Disposed¶55

Late Mr. Gangadhar Mandava v. The Deputy Commissioner of Income Tax

Telangana HC7 Mar 2025WP/6869/2025

Case brief

AI extract

What is this about?

Faceless assessment; National Faceless Appeal Centre (NaFAC); National e-Assessment Centre; 20% deposit of disputed demand; rejection of stay application; stay of recovery pending appeal; Assessment Year 2016-17; Income Tax Act 1961 S.14BA and S.148A; Articles 14, 19(1)(g), 265 and 226; Section 151 CPC; Deputy Commissioner of Income Tax Circle 1(1) Hyderabad; CBDT; W.P. Nos. 1974 & 1975 of 2025 common order; no compelled deposit while first appeal pending; Telangana High Court common order 07.03.2025; disposed without costs.

What did the court decide?

Impugned orders dated 07.01.2025 set aside; appellate authority directed to decide the petitioners' appeals expeditiously on merits without compelling deposit of the demanded amounts; writ petitions disposed of without costs; pending interlocutory applications closed. ¶55

Late Mr. Gangadhar Mandava Vs The Deputy Commissioner of Income… — Income Tax | Telangana HC (2025)

What the court decided

AI extract

Outcome

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Issue for consideration

Whether the order dated 07.01.2025 passed by the 1st Respondent rejecting the petitioner's stay application, pending disposal of his appeal before the 1st Appellate Authority for Assessment Year 2016-17, is arbitrary/illegal and liable to be set aside with a grant of stay of recovery (W.P. No. 6815 of 2025). +1 more

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Ratio / Principle

In view of the consensus arrived at between counsel for the parties, the impugned orders both dated 07.01.2025 are set aside.

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Key takeaways

The learned appellate authority shall decide the appeals preferred by the petitioners expeditiously on their own merits, but shall not compel the petitioners to deposit the amounts demanded, considering the nature of the cases.ratio¶55
Both writ petitions are disposed of, with no costs.ratio¶56
Interlocutory applications, if any pending, shall also stand closed.ratio

Detailed headnote1 paragraphs

High Court for the State of Telangana (Acting Chief Justice Sujoy Paul and Renuka Yara, J.), common order dated 07.03.2025 in Writ Petition Nos. 6815 & 6869 of 2025. The petitioners - an employee and the legal heir of a deceased assessee, both giving addresses at Creamline Diary Products, Somajiguda, Hyderabad - challenged orders dated 07.01.2025 of the Deputy Commissioner of Income Tax, Circle 1(1), Hyderabad: rejection of a stay application (W.P. 6815) and a direction to pay 20% of the disputed demand (W.P. 6869), in each case pending disposal of their appeals before the Joint Commissioner (Appeals)/CIT(Appeals), National Faceless Appeal Centre, for Assessment Year 2016-17, pleading violation of Articles 14, 19(1)(g) and 265 of the Constitution and Sections 14BA/148A of the Income Tax Act, 1961. On counsel's consensus, and consistently with the Court's earlier common order in W.P. Nos. 1974 & 1975 of 2025 in faceless-assessment stay matters, the Court set aside both impugned orders and directed the appellate authority to decide the appeals expeditiously on merits without compelling deposit of the demanded amounts. Writ petitions disposed of without costs; pending interlocutory applications closed.

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[³⁴⁴⁶ ]

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

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FRIDAY, THE SEVENTH DAY OF MARCH TWO THOUSAND AND TWENTY FIVE

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PRESENT

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THE HONOURABLE THE ACTING CHIEF JUSTICE SUJOY PAUL AND THE HONOURABLE SMT JUSTICE RENUKA YARA

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WRIT PETITION Nos.68 15 & 6869 0F 2025

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WRIT PETITION NO: 6815 OF 2025

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Between:

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Mr. Bhasker Reddy Kondapally, S/o. Mr. Narasimha Reddy, aoed 64 vears. ucc.. Employee, ^H.No-6-3-123818.121 , Creamline Diary Products t_iiniteO, Rajbhavan Road, Somajiguda, Hyderabad - 500 082, Telingana.

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...PETITIONER

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AND

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1 The^{DeputyCommissio.nerof lncorneTax, Circle1(1} ),^{Hyderabad, lncome} Iax Towers, A C Guards, Masab Tank, Hyderabad _500 OO+, Telangana.

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2 Assessment Unit, lncome T-qx Department, National e Assessment Center New Delhi Room No. 401 2nd Flobr E Ramp Jawaharlal Nehru Stadium New Delhi

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3 The P.rincipal Commissioner of lncome Tax - 1, Income Tax Towers, A C Guards, Masab Tank, Hyderabad - 500 004, T6langana.

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4 The Joint Commissioner (Appeals) / the Commissioner of lncome Tax Sppgqts),^{NationalFacelessAppeal Centre,Delhi,Through} the^principal Chief Commissioner of lncome Tax (NaFAC), Delhi, NortfiBlock, New'Delhi _ 1 10 001

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5 The Cenkal Board of Direct Taxes, Represented by its Chairman, Departmentof ReIenue, .tt4'l,il!ry of Finance, Govei.nment of tntia, SeCretiiiji Auitdi,;g;, New Delhi - 110 001 .

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...RESPONDENTS

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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 of Mandamus or any other appropriate writ, order or Direction, declaring the order passed by the 1"t Respondent, vide DIN and Letter No.. lrBA/coMlFl1712024-2511071966s63(1), dated 07.01 .2o2s, in rejecting the

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stay application fileJ by the^{Petitioner, pending disposalof the appealof the} Petitioner before the, 1't Appellate^{Authority, i.e., the 4th liespondentherein, for} the Assessment Year 2016^{- 17} , as arbitrary,^{illegal, barrerdby linitation, badin} law,l void-ab-iniiio, violative of the^{principlesof naturaljut;tice,apartfrom being} violative of Articles 1+, 19(1Xg) and^{265 of the Constitutionof lndia and Sec 14BA} of the lncome Tax Act, 1961, and consequently^{set-asidethe same and grant stay} of recovery,^pendinll disposal of the^{Petitioner'sappealbt>forethe 1st Appellate} Authority, in the interests of^justice.

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lA NO: 1 OF 2025

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Petition under Section 151 CPC^{praying that in the c:ircumsl:ancesstatedin} the affidavit filed in r;upport of the^{petition, the High Courtrnaybe pleasedto stay} all further^proceedings, including any^{recovery, pursuantto the crder passed by} the 1st Respond,:nt, vide DIN and Letter^{No.. ITBA/COIV/F/1 712024'} 251107'1966563(1 ) dated 07.01 .2025, in rejecting^{the sta'/ application filedby the} Petitioner, pending clisposal of the appeal of the Petitioner^{treforethe l st Appellate} Authority, i.e., the^z.th Respondent herein, for the^{Assess'ment Year 2016 - 17} ' pending disposal of the above Writ Petition.

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Counsel for the Petitioner: SRI SRINARAYANA^{TOSHNIWAL, REPRESENTS} SRI A. V. A. SIVA KARTIKEYA

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Counsel for the Respondents: MS. BOKARO^{SAPNA REDDY} (Jr. SC FOR TNCOME TAx)

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WRIT PETITION NO: 6E6g oF 2025

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Between:

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Late Mr. Ganoadhar Mandava, Re.presented by his wife and legal heir, Mrs. Ramakumari^-Mandawa, D/o. mi. V j;l;dai'hi n;;, id;-of'y.;l[, Occ. Business, 6-3-123818t21, Creamtine Oiiri CioAucts, nij ehrran ho;i, Somajiguda, Hyderabad - 500'OS2 fetangani. '^'

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...PETITIONER

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AND

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Il9 p"pytY Cpmmissio.ner of I ncome Tax, Circte 1 ( 1 ), Hyderabad, tncome tax towers, A c cuards, Masab Tank, Hyderabad _ 500 004, Telingana.

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2 fl:,"g:.11gnt Unit, IncomeTqx pgpartnle1t, National e-Assessment Center, New Uetht, Room No.. 4O1 ,2nd Floor, E_Ramp, Jawaharlat Nehru Stadium, New Delhi - 110 003.

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The Principal Cormissioner of lncome Tax -^.l , lncome Tax Towers, A C Guards, Masab Tank, Hyderabad - 500 004, fetangana.

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The Joint Commissioner, (Appeals) / the Commissioner of lncome Tax Sqpgat.),^{Nationat facelds!Appe'atCentre,Oetm,lnrouqh} ifre^printioat unrer commissioner of lncome Tax (NaFAC), Delhi. NorttiBloct, ttew'oetrri - 110 001

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The central Board of Direct raxes, Represented by its chairman, DeDartment of Revenue, Ministry of Finance, Govei-nment ot tntrii, Secreiari;i B;ii;i;s;, New Dethi - 110 00i

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.:.RESPONDENTS

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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 of Mandamus or any other appropriate writ, order or Direction, declaring the order passed by the 1"t Respondent, vide DIN and Letter No.. lrBA/coMlFl17t2o24-2st107i96645s(1), dated oz.o1 .202s in directing the Petitioner to pay 20 percent of the disputed demand, pending disposar of the appeal of the Petitioner before the 1st Appellate Authority, i.e., the 4th Respondent herein, for the Assessment year 2016 - 17, as arbitrary, iilegar, barred by limitation, bad in law, void-ab-initio, violative of the principles of natural justice, apart from being violative of Articles 1 a, 19(i Xg) and 265 of the constitution of lndia and sec 148A of the lncome Tax Act, 1961, and consequenfly 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.

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tA NO: 1 OF 2025

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Petition unde. Section 151 CPC praying that in the r;ircumstances stated in the affidavit filed in support of the petition, the High Courl rnay be pleased to stay all further proceedings, including any recovery, pursuant lo the order^passed by the 1st Respondent, vide DIN and Letter No.. ITBA/COIM/F/17120242511071966458(1).^jated 07.01 .2025 in directing the Petiti:ner to pay 20% of the disputed demand, pending disposal of the appeal of tho Petitioner before the^'l st Appellate Authority, i.e., the 4th Respondent herein, for the A,.;sessment Year 2016 - 17,, pending disposal of the above Writ Petition.

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Counsel forthe Petitioner(: SRI SRINARAYAN TOSHNIWAL, REPRESENTS SRI. AVA SIVA KARTIKEYA

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Counsel forthe Respondents: MS. BOKARO SAPNA REDDY

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(Jr. SC FOR INCOME TAx)

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The Court made ther following: COMMON ORDER

I I

t I

{ (:

THE HON'BLE THE ACTING CHIEF JUSTICE SUJOY PAUL AND THE HON'BLE SMT. JUSTICE RENUKA YARA

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WRIT PETTTION Nos.6815 & 6a69 of2O25

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COMMON ORI)ER (Per the Hon'ble the Acting Chtef Justice Sujog paul):

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Sri Srinarayan Toshniwal, learned counsel represents Sri A.V.A.Siva Kartikeya, learned counsel for the petitioners and Ms. B. Sapna Reddy, learned Junior Stalding Counsel for Income Tax Department, for the respondents.

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r'tr

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Regard being had to the similitude of the questions involved, these matters were heard analogously and decided by way of this common order.

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By impugned orders both dated OT.Ol.2025, the interim orders were granted in favour of the petitioners subject to depositing 2O%o of the disputed a-rnount.

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Learned counsel for the parties fairly submitted that in cases relating to faceless assessment procedure, this Court in batch of writ petitions has granted stay and these writ petitions may be disposed of in terms of common order passed by this Court in W.P.Nos. 1974 and 1975 of 2025 d,ated,2Z.Ol.2O2S.

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1 l

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5 In vierir of consensus arrived at, the impugned orders both dated C'7.O1.2025 are set aside. L,earned appellate authority shal decide the appeals preferred b.7 the petitioners expeditiously cn its own merits, but shall not c,tmpel the petitioners to deposit the amounts demanded , considering the nature of the c ases.

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6 Accord ingly, these Writ Petitions are dispose,d of. No

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costs.

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InterJocutory applications, if any pendrng, shall a_1so

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stand closed^.

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SEU.T. JAYASREE ASSIS TANT^REGISTRAR. //TRUE COPYII

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.i lecrtoru oFFtcER

To,

The Deputy Commissioner of lncorne Tax, Circle 1(1 ), Hyderabad, Income Tax Towers, l\ C Guards, Masab Tank, Hyderabad'- 50O004, 1;6;q;;;.

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Assessment Ljnit, rncome Tax Departmeni, Nationar e nssessme.t iJnii. New Delhi Rocm No. 401 2nd Fro6r E Ramp Jawaharr,r Ner,ri, si"oi* r.rl* Delhi

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The P_rincipal Commissioner of lncome Tax _ 1, lncomt-, Tax Trtwers, A C Guards, Masab Tank, Hyderabad - 500 004, Telangana.

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The Joint Conrmissioner (Appeals) / the Commissioner:of lncome Tax $gn-eals),^{Na:ional FacetessApp6al Centre,Dethi,ih.ouqh} tfre Fiincioaf chief commissioner of rncome'Tax (NaFAC), oetri, Nortr"et;:r,, u"*Grr,i - 110 001

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The chairman, The _centrar Board of Direct raxes, Departmerrt of Revenue, M!1is-try of Finance, Government of rndia, secretariat eiuitciinEs,,-r.rew riJir,ir 110001.

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