Wp/2776/2025 Of Mr. Kumara Swamy Bairi v. The Income Tax Officer

HIGH COURT FOR THE STATE OF TELANGANAAT HYDERABAD(Special Originat Jurisdiction) IVONDAY, THE THIRD DAY OF FEBRUARYTWO THOUSAND AND TWENTY FIVE PRESENT THE HONOURABLE THE ACTING CHIEF JUSTICE SUJOY PAULAND THE HONOURABLE SMT JUSTICE RENUKA YARA WRIT PETITION NO: 2776 OF 2025 Between lvlr. Kumara Swamy Bairi, Flat No 202 Prime Castle Aparlments, Nizampet,Bachupally, Hyderabad -500 090 ...PET|T|ONER AND 1. The lncome Tax Officer, Ward 11(1), Signature Towers, Sy.No.6(plof[95r-o3qu1.S.V,a1(P) [of ][Kothag!da, ][Opp. ][Botanicat ][Garden!, Sedin!ampaily](M), R.R.District, Hyderabad, Tetangana, 500084[95r-o3qu1.S.V,a1(P) [of ][Kothag!da, ][Opp. ][Botanicat ][Garden!, Sedin!ampaily](M), R.R.District, Hyderabad, Tetangana, 5000842. Assessment Unit, lncome Tax Department, National e-Assessment Center,New Delhi, Room No. 4O1,2nd Floor, E-Ramp, Jawaharlal Nehru Stadium,New Delhi 110 003.New Delhi, Room No. 4O1,2nd Floor, E-Ramp, Jawaharlal Nehru Stadium,New Delhi 110 003. 3. The Central Board of Direct Taxes, Represented by its Chairman, Departmentgl Rgvgftye, M!rys-try of Finance, Government of lnilia, Secrelariat Buildings,NewDelhi - 110 001.gl Rgvgftye, M!rys-try of Finance, Government of lnilia, Secrelariat Buildings,NewDelhi - 110 001. 4. The Joint Commissioner (Appeals), The Commrssioner of lncome Taxeppgqls), [National ][Fageless Apaeat ][Centre, ][Dethi, ][Through ][the principat]Chief Commissioner of lncome Tax (NaFAC), Delhi, NorttiBlock, New Delhi1 10 001eppgqls), [National ][Fageless Apaeat ][Centre, ][Dethi, ][Through ][the principat]Chief Commissioner of lncome Tax (NaFAC), Delhi, NorttiBlock, New Delhi1 10 001 5. lclcl Bank L!d-, Jyothi Arcade, Door No.7168/7, tvtain Road, chatkesar, [$algareddy ][Dist ][501301 Represented ][by its manager]6. Axis Bank Limited, Axis Bank Limited, Bank Limited, 7th Floor, C-2, Wadia lnternational Centre, Axis house,Wadia lnternational Centre, Axis house, [[by its manager]]6. Axis Bank Limited, Axis Bank Limited, Bank Limited, 7th Floor, C-2, Wadia lnternational Centre, Axis house,Pandrang Bdhkar Marg, Worli, Mumbai - 400025, Maharashtra.Pandrang Bdhkar Marg, Worli, Mumbai - 400025, Maharashtra. ...RESPONDENTS . [Petition under ][Article 226 ][of ][lhe ][Constitution ][of ][lndia ][praying ][that ][in ][the]circumstances stated in the affidavit filed therewith, the High Court may bepleased to issue a writ, order, or direction more particularly one in the nature of aWrit of Mandamus declaring i. That the order passed by the Respondent No. 1vide DIN ITBAJCOM/F/1712024-2511070528271(1) dated 21-11-2024, in rejectingthe stay application filed by the Petitioner, pending disposal of the appeal of thePetitioner before the Pt Appellate Authority, i.e., the 5th Respondent herein, for theAssessment Year 2017-18, as arbitrary, illegal, barred by limitation, bad in law, ...RESPONDENTS . [Petition under ][Article 226 ][of ][lhe ][Constitution ][of ][lndia ][praying ][that ][in ][the]circumstances stated in the affidavit filed therewith, the High Court may bepleased to issue a writ, order, or direction more particularly one in the nature of aWrit of Mandamus declaring i. That the order passed by the Respondent No. 1vide DIN ITBAJCOM/F/1712024-2511070528271(1) dated 21-11-2024, in rejectingthe stay application filed by the Petitioner, pending disposal of the appeal of thePetitioner before the Pt Appellate Authority, i.e., the 5th Respondent herein, for theAssessment Year 2017-18, as arbitrary, illegal, barred by limitation, bad in law, void-ab-initio, violative of the principles of natural justice, apart frorn being violativeof Articles 14, 1 9( 1 )(g) and 265 of the Constitution of lndia and tiec 220 of theof Articles 14, 1 9( 1 )(g) and 265 of the Constitution of lndia and tiec 220 of thelncome Tax Act 1961, and consequently set-aside the same and grant stay ofrecovery, pending disposal of the Petitioners appeal before. the AppellateAuthority, in the lnterests of justice and pass such other order or orders may deemfit and proper in the circumstances of the case. ii. That recovery rrotice issued byRespondent No. 1 vide DtN. TTBAJCOM/F/17 /2024-2511072,14177 4(1) and|IBNCOT\AIFl17l2024- 2511072441895(1) both dated Z3-O1-'.2_OZ5 to rheAuthority, in the lnterests of justice and pass such other order or orders may deemfit and proper in the circumstances of the case. ii. That recovery rrotice issued byRespondent No. 1 vide DtN. TTBAJCOM/F/17 /2024-2511072,14177 4(1) and|IBNCOT\AIFl17l2024- 2511072441895(1) both dated Z3-O1-'.2_OZ5 to rherespondent no. [i3 ]and 7 bad in law, void-ab-initio, violative of the principles ofnatural [justice, ]apart from being violative of Articles i , t9(1Xg) and 265 of theConstitution of lrdra and Section 22O oI lhe lncome Tax /\ct, 1961 , andconsequenlly set-aside the same and grant stay of recovery, pendrng disposal ofthe Petitionels appeal before the Appellate Authority, in the interest:; of justice_natural [justice, ]apart from being violative of Articles i , t9(1Xg) and 265 of theConstitution of lrdra and Section 22O oI lhe lncome Tax /\ct, 1961 , andconsequenlly set-aside the same and grant stay of recovery, pendrng disposal ofthe Petitionels appeal before the Appellate Authority, in the interest:; of justice_ lA NO: 1 OF 202!i Petition und-^r Section 151 CPC praying that in the circumslances stated inthe affidavit filed ir support of the petition, the High Court may be pleased to stayoperation of order rearing DIN ITBNCOMIF 117 t2O24-2Sl1O7OS2827 1(t) dated 21_11-2024 passed by Respondenl No. 1. lA NO: 2 OF 202ai Petition undr-'r section 151 cPC praying that in the circumstances stated inthe affidavit filed n support of the petition, the High court may be pieased to stayoperation of orcer bearing DIN |TBA/COM/F|1712O24-25t1072441895( 1) andIBNCOM|FllTl2O2-4- 2511O724417t4(1) both dated 23-01-2O:2!j passed byRespondent No. 1. Counsel for the Petitioner: SRt VENKATA PRASAD.pCounsel for the Respondent Nos.1 TO 4: Ms. J.SUNITHA, JUNTOR SC FOR tTDCounsel for the Respondent Nos.S & 6: -- The Court made the following: ORDER AND TIIE HON'BLE SMT. JUSTICE RENUKA YARAWRIT PETITION No.2776 of 2o25 ORDER (Per the Hon'ble the Acting Chief Justice Sujog Paut) Sri Venkata Prasad P., learned counsel for the petitionerand Ms. J. Sunitha, learned Junior Standing Counsel for IncomeTax Department, for respondent Nos. 1 to 4 2With the consent, frnally heard. 3. At the outset, learned counsel for both the parties urgethat the point involved in this matter is squarely covered !y recentorder passed by this Court in W.P.No.228 of 2025 decided onO9.O1.2O25 and this petition may be disposed of in terms of saidorder. 4The aforesaid order in W.P.No.228 of 2025 reads thus: The Court made the following: ORDER AND TIIE HON'BLE SMT. JUSTICE RENUKA YARAWRIT PETITION No.2776 of 2o25 ORDER (Per the Hon'ble the Acting Chief Justice Sujog Paut) Sri Venkata Prasad P., learned counsel for the petitionerand Ms. J. Sunitha, learned Junior Standing Counsel for IncomeTax Department, for respondent Nos. 1 to 4 2With the consent, frnally heard. 3. At the outset, learned counsel for both the parties urgethat the point involved in this matter is squarely covered !y recentorder passed by this Court in W.P.No.228 of 2025 decided onO9.O1.2O25 and this petition may be disposed of in terms of saidorder. 4The aforesaid order in W.P.No.228 of 2025 reads thus: "3. The challenge is mounted to the order [dated]17.L2.2O24 (Annexure P1O), whereby the petitioner'sstay application has been rejected by respondent [No. ][1.] 4. Learned counsel for the petitioner submits that therejection order shows that it is solely based on CBDTOMs dated 29.02.2016 and 31.O7.2O17. The [Apex ][Court]had an occasion to consider this aspect in [Principal]Commissioner of Income Tax 5 & ors. v. [M/s.LG]Electronics India Pvt.Ltd.,l and this Court in Jewellers Private Limited v. The Commissioner [of]Income Tax (Appeals), Hyderabad-I and another2 [and]M/ s.Zoos and Parks Authority of [Telangala ][v. ][the]Commissioner of Income Tax 1 2018 [(7) ] [1905 ]- Order 2 2022 [(51 ]TMI 1067 2 Exemptions [and ][another3.]It is submitted that the Courts opined [that ][respondent]No. 1 being a quasi [judicial ]authority [should ][apply ][its]independent mind and sha-Il not be [bound ][by ][the]administrative circulars. Thus, it is [prayed ][that ][the ][said]rejection order dated t7.12.2024 [may be set aside ][and] - I \ resp(rndent No. 1 may be directed to decide the stayapplication afresh within the stipulated time. 5. The other side has no objection to this innocuouspraFor. 6. ,A,r:cordingly, the impugned order dated 77.12.2!.024 isset aside. Resultaltly, the stay application is revived.The petitioner shall appear before the appcllateautirority on 13.01.2025. The appellate authoritv shalldecide the stay application afresh, in accordance withlau., [.vithin ]15 days therefrom. 7 . Th,e Writ Petition is disposed of, without expr essingany opinion on the merits of the case. No ordel as tocosts." 5. In vie',.', of said order, the impugned order daterl 2I.11.2024 is set aside. The matter is restored in the hle of respondent No. 1.The petitioner sha1l appear before respondent No.1 ort 1O.O2.2O25for which no separate notice will be required to be issued.Respondent l,Io. 1 shall decide the stay application of th e petitionerafresh in acc,lldance with law. It will be open for the iretitioner tofile another application for lifting of restrictions orL the bankaccount. 6The Writ Petition is disposed of. No costs. InterJ.ocutory applications, if any pending, shall also stand closed \ HIGH COUR.']- DATED:0310i112025 ORDERWP.No.2776 [of ][2025] DISPOS!NG OF WITHOUT CIOSTS /{4. [/<]r9[/t][ /.2][t] dE [STAr]Ef.([o]),,}i lrqrnlull-{:.-l.i rr, r,--( --.'