APHC010322512025 IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI (Special Original Jurisdiction) .y WEDNESDAY,THE SECOND DAY OF JULY TWO THOUSAND AND TWENTY FIVE PRESENT HONOURABLE SRI JUSTICE NINALA JAYASURYA AND HONOURABLE SRI JUSTICE TARLADA RAJASEKHAR RAO WRIT PETITION NO: 16294 OF 2025 Between: M/s The Potunuru Primary Agricultural Coop Credit Society Limited Pothunuru, Pothunuru Post, Chintalapudi, West Godavari - 534 460, Andhra Pradesh. Represented by its Chief Executive Officer^ Raghavulu, S/o Mr. Kanakala Nageswara Rao. 3-24 Mr. Kanakala Veera ...Petitioner/s AND 1. The Income Tax Officer, Circle-1, Rajahmahendravaram Aayakar Bhawan, Veerabhadrapuram, Rajahmundry- 533106, Andhra Pradesh. 2. Assessment Unit, Income Tax Department, Center, New Delhi, National e-Assessment Room No. 401, 2nd Floor, E-Ramp, Jawaharlal Nehru Stadium, New Delhi - 110 003. 3. The Principal Commissioner of Income Tax Floor, Aayakar Bhavan, Daba Gardens, Andhra Pradesh. 1, Visakhapatnam, 2 Visakhapatnam - 530 020, nd w- r 4. The Joint Commissioner (Appeals) / the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi, Principal Chief Commissioner of Income Tax (NaFAC), Delhi, North Block, New Delhi - 110 001. 5; The Central Board of Direct Taxes, Represented by its Chairman, ^Department of Revenue, Ministry of Finance Secretariat Buildings, New Delhi - 110 001. 6. The Branch Manager, The District Cooperative Central Bank Limited, Eluru, Chintalapudi Branch, Near Telephone Office, West Godavari District, Andhra Pradesh. Through the Government of India, Chintalapudi, ...Respondent/s Petition under Article 226 of the Constitution of India is filed praying that in the circumstances stated in the affidavit filed therewith, the High Court be pleased to issue a Writ of Mandamus or any other appropriate Writ, Order or Direction, declaring; a) the order of the 1 may Respondent, dated 04.02.2025, vide DIN AND Letter No. ITBA/COM/F/17/2024-25/1072906261(1), in directing the Petitioner to pay 20 % of the disputed demand pending disposal of its appeal before the 1 Appellate Authority, i.e., the 4*^ Respondent herein, for the Assessment Year 2019-20; & b) the garnishee notice issued by the 1"‘ Respondent, u/s 226(3) of the Income Tax Act, 1961, vide DIN AND Notice No. ITBA/RCV/S/226(3) 25/1071881350(1), dated 1/2024- 06.01.2025, and vide DIN AND Notice No. ITBA/RCV/S/226(3)_1/2024-25/1071988498(1), dated 08.01.2025 Respondent herein, i.e., the banker of the Petitioner in law, bereft of any valid reasons, violative of the to the 6 as arbitrary, illegal, bad principles of natural justice apart from being violative of Articles 14,19<1Xg) and 265 of the Constitution of India AND Sec. 148A of the Income Tax Act, 1961, and consequently set aside the same. IT lA NO: 1 OF 2025 Petition under Section 151 CPC is filed 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 of the 1st Respondent, dated 04.02.2025, vide DIN & Letter No.; ITBA/COM/F/17/2024-25/1072906261(1), in directing the Petitioner to pay 20% of the disputed demand, pending disposal of its appeal before the 1 Appellate Authority, i.e., the 4*^ Respondent herein, for the Assessment Year 2019 - 20, pending disposal of the above Writ Petition. lA NO: 2 OF 2025 Petition under Section 151 CPC is filed praying that in the circumstances stated in the affidavit filed in support of the petition, the High Court may be pleased to suspend the garnishee notice issued by the 1 226(3) of Respondent, u/s & Notice No.lTBA/RCV/S/226(3)_1/2024-25/1071881350(1), dated 06.01.2025, and vide DIN & Notice No.lTBA/RCV//S/226(3)_1/2024-25/1071988498(1 ), dated 08.01.2025, to the 6‘^ Respondent herein, i.e., the banker of the Petitioner; pending disposal of the above Writ Petition. the Income Tax Act, 1961, vide DIN Counsel for the Petitioner: SRI A.V.A. SIVA KARTIKEYA Counsel for the Respondent Nos.1 to 5: SRI VAMSI KRISHNA BODAPATI, SC REPRESENTING SRI ANUP KOUSHIK KARAVADI, SC FOR INCOME TAX DEPARTMENT Counsel for the Respondent No.6: - The Court made the following order: APHC010322512025 IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI (Special Original Jurisdiction) [3526] .y WEDNESDAY,THE SECOND DAY OF JULY TWO THOUSAND AND TWENTY FIVE PRESENT THE HONOURABLE SRI JUSTICE NINALA JAYASURYA THE HONOURABLE SRI JUSTICE TARLADA RAJASEKHAR RAO WRIT PETITION NO: 16294/2025 Between: 1.THE POTUNURU PRIMARY AGRICULTURAL COOP CREDIT SOCIETY LIMITED, 3-24 POTHUNURU, POTHUNURU POST, CHINTALAPUDI, WEST GODAVARI - 534 460, ANDHRA PRADESH. REPRESENTED BY ITS CHIEF EXECUTIVE OFFICER, MR. KANAKALA VEERA RAGHAVULU, S/0 MR. KANAKALA NAGESWARA RAO. ...PETITIONER AND 1.THE INCOME TAX OFFICER, CIRCLE-1, RAJAHMAHENDRAVARAM RAJAHMUNDRY- AAYAKAR BHAWAN, VEERABHADRAPURAM, 533106, ANDHRA PRADESH. 2.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. 3.THE PRINCIPAL COMMISSIONER OF INCOME TAX 1 VISAKHAPATNAM, GARDENS, VISAKHAPATNAM - 530 020, ANDHRA PRADESH. 4.THE JOINT COMMISSIONER, (APPEALS) / THE COMMISSIONER NATIONAL FACELESS APPEAL THE PRINCIPAL CHIEF DELHI, NORTH 2ND FLOOR, AAYAKAR BHAVAN, DABA OF INCOME TAX (APPEALS), CENTRE, DELHI, THROUGH COMMISSIONER OF INCOME TAX (NAFAC), 2 NJS,J & TRR,J W.P. NO. 16294 OF 2025 BLOCK, HE\N DELHI-^^0 00^. ESH. 5.THE CENTRAL BOARD OF DIRECT TAXES, REPRESENTED BY ITS CHAIRMAN, DEPARTMENT OF REVENUE, MINISTRY OF FINANCE, GOVERNMENT OF INDIA, SECRETARIAT BUILDINGS, NEW DELHI - 110001. 6. THE BRANCH MANAGER, THE DISTRICT COPERATIVE CENTRAL BANK LIMITED, ELURU TELEPHONE OFFICE, DISTRICT, ANDHRA PRAD CHINTALAPUDI BRANCH, NEAR CHINTALAPUDI, WEST GODAVARI ...RESPONDENT(S): 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 pleased to issue a Writ of Mandamus or any other appropriate Writ, Order or Direction, declaring the order of the 1st Respondent, dated 04.02.2025, vide DINa. 6. THE BRANCH MANAGER, THE DISTRICT COPERATIVE CENTRAL BANK LIMITED, ELURU TELEPHONE OFFICE, DISTRICT, ANDHRA PRAD CHINTALAPUDI BRANCH, NEAR CHINTALAPUDI, WEST GODAVARI ...RESPONDENT(S): 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 pleased to issue a Writ of Mandamus or any other appropriate Writ, Order or Direction, declaring the order of the 1st Respondent, dated 04.02.2025, vide DINa. 25/1072906261(1), in directing the Petitioner to pay 20 PERCENT of the disputed demand pending disposal of its appeal before the 1st Appellate Authority, i.e., the 4th Respondent herein, for the Assessment Year 2019-20 AND b. the garnishee notice issued by the 1st Respondent, u/s 226(3) of the Income Tax Act, 1961, vide DIN AND Notice No. ITBA/RCV/S/226(3)_1/2024- 25/1071881350(1), dated ITBA/RCV/S/226(3)_1/2024-25/1071988498(1), dated 08.01.2025, to the 6th Respondent herein, i.e., the banker of the Petitioner as arbitrary, illegal, bad in law, bereft of any valid reasons, 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 Sec. 148A of the Income Tax Act, 1961, and consequently set aside the same in the interests of justice and to pass 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 pleased to stay all further proceedings, including any recovery, pursuant to the order of the 1st Respondent, dated 04.02.2025, vide DIN & Letter No.; ITBA/COM/F/17/2024-25/1072906261 (1), in directing the Petitioner to pay 20% of the disputed demand, pending disposal of its appeal before the Appellate Authority, i.e., the 4th Respondent herein, for the Assessment Year 2019 - 20,, pending disposal of the above Writ Petition:and AND Letter No. ITBA/COM/F/17/2024- 06.01.2025, and vide DIN AND Notice No. 1st pass 3 NJSJ & TRRJ W.P.N0.16294 0F 2025 lA NO: 2 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 Pleased to suspend the garnishee notice issued by the 1st Respondent, u/s 226(3) of ITBA/RCV/S/226(3)_1/2024-25/1071881350(1), dated 06.01.2025, and vide DIN & Notice No.: ITBA/RCV//S/226(3)_1/2024-25/1071988498(1 ), dated 08.01.2025, to the 6th Respondent herein, i.e., the banker of the Petitioner; pending disposal of the above Writ Petition; and pass Counsel for the Petitioner: 1. A V A SIVA KARTIKEYA Counsel for the Respondent(S): the Income Tax Act, 1961, vide DIN & Notice No.: 1. The Court made the following ORDER: {per NJS,J) Heard Mr.A.V.A.Siva Kartikeya, learned counsel for the petitioner. Also heard Mr.Vamsi Krishna Bodapati, learned Junior Standing Counsel representing Mr.Anup Koushik Karavadi, learned Senior Standing Counsel for the Income Tax Department. 2. The writ petition is filed seeking the following relief: “ to issue a Writ of Mandamus or any other appropriate Writ, Order Direction, declaring a. the order of the P' Respondent, dated 04.02.2025, vide DIN & Letter No. ITBA/COM/F/17/2024-25/1072906261(1), in directing the Petitioner to pay 20% of the disputed demand, pending disposal of its appeal before the Appellate Authority, i.e., the 4^^ Respondent herein, for the Assessment Year 2019-20, & b. the garnishee notice issued by the F' Respondent, u/s 226(3) of the Income Tax Act, 1961, vide DIN AND Notice No. ITBA/RCV/S/226(3)_1/2024-25/1071881350(1), dated 06.01.2025, and vide DIN & Notice No. ITBA/RCV/S/226(3)J/2024-25/1071988498(1), dated 08.01.2025, to the Respondent herein, i.e., the banker of the Petitioner as arbitrary, illegal, bad in law, bereft of any valid reasons, violative of the principles of natural justice apart from being violative of Articles 14,19(1)(g) and 265 of the Constitution of India & Sec. 148A of the Income Tax Act, 1961, and consequently set aside the same in the interests ofjustice and to pass... ”(in verbatim) or 4 NJS,J& TRR,J W.P.NO.16294 OF2025 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 He submits that the order passed by the respondent No.1 directing the petitioner to pay 20% of the demanded amount, without considering the case of the petitioner, is not sustainable. He states that due to financial constraints, the same could not be 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 the pendency of the appeal, the Authorities shall not insist for the payment of the demanded amount. The learned counsel submits 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. Whereas, the learned Junior Standing Counsel for the respondent Department submits that it is not the case of the writ petitioner that it is not capable of paying the installment amounts and further that having availed the remedy of appeal, the writ petitioner is not justified in filing the writ petition. Though the learned counsel for the petitioner raised several legal 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 Petition No.27342 of 2024, dated 31.12.2024, this Court is inclined to dispose of the writ petition on similar lines. The respondent No.4-Appellate Authority shall dispose of the appeal preferred by the writ petitioner within a period of two months from the date of receipt of a copy of this order. Pending disposal of the appeal, no action to collect the outstanding tax demand shall be initiated and the liability of the petitioner, if any, shall be subject to the decision of the Appellate Authority, in ■ 3. tax in time. 4. 5. 6. 5 NJS,J& TRR,J W.P. NO. 16294 OF 2025 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 opportunity of hearing. 7. Considering the fact that the writ petitioner is a Primary Agricultural Co operative Society and it’s day to day affairs/banking transactions came to a standstill by virtue of garnishee notices, pending disposal of the appeal, It shall be allowed to operate its account to the extent of payments towards statutory compliances, salaries to staff and loans only. With the above directions, the writ petition is disposed of. No order an 8. as to costs. Miscellaneous petitions pending, if any, shall stand closed. Sd/- B CHITTI JOSEPH ASSISTANT REGISTRAR //TRUE COPY// SECTION OFFICER To, 1. The Income Tax Officer, Circle-1, Rajahmahendravaram Aayakar Bhawan, Veerabhadrapuram, Rajahmundry- 533106, Andhra Pradesh. 2. Assessment Unit, Income Tax Department, Center, New Delhi, Room No. 401, 2nd Floor, E-Ramp, Jawaharlal Nehru Stadium, New Delhi - 110 003. 3. The Principal Commissioner of Income Tax 1, Visakhapatnam, 2 Floor, Aayakar Bhavan, Daba Gardens, Visakhapatnam - 530 020, Andhra Pradesh. 4. The Joint Commissioner, (Appeals) / the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi, Through the Principal Chief Commissioner of Income Tax (NaFAC), Delhi, North Block, New Delhi - 110 001. 5. The Chairman, Central Board of Direct Taxes, Department of Revenue, Ministry of Finance, Government of India, Secretariat Buildings, New Delhi - 110 001. National e-Assessment nd 6. The Branch Manager, The District Cooperative Central Bank Eluru, Limited, Chintalapudi, Chintalapudi Branch, Near Telephone Office, West Godavari District, Andhra Pradesh. 7. One CC to SRI. A V A SIVA KARTIKEYA, Advocate [OPUC] 8. One CC to SRI. ANUP KOUSHIK KARAVADI, STANDINGCOUNSEL FOR INCOME TAX DEPARTMENT [OPUC] 9. Two CD Copies sree . ^ HIGH COURT DATED:02/07/2025 ORDER WP NO. 16294 OF 2025 2 8 AUG 2025 |S O Co DISPOSING OF THE W.P. WITHOUT COSTS