Wp/26530/2021 Of Swarna Educational Academy v. The Principal Commissioner Of Income Tax And 3 Others

HIGH COURT [TELANGANA: AT ] (SPecial Original Jurisdiction) IVONDAY ,THE TWO THOUSAND PRESENT THE HON'BLE ANDTHE HON'BLE [A.VENKATESHWARA ] WRIT PETITIO[N NO: ][2653 0 ][0F ][2021] Between: Swarna Educational [Academy, ][Rep' ][by its ][Chairman' ][Having office at ][H' ][No']ii:ii6tT, [iJirr" [n"iia",iiiui-ion1'pr"', ][suchitra ][Road' ][old ][Alwal]Secunderabad. ...PETITIONER AND '1 . The Principal Commissioner [of lncome ][Tax' ][Hyderabad'] 2. The Commissioner [of ][lncome Tax ][Appeals-lV' ][Hyderabad'] 3. The Commissioner [lncome ][Tax Exemptions' ][Hyderabad'] 4. The lncome [Tax Officer, Exemption ][Ward ] [(4)' ][Hyderabad'] ...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 issue [any order ][or direction more ][particularly ][one ][in ][the ][nature ][of ][Writ]ofMandamusoranyotherappropriatewritororderordirectiondeclaringthedated. [30.08.2021 ][vide ] [and ][Letter ][No ] proceedings 22t1035178863(1) [for ][the ][assessment ][year ][2015-2016 ][and ][2018-2019 ][and ][vide]DIN and Letter [No. ][ITBA/COM/F/'1 ][7t2021'2211035930032(1) ][under ][the ][lncome]TaxAct,,l96lWithoutconsideringtheexplanationsandwrittensubmissionsofthePetitioner / [assessee ][from time ][to ][time ][including ][the ][representation ][dated]21 .Og.2021is [as illegal, arbitrary, contrary ][to the ][provisions of ][the ][lncome Tax ][Act]1g61 without [jurisdiction barred by limitation and ][in ][violation of principles ][of ][natural]justiceandruleoflawandtosetasidethesameaSitiSnotvalidintheeyeoflawand consequently [set ][aside ][the ][proceedings ][dated' ][30 ][08'2021 ][vide ] [and] Letter No. ITBA/COM/F/1 7l 2021-2211035178863(1) for the assessment [year]2015-2016 and 2018-2019 and vide DIN and Letter No. ITBA/CO|\1/F/1 712021-2211035930032(1) passed by the respondents herein as null and void, in theinterest of [justice.] lA NO: 1 OF 2021 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 [grant]stay of all further proceedings, [pursuant ]to the Assessment Proceedings [passed]by the respondents herein, dated. 30.08.2021 vide DIN and Letter No.ITBA/COM/F/171 2021-2211035178863(1) for the assessment year 2015-2016 and2018-2019 and vide DIN and Letter No. ITBA/COIV/F/1712021-2211035930032(1)under the lncome Tax Act, 1961, [pending ]disposal of the writ [petition.] Counsel for the Petitioner: SRI M.A.MUJEEB Counsel fortfe Respondents: SRI K.RAJI REDDY, SC for lT The Court made the following: ORDER THE HOT{OURABLE SRI JUSTICE UJJAL BHIIYAN AND THE HONOURABLE SRI JUSTICE A. VENXATESHWARA REDDY Writ Fetition No.2653O of 2O2L ORDER: (Per Hon'btc Sri .lu;rrcc [(iilcti ]Rhuun) Heard Mr. M.A. Mujeeb, learned counsel for thepetitioner and Mr. K. Raji Reddy, learned StandingCounsel for the Income Tax Department, for therespondents. 2. This writ petition is filed under Article 226 of theConstitution of India challenging the legality andvalidity of letters dated 30.08.2021 and 27.O9.2O21,issued by the respondent No.4. 3. By the first letter dated 30.08.202 1, it u,asmentioned that for the Assessment Years 2Ol5- 16 and2018-19 there \vere outstanding tax demands ofRs.7,10,620.00 and Rs.2,14,37,380.00, respectively.Stating that the demands had to be paid r'vithin thirty I (30) days from the date of receipt of the said demandnotice, petitioner was called upon to [make ][the]payment or, in the event of any disagreement, tofurnish requisite information / rectificationapplication. Heard Mr. M.A. Mujeeb, learned counsel for thepetitioner and Mr. K. Raji Reddy, learned StandingCounsel for the Income Tax Department, for therespondents. 2. This writ petition is filed under Article 226 of theConstitution of India challenging the legality andvalidity of letters dated 30.08.2021 and 27.O9.2O21,issued by the respondent No.4. 3. By the first letter dated 30.08.202 1, it u,asmentioned that for the Assessment Years 2Ol5- 16 and2018-19 there \vere outstanding tax demands ofRs.7,10,620.00 and Rs.2,14,37,380.00, respectively.Stating that the demands had to be paid r'vithin thirty I (30) days from the date of receipt of the said demandnotice, petitioner was called upon to [make ][the]payment or, in the event of any disagreement, tofurnish requisite information / rectificationapplication. 4. By the second ietter dated 27.09.2021, [petitioner]lvas informed that since it has filed appeal [before]respondent No.2 it had to pay 2O'/" of the disputedaction rvould [be]demand, failing which, recovery initiated. 5. According to the petitioner, it is an educationalinstitution established in the year 2OO1 andfunctioning since then in the city of Hyderabad. It hasapplied for registration under the income Tax Act,196l (briefly, the 'Act' hereinafter) as a CharitabieTrust and has been granted exemption under Section12AA(1)(aa) of the Act on 27.O7 .2O17. 6For the Assessment Years 2015-16 and 20i8-19.petitioner filed its income tari returns declaring total income as nil by claiming exemption under Sections 11and 12 of the Act. It appears that the claims ofexemptions were not accepted u,hereafter assessmentorders were passed, following which, the abovedemands u,ere raised.and 12 of the Act. It appears that the claims ofexemptions were not accepted u,hereafter assessmentorders were passed, following which, the abovedemands u,ere raised. 7. In the counter-affidavit filed by respondent No.4,it is stated that for the Assessment Year 2015-16,assessment order was passed by respondent No.4 on11.12.2017 under Section 143(3) of the Act assessingthe taxable income of the petitioner atRs.22,74,580.00. Against this order of assessment,petitioner had preferred appeal before theCommissioner of Income Tax (Appeals), Hyderabad-9.8. By order dated 27.03.2019, the first appeliateauthority dismissed the appeal of the petitioner. 9. Against such dismissai of appeal, petitioner has preferred further appeal i.e., 1.T.A.No.947 lHydl2Ol9before the Income Tax Appellate Tribunal, Hyderabadwhich is stated to be pending.before the Income Tax Appellate Tribunal, Hyderabadwhich is stated to be pending. l 10.For the Assessment [Year 2018-19, ][after ][several]rounds of intimation [and ][rectification, ][ultimately]intimation under [Section ][143(1) ][of the ][Act ][rn'as ][issued]by the Central [Assessing ][Center, ][Bangalore]on17 .IO.2olg, assessing [the ][taxable ][income ][of ][the]petitioner at Rs.4,85,98,969.00. 11.Against such intimation, [petitioner ][has ][preferred]an appeal before the [Commissioner ][of ][Income ][Tax](Appeals), Hyderabad9 on 31.01.202A, [which ][is]stated to be [pending.] L2. In the light of [the ][above, ][we ][are of ][the ][view ][that ][it]would be more appropriate [and ][meet ][the ][ends ][of]justice if the appellate authorities are [directed ][to ][hear]and decide the respective [appeals ][expeditiously ][instead]of examining the challenge [made ][by the ][petitioner'] 13. Insofar the appeal of [the ][petitioner ][for ][the]Assessment Year 2015-16 [is concerned, ][u-e ][request the]Income Tax Appellate Tribunal, [Hyderabad ][to ][decide]I.T.A.No.947 I Hyd I 20 19 expeditiousll'. 14. Simiiarly,1nrespect of of the appeal for appeal for for theAssessment Year 2018-19, Commissioner of IncomeTax (Appeals), Hyderabad-9 sha11 expedite the hearingand decide the appeai expeditrously. respect of of the appeal for appeal for for the 15. Let both the appeals be decided by the respective appellate authorities within a period of four (04)months from the date of receipt of a copy of this order. 13. Insofar the appeal of [the ][petitioner ][for ][the]Assessment Year 2015-16 [is concerned, ][u-e ][request the]Income Tax Appellate Tribunal, [Hyderabad ][to ][decide]I.T.A.No.947 I Hyd I 20 19 expeditiousll'. 14. Simiiarly,1nrespect of of the appeal for appeal for for theAssessment Year 2018-19, Commissioner of IncomeTax (Appeals), Hyderabad-9 sha11 expedite the hearingand decide the appeai expeditrously. respect of of the appeal for appeal for for the 15. Let both the appeals be decided by the respective appellate authorities within a period of four (04)months from the date of receipt of a copy of this order. 16" This disposes of the writ petition. No order as to costs. 17. A,s a sequel, miscellaneous applications pending if airy in this Writ Fetition. shali stand closed. SD/-B.SAryAVATHI//TRUE COPY'ASSISTryNT REGISTRARq)SECiION OFFICER To, 1.The Principal Commissioner of lncome Tax, Hyderabad. 2.The Commissioner of lncome Tax Appeals-lV, Hyderabad. The Commissioner lncome Tax Exemptions, Hyderabad. 4.The lncome Tax Officer, Exemption Ward 1 (4), Hyderabad. One CC to SRI tt/.A.II/UJEEB, Advocate 5. o.One CC to SRI K.RAJ REDDY, Advocate IOPUC]7.Two C.D. Copies.7.Two C.D. Copies. B.One Spare Copy. MRC MMA [}N."] HIGH COURTDATED:2110212O22 '11I.\.(22 JuI [2i]22](')z.-bORDERWP.No.26530 of 2021DISPOSING OF THE WRIT PETITIONWITHOUT COSTSG\--Ya-)rt-/[b])/'t/