Wp/2452/2023 Of M/S Nspira Management Services Private Limited v. The Deputy Commissioner/ Assistant Commissioner Of Income Tax

HIGH COURT FOR THE STATE OF TELANGANAAT HYDERABAD(Special Original Jurisdiction) TUESDAY, THE THIRTY FIRST DAY OF JANUARYTWO THOUSAND AND TWENTY THREE PRESENT THE HONOURABLE THE CHIEF JUSTICE UJJAL BHUYANAND THE HONOURABLE SRI JUSTICE N.TUKARAMJI WRIT PETITION NO: 2452 OF 2023 Between: M/s NSPIRA Management Servrces Private Limited, 1oth Floor, Melange Towers,Pathrika Nagar, Madhapur, Hyderabad - 500 081, Telangana Represented by itsManaging Director, Mr. K Puneeth, S/o Mr. Bipin Gopalakrishna. ...PETITiONER AND 1. The Deputy Commissioner/ Assrstant Commissioner of lncome Tax, , Circle5('1), Room No. 344, 3rd Floor. I T Towers, AC Guards, Masab Tank,Hyderabad - 5O0 084, Telangana.5('1), Room No. 344, 3rd Floor. I T Towers, AC Guards, Masab Tank,Hyderabad - 5O0 084, Telangana. 2. The Additional / Joint / Deputy / Assistant Commissioner of lncome Tax /lncome Tax Officer, , National e-Assessment Center, New Delhi, Room No..401,2nd Floor, E-Ramp, Jawaharlal Nehru Stadium, New Delhi - 110 003.lncome Tax Officer, , National e-Assessment Center, New Delhi, Room No..401,2nd Floor, E-Ramp, Jawaharlal Nehru Stadium, New Delhi - 110 003. ...RESPONDENTS Petition Under Article 226 of the Constrtution of lndia [praying ]that in thecircumstances stated in the affidavit filed therewith, the High Court may bepleased to issue a Writ, Order or Drrection, one, more particularly in the nature ofMandamus declaring the order of the 1 st Respondent, dated ['16.12.2022, ]videDlN. ITBA/COM|F|17|2022- 23t1048O62826(1), directing the Petitioner to [pay]20percent of the disputed demand, pendrng disposal of the appeal of thePetitioner before the 1st Appellate Authority, for the Assessment Year 2018 [- ]19,as arbitrary, illegal, bad in law. bereft of any reasons, violative of [principles ]ofnatural [justice ]and to consequently set-aside the same and [grant ]stay ofrecovery, pending disposal of the Petitioner's appeal before the 1st AppellateAuthority, in the interests of [justice] |.A.NO:1 OF 2023 Petition Un [jer ]Section 151 CPC praying that in the c rcumr;tances statedin the affidavit fil€ d in support of the petition, the High Cour: nray be pleased togrant stay of all ft rther proceedings, including any recovery, l)ondrng disposal ofthe above writ pet tion. Counsel for the P )titioner : SRI.A.V.A.SM KARTTKEYA Counsel for the R )spondents : Ms.SAPNA REODY, ADV FOlt t;Rt.J.V.PRASAD(Sr. SC FOR INCOME rAx) The Court made t re following ORDER THE HON'BLETHE CHIEF USTICE UIIAL BHUYANAND THE HON'BLE SRI IUSTICE N.TUKARAMII W.P.No.2452 of 2023 O.-RQLI.R, i/,", r, Ilon'ble rlr [(./,ut ].lt,rt,L t .iti lli,rl rr l I Icard Mr. ,\.\'..\.Sir,a l!lrtikcr rr, lcerncd c()unscl [rrr rhepctili()ncr ar-rcl \1s. Sapna llcdrlr, lcrrncd counscI reprcscntingNIr..f .V.Prasad, lcarncd Standing [(.ounscl, ]Incomc l ax Deparrmentfrrr thc respondcnts 'l'his 2. pctitt>n has becn filccl r.rnclcr .lrticle 226 oi thc (-onstitution of India assailing lcselirr tnd validin, of the ordcrJ.t tcd 16.12.2022 passcd bv rcsporrrle nr \o.1 frrr rhe asscssnrerntvcar 2018 19. 3. Pet-itioner is an asscsscc untlcr rhr lncon-rc ['l'ax ]AcL, 19(rl(bricfly 'the :\ct' hercinaftcr) h:n irrq rhc sr:1rLrs ()l a cornpanr,. Iirrthc asse ssment ycar 20113 19, pctirioncl h:Ld sr-rbmittccl rcturn <>Futc()lrtc on 23.10.201U dcc]:rrrnr' ,.lccrncd r()r1rl rncomc ofIts.1,17,17,.{(),9+2.0(1. ['['hc ]cl:t u:r: >r']r'crcd ior lir-nrtccl scrulinvrr.i-tct'caFtcr, thc asscssmcut [( ])r'(lcr \\ rr: p:rsscd ()n 21.01.2021t hcrcbv and u,hcrcur'rdcr tot:Ll lr:s( 5sccl 1nc( )nlc \\'11s quandficd ar Its.1.56,93,33:105.00. Pcuuoner has filcd appo.l elatnst thcaft>rcsaicl ord :r o1- assessment bclorc thc ComLrissior'cr [, ])i [.c, )rlc'l ax (.\ppeals untler Sccdon 2464 of the i\ct, *,hichpc ncltrru 3. Pet-itioner is an asscsscc untlcr rhr lncon-rc ['l'ax ]AcL, 19(rl(bricfly 'the :\ct' hercinaftcr) h:n irrq rhc sr:1rLrs ()l a cornpanr,. Iirrthc asse ssment ycar 20113 19, pctirioncl h:Ld sr-rbmittccl rcturn <>Futc()lrtc on 23.10.201U dcc]:rrrnr' ,.lccrncd r()r1rl rncomc ofIts.1,17,17,.{(),9+2.0(1. ['['hc ]cl:t u:r: >r']r'crcd ior lir-nrtccl scrulinvrr.i-tct'caFtcr, thc asscssmcut [( ])r'(lcr \\ rr: p:rsscd ()n 21.01.2021t hcrcbv and u,hcrcur'rdcr tot:Ll lr:s( 5sccl 1nc( )nlc \\'11s quandficd ar Its.1.56,93,33:105.00. Pcuuoner has filcd appo.l elatnst thcaft>rcsaicl ord :r o1- assessment bclorc thc ComLrissior'cr [, ])i [.c, )rlc'l ax (.\ppeals untler Sccdon 2464 of the i\ct, *,hichpc ncltrru 1. [;ollorv n1; lhe assessmcnt order, notlcc [()f ]<llutt:.rr,.l LnrrlcrSccririn f .i(r of thc Act clatccl 21.01.2021 u,rs Lr.sLrrii t,, rlrcpctitr()n('r. P :tttroncr submitfed an appLicatlon fOr : t.,t [i ]I [lcL-, ][,\ ][('r-\]oi cicrnand b :forc rcspondent No.1 under Section .]. 16 [, ]ri rhc \ct,,', hich u as tr licn up akrng with applicatlons [or rl:rr i-or .lhcrASSCSSIllCOt \'( ATS['lowever, in respect of asscssmcrr: i car ]() I E 19,drc f [r ]r1lr.,n'rr-r.q or dr:r camc to bc passcd on 1.6.12.21)21'. tlt thc ,\sscsstncnt [ycar ]2018 ['19, ]rs pt'r I lil) [I]( ).\t.in t.No.404/72/93 ITLC. darcd il.(t lirl-.pcrrdn11 Frrst appeal, stay against tollcc,,,,1 [,,1]tlcm:nci bl the Asscssing Officcr can bc griurt.]ri [, ])nl\pcrrdn11 Frrst appeal, stay against tollcc,,,,1 [,,1]tlcm:nci bl the Asscssing Officcr can bc griurt.]ri [, ])nl\()11 PL\'rn(:nt of 20o/o of the demand rarsccl. I I :nc c.\1)It 1rc rr:qucsted to pay 20o/o o[ thc dc manci Lr.rsc l.i.e.. I0"6 of l{s.69,96,03,180/- i.e., Its l l,9').1 ).',1(rin.t rt.trrliately and request for stav o[ -,,,,,'.;,,,r [,rt]lrlIar:e dcmand.\1)It 1rc rr:qucsted to pay 20o/o o[ thc dc manci Lr.rsc l.i.e.. I0"6 of l{s.69,96,03,180/- i.e., Its l l,9').1 ).',1(rin.t rt.trrliately and request for stav o[ -,,,,,'.;,,,r [,rt]lrlIar:e dcmand. .;. l r.611 a pcr:sal 9[ thc impugncd ordcl ciat1,cl l(, l] l( [rll. ]rL rssccn thlr rt's1 ondent No.1 had follou,ed rnstructi()r); [,ri ]rrc [(-t'rtr'.tl] B<>ard of Drrect ['['axcs ](brieflv '(]BI) t' hcrcinafter)tlrrcd 31.07.2017 to thc cflcct that rvhcrc outstrlrrdins dcmand isdisputcd bc[crre the appcllatc authorin,, fhc asscsscc has t<., pav [2070]of the disputed demand. Accordingly, pctitioncr has bccn drrectedo pat 20oh of thc ourstanding de mandtlrrcd 31.07.2017 to thc cflcct that rvhcrc outstrlrrdins dcmand isdisputcd bc[crre the appcllatc authorin,, fhc asscsscc has t<., pav [2070]of the disputed demand. Accordingly, pctitioncr has bccn drrectedo pat 20oh of thc ourstanding de mand 6. We are afraid rcspondent No.1 did nor rpph his mrnd whilepassing chc ordcr dated 1,6.1,2.2022. It appcurs ro bc fl mcchanicalcrcrcisc [()f ]p()wer. \Yhcn tlrc Incomc ['l:rx ]:ruthorin cxcrciscsfurisdicuon [under ][Sect-ion ][220(6) ][of ][thc -\cr, hc ][cscrctscs ][quast-]iudicial [powcrs. ][While ][exercising ][tlursi ]itrtlici:tl [pos'crs, ][the]authoritv is not bound or confined bv dcprrnttcrtt;ll lrr:tructr()ns 'this position has been well se trlcd br rhc :Lrprcrnc (-ourt in Principal Commissioner of Income Tax r'. LG [Electronics]India Pvt. Ltd.l 'l'hat 8 being the position, \\ c :cr :rsiclc' thc ordcrcletccl 16.12.2022 passcd bt' rcsporrdcrrt \r,. I :trttl [rcmltncl ][thc]tn2attcr [back ][to ][rcspondcnt ][Ntt.1 ][tirr ][J)xssrrlg ][rt ][ti'csh ][t,rdcr]{2O [rrJ) ][r ][2 ][rTR-OL ][334 ][(SC)] \{ xcc( )r.darrcc r irh [ari aftcr givrnu clr,rc opportur.riti r l rcarirrt, r, rlrtPCtnioncr'. [hLs ][shall ][lrc ][donc ][u,itltin ][a ]pcrirrd ol :;t\.( [)6) ][.r ][.t ][k,.]lr-onr rhc clar:,rf rcccipt oIa copy ()f this ordcr. litL th.. liirr.cs:rirlpcriocl ()t sl i(06) rvcel<s, respondents are direct:c: n)t r() rlli(,c( )crcr\'(' stc rs lirr rcalizrng thc outstandirrg clt,n.an,1 for rlrcilsscs\nrcnt i r ;rr. 2018 19 () \\ nr I)r I 1on is acc()rdingh allt>wcd. [[<,rvt:r,cr. thcrcr shrrll lrt rt() [()fLlcr ]its t( c()StS 'l'hat 8 being the position, \\ c :cr :rsiclc' thc ordcrcletccl 16.12.2022 passcd bt' rcsporrdcrrt \r,. I :trttl [rcmltncl ][thc]tn2attcr [back ][to ][rcspondcnt ][Ntt.1 ][tirr ][J)xssrrlg ][rt ][ti'csh ][t,rdcr]{2O [rrJ) ][r ][2 ][rTR-OL ][334 ][(SC)] \{ xcc( )r.darrcc r irh [ari aftcr givrnu clr,rc opportur.riti r l rcarirrt, r, rlrtPCtnioncr'. [hLs ][shall ][lrc ][donc ][u,itltin ][a ]pcrirrd ol :;t\.( [)6) ][.r ][.t ][k,.]lr-onr rhc clar:,rf rcccipt oIa copy ()f this ordcr. litL th.. liirr.cs:rirlpcriocl ()t sl i(06) rvcel<s, respondents are direct:c: n)t r() rlli(,c( )crcr\'(' stc rs lirr rcalizrng thc outstandirrg clt,n.an,1 for rlrcilsscs\nrcnt i r ;rr. 2018 19 () \\ nr I)r I 1on is acc()rdingh allt>wcd. [[<,rvt:r,cr. thcrcr shrrll lrt rt() [()fLlcr ]its t( c()StS \. a s,'gLrcl, r-r-risccllancous pctillons, pcndlna if ,rnr. srrntlSd/.MOHD SI,N AU I.LAH-ANSARIASSI!iI'ANT REGISTRAR//TRUE COPY// L. c loscr l St:CTION OFFICER To 1 The Deputylommissioner/ Assistant Commissioner of ln:c,ne Tax. Circle5(1), Room'lo. [344, 3rd Floor, ][lT ][Towers, AC ][Guards, ][Masab ][fank,]Hyderabad.500 084, Telangana.2 he Addition€I / Joint / Deputy / Assistant Commissioner of lnconre Tax /lncome Taxlffrcer, , National e-Assessment Center, Neu, [.,elh , Room No401 2nd Flccr E-Ramp, Jawaharlal Nehru Stadium, Ne!! lelhi - 1 10 0033 OneCCtoSRl A V A SIVA KARTIKEYA, Advocate [OPU::]4 OneCC toSRI J V PRASAD, (Sr SC FOR INCOME TAX) l,lPtJCl5 Two CD ColColres6 One spare c)pyHyderabad.500 084, Telangana.2 he Addition€I / Joint / Deputy / Assistant Commissioner of lnconre Tax /lncome Taxlffrcer, , National e-Assessment Center, Neu, [.,elh , Room No401 2nd Flccr E-Ramp, Jawaharlal Nehru Stadium, Ne!! lelhi - 1 10 0033 OneCCtoSRl A V A SIVA KARTIKEYA, Advocate [OPU::]4 OneCC toSRI J V PRASAD, (Sr SC FOR INCOME TAX) l,lPtJCl5 Two CD ColColres6 One spare c)py 4 OneCC toS toS5 Two CD ColCol6 One spare cS.ABSBSK5 Two CD ColCol6 One spare cS.ABSBSK HIGH COI,IRT DATED:31 tO1tZO23 ORDER WP.No.24S,t- of 2021 ALLOWING HE W.PWITHOUT COSTS. 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