La No: 1 Of 2023 v. The Hon'ble The Chief [Justice Ujjal ][Bhtryan

THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD(Special Originat Jurisdiction) THURSDAY,THE NINTH DAY OF FEBRUARYN/VO THOUSAND AND n/VENTY THREE PRESENT THE HONOURABLE THE CHIEF JUSTICE UJJAL BHUYANANDTHE HONOURABLE SRI JUSTICE N.TUKARAMJI Between: M/s. Zoos and Parks Autho-rity^ of _Telangana, Nehru Zoological park,Bahadurpura, Hyderabad - 5090q, Tetangina Rep., ov itJ iuiitor, SriShakkari Rajashekar, S/o. Late Sri Kishtaiah." AND ...PETITIONER 1- The Commissioner of lncome Tax.(Exemptions), 2nd Floor Annexe, AayakarBhavan, Basheerbaqh, Hyderabad'-5000b4.Bhavan, Basheerbaqh, Hyderabad'-5000b4. Hyderabad'-5000b4.2. The Assistant Commissioher of lncome-Tax (Exemptions), 2nd Floor, AayakarBhavan, Basheerbagh, Hyderabad- 500004.'Bhavan, Basheerbagh, Hyderabad- 500004.' Petition under Articre 226 or the constitution of rndia il:,;#t"?T],'f ,;#t"?T],'f circumstances stated in the affidavit filed therewith, the High-Court may beOleased [to ][pass ]an order or direction, especially one in the niture of WRIT OFOleased [to ][pass ]an order or direction, especially one in the niture of WRIT OFMANDAMUS holding that the order of the 1st Respondent dated O210212023 withDIN and Letter No.lTBA/COMlFl17l2O22-23t1049368260(1) granting stay ofDIN and Letter No.lTBA/COMlFl17l2O22-23t1049368260(1) granting stay ofdemand subject to payment of zo percent of the total dJmand ofRs.41,38,07,520 for the assessment years 2016 -12 to 2021 -22 by 10thRs.41,38,07,520 for the assessment years 2016 -12 to 2021 -22 by 10thFebruary 2023 as being illegal, arbitrary and against the provisions of the Actand CBDT Circular and set aside the same, and consequently direct theand CBDT Circular and set aside the same, and consequently direct theRespondents not to insist for payment of . disputed demands raised forassessment years 2016- 17 to 2021-22fl|the disposal of first appeals filed forrespect asst. years. lA NO: 1 OF 2023 petition trnOer Section 151 CPC praying that in the circumstances statedin the affidavit filed in support of the petition, the High Court may be pleased tostay the collection of disputed taxes of Rs.41,38,07.520 quantified as payable forthe assessment years 2016-17 to 2A21-22. Counsel for the Petitioner: MR. A. V. RAGHU RAMcounsel for the Respondents: MS. SAPNA REDDY FoR MS. K MAMATHACHOUDARY, SR. SCThe Court made the following: ORDER THE HON'BLE THE CHIEF [BHTryAN] ANDTHE HON'BLE SRI JUSTIqE [I[.TqI(4B4I1I[.'I] Writ Petition No. 3699--ef202g ORDER: Per the [llon'ble ][the ][Chief ][Justice Ujjal Bhugan)] Heard Mr.A.V.Raghu [Ram, learned ][counsel ][for ][the] petitioner and Ms.Sapna [Reddy, ][learned ][counsel]representing Ms.K.Mamatha [choudary, ][learned ][senior]stand.ing counsel [for the ][respondents.] 2. By filing this [petition under Article ][226 ][of ][the]Constitution of India, [petitioner has ][assailed ][legality ][and]validity of the ord.er dated [O2.O2.2O23 ][passed ][by ][the ][first]respondent. 3. Petitioner i.e., [Zoos ]and [Parks ][Authority ][of]Telangana.is an assessee [under the ][Income Tax ][Act, ][1961](briefly [,the ]Act' hereinafter). [For ][the ][assessment ][years]2OL6 - LT to 2O2L - [22, ][petitioner ][is required to pay ][a ][total]amount of Rs.41,38,07,520.00 [on ][account ][of ][income ][tax]etc. The details of outstanding dues are as under: I 4. Against each of the assessment order, [petitioner]has preferred [appeals before ][the First ][Appellate ][Authority.]The appeals [are ][pending. ][In ][the ][meanwhile, petitioner ][filed]applications und.er [Sectio ]n [220(61 ][of ][the ][Act ][for ][stay ][of]demand. 5. By a common order dated O2.O2.2O23, first 3. Petitioner i.e., [Zoos ]and [Parks ][Authority ][of]Telangana.is an assessee [under the ][Income Tax ][Act, ][1961](briefly [,the ]Act' hereinafter). [For ][the ][assessment ][years]2OL6 - LT to 2O2L - [22, ][petitioner ][is required to pay ][a ][total]amount of Rs.41,38,07,520.00 [on ][account ][of ][income ][tax]etc. The details of outstanding dues are as under: I 4. Against each of the assessment order, [petitioner]has preferred [appeals before ][the First ][Appellate ][Authority.]The appeals [are ][pending. ][In ][the ][meanwhile, petitioner ][filed]applications und.er [Sectio ]n [220(61 ][of ][the ][Act ][for ][stay ][of]demand. 5. By a common order dated O2.O2.2O23, first respondent [granted ]stay [subject ][to ][payment of ][2Oo/o ][of ][the]total demand by [10.02.2023 ]in [terms of Central Board ][of]Direct Taxes (CBDT) Circulars dated [29.02.2016 ][and]3L.O7.2017.It has been clarified that [if the ][above ][payment]is not made within the prescribed [period., ][the ][stay ][order]would automatically stand vacated, where after department I* \ /ould initiate necessary proceedings for recovery of thedemand 6' From a perusar of the impugned order datedo2.o2.2o23, we are of the view that first respondent hadmerely followed the circulars of the GBDT and on the basisthereof has directed the petitioner to pay 20% of thedemand as a pre-condition for stay of demand. 7. rt is trite law that when an income tax authorityexercises jurisdiction under section 220(6) of the Act, heexercises quasi judicial power. while exercising quastjudicial powers, the authority is not bound or confined bydepartmental instructions. He has to appry his mind whichmust be reflected in the order. This position has beenclarified by the supreme court in t].e case of principalCommissloner of Income Tqx Vs. Iffs.L.G, DlectronlcsIndia Priaate Ltmited in ctuit Appear No.6gso of 2org. B' That being the position, we set aside the order dated o2.o2-2o23 and, remand the matter back to the file ofthe first respondent for passing fresh order(s) inb-d accordance with raw after giving due opportunity of hearing t i I ! t:tII to the petitioner. This shall be done within a period of six(6) weeks from the date of receipt of copy of this order. Tillthe aforesaid period of six (6) weeks, respondents aredirected not to take any coercive steps against thepetitioner for realising the outstanding demand for theassessment years 2016 - L7 to 2O2L - 22. 9. Writ petition is allowed accordingly. Miscellaneous applications pending, if dfly, shall stand closed. However, there shall be no order as to costs. SD/.N.CHANDRA SEKHAR RAOASSISTANT REGISTRAR //TRUE COPYIIS ER To, 1. The commissioner of lncome Tax.(E:e_mptions), 2nd Floor Annexe, AayakarBhavan, Basheerbagh, Hyderabad'-500004.Bhavan, Basheerbagh, Hyderabad'-500004. 2. The Assistant Commissioner of Incoqe_lqx (Exemptions), 2nd Floor, AayakarBhavan, Basheerbagh, Hyderabad- 500004.'Bhavan, Basheerbagh, Hyderabad- 500004.' 3. M/s. Zoos'and Parks Authority of _Telangana, Nehru Zoological park,Qph3.dur.pgrg, [Hyderabad ][- ][s09064, ][Telangzna. ][Rep., ][by ][its ][iurator, ][-Sri]Shakkari Rajashekar, S/o. Late Sri Kishtaiah.Qph3.dur.pgrg, [Hyderabad ][- ][s09064, ][Telangzna. ][Rep., ][by ][its ][iurator, ][-Sri]Shakkari Rajashekar, S/o. Late Sri Kishtaiah. 4. One CC to MR. A.V. RAGHL, RAM Advocate IOPUCI IOPUCI5. One CC MS. K. MAMATHA CHOUDARY, SR. SC ,Advocate[OpUC] 6. Two CD Copies EDS res [4r]es [4r] HIGH COURT DATED i0910212023 ORDERWP.No.3699 of [2023] {Y'i [; ][r..-,;]t'i'?0?3U2$ U[n,i''.'c ALLOWING MI\ ^w