Wp/9708/2025 Of M/S. Chidrupi Estates And Holding Limited v. The Deputy Commissioner Of Income Tax

HIGH COURT FOR THE STATE OF TELANGANAAT HYDERABAD(Special Original Jurisdiction) TUESDAY, THE FIRST DAY OF APRILTWO THOUSAND AND TWENTY FIVE PRESENT THE HONOURABLE SRI JUSTICE P.SAM KOSHYANDTHE HONOURABLE SRI JUSTICE NARSING RAO NANDIKONDAWRIT PETITION NO: 9708 0F m25 Between: M/s..Chidrupi Eqtale-s alg l-_loldlng Limited, (Formerty) M/s. Chidrupi FinanciatServices Limited, 6-3-123812012,2trtD Ftoor, Asif Avdnue, Raj Bhavan Road,Somajiguda - 500 082, Hyderabad Represented by its Direitor fr/r. Xris-frn-dRaghuveer reddy S/o. Mr. K.Ganga Reddy. ...PETITIONER AND 1 . The Deputy C_ommissioner of lncome Tax, Circle 1(1 ), Hyderabad, lncomeTax Towers, A C Guards, Masab Tank, Hyderabad'- 500 004, Tel6nqana.Tax Towers, A C Guards, Masab Tank, Hyderabad'- 500 004, Tel6nqana.2. Assegsment Unit, lncome Tax Departmeni, National e-Assessment denter,New Delhi, Room No.. 4O1,2nd Fioor, E-Ramp, Jawaharlal Nehru Stadium,New Delhi - 110 003.New Delhi, Room No.. 4O1,2nd Fioor, E-Ramp, Jawaharlal Nehru Stadium,New Delhi - 110 003.3. The Principal Commissioner of lncome Tax - I, lncome Tax Towers, A CGuards, Masab Tank, Hyderabad - S00 004, Telangana.Guards, Masab Tank, Hyderabad - S00 004, Telangana.4. The Joint Commissioner (Appeals) / the CommissiSner of lncome Tax$qpgals), [National Faceless Appeal Centre, ][Delhi, ][Through the principal]Chief Commissioner of lncome.Tax (NaFAC), Delhi, NorttiBlock, New'Delhi -110 001$qpgals), [National Faceless Appeal Centre, ][Delhi, ][Through the principal]Chief Commissioner of lncome.Tax (NaFAC), Delhi, NorttiBlock, New'Delhi -110 0015. The Central Board of Direct Taxes, Represented by its Chairman, Departmentof Relenue, .lr4'l'i-s!ry of Finance, Goveinment of lnilia, Secretariai auitdings,New Delhi - ['1 ]10 001 .of Relenue, .lr4'l'i-s!ry of Finance, Goveinment of lnilia, Secretariai auitdings,New Delhi - ['1 ]10 001 . ...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 a Writ of Mandamus or any other appropriate Writ, Order orDirection, declaring the order passed by the 1st Respondent, vide DIN and LefterNo.. |TBAiCOMlFllT12024-2511071966512(1), dated 07.01.2025, in directing theNo.. |TBAiCOMlFllT12024-2511071966512(1), dated 07.01.2025, in directing thePetitioner lo pay 2O of the disputed demand, peMing disposal of the appeal of thePetitioner before the ['1st ]Appellate Authority, i.e., the 4th Respondent herein, forthe Assessment Year 2016 -17, as arbitrary, illegal, barred by limitation, bad inlaw, void-ab-initio, violative of the principles of natural justice, apart from beingthe Assessment Year 2016 -17, as arbitrary, illegal, barred by limitation, bad inlaw, void-ab-initio, violative of the principles of natural justice, apart from being violative of Article,s t a t 9(1Xg) and 265 of the constitution of lndia ilrd sec 148Aof the lncome Ta.< Act. ['l ]961, and consequenfly set-aside the same irnd grant stayof recovery, penrling c is;posar of the petitioner's appear before the 1 st AppelrateAuthority, in the interestr; of justice. lA NO: 1 OF 2025 violative of Article,s t a t 9(1Xg) and 265 of the constitution of lndia ilrd sec 148Aof the lncome Ta.< Act. ['l ]961, and consequenfly set-aside the same irnd grant stayof recovery, penrling c is;posar of the petitioner's appear before the 1 st AppelrateAuthority, in the interestr; of justice. lA NO: 1 OF 2025 Petition unrie' [i:r+ion 1sl cpc praying that in the circurnstarrcas stated inthe affidavit filed in ,;urport of the petition, the High court may be pl,,rased to stayall further procee<rings incruding any recovery, pursuant the order par;sed by the1st Respondenl, vice DrN and Letter No.. rrBA/coru/Fi1 712024-2511071966512(1 r, dak:ct ot.o1 .2o2s, in directing the petitioner to pzy 2oo/o of thethe affidavit filed in ,;urport of the petition, the High court may be pl,,rased to stayall further procee<rings incruding any recovery, pursuant the order par;sed by the1st Respondenl, vice DrN and Letter No.. rrBA/coru/Fi1 712024-2511071966512(1 r, dak:ct ot.o1 .2o2s, in directing the petitioner to pzy 2oo/o of thedisputed demand, penrling disposal of the appeal of the petitioner betore the 1stAppellate Authority, i.e . the 4th Respondent herein, for the F\ssessment yearAppellate Authority, i.e . the 4th Respondent herein, for the F\ssessment year2016 - 17, pendirrg dispcsar of the above writ petition, pendinr] rli.posar of theabove Writ Petitiorr. Counsel for the Petitio,rer: SRt A.V.A.SIVA KARTIKEYA99-r!:"] [for ][the ][Resporrdents: ][M/s. ] REDDY, Jr. S(.) FORINCOME TAX The Court made the following: ORDER TIIE IIONOURABLE SRIJUSTICE P.SAM KOSHY -ANDTIIE HONOURABLE SRI JUSTICE NARSING RAONANDIKOAIDA w.P.No.9708 oF2025 . ORDER (per Hon'ble Sri Justice p.km Koslry) Heard Sri A.V.A. Siva Kartikeya, learned counsel for the petitioner and Ms. Bokaro Sapna Reddy, learned StandingCounsel for Income Tax StandingCounsel for Income Tax Departmentappearing for therespondents. perused the record.respondents. perused the record. 2. The present writ petition has been filed assailing the orderdated 07.01.2025 in directing the petitioner to pay 20%o of thedisputed demand, nendinl disposal of the appeal before theAppellate Authority for the Assess mentyear 2016_17.3. The petitioner herein had filed statutory remedy of anappeal under Section 246A ofthe Income Tax Act, 196l (forshort, the 'Acr,) before the Appellate Authority along with theMemo of Appear. The petitioner had arso preferred interimprotection so far as the recovery proceedings are concerned underSection 220(6) of the Act. It is this efElication which stands decided b1' th,: [impugrred ][order ][directing ][the ][pelitiotler ][for]payment of th,: amounts [stated above.] 4. Tbe corttention of the [leamed counsel ][for ][the petiti'rner ][is]that the As,selrsment [Order dated ][07.01.2025 ][itself, in ][the ][light ][of]the Divisir>n Ilench of [this ][Court ][in ][the ][case ][of ][Kan kanala]Ravindra Reddy [vs. lncome ][Tax ][Oflicerr, ][is ][not ][susta]nlble ][as]the noti,;e urtcier Section [148 ][was ][issued ][by ][the ]- [urisdictional]Assessing Of fi oer, [whereas, as ][per ][the ][amended ][pro'risic'n ][of ][the]Act, that ouqlrt to had [been issued ][in ][the ][Faceless ][rlanner']He further sultrnits that [the ][assessment ][of ][the petitione'r ][th::rnselves]carried [,rut ]irr a similar [manner ][for ][the ][subsequenl ][period ][was]already r;ulrjer:ted to challenge [before ][this Court for tht: ][Asst:ssment]Year 2(ll4-15 vide W.P.No.l2348 [of ][2023 ][and ][the ][said ][writ]petition str>oc allowed vide order [dated 07.1L.202.3' ][In ][th',: ][tight ][of]the afores;rid two decisions, [there ][is all ][likelihood ][of ][the ][appeal]pending br:fbre: the Appellate Authority [also having ][the ][lrame fate]of the ,\ssessrnent Order not being maintainable [6nd ][16ring ][set]aside. t 120231 [15; tern], ][n ][r.com ][i ][-1I'EIANGANA)] t 120231 [15; tern], ][n ][r.com ][i ][-1I'EIANGANA)] 5. In the light of the subsequent amendments the light of the subsequent amendments light of the subsequent amendments of the subsequent amendments the subsequent amendments subsequent amendments brought in thein thetheAct as also in the light of_the decision rendered by the Hon,bleSupreme Court in the case of Union of India & ors., v. AshishAgarwal and others2, the Assessing Authority ought to hadgranted interim protection to the Assessee till finalization of theappeal which the Assessing Authority has not considered.6. The contention of the leamed counsel for the petitioner sofar as the 148 notice issued-by the jurisdictional Assessing Officernot being in dispute by the reamed Standing counser for theDepartment and also in the light of the aforesaid judgmentsrendered by this Court in the case of Kankanala Ravindra Reddy(supra t) and in the light of the judgment of the Hon,ble SupremeCourt in case of Ashish Agarwal (supra 2), we are of theconsidered opinion that the Assessing Authority in the course ofdeciding the petition under Section 220(6) of the Act, ought tohave taken a more pragmatic view and should had kept therecovery proceedings in abeyance, pending the appeal before the In the light of the subsequent amendments the light of the subsequent amendments light of the subsequent amendments of the subsequent amendments the subsequent amendments subsequent amendments brought in thein thethe Appellate Authority ') [2022 ]sCC OnLine SC 543 7. For tlLe rfbresaid reasons, we dispose of the [preserrt ][writ]petition a- this .iuncture directing the Assessing Officer: rr)t topursue with thr: recovery proceedings in terms of the imp ur3nedorder dated 07 .(;1.2025 till the appeal for the Assessrnen fear2016-17 is fina I'r decided. 8. CorLsiJerirrg the fact that the appeal was fited i-r th:: [year]2023, we e):pecr, that the Appellate Authority shall take 4r theappeal an1 lec irle the same at the eeirliest, preferably, ''^ritlLin aperiod of ;ir (C6) weeks from the date of receipt of a copv t1'thisorder. There shrll be no order as to costs. CorLseqr,r:ntly, miscellaneous applications, [pendinp; ]if any, shall stanrl c los:rl. SD/- I.. L/\}(SHMI [B][U]pEPUTY REGISTRAR //TRUE J To1) Hyd eraltad, [lncome]1. The DePtrtY [Cc ][ntmissioner ][of][ lncome Tax, Circle]Tax Tow<lrs, [C: ][Guards, ][Masab ][Tank, ][HYderaba][d-5000][ 04, ][R:][langana.]nt Center,1. The DePtrtY [Cc ][ntmissioner ][of][ lncome Tax, Circle]Tax Tow<lrs, [C: ][Guards, ][Masab ][Tank, ][HYderaba][d-5000][ 04, ][R:][langana.]nt Center,2. Assessment [[J'tit,][ lncome Tax ][DePa][ rtment, ][Nation][ al ][e-Assesst'nr:]New Delhi,[Ro:rn ][No.][ 401, 2nd ][Floor, E-RamP, ][Jawaharlal ][N()hru Sta][dium,]New Deltri Deltri [' ][1 ][10 003.][[Ttirrrers' A C]]New Delhi,[Ro:rn ][No.][ 401, 2nd ][Floor, E-RamP, ][Jawaharlal ][N()hru Sta][dium,]New Deltri Deltri [' ][1 ][10 003.][[Ttirrrers' A C]] New Deltri Deltri [[1 ][10 003.]][[10 003.]]3. The Prinr;ipal [Oommissioner of lncome ][Tax- ][- ][1 ][' ][lncome Tax ][[Ttirrrers' A C]]" cr;rd'r,"ffiial: rant<, Hyderabad :5-90 0I)4' [Telang-ana]-m*la:liiis}r*-il'f-t'-.niiitT$I}T[.ri:.[isniilm'#*," cr;rd'r,"ffiial: rant<, Hyderabad :5-90 0I)4' [Telang-ana]-m*la:liiis}r*-il'f-t'-.niiitT$I}T[.ri:.[isniilm'#*, '1 10 0015in! b"t,rirn,rn, [lentral ][Board of ][Direct ][Taxes' ][Departmerrt ][of ][:1r:venue']Ministry,rf =inatrce, [couernti""nti?itioialseiretariat ][Builcing';' ][New Delhi ][-]110 001Ministry,rf =inatrce, [couernti""nti?itioialseiretariat ][Builcing';' ][New Delhi ][-]110 001 0016on"e-Ci to sF [V.A.slvA ][KARTIKEYA, ][Advoqale-[oPUCl ]- [- ]- - [- ][. ][-]7ffi dd i6 il) [j ]['eoi<Ado ][snir'in ][nEorjv, ][L'' ][sc ][FbR ][rr\cc ] [rAX]loPUCl7ffi dd i6 il) [j ]['eoi<Ado ][snir'in ][nEorjv, ][L'' ][sc ][FbR ][rr\cc ] [rAX]loPUCl6.Two CD CoPit:s HIGH COURT DATED:0110412025 ,ORDER WP.No.9708 of 2025 '1 10 0015in! b"t,rirn,rn, [lentral ][Board of ][Direct ][Taxes' ][Departmerrt ][of ][:1r:venue']Ministry,rf =inatrce, [couernti""nti?itioialseiretariat ][Builcing';' ][New Delhi ][-]110 001Ministry,rf =inatrce, [couernti""nti?itioialseiretariat ][Builcing';' ][New Delhi ][-]110 001 0016on"e-Ci to sF [V.A.slvA ][KARTIKEYA, ][Advoqale-[oPUCl ]- [- ]- - [- ][. ][-]7ffi dd i6 il) [j ]['eoi<Ado ][snir'in ][nEorjv, ][L'' ][sc ][FbR ][rr\cc ] [rAX]loPUCl7ffi dd i6 il) [j ]['eoi<Ado ][snir'in ][nEorjv, ][L'' ][sc ][FbR ][rr\cc ] [rAX]loPUCl6.Two CD CoPit:s HIGH COURT DATED:0110412025 ,ORDER WP.No.9708 of 2025 lic4 r(-1, _\.$,)(,Jir)t'13 Jt]ll lMc)z**DE.s \:--,-,.. 11 3.? DISPOSING OF THE WRIT PETITIONWITHOUT COSiTS e,5.dd\o Y{*eo\"'