Mrs. Sandhya Kondapally vs. The Income Tax Officer

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WP/219/2025HC TelanganaHBHC01000238202506 January 2025Bench: SUJOY PAUL,G.RADHA RANI5 pages
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What did the High Court hold?

The High Court disposed of the writ petition by directing the Assessing Officer not to pursue recovery proceedings pursuant to the impugned order dated 05.11.2024, until the appeal for Assessment Year 2016-17 is finally decided by the appellate authority. This decision was made in terms of an order passed by a Coordinate Bench in a similar writ petition (W.P.No.25260 of 2024). The Coordinate Bench had noted that while the issuance of a Section 148 notice was not disputed, the Assessing Authority ought to have taken a pragmatic view and kept recovery proceedings in abeyance pending the appeal. The High Court clarified that it had not expressed any opinion on the merits of the case. The appellate authority was directed to endeavor to decide the appeal expeditiously. No costs were awarded.

What were the facts?

The petitioner, Mrs. Sandhya, filed a writ petition before the High Court of Telangana challenging an order dated 05.11.2024, passed by the Income Tax Officer (1st Respondent). This order directed the petitioner to pay a sum of Rs. 79,00,000/- pending disposal of her appeal before the 1st Appellate Authority (4th Respondent). The assessment year in question is 2016-17. The petitioner sought a writ of mandamus to declare the order arbitrary, illegal, barred by limitation, void-ab-initio, and violative of principles of natural justice and constitutional provisions. She also sought a stay of recovery proceedings. The petition was filed under Article 226 of the Constitution of India.

What were the issues?

1. Whether the order passed by the Income Tax Officer directing payment of Rs. 79,00,000/- pending appeal is arbitrary, illegal, barred by limitation, void-ab-initio, and violative of principles of natural justice and constitutional provisions, specifically Articles 14, 19(1)(g), and 265 of the Constitution of India, and Section 148A of the Income Tax Act, 1961? Assessee's Contention: The petitioner argued that the order directing payment pending appeal was arbitrary, illegal, barred by limitation, void-ab-initio, and violative of natural justice and constitutional rights. The petitioner sought to set aside the order and grant a stay of recovery. Revenue's Contention: The judgment does not explicitly record the revenue's contentions. However, the context implies the revenue sought to enforce the demand raised by the Income Tax Officer.

Which sections of the Income-tax Act were involved?

Section 148A

AI-generated summary — verify with the full judgment below

HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD (Special Original Jurisdiction) MONDAY, THE SIXTH DAY OF JANUARY TWO THOUSAND AND TWENTY FIVE PRESENT THE HONOURABLE SRI JUSTICE SUJOY PAUL AND THE HONOUR.ABLE DR. JUSTICE G.RADHA RANI I s430 ] years, Road, ...PETITIONER Between: Mrs Sandhya {o1{qO-qtly, D/o: Mr. G Malta Reddy, aged 57 Occ. Business, 6-3-1099i 1/3,4,'121404, Aditya Classic, 'Raj "Bnavan Somajiguda, Hyderabad - 500 082 Telangana. AND 1. 2 3 4 5 The lncgme Tax Officer, Ward 6(1), Hyderabad, lT Towers, AC Guards, lr,4asab Tank, Hyderabad - 500 004, T6langana. Assessment Unit lncome Tax Department National e Assessment Center New Delhi, Room No 401 2nd Floor E Ramp Jawaharlal Nehru Stadium New Delhi - 110 003 The Principal Commissioner of lncome Tax - '1, lT Towers, AC Guards, Masab Tank, Hyderabad - 500 004, Telangana. The Joint Commissioner, (Appeals) / the Commissioner of lncome Tax $OO9als1, National Faceless Apaeal Centre, Delhi, Through the principal Chief Commissioner of lncome Tax (NaFAC), Delhi, NortfiBlock, New Delhi - 110001. The Central Board of Direct Taxes, Represen{ed by its Chalrman. Department of Relenue, Mifiglry of Finance, Government of lndia, Secretariat Buildings, New Delhi - 1 10 001 . WRIT PETITION NO: 219 OF 2025 ...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 Wflt of Mandamus or any other appropriate Writ, Order or Direction, declaring the order passed by the 1st Respondent, vide DIN and Letter No.- ITBA/RCV/F/1712024-2511070129177(1), dated Os.11.2024, in directing the Petitioner to pay a sum of Rs. 79,00,000/-. pending disposal of the

appeal of the Petitioner before the 1't Appellate Authority. i.e , the 4th Respondent herein for the Assessment Year 2016 ' 17. as arbitrary, illegal, barred by Iimitatiorr, bad in law, void-ab-initio. violative of the principles of natural justice, apart frorn being violative of Articles 14. 19(1 Xg) and 265 of the Constitution of lnclia and Sec 148A of the lncome Tax Act, 1961, and consequently set-aside the same and grant stay of recovery. pending disposal of the Petitioner's appeal before the 1st Appellate Authority, in the interests of justice. IA NO: 1 OF 2025 Petition unCer Section 151 CPC praying that in the circumstances stated in the affidavit filecl in support of the writ petition, the High Court may be pleased to stay atl further ltroceedings, including any recovery, pursuant to the order passed by the 1st Respondent, vide DIN & Letter No.- ITBA/RCV|F|1712024- 25t'1070129177(1 ), dated 05.11.2024, in directing the Petitioner to pay a sum of Rs. 79,00,000/-, pending disposal of the appeal of the Petitioner before the 1st Appellate Authority. i.e., the 4th Respondent herein, for the Assessment Year 2016 - 17, pending rlisposal of the above Writ Petition. Counsel for the Petitioner: SRI A. V. A. SIVA KARTIKEYA Counsel for the Res;pondents: MS. BOKARO SAPNA REDDY (Jr. SC FOR INCOME TAX) The Court made tlte following: ORDER

ORDER (Per Hon'ble SP,J) Sri A.V-A' Siva Kartikeya' learned counsel for the petitioner and Ms' B' Sapna Reddy' learned Junior Standing Counsel for Income Tax Department' for the respondents' 2 With the consent {inallY heard' 3. karned counsel for the parties agreed that this petition may be disposed of in terms of order passed by a Coordinate Bench of this Court in W'P'No'2526O of 2024' A Coordinate Bench of this Court in aforesaid 4 THE HONOURABLE SRI JUSTICE SUJOY PAUL AND THE IION'BLE DT, WSTICE G. RADHA RANI WRIT PETITION No.2L9 of2o25 W.P.No.2526O ol 2024 recorded as under: "6. The contention of the learned counsel for the .i".i,i.".. so far as the 148 notice issued by the ffi#:;; e,"".""i.g ollicer not being in dispute bv il'. t."t'd:;;;;-s d"""sel for the Departrnent and ;i;^;;';h; light of Ihe aforesaid judgments-rendered bv this Court in the case of Kankanala Ravindra Reddy Ii";; l;;;J'," tr'' Iisht of the judgment of the E;Ifi"'b;;;,.,' court"in case of Ashish Agarwal i."r*'ri;;-.." or the considered opinion that the )r"*'.,""f "i Authority in the course of deciding the ;.ffiffi";;s..do" 220(61 of the Act' ought to have take a more pragmatlc view'and should had kept the ;";;";;';.;edfngs in abevance' pending the appeal b.fo." ifle APPellate Authoriry' I

2 7. For the aforesaid reasons, we dispose of the present Writ Petition at this juncture direciing the aslessing Offict:r not to pursue with the .".ou.ry" p.o...ai"g" i., ternrs;.of the impugned order dated ti.OA.ZOZC rlll ttre appeal for the Assessment year 2OlB_14 is Iinally decided." 5. In view of aforesaid order, this petition is disposed of by directing ttre Assessing Officer not to pursue the recovery proceedings i, terms of the impugned assessment order till the decision of the appellate authorie. The appellate authorit5r shall make endeavour to decide the appeal expeditiously. It is made clear that this Court has not expressed any opinion on the merits of the case. No costs. Interlocutory applications, stand closed. if any pending, shall also //TRUE COPY' To, 5 4 1. The lncome Tax Officer, Ward 6(1), Hyderabad, lT Towers, AC Guards, 2 Masab Tank, Hyderabad - 500 004, Telangana. Assessment lJnit, lncome Ta'x Department, National e-Assessment Center, New Delhi, [Room No.- 4O1 ,2nd Floor, E-Ramp, Jawaharlal Nehru Stadium, New Delhi - 1 10 003. The Principal Commissioner of lncome Tax - 1,, lT Towers, AC Guards, Masab Tank:, Hyderabad - 500 004, Telangana. The Joint Corrmissioner, (Appeals) / the Commissioner of lncome Tax (Appeals), National Faceless Appeal Centre, Delhi, Through the Principal Chief Commissioner of lncome Tax (NaFAC), Delhi, North Block, New Delhi - 110001. The Chairman, The Central Board of Direct Taxes, Department of Revenue, Ministry of Firance, Government of India, Secretariat Buildings, New Delhi - 110001. One CC to Sri A. V. A. Siva Kartikeya, Advocate [OPUC] One CC to tr/s. Bokaro Sapna Reddy (Jr. SC for lncome Tax) [OPUCI Two CD Copi,:s J 5. b. 7. o T GJP SD/- I... VIJAYA LAXMI ASSISTANT REGISTRAR // 9EC:TION OFFICER

It $ I HIGH COUR'T DATED:0610112025 1 ORDER WP.No.219 c,f 2025 DISPOSING OF THE WRIT PETITION WITHOUT COSTS 0 o tttnn zuzs * * .L 6O PAT t)rs Ct\ $'7.4 16: E H 1 o {

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