Wp/16291/2025 Of M/S The Raghavapuram Primary Agricultural Co Operative Society Wg737 v. The Income Tax Officer

APHC010322742025 IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI (Special Original Jurisdiction) WEDNESDAY,THE SECOND DAY OF JULY TWO THOUSAND AND TWENTY FIVE PRESENT [3526] THE HONOURABLE SRI JUSTICE NINALA JAYASURYA THE HONOURABLE SRI JUSTICE TARLADA RAJASEKHAR RAO WRIT PETITION NO: 16291/2025 Between: 1. M/S THE RAGHAVAPURAM PRIMARY AGRICULTURAL CO OPERATIVE SOCIETY WG737,, RAGHAVAPURAM, CHINTALPUDI MANDALAM, WEST GODAVARI - 534 460, ANDHRA PRADESH. REPRESENTED BY ITS CHIEF EXECUTIVE OFFICER, MR. YADAVALLI SATYANARAYANA S/O MR. YADAVALLI NAGESWARARAOOPERATIVE SOCIETY WG737,, RAGHAVAPURAM, CHINTALPUDI MANDALAM, WEST GODAVARI - 534 460, ANDHRA PRADESH. REPRESENTED BY ITS CHIEF EXECUTIVE OFFICER, MR. YADAVALLI SATYANARAYANA S/O MR. YADAVALLI NAGESWARARAO ...PETITIONER AND 1. THE INCOME TAX OFFICER, CIRCLE-1, RAJAHMAHENDRAVARAM AAYAKAR BHAWAN, VEERABHADRAPURAM, RAJAHMUNDRY- 533106, ANDHRA PRADESH.AAYAKAR BHAWAN, VEERABHADRAPURAM, RAJAHMUNDRY- 533106, 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.ASSESSMENT CENTER, NEW DELHI, ROOM NO.401, 2ND FLOOR, E-RAMP, JAWAHARLAL NEHRU STADIUM, NEW DELHI - 110 003. 3. THE PRINCIPAL COMMISSIONER OF INCOME TAX 1, VISAKHAPATNAM, 2ND FLOOR, AAYAKAR BHAVAN, DABA GARDENS, VISAKHAPATNAM - 530 020, ANDHRA PRADESH.VISAKHAPATNAM, 2ND FLOOR, AAYAKAR BHAVAN, DABA GARDENS, VISAKHAPATNAM - 530 020, ANDHRA PRADESH. 4. THE JOINT COMMISSIONER APPEALS / THE COMMISSIONER OF INCOME TAX APPEALS, NATIONAL FACELESS APPEAL CENTRE, DELHI, THROUGH THE PRINCIPAL CHIEF COMMISSIONER OF INCOME TAX APPEALS, NATIONAL FACELESS APPEAL CENTRE, DELHI, THROUGH THE PRINCIPAL CHIEF COMMISSIONER OF NJS,J & TRR,J W.P.NO.16921 OF 2025 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, GOVERNMENTOF INDIA, SECRETARIAT BUILDINGS, NEW DELHI - 110 001.CHAIRMAN, DEPARTMENT OF REVENUE, MINISTRY OF FINANCE, GOVERNMENTOF INDIA, SECRETARIAT BUILDINGS, NEW DELHI - 110 001. 6. THE BRANCH MANAGER, THE DISTRICT COPERATIVE CENTRAL BANK LIMITED, ELURU, CHINTALAPUDI BRANCH, NEAR TELEPHONE OFFICE, CHINTALAPUDI, WEST GODAVARI DISTRICT, ANDHRA PRADESH.BANK LIMITED, ELURU, CHINTALAPUDI BRANCH, NEAR TELEPHONE OFFICE, CHINTALAPUDI, WEST GODAVARI DISTRICT, ANDHRA PRADESH. ...RESPONDENT(S): 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 tomay be pleased to issue a Writ of Mandamus or any other appropriate Writ, Order or Direction, declaring a. the inaction of the 3rd Respondent, in not deciding the stay application, dated 18.10.2024, filed by the Petitioner, pending disposal of its appeal before the 1st Appellate Authority, i.e., the 4th Respondent herein, for the Assessment Year 2019 - 20 and b. the garnishee notice issued by the 1st Respondent, u/s 226(3) of the Income Tax Act, 1961, vide DIN and Notice No. ITBA/COM/F/17/2024- 25/1069139779(1), dated 26.09.2024 to the 6th Respondent herein, i.e.. the banker of the Petitioner as arbitrary, illegal, bad in law, bereft of any valid reasons, 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. USA of the Income Tax Act, 1961, and consequently grant stay of recovery, pending disposal of the Petitioners appeal before the 1st Appellatee Authority in the interests of justice and to pass IA NO: 1 OF 2025 IA 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 may be pleased to stay all further proceedings, including any recovery, pursuant to the stay application filed by the Petitioner; on 18.10.2024, pending disposal of its appeal before the 1st Appellate Authority, i.e., the 4th Respondent herein, for the Assessment Year 2019 - 20, pending disposal of the above Writ Petition; and pass IA 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 may be pleased to suspend the garnishee notice issued by the 1st Respondent, u/s 226(3) of the Income Tax Act, 1961, vide DIN & Notice No.: ITBA/COM/F/17/2024-25/1069139779(1), dated 26.09.2024 to the 6**^ Respondent herein, pending disposal of the above Writ Petition; and pass Counsel for the Petitioner: 1.A V A SIVA KARTIKEYA Counsel for the Respondent(S): 1. The Court made the following ORDER: (per NJS,J) Heard Mr.A.V.A.Siva Kartikeya, learned counsel for the petitioner. Also heard Mr.Vamsi Krishna Bodapati, learned Junior Standing Counsel representing Mr.Anup Koushik Karavadi, learned Senior Standing Counsel for the Income Tax Department. 2. The writ petition is filed seeking the following relief: “… … to issue a Writ of Mandamus or any other appropriate Writ, Order or Direction, declaring the inaction of the 3[rd] Respondent, in not deciding the stay application, dated 18.10.2024, filed by the Petitioner, pending disposal of its appeal before the 1[st] Appellate Authority, i.e., the 4[th] Respondent herein, for the Assessment Year 2019-20; the garnishee notice issued by the 1[st] Respondent, u/s 226(3) of the Income Tax Act, 1961, vide DIN & Notice No.ITBA/COM/F/17/2024- 25/1069139779(1), dated 26.09.2024 to the 6[th]Respondent herein i.e., the banker of the Petitioner; as arbitrary, illegal, bad in law, bereft of any valid reasons, violative of the principles of natural justice apart from being violative of Articles 14, 19(1)(g) and 265 of the Constitution of India & Sec 148A of the Income Tax Act, 1961, and consequently grant stay of recovery, pending disposal of the Petitioner’s appeal before the 1[st]Appellate Authority in the interests of justice and to pass...”(in verbatim) 3. The learned counsel for the petitioner, while making submissions with reference to various legal contentions raised in the writ affidavit, submits the NJS,J & TRR,J W.P.NO.16921 OF 2025 circumstances under which the petitioner society could not file its return of the tax in time. He submits that the order passed by the respondent No.1 directing the petitioner to pay 20% of the demanded amount, without considering the case of the petitioner, is not sustainable. He states that due to financial constraints, the same could not be paid. He also submits that in similar circumstances a Coordinate Bench of this Court vide order dated 31.12.2024 in Writ Petition No.27342 of 2024 was pleased to dispose of the same with a direction to the Appellate Authority to dispose of the appeal within a period of six months and that during the pendency of the appeal, the Authorities shall not insist for the payment of the demanded amount. The learned counsel submits that in fact against the demands raised by the Assessing Authorities several writ petitions were filed and while entertaining the said writ petitions, interim orders were granted. 4. Whereas, the learned Junior Standing Counsel for the respondent Department submits that it is not the case of the writ petitioner that it is not capable of paying the installment amounts and further that having availed the remedy of appeal, the writ petitioner is not justified in filing the writ petition. 4. Whereas, the learned Junior Standing Counsel for the respondent Department submits that it is not the case of the writ petitioner that it is not capable of paying the installment amounts and further that having availed the remedy of appeal, the writ petitioner is not justified in filing the writ petition. 5. Though the learned counsel for the petitioner raised several legal contentions and it is also not in dispute that several writ petitions challenging the demands raised by the Assessing Authorities were entertained, in the light of the orders passed in Writ Petition No.27342 of 2024, dated 31.12.2024, this Court is inclined to dispose of the writ petition on similar lines. 6. The respondent No.4–Appellate Authority shall dispose of the appeal preferred by the writ petitioner within a period of two months from the date of receipt of a copy of this order. Pending disposal of the appeal, no action to collect the outstanding tax demand shall be initiated and the liability of the petitioner, if any, shall be subject to the decision of the Appellate Authority, in the appeal on merits. The petitioner is at liberty to file additional material, if NJS,J & TRR,J W.P.NO.16921 OF 2025 any, before the Appellate Authority and it is needless to state that before passing orders as indicated above, the petitioner shall be afforded an opportunity of hearing. 7. Considering the fact that the writ petitioner is a Primary Agricultural Co-operative Society and it’s day to day affairs/banking transactions came to a standstill by virtue of garnishee notices, pending disposal of the appeal, it shall be allowed to operate its account to the extent of payment towards statutory compliance, salaries to staff and loans only. 8. With the above directions, the writ petition is disposed of. No order as to costs. Miscellaneous petitions pending, if any, shall stand closed. ____________________ NINALA JAYASURYA,J ____________________________ TARLADA RAJASEKHAR RAO,J THE HONOURABLE SRI JUSTICE NINALA JAYASURYA THE HONOURABLE SRI JUSTICE TARLADA RAJASEKHAR RAO WRIT PETITION NO: 16291/2025 02.07.2025 LSP