Wp/2942/2022 Of Mrs. Kallakuri Dhana Lakshmi Katyayani v. The Income Tax Officer

HIGH COURT FOR THE STATE OF TELANGANA: AT HYDERABAD(Special Original J urisdiction) FRIDAY ,THE TWENTY FIFTH DAY OF FEBRUARYTWO THOUSAND AND TWENTY TWO PRESENT THE HONOURABLE SRI JUSTICE UJJAL BHUYANANDTHE HONOURABLE SRI JUSTICE A.VENKATESHWARA REDDY WRIT PETITION NO: 2942 OF 2022 Between: Mrs. Kallakuri Dhana Lakshmi Katyayani, Wio Mr. K.V.R.Seshagiri Rao, Aged56 years, Occ. Business, H. No.C3-202, Chanda Nagar, HUDA Colony,Hyderabad - 500 049, Telangana.56 years, Occ. Business, H. No.C3-202, Chanda Nagar, HUDA Colony,Hyderabad - 500 049, Telangana. ...PETITIONER AND 1The lncome Tax Officer, Ward - 8(1), Hyderabad, Signature Towers, Sy.No.6(P) of Kondapur, Sy. No..37(P) of Kothaguda, Opposite BotanicalGardens, Serilingampally Mandal, Ranga Reddy District, Hyderabad - 500084, Telangana.No.6(P) of Kondapur, Sy. No..37(P) of Kothaguda, Opposite BotanicalGardens, Serilingampally Mandal, Ranga Reddy District, Hyderabad - 500084, Telangana. 2The Principal Commissioner of lncome Tax - 2, Hyderabad, 6th floor, A Block,lT Towers, 10-2-3, A.C. Guards, Hyderabad - 500 004, Telangana.lT Towers, 10-2-3, A.C. Guards, Hyderabad - 500 004, Telangana. 3The Additional / Joint / Deputy / Assistant Commissioner of lncome Tax /lncome Tax Officer, National Faceless Assessment Center, New Delhi, RoomNo.401 , 2nd Floor, E-Ramp,lncome Tax Officer, National Faceless Assessment Center, New Delhi, RoomNo.401 , 2nd Floor, E-Ramp, 4. The National Faceless Appeal Centre (NFAC), Delhi, lncome TaxDepartment, Ministry of Finance, Government of lndia.Department, Ministry of Finance, Government of lndia. 5. The State Bank of lndia, Manikonda Branch, D. No.2-30l1 , lndra Nagar,Gachobowli, Hyderabad, Telangana - 500 032.Gachobowli, Hyderabad, Telangana - 500 032. 6. APTOnline Limited, Plot No. 1, E Park, Jubilee Gardens, Cyberabad,Hyderabad -500 084, Telangana.Hyderabad -500 084, Telangana. ...RESPONDENTS Petition under Article 226 of the Constitution of lndia praying that in thecircumstances stated in the affidavit filed therewith, the High Court may bepleased to issue a Writ, Order or Direction, one, more particularly in the nature ofMandamus declaring. a. the order of the 1st Respondent, dated 16.12.2021 , in directing thePetitioner to pay 2Opercent of the disputed demand, pending disposal of the Petitioner's appeal [t ][efore ][the ][4th ][Respondent, ][for the ][Assessment Year 2018 ][-]19, as arbitrary, illeg ll, [bad ][in law, ][bereft ][of any ][reasons, ][violative of ][principles ][of]natural [justice, ]se! [rside ][ihe ][same and ][to ][consequently ][grant stay ][of ][any],1 st Appellaterecovery, [pending ][d ][sposal ][of the ][Petitioners ][appeal before ][the ]Authority, in the inter:sts [of ][justice,] b. the inaction [of the 2nd ][Respondent in ][deciding the ][stay ][application ][filed]by the Petitioner [di ][,ted ][03.01 ][.2022' ][pending disposal ][of ][Petitioner's ][appeal]before the 4th Resprndent, [for the ][Assessment ][Year ][2018 ][- ][19, ][as ][arbitrary,]illegal, bad in law, [v ][tlative ][of ][principles ][of ][natural ][justice, ][and ][to ][consequently]direct the 2nd Respc [rdent ][to treat ][the ][Petitioner ][Assessee as an Assessee ][not]in default, [pending ]c [sposal ][of ][the ][Petitioner's ][appeal ][before ][the ][1st ][Appellate]Authority, c.Thenoticesls226(3)ofthelncomeTaxAct,l96'1,dated07'12'2021'issued by the 1st [R:spondent ][to ][the ][bankers ][of the ][Petitioner, ][i.e., ][the ][5th]Respondent herein, [rs ][arbitrary, ][illegal, bad ][in ][law, ][violative ][of ][principles ][of]natural [justice ]and to :onsequently [set-aside the same ][in ][the interests ][of ][justice']and d.thenoticeu,s226(3)ofthelncomeTaxAct,l96l,dated24'122021'issued by the 1st Res [)ondent to the ][6th ][Respondent ][herein, as arbitrary, ][illegal,]bad in law, violative o [principles of ][natural ][justice ][and ][to ][consequently set-aside]the same in the interer [ts ][of ][justice.] IANO:1 OF 2022 c.Thenoticesls226(3)ofthelncomeTaxAct,l96'1,dated07'12'2021'issued by the 1st [R:spondent ][to ][the ][bankers ][of the ][Petitioner, ][i.e., ][the ][5th]Respondent herein, [rs ][arbitrary, ][illegal, bad ][in ][law, ][violative ][of ][principles ][of]natural [justice ]and to :onsequently [set-aside the same ][in ][the interests ][of ][justice']and d.thenoticeu,s226(3)ofthelncomeTaxAct,l96l,dated24'122021'issued by the 1st Res [)ondent to the ][6th ][Respondent ][herein, as arbitrary, ][illegal,]bad in law, violative o [principles of ][natural ][justice ][and ][to ][consequently set-aside]the same in the interer [ts ][of ][justice.] IANO:1 OF 2022 Petition under [s ]ection [151 ][cPC ][praying ][that in the ][circtrmstances ][stated]intheaffidavitfiledinsupportofthepetition,theHighCourtmaybep-leasedtogr"ni tiry of all furthe [pioceedings, including any recovery, ][pending ][disposal of]the above Writ [Petition] lA NO: 2 OF PetitionunderS:ctionl5lCPCprayingthatinthecircumstancesstatedin the affidavit [filed ][in ][;upport of ][the ][petition, ][ine ][Higfr ][Cgyrt ][may ][ne^gt91s^e! ][to]G.otice [u/: ][ziapl ][ot ][the ][lncome ][Tax ][Act' ][196'1' ][dated ][24'12'2021'];;;;;; issued by the [1st ][Aper ][pondent ][to the 6th ][Respondent ][Lerein' ][pending ][disposal]of the above [Petition] lA NO: 3 oF 2022 Petition under [section ][151 CPC praying ][that ][in ][the ][circumstances ][stated]in the affidavit filed [in support of ][the ][petition, ][ine ][nign ][Court ][may ][0".!]99^t:! ][to]sr.plnO the [notice uts ][iiO(S) ][of the ][lncome ][Tax ][Act, ]['1961, ][datedg71122021,]issued by the 1st Respondent [io ][the ][5th ][Respondent ][herein, ][pending ][disposal of]the above Writ [Petition.] A NO: 4 OF 2022 Between: The lncome Tax Officer, [Ward ][- ][8(1), ][Hyderabad, Signature ][Towers' ][Sy']f'f Sv. No..37(P)'of [Kothagudl ][opposite ][Botanical]cr''i'"rirlsiiirirg5mbJtiv "sipl "ik,j.oaprr, [Mandai, Ranga Reddv District, Hvderabad - ][500]084, Telangana. ...Petitioner/ResPondent AND l.Mrs.KallakuriDhanaLakshmiKatyayani,W/otMr.K.V.R'Seshagiri.Rao,Aoed 56 uuur., O.i. [Business' ][H. ][No'C3-202, Chanda ][Nagar' ] c6lonv. Hvderabad [- ]500 [049, ][Telangana']Aoed 56 uuur., O.i. [Business' ][H. ][No'C3-202, Chanda ][Nagar' ] c6lonv. Hvderabad [- ]500 [049, ][Telangana']z in'""piiniib"r Co.hi..ion",. [of ][lncorie ][Tax - 2, ][Hvderabad' ][6th ][floor' ][A]Block, lr rowers, [i075, ][a.c. cui,os, ][nyderabal ][- 500 ][004' ][Telangana']Block, lr rowers, [i075, ][a.c. cui,os, ][nyderabal ][- 500 ][004' ][Telangana'] Block, rowers, S. - ifrJAaOitionaf rncomelii offic;r; [I .lolntT ]Nat,;;jlFaceless [ObpuiV ] [Assistant'Commissioner ]Assessment Center' [of lncome Tax /]New Delhi'Room No.40'1 , [2nd Floor, ][E-RamP,]Room No.40'1 , [2nd Floor, ][E-RamP,] No.40'1 , +. fne fttaiionat [f ][acetesi ][Rirpeal Cdntre (NFAC), ][Delhi.' ][lncome Tax]Oepartment, Ministry [of ][Fihance, Government of ][lndia']Oepartment, Ministry [of ][Fihance, Government of ][lndia'] s. - ih5 sijte aanr [oi'irioia, ][Manikohda Branch, D. ][No.2-3011 ][, ][lndra ][Nagar,]Gachobowli, Hyderabad, Telangana - 500.0-32'[["E ]][Park, Jubilee Gardens, ]Gachobowli, Hyderabad, Telangana - 500.0-32'[["E ]][Park, Jubilee Gardens, ] o. AFionrine Liniit;, [Floi'No. ]['1 ][, ][["E ]][Park, Jubilee Gardens, ][cyberabad']Hyderabad-500084'Telangana ...Respondents/petitionersHyderabad-500084'Telangana ...Respondents/petitioners PetitionunderSectionls,lcPcprayingthatinthecircumstancesstatedin the affidavit [filed ][in support ][of the ][peiition, ][ine ][Hign ][Cout-m?v ]!e^qle3s9d [to]vacate the interim [order ][in ][l.A.No. ] [oI ][2021 ][in ][w.P.No.2942 ][0f ][2022 ][daled]2110112022. Counsel for the [Petitioner: ] [A.V'A'SIVA ] Counsel for the [Respondents: ] [A'RADHA ] The Court made the [following: ] I i THE HONI)URABLE AND o. AFionrine Liniit;, [Floi'No. ]['1 ][, ][["E ]][Park, Jubilee Gardens, ][cyberabad']Hyderabad-500084'Telangana ...Respondents/petitionersHyderabad-500084'Telangana ...Respondents/petitioners PetitionunderSectionls,lcPcprayingthatinthecircumstancesstatedin the affidavit [filed ][in support ][of the ][peiition, ][ine ][Hign ][Cout-m?v ]!e^qle3s9d [to]vacate the interim [order ][in ][l.A.No. ] [oI ][2021 ][in ][w.P.No.2942 ][0f ][2022 ][daled]2110112022. Counsel for the [Petitioner: ] [A.V'A'SIVA ] Counsel for the [Respondents: ] [A'RADHA ] The Court made the [following: ] I i THE HONI)URABLE AND SR"I JUSTICE A. VENKATESHWAITA THE HONOU, "ABLE '!ilrit Petitio nNo.2942 of 2022 ORDER: [(Per ][rlon'ble ][Sri ][Jtrstice ][Ujjal ][Bhwan)] Heard {r. A.V.A. [Siva ][Kartikeya, learned ][counsel]for the petit oner [and ][Mr. ][A' ][Radha ][Krishna, ][learned]Standing Co rnsel [for the ][Income ][Tax ][Department, ][for]l os.1 to [4.]respondent 2. Accordi rg to [petitioner, she ][is ][engaged ][in ][the]business ol running [an ][authorised ][APTOnline](MeeSeva) C:ntre / Common [Service ][Centre ][(CSC)](popularly kr:own as ['MeeSeva' ][Centre) r,l'hich ][is ][a ][joint]venture of Tala [Consultancy ][Services ][and ][Government]of Telangana. 3. As [part ][of ][her ][business, she makes deposit ][on]behalf of her [,:ustomers ][to the various banks, ][primarily] to the State Bank of India. The deposits [pertain ][to]varrous consumerbills, viz., electricity, water,telephone, etc. Petitioner is also an assessee under theIncome Tax Act, 196 1 (briefly, the Act'hereinafter) andis assessed under the [jurisdiction ]of respondent No.1.Assessment status of the petitioner is that ofindiuiduql. 4. For the Assessment Year 2018-19, Assessment Order was passed by the National e-AssessmentCentre, Delhi, on 23.04.2O21 under Section 1a3(3) ofthe Act read with Section l44B of the said Act. Asagainst the income shown by the petitioner in herreturn, i.e., Rs.4,31,500/-, the income of the petitionerhas been assessed at Rs.8,02,30,250 l- in theAssessment Order. Following the Assessment Order,demand notice came to be issued to the [petitioner.] 5. According to learned counsel for the petitioner,the deposits made by the petitioner on behalf of her customers :rave been treated as the income of thepetitioner w rich has resulted in such high assessment. 6. Aggrier ed by the aforesaid order of assessment,petitioner t as preferred appeal before the NationalFaceless Ap:eal Centre,Delhi,i.e., responclent No.4vide acknow edgment No.34724682003052 1. 7. In the neanwhile, petitioner filed application forstay of deme nd before respondent No.1 under Section220(6l'of the Act. 8. By orde: dated 16.12.2021 , respondent No. 1 hastaken the vi:w that stay can be granted subject topayment of 2Ook of the outstanding demand within aweek. While arriving at the above, respondent No. [1]placed relian,,e on Circular dated 3),.O7.2017, issuedby the Centra Board of Direct Taxes. 9, Learned counsel for the petitioner submits thatrespondent Nr'.1 issued notice to State [Bank ][of ][India,]Manikonda Br anch [(respondent ][No.5), ][for ][attachrnent] i of bank accounts of the [petitioner ][under ][Section ][226(31]of the Act whereafter bank [accounts ][of the ][petitioner]maintained with respondent No.5 [have been attached.]The three bank accounts of the [petitioner ][maintained]with the respondent No.S-Bank are [31281487025,]343 17 O L 4 1 06 and 3375 4560562, [respectively.] 1O. Further, respondent No.1 has [issued ][similar]notice to respondent No.6 [pursuant ][to ][which ][the]APTOnline account maintained [by ][the ][petitioner with]respondent No.6 has also been attached. 11. Foliowing such attachment [of ][bank ][accounts, ][the] regular day-to-day activity of the [petitioner ][has ][come]to a grinding halt. It is in such [circumstances ][the]present u,rit petition has been filed. i of bank accounts of the [petitioner ][under ][Section ][226(31]of the Act whereafter bank [accounts ][of the ][petitioner]maintained with respondent No.5 [have been attached.]The three bank accounts of the [petitioner ][maintained]with the respondent No.S-Bank are [31281487025,]343 17 O L 4 1 06 and 3375 4560562, [respectively.] 1O. Further, respondent No.1 has [issued ][similar]notice to respondent No.6 [pursuant ][to ][which ][the]APTOnline account maintained [by ][the ][petitioner with]respondent No.6 has also been attached. 11. Foliowing such attachment [of ][bank ][accounts, ][the] regular day-to-day activity of the [petitioner ][has ][come]to a grinding halt. It is in such [circumstances ][the]present u,rit petition has been filed. L2. Respondent No.1 has [filed ][counter-affidavit]objecting to the prayer made by [the ][petitioner.] 13. On going through the [impugned ][order ][of] respondent No.1 dated 16.12.2021, [we are of ][the ][view] it that the sai I order is devoid of [reasons' ][Petitioner ][was]required tc be heard, and there [should ][be ][due]application cf mind before a decision [is ][taken on ][the]prayer for rtay. Impugned order dated 16.L2.2O21does not in, licate or disclose any application [of ][mind]on the par. of respondent [No. ]1 in [considering ][the]prayer of thr petitioner. 14. It is v ell settled that recording of re:asons [is]essential wh.le dealing rnith such [prayers ][made ][by ][an]ASSCSSEC, 15. In view of above, we set aside the order dated16.12.2021 e nd remand the matter back to respondentNo. 1 for tak a fresh decision within a [period ][of]ng thirty (30) dz ys from the date of receipt of a copy [of]this order ir accordance with law by affording[an]opportunity o'hearing to the [petitioner.] 16. Since w, have set aside the order of respondentNo.1 dated |C.12.2027, we direct respondent [No.S and] respondent No.6 to withdraw the attachment of bankaccounts and APIOnline account respectively of thepetitioner forthwith. t7, We make it clear that we have not expressed anyopinion on merit as well as on the prayer for stay. [A1l]contentions are kept open. 18. This disposes of the writ petition. No order as to costs. 19. As a sequel, miscellaneous applications pendingif any in this Writ Petition, shall stand closed. SD/.PADMANABHA ASSISTANT //TRUE COPY// SECTION OFFICER To,1. The lncome [Tax ][Officer, ]-sv. [Ward ][- B(1), ][Hyderabad, Signature ][Towers' ][Sy']N; "6ii) ; "6ii) ; ["K"ftirpr ][[r, ]]No.. szt [p ]l'ot [(othag ][uda, ][o-pposite Botanical][[r,rlinoai ]][[Ransa ][Reidv ][Distiict' ][Hvderabad ]][[Reidv ][Distiict' ][Hvderabad ]][[Distiict' ][Hvderabad ]][[Hvderabad ]][[- ]][500] [[r, ]]N; "6ii) ; "6ii) ; 6;r;'E;.,'s;;ili.s5;bJriv [[r,rlinoai ]][[Ransa ][Reidv ][Distiict' ][Hvderabad ]][[Reidv ][Distiict' ][Hvderabad ]][[Distiict' ][Hvderabad ]][[Hvderabad ]][[- ]][500]084. Telanqana.ih;'5;6'E;;[ of [lndia, ][tr,4anikonda ][Branch,,D' ][No'2-30/1 ]' [lndra ][Nagar']Caifrooowti. [Hyderabad, Telangana - 500 ][032]Xpio.rr" ii#it,ed, [Plot ][No- ][t, ]["E ][part<, ][Jubilee Gardens, Cyberabad']N; "6ii) ; "6ii) ; 6;r;'E;.,'s;;ili.s5;bJriv [[r,rlinoai ]][[Ransa ][Reidv ][Distiict' ][Hvderabad ]][[Reidv ][Distiict' ][Hvderabad ]][[Distiict' ][Hvderabad ]][[Hvderabad ]][[- ]][500]084. Telanqana.ih;'5;6'E;;[ of [lndia, ][tr,4anikonda ][Branch,,D' ][No'2-30/1 ]' [lndra ][Nagar']Caifrooowti. [Hyderabad, Telangana - 500 ][032]Xpio.rr" ii#it,ed, [Plot ][No- ][t, ]["E ][part<, ][Jubilee Gardens, Cyberabad'] 2. Hvderabad [-500 084, Telanqana.]6'.;"bCi; Sni Av [A. ][Stvn-KARrl ][KEYA, Advocate ][[oPUC]]cc io snin.nAouA [KRISHNA, Advocate ][IoPUC]]il; Two C.D. CoPies,One Spare [CoPY.] 4. 5. 6. 7. IVRC BS HIGH COURT DATED:25102 2022 ORDERWP.No.2942 rfi 2022 DISPOSING [(IF ]THE WRIT PETITIONWITHOUT CC STS V;> ltrE [SrAi]€,4oeaA/,'n<o0I [202]azL,-o.+\llr r116.rrf-'