 2016 7] rct 2021-22. I)ctirtonet assessment yeafs spannlnta ) has becn l: ;essed bv thc assessing authorit, t()1 ! 111l()-lS 111-l( )tttltS, the de ails , f rvhich are as under: l. ) S.No Asst. r,ear Amount of dcrnarul Rs. 6,41,61,420 27,67,770 7,90,46,150 Naturc of -l detnatrd t+:1r;1r; i 741(3) 2016_17 n17-18 3 2018-19 4 2019-20 7,72,16,420 2020-27 13,39,11.290 14311) 6 2021-22 5,83,04,490 143(1)( Total demand 41,39,07,520 1. FoJJ r', ing thc above, demanrl nolices hzLvc Lccrr tsstrccl by thc Incorrrr 'fax I)cpartmcnt to thc petitr()n(.r a,l Ia _m(jnt of oursran-ling ax clues undet Section 156 of tl-c . cr. 5 la3r,1)(l 143(1Xa) _ cacl-r oI thc asscssment order f, rr drc r.orr.espor-rrling )ar, pe titione r has preferred appeal _- r. f olc thc tlrst ority under Sccrion 246(A) of rl.re A< r. .l'hc appcals ri: pending. In the meanu,hile. pctiti:,no had hled :ations befrrrc respondent No.1 assr s r,iru rutl,r()rifi. 220(6) of rhc Acr for stay of ()urstarrrlrnll dcrnancl 1cn, 'cirrs 2016 1l and2021-22 a 5. ; ga i n,. aSSCSSmt)flt , appellatr: ar.rt afc s tat(,cl t() scl)arate al) D under St crror irrr Ihc a.st... I I i I I I I I I I I , 5 t I A I l 3 6 By common order dated 02.02.2A23, respondent No. t had granted stay of demand subjecr ro paymenr of 20\"/o of the total demand by 10.02.2023 in terms of circulars darcd 29.02.2016 and 31.07.2017 of the C-entral Board of Direct Taxes (CBDT). This order came to be assailed by the petitioner before this Coun in W.P.No.3699 of 2023. Bythe order dated09.02.2023, this Court set aside the cofilmon order of respondent No.1 dated 02.02.2023 and remanded the maner back to the file of respondent No. 1 for passing fresh order in accordance with law after giving due opportunity of hearing to the petitioner. This exercise was directed to be concluded within a period of slx weels and during the interregnurn, respondents were directed not to take any coercive steps against the petitioner ro recover the oustanding demand for the assessmenr yearc 2016-17 and202l-22. 7 It was thereafter that respondent No.l passed the impugned order dated 24.03.2023. Relevant ponion of the order of respondenr No.1 dated 24.03.2023 reads as unden i I i I 4 'l 'hc 1, rcp( )r-1 sl u,itl DCI thc lects (bLrrt rli pctir iorL .' cert lrullv '[clangan, did oor a new l)r l' reqi: tr.r-it. 8. $,tritc exernpt on 1' subject nrat. authoritl., ri,r petition -'r, r, hinxt'lf. it s arnount o1' Fl On su( h (' t-e s po r rcl-'r rt s rvhir Ir cler rands u.ere raised. The total demend pr1'rblt, for ,he r .Y > Ztll -17 ro 2Q21-22 is tu.41,38,02,520. tition rr-radc by tlre assessee belorc tlris otTicr:. f;rc -uel rnitted by thc DClT(Exemptions), HyJurab,rd .rl rng l(Exemptions), Hiderabad forwal ling c : r' rmt:r.rts,,urd f the ca-se arc considered carefully. The J-lon'cle liigh clions on A2.02.2023 to dispose oi rhe rs;essee's :ra1, .thin 6 ueels after giving due oppc,nunity rrf hearin3 is :ollowed. The assessee, Zoo I'arks -^,uthority of obtained nerv PAN AAEAT023111 on i.1.12..201.1 .lut ply for any registration under Section 1]1., urder rhe . Accordingly, the assessee was rlor l.Laving v:rlid r for the cl:-rirn of exemprion duLing t.re penor[ lor he main issue as to entitlement of tfr,:, pcritiorrcr to crn income tax under Sectior.r 11 o1 r.he Act is the r o[ the appeals pending before th,: first ap1;ellate are of tlre view that considenng tl.tr statts ol' the ich has been taken nore of by resl:,onJent No.1 xld mcct the ends of justice i[ peririoner pa]s an .3 crores wthin a period of fifteen dar,s from roday. rposit be ing made, rhe demand raiserl b1, the or the ass('ssntent pars 2016-17 tc, la21-22 shall ! 5 lr remain sraled dll disposal of the appeals stated ro be pending before the first appellate aurhonry. This disposes of the writ petirion. No costs. As a sequel, miscellaneou peririons, pending if any, stand closed. SD/-A.V.S.PRASAD ASSISTANT REGISTRAR //TRUE COPY// SECTI FFICER 1. The Commissioner of lncome Tax (Exemptions), 2nd Floor Annexe, Aayakar Bhavan, Basheerbagh, Hyderabad - 500004. 2. The Assistant Commissioner of lncome Tax (Exemptions), Circle - 1(1),Znd Floor, Aayakar Bhavan, Basheerbagh, Hyderabad- 500004. 3. One CC to SRI S.RAVI, Advocate [OPUC] 4. One CC to M/s. K.MAMATA CHOUDARY, SC FOR INCOME TAX IOPUC] 5. Two CD Copies 9 To PSK. GJP *A=- / // HIGH COURT DATED:041041 ,.023 ORDER WP.No.8794 o 2023 DISPOSING O I THE WRIT PETITION WITHOUT COI TS. /. 'il-' , j.) i I t.l ,-|, (:'), 'l 2 lt[{ ?fft] 1 I I t,,:)',, tl '--- ') -.' , G )9 i-i:,-:;:-, "