Kapusambam P a C S Ltd. Vs the Principal Commissioner of Income TAX-1

M/s. Kapusambam P A C S Ltd., Kapusambam V M Duggivalsa PO, Garividi Mandal, Vizianagaram - 535 101, Andhra Pradesh, Represented by its Chief Executive Officer, Mr. Suri Demudu Kapusetti, S/o. Mr. Pyditalli Kapusetti.

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...PETITIONER/S

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AND

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The Principal Commissioner Of Income Tax-1, Visakhapatnam,^2nd Floor, Aayakar Bhavan, Daba Gardens, Visakhapatnam - 530 020, Andhra Pradesh.

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The Income Tax Officer - Ward 1, Vijayanagaram, Income Tax Office Koppu Guarana Building, Siddartha Nagar,

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Assessment Unit, Income Tax Department, National e-Assessment Center, New Delhi, Room No. 401,2nd Floor, E-Ramp,^Jawaharlal Nehru Stadium, New Delhi - 110 003

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The Joint Commissioner (Appeals)/ the Commissioner^ofIncomeTax (Appeals), National Faceless Appeal Centre, Delhi,^Throughthe Principal Chief Commissioner of Income Tax (NaFAC)^Delhi,North Block, New Delhi - 110 001

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The Chief Commissioner of Income Tax, Hyderabad, I T Towers, AC Guards, Masab Tank, Hyderabad - 500 004, Telangana

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...RESPONDENT/S

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Petition under Article 226 of the Constitution of India praying that in the circumstances stated in the affidavit filed therewith, the High Court may be pleased to issue a Writ of Mandamus or any other^{appropriateWrit,} Order or Direction, declaring the order passed by the^{1stRespondent,vide} DIN & Letter No ITBA/COM/F/17/2024-25/1068263720(1), dated 02.09.2024 in directing the Petitioner to pay 15 %^{ofthedisputeddemand,} pending disposal of the appeal of the Petitioner before^{the1stAppellate} Authority, i.e., the 4th Respondent herein, for the^{AssessmentYear2019} - 20, as arbitrary, illegal barred by limitation, bad in law, void-ab-initio, violative of the principles of natural justice, apart^{frombeingviolativeof} Articles 14,19(1)(g) and 265 of the Constitution of^{IndiaSecMSAofthe} Income Tax Act, 1961, and to consequently set aside^thesame in the interests of justice. lA NO: 1 OF 2025 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 all further proceedings, including any recovery, pursuant to the order passed by the 1st Respondent, vide DIN & Letter No.:ITBA/COM/F/17/2024-25/1068263720(1), dated 02.09.2024 in directing the Petitioner to pay 15% of the disputed demand, pending disposal of the appeal of the Petitioner before the^1st Appellate Authority,

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i

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i.e., the 4th Respondent herein, for the Assessment Year 2019 - 20 pending disposal of the above Writ Petition.

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Counsel for the Petitioner(s):SRI. A V A SIVA KARTIKEYA

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Counsel for the Respondents: --

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The Court made the following Order:

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IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI [3526] (Special Original Jurisdiction)

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MONDAY, THE FIFTY DAY OF MAY

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TWO THOUSAND AND TWENTY FIVE

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PRESENT

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THE HONOURABLE SRI JUSTICE NINALA JAYASURYA AND

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THE HONOURABLE SRI JUSTICE TARLADA RAJASEKHAR RAO

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WRIT PETITION No.11552 of 2025

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Between:

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1.M/S Kapusambam P A C S Ltd., Kapusambam V M Duggivalasa PO, Garividi Mandal, Vizianagaram - 535 101, Andhra Pradesh, Represented by its Chief Executive Officer, Mr.Suri Demudu Kapusetti, S/o.Mr.Pyditalli Kapusetti.

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...Petitioner

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AND

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I.The Principal Commissioner of Income Tax-1, Visakhapatnam,² nd Floor, Aayakar Bhavan, Daba Gardens, Visakhapatnam - 530 020, Andhra Pradesh, and others.

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...Respondents

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Counsel for the Petitioner:

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1.AVASIVAKARTIKEYA

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Counsel for the Respondents: 1.

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This Court delivered the following ORDER; {per NJS,J)

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Heard Mr.A.V.A.Siva Kartikeya, learned counsel for the petitioner, who appeared through online. Also heard Mr.Vamsi Krishna Bodapati, learned Junior Standing Counsel representing Mr.Anup Koushik Karavadi, learned Senior Standing Counsel for the Income Tax Department.

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2

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2. The writ petition is filed seeking the following relief:

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to issue a Writ of Mandamus or any other appropriate Writ, Order or Direction, declaring the order passed by the Respondent, vide DIN and Letter No.lTBA/COM/F/17/2024-25/1068263720(1),^dated 02.09.2024 in directing the petitioner to pay 15% of the disputed demand, pending disposal of the appeal of the petitioner^{beforethe7®'} Appellate Authority, i.e., the 4"’ Respondent herein,^{fortheAssessment} Year 2019-20, as arbitrary, illegal, barred by limitation,^badinlaw, vold-ab-initio, violative of the principles of natural justice, apart from being violative of Articles 14,19(1)(g) and 265 of the Constitution of India and Sec148A of the Income Tax Act, 1961, and to consequently set aside the same in the interests of Justice.”

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The learned counsel for the petitioner, while making^submissions with reference to various legal contentions raised in the writ affidavit, submits the circumstances under which the petitioner society could not file its return of the tax in time. He submits that the order passed by the respondent No. 1 directing the petitioner to pay 15%^{ofthedemanded} amount, without considering the case of the petitioner,^{isnotsustainable.} He states that due to financial constraints, even the instalments granted by the respondent No.1 were not paid. He also submits^that in similar circumstances a Coordinate Bench of this Court vide order dated 31.12.2024 in Writ Petition No.27342 of 2024 was pleased to dispose of the same with a direction to the Appellate Authority to dispose of the appeal within a period of six months and that during^{thependencyofthe} appeal, the Authorities shall not insist for the payment^{oftheinstalments} granted towards the outstanding amount. The learned^{counselsubmits} that in fact against the demands raised by the Assessing Authorities several writ petitions were filed and while entertaining the said writ petitions, interim orders were granted.

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Whereas, the learned Junior Standing Counsel for the respondent Department submits that it is not the case of the writ^{petitionerthat} it is not capable of paying the instalment amounts and further^thathaving

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3

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rivailed the remedy of appeal, the writ petitioner is not justified in filing the writ petition.

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Though the learned counsel for the petitioner raised^severallegal contentions and it is also not in dispute that several writ petitions challenging the demands raised by the Assessing Authorities were entertained, in the light of the orders passed in Writ^{PetitionNo.27342of} 2024, dated 31.12.2024, this Court is inclined to dispose of the writ petition on similar lines.

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The respondent No.4-Appellate Authority shall dispose of the appeal preferred by the writ petitioner within a period^{ofsixmonthsfrom} the date of receipt of a copy of this order. Pending disposal of the appeal, no action to collect the outstanding tax demand/instalme^ntsshall be initiated and the liability of the petitioner, if any, shall be subject to the decision of the Appellate Authority, in the appeal on merits. The petitioner is at liberty to file additional material, if any, before the Appellate Authority and it is needless to state that before passing orders as indicated above, the petitioner shall be afforded an opportunity of hearing.

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With the above directions, the writ petition is disposed^of. No order as to costs. Miscellaneous petitions pending, if any,^{shallstandclosed.}

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//TRUE COPY//

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To,

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The Principal Commissioner Of Income Tax-1, Visakhapatnam,^2nd Floor, Aayakar Bhavan, Daba Gardens, Visakhapatnam - 530 020, Andhra Pradesh.

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The Income Tax Officer - Ward 1, Vijayanagaram Income Tax Office, Koppu Guarana Building, Siddartha Nagar.

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The Assessment Unit, Income Tax Department, National^e-Assessment Center, New Delhi, Room No. 401,2ncl Floor, E-Ramp,^Jawaharlal Nehru Stadium, New Delhi - 110 003

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The Joint Commissioner (Appeals), the Commissioner^ofIncomeTax (Appeals), National Faceless Appeal Centre, Delhi,^Throughthe Principal Chief Commissioner of Income Tax (NaFAC)^Delhi,North Block, New Delhi - 110 001

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