Sb.Rookya Begum Vs The Chief Commissioner of Income Tax-Ii — Income Tax | Telangana HC (2025)

Sb.Rookya Begum Vs The Chief Commissioner of Income Tax-Ii — Income Tax | Telangana HC (2025)

What the court decided

AI extract

Outcome

No adjudicatory relief granted; both writ petitions disposed of without costs after counsel jointly submitted that the Income Tax Department had reconciled the account, adjusted the outstanding demand and ordered release of the balance amount in favour of H.E.H. Nizam's Jewellery Trust, redressing the purpose of the petitions.

Issue for consideration

Whether the Income Tax authorities could lawfully continue a lien over approximately Rs. 8,99,26,560 lying in fixed deposits with State Bank of Hyderabad, Gunfoundry Branch, when huge refunds were due to the petitioners, and whether the proportionate share of the members of the second petitioner association could be directed to be paid. +1 more

Ratio / Principle

Given that, pending the writ petitions, the account was reconciled by the Income Tax Department and the balance amount was ordered to be released in favour of H.E.H. Nizam's Jewellery Trust after adjustment of the outstanding demand, the very purpose of filing the present writ petitions stands redressed and the petitioners do not intend to pursue them further.

Key takeaways

In view of the above, both writ petitions (W.P.No.6434 of 2012 and W.P.No.194 of 2016) stand disposed of.ratio¶71
There shall be no order as to costs.ratio¶72
Consequently, miscellaneous petitions pending, if any, shall stand closed.ratio¶73

Detailed headnote1 paragraphs

High Court for the State of Telangana at Hyderabad (Special Original Jurisdiction), common order dated 26-08-2025 (authored per Hon'ble Sri Justice P. Sam Koshy; bench included Justice Suddala Chalapathi Rao) disposing of W.P.Nos. 6434 of 2012 (Najaf Ali Khan and Nizam Family Welfare Association) and 194 of 2016 (Sb-Rookya Begum and Mir Mahboob Ali Khan) pending against Income Tax authorities and State Bank of Hyderabad, Gunfoundry Branch, with H.E.H. The Nizam's Jewellary Trust additionally a respondent in the latter. Through Article 226 petitions invoking Articles 14, 16 and 21, the petitioners had sought mandamus to lift the Income Tax lien over approximately Rs. 8,99,26,560 in fixed deposits (Rs. 8.54 crores figure appearing in an interim application of the 2016 petition) and to end attachment of properties held as security for future tax liability continued for over 20 years despite huge refunds due, grievances tied to earlier Court directions in W.P.Nos. 103 of 2005 and 44 of 2006. Without adjudicating these questions, the Court recorded counsel's joint submission that the department had reconciled the account, adjusted an outstanding demand (sum illegible in the source) and ordered release of the balance to H.E.H. Nizam's Jewellery Trust; finding the purpose of filing redressed and the petitioners unwilling to pursue, it disposed of both writ petitions without costs and closed pending miscellaneous applications. No ruling was made on the legality of attaching property as security for prospective tax demands.

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IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD (Special Original Jurisdiction)

TUESDAY, THE TWENTY SIXTH DAY OF AUGUST TWO THOUSAND AND TWENTY FIVE

PRESENT

THE HONOURABLE SRI JUSTICE P.SAM KOSHY AND

THE HONOURABLE SRI JUSTICE SUDDALA CHALAPATHI RAO

WRIT PETITION NOS: 6434 OF 2012 AND194 OF 2016

W.P.No.6434 of 2012

Between:

Najaf Ali Khan, S/o.Late Mr.Hashim Jah Bahadur, Business, Rl/o.Hyderabad.

Nizam Family Welfare Association, a Regd Body, represented by its President t\4r.Najaf Ali Khan,S/o.Late Mr.Hashim Jah Bahadur aged about 47 years,Occ Business Rl/o.Hyderabad.

...,.PETITIONERS

AND

The Chief Commissioner of lncome Tax-ll, Andhra PRadesh,l.T.Towers, A.C.Guards, Hyderabad.

The Commissioner of lncome Tax -Vl, LT.Towers, A.C.Guards, Hyderabad.

The Additional Commissioner of lncome Tax, Range 9 lT Towers, A.C.Guards, Hyderabad.

The Asst.Commissoner of lncome Tax,iircle 9(1), lT Towers, A.C.Guards, Hyderabad.

State Bank of Hyderabad, Gunfoundry Branch, Rep.by its Branch Manager, Hyderabad.

e

.....RESPONDENTS

Petilion 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 any appropriate writ order or direction more particularly a writ in the nature of writ of mandamus and declare the abtion of lhe respondents in continuing lien over an amount of Rs.8,99,261560/- now lying in Fixed Deposits in

state Bank of Hyderabad, Gunfoundry Branch, Hyderaba J when huge amount of refunds is due to the petitioners herein as illegal,. arbit-i ry, contrary to law and violative of Article^'14,16 and 21 of the Constitution ,f lndia and grant the consequential relief by directing the respondents here n to lift lien over the proportionate share of the members of the 2nd t ( :itioner Association in Rs.8,99,26,5601 now lying in the Fixed Deposts in S:i te Bank of Hyderabad Gunfoundry Branch, Hyderabad and pay the said amoL r . to the petitioners and issue any other appropriate writ order or direction.

|.A.NO:1 OF 2012^(WPMP.NO: 81 66 0F 2012)

Petition under Section 15'1 cpc praying that in thrr :ircumstances stated in the affidavit filed in support of the petition, the High cc -rrt may be pleased to direct the respondents herein to pass final orders r the case of all the beneficiaries as directed by this Hon'ble court in wp.Nc 9.103 of 2005 within a period of 2 months pending disposal of this wril pelition.

l.A.NO:2 oF 2012 MP. N 8167 0F 2012

-^{- Petition undersection151 cpcpraying that in the{ ircumstancesstated in} the affidavit filed in support of the petition, the High c,) rt may be pleased to direct lhe respondents to pay their proportionate share in rrore than 20 euarterly interests on the FDR amounts laying in State Bank of - lderabad, Gunfoundr! Branch to the^petitioners pending disposal of this writ petili( n

|.A.NO:1 O F 14 PMP. NO : 5980 OF 2014)'

Petition Under section 151 cpc praying that in the c rcumsrances stated in the affidavit filed in support of the petition, the High c(,r rt may be preased to t advance the hearing of the Writ^petition and post the sirr re next week for finar hearing or alternatively direct the respondents 1 to 4 rerein lo release the proportionatb share of the members of second petitioner herein in the ihterest accrued on the Fixed Deposits with the 5th respondent imrr rdiately.

I.A.N^{O:1OF 2016WPMP.NO: 41719OF 2016}

Petition under Section 151 CPC praying that in the circumstances stated in the affidavit^{filed in supportof the petition, the High Court may be pleasedto} direct^{the officialrespondentsherein to file all consequentialorders passed in all} the appeals^{filed by the members of the second petitioner hereinafter serving} copies^{to the petitioners counsel, pending disposal of the W.P.No. 6424 of 2012.}

Counsel^{for the Petitioners : SRIDANTU SRINIVAS}

Counsel^{for the RespondentNos.1 to 4 : SRI K.SUDHAKAR REDDY, LEARNED} SENIOR^{STANDING COUNSELFOR THE INCOMETAX DEPARTMENT}

Counsel^{for the RespondentNo.5 : -}

w. P.N^{O: '194 OF 2016}

Between:

Sb-Rookya^{Begum, D/o late RajjabJah Bahadur, aged 75 years,} Housewife/Patient,^{R/o3-5-786/521111,} Qaim^{Manzil,King Koti, Hyderabad.}

Mir^{MahboobAli Khan,, L.R of Sb.AsmathunnisaBegum,Aged 40 years, Occ} Business,^R/o King Koti,^Hyderabad.

.....PETITIONERS

AND

The^{Chief Commissionerof lncomeTax-ll,l.T.Towers,A.C.Guards, Masab} Tank, Hyderabad^{- 500 004.}

The^{Commissionerof lncomeTax - 7, l.T.Towers,A.c.Guards, Masab Tank,} Hyderabad - 500^004.

3.^{The AdditionalCommissioner of lncomeTax, Ranga - 9, l.T. Towers,} A.C.Guards,^{MasabTank, Hyderabad- 500004.}

a

The^{lncomeTax Officer, Ward9(4), Room No. 247,2ndFloor, Masab Tank,} Hyderabad - 500 004.

H.E.H.^{The Nizam's JewellaryTrust, Rep. by its Secretary,Single Mahal,} Purani^Haweli, Hyderabad.

State Bank of Hyderabad., Gunfoundry Branch, rep. t I its Branch Manager, Hyderabad.

..,..RESPONDENTS

Petition Under Article 226 of the Constitution of I dia praying that in the circumstances stated in the affidavit filed therewith, I e High Court may be pleased to issue any appropriate Writ, order or direction r tre particularly a writ of mandamus and declare that respondents 1 to 4 have rtr powers under lncome Tax Act or Wealth Tax Act to attach the properties o he assess (Petitioners herein) as security for any future tax liability and continue he attachment for more than 20 years, when huge amount of refunds are due to | -. petitioners herein and others, and declare such altachment as illegal, arbitr;r y, contrary to law and violative of Articles 14 and 21 of the Constitution <' lndia and grant the consequential relief by directing the respondents 1 to 4 rerein to lift attachment over the said amount and issue any other appropriate wr t order or direction.

LA.NO:4 OF 2016( WPMP. NO: 246 OF 2016)

Petition Under Section 15'l CPC praying that in th r circumstances stated irr the affidavit filed in support of the petition, the High O, urt may be pleased to direct the respondent 1 to 4 herein to pay arrears of r .tarterly interest on the above mentioned Fixed Deposit amount of Rs. 8.54 c ores till date and also continue to pay quarterly interest regularly to the petiti( r ers pending disposal of the above writ petition.

l.A.NO:5 OF 2016^(WP MP.NO: 247 OF 20161

Petition Under Section 151 CPC praying that in the circumstances stated in the affidavit filed in support of the petition, the High (),urt may be pleased to direct the respondents 1 to 4 to pass consequential/ rodification orders ancl finalize the matters as directed by this Honble Court in V/^p.No. 9103 of 2005 and l W.P.No. 44 of 2O06 based on the Xerox Copies of he orders filed by the Petitioners before them within one month pending cji,j osal of the above writ petition.

t.A. NO: 7 OF 2016(WPMP. NO: 41710 0F 2016)

Petition under section 151 cpc praying that in th€ circumstances stated in the affidavit filed in support of the petition, the High (l )urt may be pleased to

direct the official respondents herein to file all consequential orders passed in all the cases(appeals) after serving copies to the petitioner's counsel, pending disposal of the writ petition.

Counsel for the Petitioners : SRI DANTU SRINIVAS

Counsel for the Respondent Nos.1 to 4 : SRI K.SUDHAKAR REDDY, LEARNED SENIOR STANDING COUNSEL FOR THE INCOME TAX DEPARTMENT

Counsel for the Respondent No.5 : -

The Court made the following COMMON ORDER

a

THE HONOURABLE^{SRI JUSTICEP.SAMKOSH'I} AND TTIE HONOfIRABLE^{SRI JUSTICEST]DDALACHALAPAI"II RAO}

,VRIT PET ITION Nos.643^{4 of 2Ol2 and 194 of 20} I

COMMON^{ORDER:(per Hon'bte Sri Justice P.Sam Kosny)}

Heard Sri Dantu^{Srinivas,learnedcounsel for the I titioners;} Sri K-sudhakar^{Reddy, learned Senior StandingCounsel for I e Income} Tax Depaftment,^{for respondent Nos.l to 4'}

'fhe substantial grievance of the petitioners in thcsc two^writ pctitioncrs rvas^{so lar as the IncomeTax Authoritiesat i rhing the} properties of^{the petitionersas security for future tax liabilitr}

'foday, when the matters are taken-up for hearing' t tc lcarned counsel for^{the petitionersas also the leamed SeniorStandt g Counsel} for the Income^{Tax Department subrnittedthat pending rv'i petitions'} the account^{has beenrcconriiled by the lncomeTaxDcpatmcntand} after adjusting^{of the outstanding demand ol Rs'2'62'i9754L'tho} balance amount^{has been ortlercd to be released in favour( I the II E'H'} Nizam's Jewellery^Trust.

Given the sai<l fact^{that afteradjustmentof t t} '^aloresaid outstanding^{demand and the releasing of the amountto 11) Trust' the}

2

very purpose of hling of the present writ petition stands redressed and

they do not intend to pursue further the writ petitions.

In view of the same, these two Writ Petitions also stand disposed

of. There shall be no order as to costs

Consequently, miscellaneous petitions pending, if any, shall

stand closed.

Sd/-AJAYASREE ISTANT^REGISTRAR //TRUE COPY//

SECTION^OFFICER

To 1. The Chief^{Commissioner of lncomeTax-ll' l-T} rs, A-C.Guards,^Masab Tank, HYderabad^{- 500 004'}

1. The Commissioner^{of lncomeTax - 7'l.T.Towers, A.c.Guards'MasabTank,} Hvderabad^- 500^004.

;fr;il;iil"al^{Commissionerof lncomeTax'Ranga - 9' I'T Towers'} A.C.Guards,^{MasabTank, Hyderabad - 500 004} , -

+. f nu^{incomeraxOfficer, WaiO o1+1, RoomNo' 247} '^{znd Floor' MasabTank'} Hyderabad^{- 500 004.}

s. ft" S""r"irty,^{H.EH. The Nizam's JewellaryTrust' Single Mahal' Purani} Haweli,^HYderabad.

o. in" air";t^{Manager,State Bankof Hyderabad''GunfoundryBranch'} Hyderabad.

z. iie ntsistrnt^{Commissioner of lncomeTax'Circle9 (1)' l'T' Towers'} A.C.Guards,^{MasabTank,HYderbad'}

One^{CC to SRIDANTU SRINIVAS,Advocate [oPUUl.}

;. - o;; aa^{to SRtK.SUDHAKAnneooY,LEARNED sENloRSTANDING} COUf.rSeL^{FOR THEINCOMETAX DEPARTMENT' Advocate [OPUC]}

10.Two CD^CoPies t

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SB Ny

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HIGH COURT

DATED:2610812025

COMMON ORDER

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WP.Nos.6434 OF 2012 AND 194of2016

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DISPOSING OF THE BOTH

WRIT PETITIONS WITHOUT COSTS

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