Wp/41271/2022 Of Dr. Pulla Rao Pentapati v. Income Tax Officer Ward 11(1) And Another

HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD(Special Original Jurisdiction) TUESDAY, THE TWENTY SIXTH DAY OF SEPTEMBERTWO THOUSAND AND TWENTY THREE PRESENT THE HONOURABLE SRI JUSTICE P.SAM KOSHYANDTHE HONOURABLE SRI JUSTICE LAXMI NARAYANA ALISHETTY WRIT PETITION NO: 41271 OF 2022 Between: Dr. Pulla Rao Pentapati, S/o Late Gangaraju Pentapati, Occ- Business,Agedaboul 74 years, Near Officers Colony, Satya Sadan, HIG A-9 DR ASRaoNagar, Secunderabad, Hyderabad-500062. ...PETITIONER AND 1lncome Tax Officer Ward 11(1), Hyderabad Signature Towers, Sy.No.6(P)of Kondapur, Sy.37(P) of Kothaguda, Opp. Botanical Gardens, Serlingampally(M), R.R.District, Hyderabad, Telangana, 500084of Kondapur, Sy.37(P) of Kothaguda, Opp. Botanical Gardens, Serlingampally(M), R.R.District, Hyderabad, Telangana, 500084 Principal Commissioner of lncome Tax-2, Signature Towers, Opp.Botanical Gardens, Kondapur, Hyderabad-500084Botanical Gardens, Kondapur, Hyderabad-500084 2 3Canara Bank, Khan Market Branch, Khan Market, New Delhi. (Respondent No 3 is impleaded as per Court Order dated 04.07.2023 inWP No.41271 of 20221 ...RESPONDENTS Petition under Article 226 of the Constitution of India [praying ]that in thecircumstances stated in the affidavit filed therewith, the High Court may bepleased to issue an appropriate writ, order or direction, preferably in the natureof a Writ of Certiorari calling for the records relating to the impugned letter/order(show cause) bearing DIN and Letter No. lTBAlRCVlFllTl2O22-2311046490632(1) dated 27.10.2022 issued by the Respondent No.'l , which iswithout [jurisdiction/ ]power, arbitrary, illegal, against the principles of naturaljustice and the sarire is liable to be quashed by this Hon'ble Court by furtherdirecting the Respondent No.1 to lift the attachment Orders issued to SyndicateBank (now Canara Bank), Lok Nayak Bhawan, New Delhi-110003 as well as to lndian Overseas Bank, Basheerbagh, Hyderabad-500029 in order to enable thePetitioner to immediately break the Fixed Deposits of the required amount ofRs 42,43,836 liable to be paid to The lncome Tax Department towards the 2Oohof the outstanding demand as directed by the Respondent No.2. lA NO: 1 OF 2022 Petition under Section ['1 ]51 CPC praying that in the circumstances statedin the affidavit filed in support of the petition, the High Court may be pleased tostay the operation of the impugned letter/order bearing DIN and Letter No.ITBA/RCV/F/1712022-2311046490632(1) dated 27.1O.2022 issued by theRespondent No.1, pending the disposal of the main writ petition. Counsel for the Petitioner: SRI D.V.SRINIVASA RAO Counsel for the Respondent No.1 & 2: M/s. K.MAMATA, SC FOR IT DEPT. Counsel for the Respondent No.3: M/s. M.V.KlNl The Court made the following: ORDER TH[], HON'Bt,E SItI JUSTICE P.SAM KOSHY AND THE HON'I}LE SRIJUSTICB LAXMI NARAYANA AT,ISHETTYWRIT PETITION No.41271 of2O22WRIT PETITION No.41271 of2O22 OR-DER:tpcr llon ble Sri ,.lustrtc P.SAM KOSHY) [{eard Mr.D.V.Srinivasa Rao, leamed counsel for the petitionerand Ms.K.Mamata, learned counsel, leamed Standing Counsel for therespondents. Perused the matcrial on record. 2. ['l'he ]instant writ perition has becn filed assaiting the order dated27.10.2022, rvhercbl. the I'r respondent has revoked the stay orderearlier grantcd on 10.02.2()?l by the 2n'j respondent. .1. ['Ihe ]2nd responilent rvhilc grantillg stay on the clemand of-Rs.43,40,,5771- had orclcied rlre asscssee to pay an amount of rupees20%o of the demarrci i.e.. arr amount of Rs.l ,08,68,1 i 5/- on or before?5.03.2022- The itetitioner seems ro have f-ailed to deposit the saiciamount of Rs.1,08,68,1 l 5/- i.e., 20oto of the total demand raised, whichwas rhe pre-condition while gr.anting stay by the 2"r respondent. [{eard Mr.D.V.Srinivasa Rao, leamed counsel for the petitionerand Ms.K.Mamata, learned counsel, leamed Standing Counsel for therespondents. Perused the matcrial on record. 2. ['l'he ]instant writ perition has becn filed assaiting the order dated27.10.2022, rvhercbl. the I'r respondent has revoked the stay orderearlier grantcd on 10.02.2()?l by the 2n'j respondent. .1. ['Ihe ]2nd responilent rvhilc grantillg stay on the clemand of-Rs.43,40,,5771- had orclcied rlre asscssee to pay an amount of rupees20%o of the demarrci i.e.. arr amount of Rs.l ,08,68,1 i 5/- on or before?5.03.2022- The itetitioner seems ro have f-ailed to deposit the saiciamount of Rs.1,08,68,1 l 5/- i.e., 20oto of the total demand raised, whichwas rhe pre-condition while gr.anting stay by the 2"r respondent. 4- It is pertinent to tal(e note of tl-re fact that when the stay w,asgranted, the respondenr aulhorities have already recovel.edIts.61.77,309/- lrom the bank account of tlrc :r:;:;cssec, l-hcrc was onha balance amount of Rs.46,90,t106r' u,hich r,vas lcti ro hc dcposired b.r, the assessee towards the compliance [of ][the stay order ][on or ][before]25.03,2022. The petitioner since [he ][could not ][deposit ][the ][balance ][of]Rs.1,08,68,115/- on or before [25.03.2022, ][he ][immediately ][entered]appearance before the respondent [authorities ][vide ][correspotrdence]dated 26.03.2022, wherein he sought [lor ][additional time ][for ][depositing]of the balance amount and requested to [un-freeze ][the ][fixed ][deposits]which was freezed by the respondents, [enabling ][him ][to ][comply ][with]the condition put by the [2nd ]respondent [while ][granting ][stay.] 5. The petitioner reiterated the said [request ][again ][vide]conespondence dated 16.08.2022, [wherein ]he [has ][given ][an]undertaking that subject to the respondents [un-freezing ][the ][bank]account, he would deposit the [balance amount ][towards compliance ][of]the stay order within seven days. [There was ][no ][respollse ][to ][the ][said]corespondence by the authorities nor [was ][the ][bank ][account ][un-]freezed. The bank account still stands [frozen ][and ][the ][petitioner ][is not]in a position to utilize the same. 6. Today, leamed counsel for [the ][petitioner further ][makes ][a ][statement]that subject to the respondents un-freezing [the ][bank ][account and ][the]fixed deposits which are lying in the name of the petitioner, he shallensure that the balance of amount towards compliance of the interimorder granted by the 2"d respondent on 10.02.2022 shall be complied II {' with within seven days. In addition, the leamed counsel for thepetitioner also submits that at the time of un-freezing the bank account,the respondents itself may en-cash the fixed deposits to the extent ofthe balance of payment towards the compliance of the interim order isconcemed and release the remaining amount and further permit thebank account to be operated by the petitioner. 7. The leamed counsel for the petitioner submits that though theappeal has been filed on27.10.2021 no further progress has been madeon the said appeal. ['l-ilt ]date he has not received any notice by theappellate authority in respect of the hearing on the appeal is concerned.However, we are of thc consiCered opinion that enrjs of justice wouldmeet if the impugned order passed by the l't respondent on21 .10.2022is set asidelquashed. 8. Accordingly, this writ petition stands allowed by setting aside theimpugned order dated 27.10.2022 issued by the l.trespondent. The lsland 2"d respondents are directecl to instruct. the 3d respondent bank topermit the petitioner to operate the said bank account of the assesseewith a fuither direction that the respondents would be permitted to en_cash the balance .f amount payable by the petitioner towards thecompliance of the interim order granted on 10.02.2022 and further( , ,l release the balance of amount to be operated bi, 16" petitionerincluding the fixed deposits. 9. The 1't respondent is directed to communicate the order of this 8. Accordingly, this writ petition stands allowed by setting aside theimpugned order dated 27.10.2022 issued by the l.trespondent. The lsland 2"d respondents are directecl to instruct. the 3d respondent bank topermit the petitioner to operate the said bank account of the assesseewith a fuither direction that the respondents would be permitted to en_cash the balance .f amount payable by the petitioner towards thecompliance of the interim order granted on 10.02.2022 and further( , ,l release the balance of amount to be operated bi, 16" petitionerincluding the fixed deposits. 9. The 1't respondent is directed to communicate the order of this Court to 3'd respondent - bank. Meanwhile, we are also of theconsidered opinion that since the appeal of the petitioner is pendingbefore the National Faceless Assessment Center (for shorl NFAC)since 27.10.2021, with no furlher progress, it is expected that theappeal of the appellant shall be taken up and decided at the earliest.The petitioner is also directed to ensure that the order passed by thisCourt in the present writ petition is uploaded in the petitioner's portalof NFAC in whichthe appeal has been filed and which, the petitioneralone has access.considered opinion that since the appeal of the petitioner is pendingbefore the National Faceless Assessment Center (for shorl NFAC)since 27.10.2021, with no furlher progress, it is expected that theappeal of the appellant shall be taken up and decided at the earliest.The petitioner is also directed to ensure that the order passed by thisCourt in the present writ petition is uploaded in the petitioner's portalof NFAC in whichthe appeal has been filed and which, the petitioneralone has access. 10. As a sequel, miscellaneous applications pending if any in this writ petition also shall stand closed. No order as to costs. SD/. K. VENKAIAHASSISTANT REGIqTRARsEcfloN oFFIEER //TRUE copy, sEcfloN oFFIEERro, ro, 1 . The Income Tax Officer Ward 1 1(.1 ), Hyderabad Signature Towers,QV.No.6(P) [o_f ][t^<q1d9011.S.y.37(p) ][of ][kcitraguoa, Opp. ][eo"tani;ai ]C"iO"n",^ [Sedingampatly ][(!), ][R.R.Distiict, Hyderabad, ]- [ielangana, ][500084]2. The Principal. Commissioner of lncome Tax-2," Siqnature Towers. Oop.Botanical Gardens, Kondapur, Hyderabad-500084.QV.No.6(P) [o_f ][t^<q1d9011.S.y.37(p) ][of ][kcitraguoa, Opp. ][eo"tani;ai ]C"iO"n",^ [Sedingampatly ][(!), ][R.R.Distiict, Hyderabad, ]- [ielangana, ][500084]2. The Principal. Commissioner of lncome Tax-2," Siqnature Towers. Oop.Botanical Gardens, Kondapur, Hyderabad-500084. !. lhe [C^q1ara_Qa1k, ][Kfran ][Inlarket ][Branch, Khan Market, ]New Delhi.4. One CC to SRI D.V.SR1N|VAS4 RAO, Advocate tOpUCl4. One CC to SRI D.V.SR1N|VAS4 RAO, Advocate tOpUCl RAO, tOpUCl5. One CC to M/s. K.MA|MATA, SC FOR tT DEPT. tbpuci5. One CC to M/s. K.MA|MATA, SC FOR tT DEPT. tbpuci 6. One CC to M/s. M.V.KlNl, Advocate [OpUCj[OpUCj 7. Two CD Copies BSRGJP HIGH COURT DATED: 2610912023 ORDERWP.No.41271 of 2022 ALLOWING THE WRIT PETITION,WITHOUT COSTS , [--- ],,,,r- [iAI€].1t.i:30 [0cl ][2u].La-s,{t1.-* [i;.,.,, ]" [' ][;]- -.. -_-_rra.g,r [- ]['-] i W