Wp/23970/2022 Of Pratima Infrastructure Ltd v. Deputy Commissioner Of Income Tax

I HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD(Special Original Jurisdiction) MONDAY, THE FIFTH DAY OF SEPTEMBERTWO THOUSAND AND TWENry TWO PRESENT THE HONOURABLE THE CHIEF JUSTICE UJJAL BHUYANANDTHE HONOURABLE SRI JUSTICE C.V. BHASKAR REDDYANDTHE HONOURABLE SRI JUSTICE C.V. BHASKAR REDDY WRIT PETITION NO: 23970 OF 2022 Between:Pratima lnfrastructure Lld,292-111, Road No,78, Jibilee Hills, Hyderabad 500 033,Represented by its Managing Director Smt.B.Usha Rani, ...PETITIONER AND 1. Deputy Commissioner of lncome Tax, (Central Circle) Circle-2(4), 6th Floor,Aayakar Bhavan, Basheerbagh, Hyderabad.Aayakar Bhavan, Basheerbagh, Hyderabad. 2. Principal Commissioner of lncome Tax, Central Circle, 7th Floor, AayakarBhavan, Basheerbagh, HyderabadBhavan, Basheerbagh, Hyderabad ...RESPONDENTSPetition under Article 226 o't the Constitution of lndia praying that in thecircumstances stated in the affidavit filed therewith, the High Court may bepleased to issue a writ in the nature of Mandamus or any. other writ, order ordirection, declaring that the pptitioner should not be treated as being in default fornon-payment of the tax of Rs.97,43,'l 1,2841- determined vide Assessment Orderdated 31.03.2022 for lhe Assessment Years 2014-15 to 2020-21 and to declarethat the petitioner is entitled to stay of collection of the said demand during thependency of the Income Tax Appeal before the Commissioner of lncome Tax(Appeals). lA NO: 1 OF 2022 Petition under Section 151 CPC praying that in the circumstances stated inthe affidavit filed in support of the petition, the High Court may be pleased to staycollection of tax demand of Rs.97,43,11 ,2841- for Assessment Years 2014-15 to2020-21 demanded, vide Assessment Orders dated 31.03.2022 passed byRespondent No.1 dated 31 .03.2022 under PANo.AABCP2o9BP, pending disposalof the above Writ Petition. Counsel for the Petitioner: SRl. Y. RATNAKAR Counsel for the Respondents: SRI AJAY KUMAR KULKARNI FORSRI B. NARASIMHA SARMA, SENIOR S.C. FOR INCOME TAX The Court made the following: ORDER THE } ON,BLE THE CHIEF JUSTICE UJJAT- BII.JYITNAND THE ION'BLE SRI JUSTICE C.V.BHASKAR IIEDDY Writ Petition No.2397O of ['.2O'22] 9RDEB: I't. [t ][ttorL'bte t|rc ][ChpJ.,ustl.:e ][iJuat ][tthuqa,tl] Hcarc Mr. Y. Ratnakar, lcarncd crnlrsel for thepetitioner, nd Mr. Aj ay Kumar Kulkarni, lea'rrcd counsellor thc resp rrrdents rcprcseriting Mr. B. Naras rrha Sarma,leerrned Se rior Standing Counscl lor thc lrrcomc TaxI)e partm cn2. (]rievi ncc of thc pclitioncr is that rvhilc t hc appealsfiled by it a i-c pending bclorc thc first appcl)atc arrthority,rcspondenL, zrrc insisting on paymcnt of clcma;rci as. per thcassessment orders undcr considcration.3. Pctitic rcr is an asscssec undcr thc ln< r rr e ['lax ]Act,196 I (bricfl [', ]'thc Act'hcrcinaftcr). I)ctitioncrs; cnllaged inthc busincs s of cxccuting civil contracts for -iovernment.Iror thc ass :ssmcnt ycar 20 I 4 I5, pctitiollcr \ [/i:rs ]a sscssedby the asst ssing ofliccr vidc thc asscssmcnt ordc r dated31 .O3.2022 passed undcr Scction I a3(3) rcad rr Lth Sectionl53C ol thr Act whercbv ccrtain additions rvc.rc rnade totire incomc rl' thc pctitioncr. Conscqucntly, tor rr income oIthc pctit.ion rr was asscsscd at Rs.56,18,000 I For thc \ \ assessment year 20 l5-16, pctitioncr was assesscd underSection 143(3) read with Section I 53C of thc Act by theassessing officcr, vidc thc order datcd 31.O3.2022, whcrebytotal incomc of thc petitioner was assessed atRs.35,92,252 l- e'ftt:-r making certain additions. For theassessment year 2016- 17, pctitioncr \ [/as ]assessed underSection 143(3) read with Section 153C of thc Act by theassessing officcr, vide thc ordcr datcd 31.O3.2022, wherebytotal income ol thc pctitioncr was assessed atRs.3 i,48,49,192/ aftcr making ccrtain additions. For theassessment year 2017 18, pctitioncr was assessed underSection 143(3) read u,ith Section 153C of the Act by theassessing officcr, vidc ordcr datcd 31.03 .2022, wherebytotal income of thc pet-itioner was assessed atRs.82,96,17 ,246 I - after making ccrtain additions. For theassessment ycar 20 18 19, pctition<:r \vas assessed undcrSection 143(3) rcad r,r,ith Section i 53C of thc Act by theassessing officcr, vide thc ordcr datcd 31.O3.2O22, wherebytotal income of the pctitioncr was assessed atRs.87,79,82,558/ after making certain additions. For theassessment ycar 2O19.20, pctitioncr was assessed underSection 143(3) read with Section 153C of thc Act by [the] assessing rfficer, vide thc ordcr datcd 3l .O3 [:','-t22. ][whcreby]total inc rme of thc pctitioncr \t'as asse ssed atRs.74,31 a l.758l- aftcr making ccrtain addrtions. Likewisefor thc as ,cssment ycar 2O2O 21 , pctitioncr "r as assessedunder Sec ion 143(3) rcad with Scction 153( c,f the Act bythc assess ing officer, vidc thc ordcr dat.cd 11 .r)3 .2922. [gt]thc alore raid asscssmcnL ordcr, totirl in<:omr: ol thepetitioner' ,r,as assessed at Rs.76,19,32,91O [/ ]altcr makingccrtain acl litions. 4. 4. Aggr cvcd by thc aforcsaid sevcn assc ismcnt ordersfor sevcn asscssmcnt ycars, pctitioncr pr{)1or re(l appealsbeforc thr first appellatc authority i.c , Corrr nis;sioner olIncomc 1'r x (Appcals) 12, Ilydcrabad, (brrc'frr,, 'thc CIT(A)'hereinaJte'). Thc particulars of thc appcals a-(: as undcr:- Asst. ycarApp.-=lNq2014- t5crr(A).I!yd-12.I103,16l l -1.- l42015- 16crT(A),ttyd-t'.).ll0l t2l I4 1.520r6-17crr(A),llyd-12.1 l03r)3/ 15,- 162017 - tacrr(^),Ityd-1'.2lto.+tt I tt' L720ta-t9crT(A),I lyd- 12.l I Oil 2!l / l7'- 182019-20crT(A),llyd-12.llO.1 ill18 l92020..2\crr(A).llyd-l'.)./10;19 I ttt 20 4. I . Petil oner had lilcd stay pctitions bctcr.c rr'spondcntNo. I for ;tay oI dcmand till disposal of ,hc -cspcctivc appeals before thc CIT(A). I lowcvcr, by thc order dated12.05.2022, the pctitions wcrc partly aliowed by12.05.2022, the pctitions wcrc partly aliowed byrespondent No.i by directing thc petitioncr to pay 2Ooh ofthe demand and subjcct to such paymcnt, collcction of thebalance demand was dirccted to bc staycd. ['lhcreafter,]the demand and subjcct to such paymcnt, collcction of thebalance demand was dirccted to bc staycd. ['lhcreafter,]petitioner had approached rcspondent No.2. Howevcr, norelief was grantcd by respondcnt No.2. As a matter of fact,by order dated 17.05.2022, rcspondcnt No.2 had directedthe petitioner to pa.y t hc cntire tax amount. lt wasthereafter that thc u,rit pctition camc to bc filcd.5. On 26.O5.2O22, this Court had passed thc followingorder:-by order dated 17.05.2022, rcspondcnt No.2 had directedthe petitioner to pa.y t hc cntire tax amount. lt wasthereafter that thc u,rit pctition camc to bc filcd.5. On 26.O5.2O22, this Court had passed thc followingorder:- "Sri [].Narasimha Sarma, Iearned Scnior Counsel forIncome Tax Departmcnt, takes noticc on bchalf of therespondents and seeks timc to filc countcr.The petitioner herein had filed thc present writ petition todeclare that thc pctitioner should not bc trcated as a dcfaulterfor non payment of tax of lts-97,43,I l,2t]4/ determined videassessment order, datcd 31.O3.202-2 for the Assesslnent -years2014-15 to 2O2O.2o21, as arbitrary and illegal, andconsequently, tr.r dcclare ttrat thc petitioncr is errtitled to stay ofcollection of demand during pcrrdcncl o[ thc lncomc ['t'ax ]Appcal.'lhe pctitioncr has sought the aforcsaid rclicf on variousgrounds, wtrich rcquire examirration after filing the counter bythe respondents- A perusal of the record rvould also rcvcal that thcpetitioner hercin had filed an appeal and it is pcnding. [Along]with the said appeal, the pctitioncr hcrein had also liled [stay] \ ) pctitiori, \'hich was dismisscd vide ordcr, dttted 17.(t5 [2022.]Thcre i:; ro challcnge to thc said order-Thcre i:; ro challcnge to thc said order- I-- )wever, in vicw of the abovc said discussi,,-r miltterrcqrrircs xamination. Thcreforc, there shall be stay [.]1 ]colle( [tion]of tax tk nand of Rs.97,43,11,284 I for thc [Assessnr,rn[ ][Ycars]).Ol120 5 ro 2O2O 2O2l uide Assessmcnt Ordrr. dated3l 03.20 2 passcd by rcspondcnt No. I on [,rondili)n ]of thcpctil ionc-r paying I 5% of thc amount dcmandc<l '*rtlri r ir pcriodof trvo (2 months in thrce [(3) ]cqual monthly installm( Irts. lf [the]petilionc-i fails to comply with the said order, [ib,:rty is ]rirntcd tothe rcspc rdcnts to procecd with the matter, in acco|cle nce 'l'ithlarl . L st on ii0.06.2O22." 5. l. From tl-rc abovc, it is sccn that this tlourt haddircctcri th< pctitioner to pay l5% of thc dcrnirncl r.r,ithintr.vo month: in threc cquatcd monthly inst: rncnts ar-ldsLlbjcct to s;r ch paymcnt, thc demand was sta\/ -^(: 6. In l.A No.2 of 2022, pctitioner has statcd [r-hat ]on09.06.)O22 t had paid [ts.4,87,15,600/-, on \).,07 2022 ithad paid lts 4.87,15,6OO/- and lastly on 2.5.O/'./l)2-)- itlr.adpaid similar amount of Rs.4,B7,l5,600/ Ir ,rll. it haspaid Rs. 14,6 1,4(r,8O0/- which is l5o/o of thc ([( r-i:rnd. Thusthc pctrtionr r has complicd with the orcicr o1 rhis. Courtdrrtcd 26.05. 2022 7. Ilavine regard to thc abovc, wc direct that till disposalol thc scr,'cn appcals of thc petitioncr by thc [()i"{A) ]for thcasscssmcnl ,cars 2014-15, 2015 16,20 l6 1", 2c17-1A, 2018-19, 2019-2O and 2O2O 21, lurthcr dcmand raised onthe basis of the ordcrs of asscssmcnt shall remain staycd.We hopc and trust CIT(A) will hcar emd dccide thc appcalsexpeditiously B. The writ pctition is accordingly disposed of.Misceilaneous applications pending, if any, shallstand closcd. Howcver, therc shall bc no order as to [costs.] SD/.T.KRISHNA KUMARDEPUry,REGISTRARq-r\SECTION OFFICER //TRUE COPY// To,1The Deputy Commissioner of lncome Tax, (Central Circle) Circle-2(4), 6thFloor, Aayakar Bhavan, Basheerbagh, Hyderabad.2.The Principal Commissioner of lncome Tax, Central Circle, 7th Floor, AayakarBhavan, Basheerbagh, Hyderabad3.One CC to Sri Y. Ratnakar, Advocate 4.One CC to Sri B. Narasimha Sarma, Senior S.C. for lncome Tax 5.Two CD Copies6.One Spare CopyCHRSB I HIGH COUI IT DATED:05i1,912022 ORDERW.P.No.239'0 ot 2022 DISPOSINCi OF THE WRIT PETITIONWITHOUT C )STS o1- 12-2-1--J Kqns- srAI [(-),:]ri)I r|.| [.l]t1[$tt'iii-Lt]