Shaik Basheed, vs. The Principal Chief Commissioner of Income Tax and others 4

[ 3523 ] IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD (Special Original Jurisdiction) FRIDAY, THE SIXTEENTH DAY OF OCTOBER TWO THOUSAND AND TWENTY SIX PRESENT THE HONOURABLE THE ACTING CHIEF JUSTICE P.SAM KOSHY AND THE HONOURABLE SRI JUSTICE SUDDALA CHALAPATHI RAO WRIT PETITION NO: 35787 OF 2026 Between: Shaik Basheed, S/o. lbrahim Shaik, Aged about 41 years, Occu: Business, Rt/o. H.No. B-2-2931821N304, Road.No. 25, Near Butterfly Garden, Jubilee Hills, Shaikpet, Hyderabad, Telangana. ..PETITIONER AND 1. The Principal Chief Commissioner of lncome Tax, AP and TS, 1Oth Floor, C Block lT Towers, 1023, AC Guards, Hyderabad, Telangana. 2. The Tax Recovery Officer-1 , O/o. PCIT-1 , Hyderabad. 3. The Assistant Commissioner of lncome Tax, Circle 6(1), Hyderabad. 4. The Assistant Commissioner of lncome Tax, Circle 14(1), Hyderabad. 5. The National Faceless Assessment Centre, lncome Tax Department, Ministry of Finance, Govt. of lndia, New Delhi. ...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 appropriate Writ order or direction one in the nature of Writ of Mandamus declaring the action of Respondents in issuing the impugned proceed ings/notice dated 23.09.2026 demanding the Petitioner to pay an amount of Rs.137,35,55,6601 taken nearly four years after the alleged Tax Recovery Certificate No.883 dated 22.09.2022 stated to have been drawn by Respondent No.3 and the alleged Notice under Rule 2 of Second Schedule in Form ITCP-1 dated 26.10.2022 unsupported by

,f any disclosed explanation concerning the intervening period and without providing relevant documents pertaining to demand amount and further seeking recovery from the Petitioner an amount of Rs.94,41 ,53,9811 in respect of tax demands allegedly outstanding against Mis SBK Films Private Limited, a private limited company, without disclosing or furnishing any order determining the Petitioner's personal liability under Section 179 of the lncome-tax Act, 1961 , or the corresponding provision applicable to the proceedings and without following due process of law contemplated under the provisions of second schedule of lncome-Tax Act 196i and provisions pertaining to recovery proceedings contemplated under the lncometax Act 1961 as illegal arbitrary, against principles of Natural Justice and in violation of Petitioners rights guaranteed under Article '14,'19 and 265 of the constitution of lndia and set aside the impugned proceed ings/notice dated 23.09.2026 and direct the Respondents to produce, the complete departmental record, including the underlying assessment and demarrd orders, recovery certificate, Form l.T.C.p. No. 1 dated 26.10.2022, recovery proceedings against the petitioner and M/s sBK Films private Limited, any show-cause notice allegedly issued to the petitioner, proof of seryice, the Petitioners reply, hearing records and any order determining the petitioners personal liability. l.A. NO: 1OF 2026 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 stay the proceedings / notice dated 23.09.2026 issued by Respondent No.2 against the Petitioner and further the direct the Respondents not to initiate or continue coercive recovery against the Fetitioner's personal assets pursuant to the impugned proceedings dated 23.09.2026, pending disposal of the writ petition. Counsel for the Petitioner: SRI SIRIPURAM KESHAVA Counsel for the Respondent No.1 to 4: Ms. B.SAPNA REDDy, SC FOR CB|T Counsel for the Respondent No.5: SRI N.BHUJANGA RAO, DEPUTY SOLICITOR GENERAL OF INDIA The Court made the following: ORDER

-f IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD THE HON'BLE THE ACTING CHIEF JUSTICE P.SAM KOSHY AND THE HON'BLE SRJ JUSTICE SUDDALA CHALAPATHI RAO WRIT PETITION No.35787 0F 2026 (CNR No. HBHC 0 1 07 3 5 482026\ Dated: 16.10.2026 Between Shaik Basheed S/o.Ibrahim Shaik .Petitioner AND The Principal Chief Commissioner of Income Tax, AP and TS, 1Oth Floor, C Block IT Towers, 1023, AC Guards, Hyderabad, Telangana and 4 others Respondents ORDER: (per the Hon'ble the Acring Chief Justice p.Sam Koshy) Heard Mr. Siripuram Keshava, learned counsel appearing for the petitioner and Ms.B. Sapna Reddy, learned counsel appearing for respondent Nos.1 to 4. 2. The present writ petition is filed assailing the notice dated 23.09.2026 issued by respondent No.2 under Second Schedule of the Income Tax Act, 1961. The primary contention of the petitioner is that the said notice issued, is per se bad in law for the reason that the petitioner, at the first instance, requested the Department to produce

- 2 certain documentri by which he would be in a position to give an effective reply to the notice dated 23.09.2026 issued by the Department 3. The infbrmation sought for by the petitioner is extracted hereunder "l. Grant me one month's time to submit a detailed resporue and supportins docunrents. 2. I)rovirle copir:s of the relevant assessment orders, demand computations, recovery orders and the records forming the basis of the allegatrons, wherever rhese have not already been supplied. 3. Consider my earlier representations conceming the disputed filings and my request for an opporturuty to correct them. 4. Kindly keep further coerclve recovery measures in abeyance, to the extent penrrissible under law, during the requested period and Lrntil my representation hal; been considered. 5. (irant nre a reasonable opportudty of personal hearing before any further adr erse action is taken." 4. The said infirrmation sought for by the petitioner was pursuant to the notice dated 23.09.2026, which is under challenge in this writ petltton 5. A plain read ng of the contents of the notice dated 23.09.2026 itself go to shorv that the petitioner has been called upon to produce certajn information and documents, which he has in his possession,

- 3 that which is reflected in the schedule attached to impugned notice. It appears that the petitioner instead of cooperating with the Department in furnishing this information has, on the other hand, sought for certain information in tum from the Department, which in the opinion ls nothing but a stand taken by the petitioner to protract the proceedings and also in derailing the proceedings now initiated by the respondents. 6. We did not see any good reason why an inference to the impugned notice is called for at this juncture when the petitioner has been called upon to appear before the authorities on 22.10.2026 by the Department at the given time where the petitioner can appear and submit all the documents and information that he has pursuant to the impugned notice dated 23.09.2026 and thereafter the petitioner can place any objection or information in respect of which the defence before the authorities concerned and in the course of proceeding further, the authorities shall also consider the information that the petitioner shall supply and also the information to which the petitioner does thus requires in terms of the email that he had sent to

- 4 the Department on 10.10.2026 seeking for those information referred to in the proceedinlgs 7. Subject to the petitioner appearing before the authorities on the given date and also lumishing all the relevant and material documents and infomratron in support of the proceedings, the authorities are expected to proceerl strictly in accordance with law and shall consider the same and pass appropriate orders 8. Accordingly. the Writ Petition is disposed of. There shall be no order as to costs MiscellaneolLs applications, if any pending, shall stand closed. //TRUE COPY/i SD/- K.V.O. NARSI BABU ASSISTANT REGISTRAR (9- SECTION OFFICER To, 1. The Principal chierf commissioner of rncome Tax, Ap and rS, 1Oth Froor, c Block lT Towers, i023, AC Guards, Hyderabad, Telangana. 2. The Tax Recovery Officer-1, O/o. pClT-1, Hyderabad, 3. The Assistant Conrmissioner of lncome Tax, Circle 6(.1), Hyderabad. 4. TheAssistant Commissionerof lncomeTax, Circle 14(1), Hyderabad. 5. The Nationar Faceless Assessment centre, rncome Tax Department, Ministry of Finance, Govt, of lndia, New Delhi. 6. One CC to SRt StRtpURAM KESHAVA, Advocate tOpUCl 7. One CC ro Ms. B.SAPNA REDDY, SC FOR CB|T [OPUC] B. One CC to SRI N,BHUJANGA RAo, DEPUTY S.LICIT.R GENERAL oF lNDlA, High Court flr the State of Telangana at HyderabaO 1OPUC1 9. Two CD Copies BSR

HIGH COURT DATED: 1611012026 ORDER WP.No.35787 of 2026 1 e STAI,I k o': . A o() 2B 0[1 2ffi a t, + DISPOSING OF THE WRIT PETITION, WITHOUT COSTS (s ib ttt