M/s. KLSR Infratech Limited vs. The Principal Commissioner of Income Tax(Central)

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WP/30656/2022HC TelanganaHBHC01044162202227 July 2022Author: SUREPALLI NANDA,UJJAL BHUYAN5 pages
AI SummaryWithdrawn

What did the High Court hold?

The High Court noted that subsequent to the filing of the writ petition, there had been a development where the respondents were contemplating withdrawing the attachment on payment of outstanding dues by installments. In light of this development, the learned counsel for the petitioner, on instructions, submitted that the petitioner may be permitted to withdraw the writ petition. Consequently, the Writ Petition was disposed of on withdrawal. The Court stated that there would be no order as to costs. Any miscellaneous applications pending in this Writ Petition were also ordered to stand closed.

What were the facts?

M/s. KLSR Infratech Limited (the petitioner) filed a writ petition before the High Court for the State of Telangana at Hyderabad, challenging an order of attachment dated July 18, 2022, issued by the Assistant Commissioner of Income Tax (the 3rd respondent) under Section 226(3) of the Income Tax Act, 1961. The petitioner argued that the order was illegal, arbitrary, malafide, intentional, and mechanical, issued without assigning reasons while arguments had concluded before the Commissioner of Appeal and orders were awaited. The petitioner also sought a stay on the impugned order. During the pendency of the writ petition, a development occurred where the respondents contemplated withdrawing the attachment upon payment of outstanding dues by the petitioner in installments.

What were the issues?

1. Whether the action of the 3rd respondent in issuing the impugned order of attachment dated 18.07.2022 under Section 226(3) of the Income Tax Act, 1961, without assigning reasons and while appeal proceedings were pending, is illegal, arbitrary, malafide, intentional, and mechanical? Assessee's Contention: The petitioner contended that the order of attachment was illegal, arbitrary, malafide, intentional, and mechanical, issued without assigning any reasons, and that arguments had concluded before the Commissioner of Appeal, with orders awaited. The petitioner sought to set aside the order. Revenue's Contention: The judgment does not record any specific contentions made by the revenue (respondents 1 to 3) in response to the writ petition. However, it notes that the respondents were contemplating withdrawing the attachment on payment of outstanding dues by installments.

Which sections of the Income-tax Act were involved?

Section 226(3)

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances
| 3276 | HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD (Special Original Jurisdiction) WEDNESDAY, THE TWENTY SEVENTH DAY OF JULY TWO THOUSAND AND TWENTY TWO PRESENT THE HONOURABLE THE CHIEF JUSTICE UJJAL BHUYAN Ad0 THE HONOURABLE MRS JUSTICE SUREPALLI NANDA WRIT PETITION NO: 30656 OF 2022 Between: M/s. KLSR lnfratech Limited, Rep. by its Director Sri G. Suraj, S/o. G. Madhusudan Reddy, Occ. Business, Rio. H.No.2-56lD1213198, KLSR Towers, Flat.No,4B, Near YSR Statue, Ayyappa Society, Madhapur, Hyderabad-500081 . ..PETITIONERS AND 1. The Principal Commissioner of lncome Tax(Central), Central Circle, Hyderabad, Aayakar Bhawan, Opposite LB Stadium, Basheer Bagh, Hyderabad. 2. The Deputy Commissioner of lncome Tax, Central Wing, Central Circle-l(2), Aayakar Bhawan, Opposite LB Stadium, Basheer Bagh, Hydreabad. 3. The Assistant Commissioner of Income Tax, Central Wing, Central Circl+ 1(2), Aayakar Bhawan, Opposite LB Stadium, Basheer Bagh, Hyderabad. 4. The Kotak Mahindra Bank, 8212017611/8, Ground Floor, Ashoka Hitech Chambers, Road.No.2, Banjara Hills, 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 order or orders or direction or writ more particularly one in the nature of writ of Mandamus, declaring the action of the 3'd respondent issuing the impugned order of attachment vide DIN and Notice No.ITBAJRCV/S 1226(3)- 112022-23/1043906697(1), dated. 18.07.2022 when the arguments are concluded before the Commissioner of Appeal and orders ale awaited without assigning any reasons as illegal, arbitrary, malafide, intentional, mechanical and consequently set-aside the same as illegal in the interests of justice; I lA NO: 1 OF 2022 Petition un er Section '151 CPC praying that in the cir:umstances stated in the affidavit filed r support of the petition, the High Court m:ry be pleased to stay the impugned rrder of attachment vide DIN and Notice No.lTBfuRC Vtsl226(3)_1l2O2 l-2311043906697(1), dated. 18.07 2022 issue,d by the 3'd respondent, pend rg disposal of the writ petition; Counsel for the I etitioner(s): SRl. K V BHANU PRASAD Counsel for the I espondents R1 to R3: B NARASIMI-IA SAI?tllA

The Court made 1e following: ORDER

l I THE TION'BLE THE CHIEF JUSTICE UJJAL BHUYAN AND THE.HONOURABLE MRS JUSTICE SUREPALLI NANDA ORDER: (Per the Hon'ble the Chief Justice Ujjal Bhuyan) Heard Mr. K.V.Bhanu Prasad, learned counsel for the petitioner and Mr. B.Narasimha Sarma, learned Standing counsel for Income Tax Department for respondent Nos. 1. 2 &3. the order of attachment dated 18.07.2022 under Section 226(31 of the Income Tax Act, 196 1. 3. Learned counsel for the petitioner submits that after filing of the w-rit petition, there has been some development. Respondents are contemplating to withdraw the attachment on payment of outstanding dues by installments. WRIT PETITION No.30656 of 2022 2. ln this writ petition, chalienge has been made to H(J & SNJ W. P.,^'lct..) Ct 65 ( oJ 2 02 2 4 . In view ol above, iearned cou n,. e I f rr the petitioner sul mits on instructions that petitiorrer rhay be permitted to r ithdraw the writ petition.

5.

Wr it Petition is accordingly dispc s<:d of on withdrawal. i owever, there shall be no ordr:r as to costs.

6.

Mi ;cellaneous applications pending, il zury, 111 this Writ Petit on shall stand closed. 2 Jd/. B SATY.{\'ATHI I] t.]I'UIY REGISTR,\R a/ SEC'IION OFFICER To, //TRUE COP}7/

1.

One CC to ]Rl. K V BHANU PRASAD Advocate IOPUCI

2.

One CC to iRl. B NARASIMHA SARtvlA Advocate [OPtlC l

3.

Two CD Cc ries J I I

I HIGH COUF T UBJ & SNJ DATED:2711 712022 ORDER 1t\ /: t- T v t 1 tE[ ?m, i1,i r':l WP.No.306 i6 of 2022 WRIT PETI -ION IS DISPOSED AS WITI-IDR,qWN WITHOUT (:OSTS 0n u )/ i-.;-: , ,- t- ;.- 1r., ,' _ :----' -,;'-' ,. 0

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