Cause title — parties, addresses and appearances
13447l
IN THE HIGH COURT FOR THE STATE OF TELAN
AT HYDERABAD
(Special Original Jurisdiction)
MONDAY, THE NINTH DAY OF MARCH
TWO THOUSAND AND TWENTY SIX
PRESENT
THE:HONOURABLE SRI JUSTICE P.SAM KOSHY
AND
THE HONOURABLE SRI JUSTICE NARSING RAO NANDIKONDA
WRIT PETITION NOS: 5887 & 59 I OF 2010. w.P.Nos.2270
- 22708 AND 22709
F 2009
w.P.NO: 5887 OF 2010
M/s. Suman Chit Funds Pvt. Ltd.' 5-4-36/1, J.N. Road' Abids, Hyderabad'
Rep. by its Managing Director K. Basava Rao
...'ETIT'ONER
AND
1. The lncome-Tax Officer, Ward 15(2) Range-"|5 Hyderabad.
2. The Commissioner of lncome Tax, Appeals-ll, Ayakar Bhavan, Hyderabad'
...RESPONDENTS
Petition under Article 226 ot lhe constitution of lndia praying that in the
circumstances stated in the affidavit filed therewith, the High court may be
pleased to issue a writ or direction or order more in the nature of writ of
Mandamus declaring the action of the 1st respondent in refusing to grant stay of
collection in total of demand raised on the petitioner in pursuance of the orders
passed under Section 201(1Xb) and 201(14) of the lncome Tax Act dt' 29-12-
2oo9 and the demand notice dt. 29-12-2009 issued under section 156 0f the Act
for a sum of Rs. 1,40,85,307/- (Rs. 93,56,659/- as Tax and Rs 47,28,6481 as
lnterest) and 1,31 ,63,7331 (Rs.95, 15,913/- as Tax and Rs' 36,47,8201- as
lnterest) for the assessment year 2006-07 and 2007-08 respectively and in
directing the petitioner to make a payment of Rs. 1,40,00,0001 collectively
against the demands for the above two assessment years in four equal monthly
installments commencing 1Sth of March 2010 vide impugned proceedings dt. 1-
3-2010 as order passed contrary to the provisions of the lncome Tax Act 1 961
and is being illegal, arbitrary in violation of principles of natural justice and
violative of Article 1a, 19 (1Xg) of the Constitution of lndia and consequenfly set
aside the same and consequently direct the '1st respondent not to collect/recover
any tax in pursuance of order in Proceedings No. TAN- HYDS00467F/2007-0g
d|.29-12-2009 on the file of the 1st respondent pending disposal of the appeal
filed by the petitioner before the 2nd respondent.
t.A. NO : 1 OF2010(WPMP. NO: 7596 0F 2010)
Petition under Section 151 CPC praying that in the circumstances stated
in the affidavit filed in support of the petition, the High Court may be pleased to
grant an order of interim stay of all further proceedings in pursuance of the
impugned order dt. 1-3-2010 for the Assessment year 2007-OB on the file of the
1st respondent including recovery of demand of Rs.1,3.1 ,63,733/- (Rs. 95,
15,913/- as Tax and Rs. 36,47,8201- as lnterest) as per demand notice under
Section 156 of the l.T. Act dt.29-12-2OOg pending disposal of the above writ
petition.
Counsel for the Petitioner: SRI P.S.S.KAILASH NATH FOR SRt T.BALA MOHAN
REDDY
Counsel for the Respondents: Ms. B.SAPNA REDDY, UNDER THE
INSTRUCTIONS OF SRI K.SUDHAKAR REDDY, Sr SC FOR TNCOME TAX
W.P.NO: 5908 OF 2010
Between:
M/s. Suman Chit Funds Pvt. Ltd. 5-4-3611 , J.N.Road, Abids, Hyderabad,
represented by its Managing Director Sri K.Basava Rao.
Ti
AND
1 . The lncome-tax Officer, Ward-15 (2), Range-
2. The Commissioner of lncome Tax, Appeals -
15, Hyderabad.
ll, Ayakar Bhavan, 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 a writ or direction or order more in the nature of writ of
Mandamus declaring the action of the i st respondent in refusing to grant stay of
collection in total of demand raised on the petitioner in pursuance of the orders
passed under section 201 (1) (b) and 2o1 (1A) of the lncome Tax Act dated
29.12.2009 and the demand notice dated 29j2.2009 issued under Section 156 of
the Act for a sum of Rs.1,40,85,307/- (Rs.93,56,659/- as Tax and Rs.47,28,648/-
as lnterest) and Rs.1,31 ,63,7331 ( Rs.95,15,913/- as Tax and Rs.36,47,8201 as
lnterest) for the assessment year 2006-07 and 2007-08 respectively and in
directing the petitioner to make a payment of Rs.1,40,00,00/- collectively against
the demands for the above two assessment years in four equal monthly
installrhents commencing 15th of March, 2010, vide impugned proceedings dated
01-03-2010, as order passed contrary to the provisions of the lncome Tax Act,
1961 and is being illegal, arbitrary, in violation of principles of natural justice and
violative of Article 14, 19 (1 )(g) of the Constitution of lndia and consequently set
aside the same and consequently direct the 1st respondent not to collecvrecover
any tax in pursuance of order in proceedings No.TAN-HYDSO0467F|2O06-07
dated 29.12.2009 on the file of the 1st respondent pending disposal of the appeal
filed by the petitioner before the 2nd respondent.
l.A. NO: 1 OF 2010 (WPMP. NO:7628 OF 2010)
Petition under Section 151 CPC praying that in the circumstances stated in
the affidavit filed in support of the petition, the High Court may be pleased grant an
order of interim stay of all further proceedings in pursuance of the impugned order
dated 01 .03.2010 for the Assessment Year 2006-07 on the file of the 1 st
respondent including recovery of demand of Rs.1,40,85,307^ (Rs.93,56,659/- as
Tax and Rs.47,28,6481 as lnterest) as per demand notice under Section 156 of
the l.T. Act daled 29.12.2O09 pending disposal of the above writ petition.
Counsel for the Petitioner: SRI P.S.S.KAILASH NATH FOR SRI T.BALA MOHAN
REDDY
Counsel for the Respondents: Ms. B.SAPNA REDDY, UNDER THE
INSTRUCTIONS OF SR! K.SUDHAKAR REDDY, Sr SC FOR INCOME TAX
W.P.NO:22707 OF 20Og
Between:
M/s. Neeladri Chit Fund Private Ltd. Rep by its Executive Director, Sri B. J.
Reddy, S/o. B. Ramachandra Reddy, 1-'10-23318, 1st Floor, Ashok Nagar
Cross Roads, Hyderabad - 500 020.
...PETITIONER
AND
'1 . The Additional Commissioner, Range-'l5,4th Floor,'D'Block, l.T. Towers,
A.C. Guards, Hyderabad.
2. The lncome Tax Officer, Ward-15 (1 ), Range-1 5, Hyderabad.
3. The Hon'ble Commissioner, lncome Tax Appeals (ll), Hyderabad.
...RESPONOENTS
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 a writ or direction or order more in the nature of Writ of
Mandamus declaring the action of the 1st respondent in refusing to stay the
operation of order passed by the 2nd respondent under section 201 (1)(b) and
201 (1A) of the lncome Tax Act dated 30-3-2009 and the demand notice dated 30-
3-2009 issued under section 156 of the Act and in directing the collection of
outstanding demand of Rs. 44,96,0111- for the assessment year 2005-2006 vide
impugned proceedings No.F.Addl.C|T/R-15/ stay/2009-2010,dated 24.09.2009,as
order passed contrary to the provisions of the lncome Tax Act, 1961 and is being
illegal, arbitrary, in violation of principles of natural justice and violative of Article
1a, 19 (1Xg) of the Constitution of lndia and consequently set aside the same and
also the proceedings of the 2nd respondent dated 09-7-2009 and consequently
direct the 2nd respondent not to collecVrecover any tax in pursuance of order in
Proceedings NO. TAN-HYDNOO121C/05-06 dated 30-3-2009 on the file of the 2nd
respondent pending disposal of the appeal filed by the petitioner before the 3rd
respondent pending dlsposal of the appeal filed by the petitioner before the 3rd
respondent.
l.A. NO: 1 OF 2009(WPMP. NO: 29484 0F 20091
Petition under Section 151 CPC praying that in the circumstances stated in
the affidavit filed in support of the petition, the High Court may be pleased grant an
order or interim stay of all further proceedings in prusuance of the impugned order
dated 30-3-2009 for the year 2005-2006 on the file of the 2nd respondent pending
disposal of the above writ petition and thus render justice.
Counsel for the Petitioner: SRI P.S.S.KAILASH NATH FOR SRI T.BALA MOHAN
REDDY
Counsel for the Respondents: Ms. B.SAPNA REDDY, UNDER THE
INSTRUCTIONS OF SRI K.SUDHAKAR REDDY, Sr SC FOR INCOME TAX
W.P.NO: 22708OF 2009
Between:
M/s. Neeladri Chit Fund Private Ltd., Rep. by its Executive Director, Sri.
B.J.Reddy, S/o. B.Ramachandra Reddy 1-10-23318, 1st Floor, Ashok Nagar
cross Roads Hyderabad-500020
...pETrrloNER
AND
I . The Additional Commissioner Of lncome Tax., Range-15, 4th floor, 'D' Block,
l.T.Towers, A.C.Guards, Hyderabad
2. The lncome Tax officer, Ward-1 5(1 ) Range-15, Hyderabad
3. The Hon'ble Commissioner, lncome Tax Appeals(ll), 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 a writ or direction or order more in the nature of writ of
mandamus declaring the action of the 1st respondent in refusing to stay the
operation of order passed by the 2nd respondent under section 201(1)(b) and
201(14) of the lncome Tax Act, dated 31.3.2009 and the demand notice dated
31 .3.2009 issued under section 156 of the Act and in directing the collection of
outstanding demand of Rs.56,23,393/- for the assessment year 2006-07 vide
impugned proceedings No.F.No.Addl.ClT/R-1S/Stay/2009-'10 dated 24.9.2009
,2009- l0 dated 24.09.2009 as order passed contrary to the provisions of the
lncome Tax Act,1961 and is being illegal, arbitrary, in violation of principles of
natural justice and vioaltive of Article, 14,19(1)(g) of the Constitution of lndia and
consequently set aside the same and also the proceedings of the 2nd respondent
dated 9.7.2009 and consequently direct the 2nd respondent not to collecUrecover
any tax in pursuance of order in proceedings No.TAN-HYDN00121C/05-06 dated
31.3.2009 on the file of the 2nd respondent pending disposal of the appeal filed by
--
,/
the petitioner before the 2nd respondent pending disposal of the appeal filed by
the petitioner before the 3rd respondent.
l.A. NO: 1 OF 2009(WPMP. NO: 29485 OF 2009I
Petition under Section 151 CPC praying that in the circumstances stated in
the affidavit filed in support of the petition, the High Court may be pleased to grant
an order of interim stay of all furtlier proceedings in pursuance of the impugned
order dated 31 .3.2009 for the year 2006-07 on the file of the 2nd respondent
pending disposal of the above writ petition.
Counsel for the Petitioner: SRI P.S.S.KAILASH NATH FOR SRI T.BALA MOHAN
REDDY
Counsel for the Respondents: Ms. B.SAPNA REDDY, UNDER THE
INSTRUCTIONS OF SRI K.SUDHAKAR REDDY, Sr SC FOR INCOME TAX
W.P.NO: 22709 OF 20Og
Between:
M/s. Neeladri Chit Fund Pvt. Ltd., Rep
S/o. B.Ramachandra Reddy 'l-10-2
Roads, Hyderabad - 500 020
AND
. by its Executive Director Sri B.J.Reddy
33/8, 1st Floor, Ashok Nagar Cross
...PETITIONER
1. The Additional Commissioner of lncome Tax, Range-'l5, 4th Floor, D Block
l.T.Towers, A.C. Guards, Hyderabad.
2. The lncome -Tax Officer, Ward - 15(1 ) , Range - 15, Hyderabad.
3. The Hon'ble Commissioner, lncome Tax Appeals ( ll ), 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 a writ or direction or order more in the nature of Writ of
Mandamus declaring the action of the 1st respondent in refusing to stay the
operation of order passed by the 2nd respondent under section 201(1)(b) and
201(1A) of the lncome Tax Act dated 31.03.2009 and the demand notice dated
31 .03.2009 issued under section 156 of the Act and in directing the collection of
outstanding demand of Rs.50,67,8631 for the assessment year 2007-08 vide
impugned proceedings No. F.No. Addl. CIT / R-15 /Stay / 2009-10 dated
24.09.2009 as order passed contrary to the provisions of the lncome Tax Act,
1961 and is being illegal, arbitrary, in violation of principles of natural justice and
violative of Article 14, 19 (1Xg) of the Constitution of lndia and consequently set
aside the same and also the proceedings of the 2nd respondent dated 09.07.2009
and consequently direct the 2nd respondent not to collect / recover any tax in
pursuance of order in proceedings No. TAN- HYDN 00121C/ 05-06 dated
31.03.2009 on the file of the 3rd respondent.
:
l.A. NO: 1 OF 2OO9{WPMP. NO:
oF 20091
Petition under Section 151 CPC praying that in the circumstances stated in
the affidavit filed in support of the petition, the High Court may be pleased to grant
an order of interim stay of all further proceedings in pursuance of the impugned
order dated 31 .03.2009 for the year 2O07-OB on the file of the 2nd respondent
pending disposal of the above writ petition and thus render Justice.
Counsel for the Petitioner: SRI P.S.S.KAILASH NATH FOR SRI T.BALA MOHAN
REDDY
Counsel for the Respondents: Ms. B.SAPNA REDDY, UNDER THE
INSTRUCTIONS OF SRI K.SUDHAKAR REDDY, Sr SC FOR INCOME TAX
! IN TI{E HIGH COURT FOR THE S'IATE OF TELANGANA AT HYDERABAD .tI{E, HONOURABLE SRI JUSTICE P.SAM KOSHY AND THE HONOURABLE SRT JUSTICE NARSING RAO NANDIKONDA W.P.Nos.5887 & 5908 OF 2010. W.P.Nos.22707. 22708 09.03.2026 W.P.No.5887 OF 2010 Betwecn: M/s Suman Chit Funds Pvt., Ltd, Rep. by its Managing Director K.Basava Rao ...Petitioner AND The lncome Tax Officer, Ward -1s(Z),Range-15, Hyderabad and another ...Respondents COMMON ORDER: @er Hon'ble Srt Justice P.Sam Koshy) Heard Ms. P.S.s.Kailash Nath, leamed counsel representing Mr. T.llala Mohan Reddy, learned counsel for the petitioners in all the writ petitions and Ms. B.Sapna Reddy, learned counsel under the instructions of Mr. K.sudhakar Reddy, learned Senior Standing counsel for the [ncome '[ax Department for the respondents. Perused the record.
the appeal itself in favour of the petitioners against which the department had also preferred an appeal before the Tribunal which too has gone decided in favour of the petitioners. Hence, no cause survives fbr further adjudicating the present batch of writ petitions.
HIGH COURT DATED:09/03/2026 COMMON ORDER WP.Nos.5887 & 5908 of 2010, WP.Nos.22707, 22708 HE ST,q t O B APH 2026 oU * * percfl DISPOSING OF THE WRIT PETITIONS AS INFRUCTUOUS WITHOUT COSTS lfs ahl*
