M/s Prajay Properties Private Limited Vs The Deputy… — Income Tax | Telangana HC (2025)

M/s Prajay Properties Private Limited Vs The Deputy… — Income Tax | Telangana HC (2025)

What the court decided

AI extract

Outcome

Writ petition disposed of on consent without costs and without expressing any opinion on merits: impugned notice dated 13.12.2024 (demanding 20% of disputed demand for considering the stay application) agreed to be set aside; respondent No.1 to rehear the parties and pass a fresh stay order in accordance with law within 15 days, petitioner to appear on 20.01.2025; respondent No.5 to decide the pending appeal preferably within two months; respondent No.4 to decide the pending stay application preferably within two weeks; pending interlocutory applications closed.

Issue for consideration

Whether the notice dated 13.12.2024 issued by respondent No.1 under s.226 of the Income Tax Act, 1961, directing the petitioner to pay 20% of the disputed demand for considering its stay application pending appeal for AY 2018-19, was arbitrary, illegal and liable to be set aside. +2 more

Court's answer

On consensus, the impugned order dated 13.12.2024, founded on the CBDT O.M. in F.No.404/72/93-ITCC dated 31.07.2017 and passed without considering the relied-upon judgments (PCIT v. LG Electronics India; Mrs. Kallakuri Dhana Lakshmi Katyayani; Sudarshan Reddy Kottur), may be set aside, and respondent No.1 is directed to rehear the parties and pass a fresh order on the stay application in accordance with law.

Ratio / Principle

The rehearing exercise is to be completed within 15 days from the date of production of a copy of the order; the petitioner is to appear before respondent No.1 on 20.01.2025, for which no separate notice is required.

Key takeaways

Respondent No.5 is directed to decide the petitioner's pending appeal expeditiously, preferably within two months.ratio¶36
Respondent No.4 is directed to decide the petitioner's pending stay application expeditiously, preferably within two weeks, provided such application is pending.ratio¶37
In view of the consensus arrived at, the writ petition is disposed of without expressing any opinion on the merits; parties are to act in accordance with their stand taken before the Court; no costs.

Detailed headnote1 paragraphs

High Court for the State of Telangana at Hyderabad (Sujoy Paul and Dr. G. Radha Rani, JJ.; order pronounced by Sujoy Paul, J.), 09.01.2025, W.P. No. 816 of 2025 - M/s Prajay Properties Pvt. Ltd. v. Income Tax authorities: Writ petition under Article 226 challenging (i) a notice dated 13.12.2024 (DIN ITBA/COM/F/17|2024-25|1071214852(1)) under s.226 of the Income Tax Act, 1961 directing the assessee to pay 20% of the disputed demand (AY 2018-19) for consideration of its stay application, founded on CBDT O.M. F.No.404/72/93-ITCC dated 31.07.2017, and (ii) inaction of the High-Pitched Committee on a grievance petition dated 02.12.2022. On consensus, and placing reliance on Principal Commissioner of Income Tax v. LG Electronics India Pvt. Ltd. (SC), Mrs. Kallakuri Dhana Lakshmi Katyayani v. Income-Tax Officer and Sudarshan Reddy Kottur v. Income Tax Officer (Telangana HC), the Court set aside the impugned order as passed without considering those judgments, directed respondent No.1 to rehear the parties and pass a fresh stay order within 15 days (appearance on 20.01.2025), directed respondent No.5 (NFAC) to decide the pending appeal preferably within two months and respondent No.4 to decide the pending stay application preferably within two weeks; writ petition disposed of without expressing any opinion on merits; no costs.

[³⁴³⁰ ]

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

THURSDAY, THE NINTH DAY OF JANUARY TWO THOUSAND AND T\A/ENTY FIVE

PRESENT

THE HONOURABLE SRl JUSTICE SUJOY PAUL AND

THE HONOURABLE DR. JUSTICE G.RADHA^RANI

wRIT PETITION NO: 816 OF 2025

Between:

M/s Prajay Properties Private Limited,^{1-10-63and 64, Sth Floor,} -Prajay_Corporate House,^- Chiokoti Gardens, Begumpet,^{Hyderabad -500 016'Telangana.} Reopresented by its Authorised Signatory,^{Mr. Dantapalli VijaysenReddy' S/oLate} Mr. D.Suryaprakash Reddy.

,....PET]TIONER

AND

The Deputy Commissioner / Assistant Commissioner^{of lncomeTax, Circle} 5(1), Hydeiabad, Room No. 224,2nd^{Floor,B-Block, lTTowers,10-2-3' AC} Guards', Masab Tank, Hyderabad^- 500^{004, Telangana.}

The Additional / Joint / Deputy^/ Assistant^{Commissionerof lncome Tax/} lncome Tax Officer, Presently, Assessment Unit,^{lncomeTax Department,} National e-Assessment Cent6r, New Delhi,^{RoomNo.401, 2nd Floor,E-} Ramp, Jawahadal Nehru Stadium, New^{Delhi - 110 003'}

The Principal Commissioner of^{lncome Tax - 4, l.T. Towers,10-2-3' AC} Guards, Hyderabad^- 500 0O4,^Telangana.

The High Pitched Committee / Local Commiftees^{to deal withTaxpay-ers} Grievaices from High-Pitch,^{O/o the Principal Chief Commissionerof lncome} Tax, Andhra Pradesh and Telangana,^{Room No. 922,gthFloor,'B'Block,} l.T.Towers, 10-2-3, AC Guards, Hyderabad^{- 5O0004, Telangana.}

The Joint Commissioner^{(Appeals)/ theComnrissioner of lncomeTax} (Appeals), National Faceless Appea! Ce1!r9, ?ilhi, ThrouglJhe^{P.rincip-a|..} btiiit Commissioner of^{lncome Tax(NaFAC),Delhi, North Block, New Delhi-} 1^'10 001 .

The Central Board of Direct^{Taxes,Represented by its Chairman' Department} of Revenue, Ministry of^{Finance,Govemment of lndia, Secretariat Buildings,} New Delhi - 1 10 001^.

.....RESPONDENTS

Petition Under Article 226 ot 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, Order or Direction, one, more particularly in the nature of Mandamus declaring the inaction of the 4th Respondent in disposing off the Grievance Petition, daled 02.12.2022, tiled by the Petitioner and b. the notice of the 1st Respondent, dated 13.12.2024, vide DIN and Notice No. ITBA/COM/F/1712024-2511071214852(1), uls 226 of the lncome Tax Act, 1961, directing the Petitioner to^pay 20percent of the disputed demand, for considering the stay application filed by the Petitioner,^pending disposal of^its appeal before the 1 st Appellate Authority,^i. e.,the 5th Respondent herein, for the Assessment Year 2018 - 19 as arbitrary, illegal, bad in law, bereft of any reasons, violative of principles of natural justice and consequently grant stay of recovery, pending disposal of the Petitioner's appeal before the 1st Appellate Authority, i.e., the 5th Respondent herein, in the interests of^justice.

i.A.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^pllased\to grant stay of all further proceedings, including any recovery, pending disposal of the above writ petition.

Counsel for the Petitioner : SRI A.V.A.SIVA KARTIKEYA

Counsel for the Respondents : SRI J.V.PRASAD (Sr. SC FOR INCOME TAX) The Court made the following OROER

THE HOITOT'RABLE SRI JUSTICE SUJOY^PAUL

II.ITD

THE HON'BLE DT. WSTICE G. R.ADHA RANI WRIT PETITIOII No.816 of 2o25

ORDER (pr Hon'bLe SP,J)

Sri A.V.A. Siva Kartikeya, learned counsel for the^petitioner and Ms.B.Sapna Reddy, learned Junior Standing^Counsel representing Sri J.V. Prasad, learned Senior Standing^{Counsel for} Income Tax Department, for the respondents.

With the consent, finally heard.

3 During the course of hearing, learned counsel foi the. parties reached to a consensus. [t is agreed that:

The impugned order dated 13.12.2024^(Annexure- P2l) is founded upon the CBDT O.M.ⁱⁿ F.No.4O4 / 72 /93-ITCC dated 31.07.2017. By^placing reliance on the^judgment of Supreme Court Prfurcipal Commissioner of Income Tax v. LGi Electronics India Rrt. Ltd.r and the^judgments of t]lis Court in Mrs. Kallakuri Dhana Lakshmi Katyayani v. Income-Tax Oflicer2 and Sudarshan Reddy Kottur

'(mtg)^{rz lrR-ot334 (sc)}

'^{120221a+a trn :rs (Telangana)}

v. Income Tax Officer3, it is agreed that said order, which is passed without considering the said judgments, may be set aside and respondent No.I may be directed to rehear the parties and^pass a fresh order on stay application in accordance^with law. The said exercise be completed within a period of 15 days from the date of production of copy of this order. The petitioner shall appear before respondent No.1 on 2O.O1.2O25 for which no separate notice will be required to be issued.

II. It is also agreed that the appeal of the petitioper is pending before respondent No.5 and the said authority may be directed to decide the said appeal expeditiously, preferably lt,ithin t\t o months. It is accordingly ordered-

III. The stay application of the petitioner is pending before respondent No.4 and it is agreed that said respondent may be directed to decide the stay application, provided such application is^pending, expeditiously, preferablv u'ithin trvo u,eeks. It is ordered accordingly.

'1zoz:y^{assrrR 750 (Telangana)}

3

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In view of consensus^{arrived at, the Writ Petition is}

disposed of without^{expressingany opinion on the merits of the case.} Parties shall act in accordance^{with their stand taken hereinabove'No} costs.

Interlocutory applications,^{if any pending,shall also s}

closed.

SD/.K. MA.JI ASSISTANT^REG

//TRUE COPY//

SECTION^OFFICER

to ,. ,n" Deputy Commissioner / Assistant-Commissioner of lnmme Tax' Circle '"]'d$i#4s"ttx:'r jrlg,';au,'-.:':""tl'1"rs'10':x:c 2. The Additionat^{I .toint'/ de"p"uiliir.iGn1 commiss-ioner of lncomeTb< / </sup> lncome Tax^{omcer, ptJs"e'niri' niiiii'ent-Unit'lncomeTax Defartment'} National e-Rssess.enil!"i6'',^{rtr"-o"mi'.RoomNo 401' 2nd Floor'E-} iiliiip,l""r,1dal^{Nehrustadium' New Delhi - 110003'}}

1. i#Eh;;6;ic;;ril;;;;i1;;";;^{rax-a' rr rowers'10-2-3'Ac} -' Guards, Hyderabad - 500 004' Telang-ana ...

+. ii; Hieiti^Fict "o^{co.rittlLi locarcommitteesto deal with Taxpayers} Grievances from^{nEh'i;;iiii, ot" tne Frincipatcnief commissione_rof.lncome} Tax, Andhra^{pt"o".tt''no"iLi'"g;";' iooi' No szz' gth Floor' ts'Block'} r.ii6*'"*lo-2-3,^{ACGuards, Fyderabad- 500 004' Telangana'-}

The Joint^{Commissron-eiffip"''itiI tnt Commissioner of lncomeTax} " ($p;i$, i;ir";;l i;;;i;::JdpZar'Cenlie' D-erhi^{rhrouohthe Principar} chief commisston"|.^{;r'irilon1"?;in#Aa),-Delhi,NorttiBlock,New Delhi - ;'.} 110 001.

110 001.

1. The Central^{Board of Direct Taxes'Represented bv its Chairman' Department} of Revenue,^{ruinist.yo"r'i:ia;;;, 6";;ffi;;t of lntia, secretariat Build'ngs,} New Delhi^{- 110001.}

z. iriiJ 6E io^{siir n"v.A.sIvAKARrIKEYA'Advogqte-[oPUCl} 8. one cc^{to sRl J.v.pRA6i;ii;.s;iij'ciNcoMe'rnxlAdvocate{oPUCl}

Two CD^CoPies SA BS (A-

HIGH COURT

DATED:091O112025

ORDER

WP.No.816 of 2025

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DISPOSING OF THE W.P

WITHOUT COSTS.

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