APHC010448032025 IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI (Special Original Jurisdiction) SATURDAY,THE THIRTIETH DAY OF AUGUST TWO THOUSAND AND TWENTY FIVE PRESENT THE HONOURABLE SRI JUSTICE BATTU DEVANAND AND THE HONOURABLE SRI JUSTICE A. HARI HARANADHA SARMA WRIT PETITION NO: 22770 OF 2025 Between: Sasi Foundation, (Regd. Society under A.P. Societies Registration Act 2001), #8-59, Rep. by its Secretary Burugupalli Ravi Kumar S/o. Venugopala Krishna, aged about 44 years, Velivennu Village and Post, Undrajavaram Mandal, East Godavari District, Andhra Pradesh - 534329. ...PETITIONER AND 1. The Union of India, Ministry of Finance, Rep. by its Secretary, Income Tax Department, Room N0.66-A, North Block, New Delhi - 110 001 2. The Assessment Unit, (Faceless Assessment), Income Tax Department, New Delhi. 3. The Commissioner of Income Tax (Appeals), infinity tower, Visakhapatnam, Visakhapatnam District, Andhra Pradesh 4. The Commissioner of Income Tax, (Exemptions), Ayakar Bhavan (Income Tax Department), Basheerbhagh, Hyderabad, Telangana State 5. The Assessing Officer, Exemption Circle, Income Tax Department Stalin Corporate Complex, Auto Nagar, Vijayawada, Krishna District, Andhra Pradesh ...RESPONDENTS 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 an appropriate writ, order or orders of direction or directions, more particularly one in the nature of Writ of Mandamus, declaring the action of respondents, especially the 4*'' respondent Income Tax (Exemptions) in passing the Conditional stay Orders dated 23-08-2025 (DIN ITBA/COM/F/17/2025-26/1079922686(1), subject to deposit of Rs.2,25,00,000/- i.e., 15% of the Demand Amount 01-09-2025, as arbitrary, illegal, unconstitutional, and in clear violation of well settled principals of natural justice, and consequentially set aside the same to the extent of directing the petitioner society to comply the Rs.2,25,00,000/- (rupees two crore twenty five lakhs only), pending disposal of the Petitioner Society’s Appeal for AY 2023-24, before the 3^^^ Respondent. lA NO: 1 OF 2025 i.e., the Commissioner of pre- on or before per-deposit of 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 Stay all further proceedings in pursuant to Conditional Stay Orders dated 23-08-2025 (DIN ITBA/COM/F/17/2025-26/1079922686(1), passed by the 4‘^ respondent, to the extent of directing the petitioner society to pre-deposit of Rs.2,25,00,000/- i.e., 15% of the Demand Amount, in the Appeal for AY 2023- 24 before the 3'^^ respondent pending disposal of the above writ petition. Counsel for the Petitioner: SRI GANTA RAMA RAO(SENIOR COUNSEL FOR M/s. LEO LAW ASSOCIATES LLP Counsel for the Respondent No.1: THE ADDL. SOLICITOR GENERAL OF INDIA Counsel for the Respondent Nos.2 to 5: SRI Y.N.VIVEKANANDA, SC FOR INCOME TAX to The Court made the following order: 1 APHC010448032025 IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI (Special Original Jurisdiction) SATURDAY,THE THIRTIETH DAY OF AUGUST TWO THOUSAND AND TWENTY FIVE PRESENT HONOURABLE SRI JUSTICE BATTU DEVANAND HONOURABLE SRI JUSTICE A. HARI HARANADHA SARMA WRIT PETITION NO: 22770/2025 [3545] 0;*0 r-fc 0 THE THE Between: 1.SAS1 FOUNDATION, (REGD. SOCIETY UNDER AP. SOCIETIES registration act 2001), 8-59, REP. BY ITS SECRETA BURUGUPALLI RAVI KUMAR S/O. VENUGOPALA KRISHNA, AG AROUT 44 YEARS, VELIVENNU VILLAGE AND POST UNDRAJAVARAM MANDAL, EAST GODAVARI DISTRICT, ANDHRA PRADESH - 534329. ...PETITIONER AND OF FINANCE, REP. BY ITS department, ROOM N0.66-A, UNION OF INDIA, MINISTRY 1.THE SECRETARY, INCOME NORTH BLOCK, NEW DELHI - 110 001 TAX 2.THE ASSESSMENT UNIT, (FACELESS ASSESSMENT), INCOME TAX DEPARTMENT, NEW DELHI. ^THF COMMISSIONER OF INCOME TAX APPEALS, INFINITY TOWER “hAPATNAM, VISAKHAPATNAM DISTRICT, ANDHRA PRADESH 4 THE COMMISSIONER OF INCOME TAX, (EXEMPTIONS), AYAKAR (INCOME TAX DEPARTMENT), BASHEERBHAGH BHAVAN HYDERABAD, TELANGANA STATE EXEMPTION CIRCLE, INCOME TAX CORPORATE COMPLEX, AUTO NAGAR, 5.THE ASSESSING OFFICER DEPARTMENT STALIN ' 2 VIJAYAWADA, KRISHNA district, ANDHRA PRADESH 4^^ ...RESPONDENT(S): 226 of the Constitution of India praying that in the therewith, the High Court may be orders of Petition under Article Mandamus, declaring the action ° ntionsf in passing the Conditional consequentially set aside th ay 2023-24, before the 3rd Respondent and to pas of Writ of stay subject to per lA NO: 1 OF 202,5 under Section 151 CPC praying that in the ^ , the High Court may be pleased pursuant to Conditional ITBA/COM/F/1 7/2025- Petition the affidavit filed in support of the petition pleased to Stay all further proceedings 23-08-2025 in in may be 2«1079922686(1), passed by the 4th ^ of the above writ petition and to pass such (DIN dated Orders to the extent of directing 15% of the pending disposal Counsel for the Petitioner; 1 .LEO LAW ASSOCIATES LLP Counsel for the Respondent(S); 1. The Court made the following; 3 THE HON’BLE SRI JUSTICE BATTU DEVANAND & <3% honourable SRI JUSTICE A. HARI HARANADHA SARMA WRIT PETITION No.22770 of 2025 ORDER:(^Per Hon’ble Sri Justice Battu Devanand) THE been filed against the action of the respondents of Income Tax Orders, dated 23.08.2025 15% of the Demand amount on This Writ Petition has especially the 4 (Exemptions) in passing the Condttional Stay subject to pre-deposit of Rs.2,25,00,000/- i.e respondent i.e., the Commissioner before 01.09.2025. or Charitable Society of the petitioner is that it is a Pradesh Societies Registration Act, 2001 and The case registered under the Andhra been granted registration/approval 2. under Section 12AB of the Income Tax Tax. The objects of the Society are has 1961, exempting from the Income Act solely educational and allied services. The Petitioner Society runs educational facilities benefiting thousands of students from institutions, hostels and allied XII standard. The Petitioner Society e-filed its return of Inconne for 26.10.2023 and later on filed Class 1 to Assessment Year 2023-2024 on the of Rs.Nil vide 11.12.2023, declaring total income a revised return on the ITR. The voluntary No.548368751111223 as per Acknowledgment donations were shown as disclosed as aggregate income referred to in of Rs.57,74,40,314/- was in Sections 11,12 and 10(23C) (iv). Rs.Nil, and a sum 4 10(23C) (v), 10(23C) (vi) and 10(23C) (via) derived during the relevant previous year, excluding voluntary contributions. Out of the aforesaid income, Rs.52,29,16,784/- was shown as applied to the stated charitable objects of the Society during the previous year (Revenue Account), with Rs.Nil on capital account. The Society’s return of income was duly processed under Section 143(1) of the C.P.C., and subsequently, the case was selected for scrutiny specific issues. The 2"'‘ respondent issued an intimation letter, dated 19.06.2024, directing the compliance on or before 04.07.2024. Thereafter, the 2"'' respondent issued a notice under Section 142(1), dated 25.06.2024, directing to comply on or before 09.07.2024. The Petitioner Society complied the same by filing replies on 03.07.2024 and 17.07.2024, by furnishing details of accounts, expenditure and supporting documents. Subsequent to the said notices, a show-cause notice, dated 21.02.2025 was issued by the 2 respondent. But the said notice was not served physically on the petitioner and it was sent through e-mail. Due to the said reason, the petitioner Society did not have effective knowledge of issuance of the show-cause notice.These being the facts, the Assessment Order for A.Y 2023-24, dated 08.03.2025 was passed raising a demand of Rs.15,32,40,929/- by treating the Petitioner Society as “non-compliant”. on nd 3. The contention of the petitioner is that the reply submitted by them has not been appreciated and proper opportunity is not granted while passing the Assessment Order, dated 08.03.2025, which is in violation of principles of natural justice. Aggrieved by the Assessment Order issued by the 08.03.2025, the Petitioner Society filed statutory appeal 2'"'^ respondent on dated 07.04.2025 before the Appellate Authority i.e., the S"'* respondent herein pending for disposal. The Petitioner Society filed stay petition along 16.06.2025. Considering the said which is with appeal before the 4‘^ respondent on of Income Tax (Exemptions), Hyderabad ie.. 4 petition, the Commissioner respondent herein, by order, dated 23.08.2025, granted stay subject to a pre deposit of Rs.2,25,00,000/- i.e., 15% of the demand, on or before 01.09.2025. Against the said order, the present Writ Petition is filed. Sri Ganta Rama Rao, learned Senior Counsel appearing for the from the date of order under challenge in the 4. petitioner would submit that present Writ Petition i.e., 23.08,2025, hardly three (3) working days are deposit 15% of the demand amount which is learned Senior Counsel further submits that while filing the granted to the petitioner to unreasonable. The stay application along with the main appeal, the petitioner requested the opportunity of personal hearing before appellate authority to provide an passing any order in the stay petition which is in violation further contends that the order impugned in the present Writ Petition been passed by following the order of this Court in M/s.The General and Technical Education Soc/e(y(I.A.No.01 of 2025 in W.P.No.12728 of 2025) and a decision of Hon'ble High Court of Telangana in the case of Zoos and Vs CIT (E) (2024) 467 ITR 235 But, the . But the said request is not considered of principles of natural justice. The learned Senior Counsel has Parks Authority of Telangana appellate authority failed to consider the time granted in the said orders to 'J % deposit the amount. In the said deposit the amount. But i cases, Six (06) weeks time is granted to in the present case, only one week time is granted that also only three (03) working days. Under these circumstances, the learned Senior Counsel requested this Court to set aside the order impugned further contends that in the present Writ Petition. The learned Senior Counsel as and when the petitioner is granted exemption, the action of the respondents in levying the tax against the petitioner is against to the settled law. 5. On the other hand, Sri Y.N.Vivekananda, Counsel appearing for the respondents or irregularity in the order passed by the 4 learned Standing would submit that there is no infirmity respondent and the said order was passed by following the rulings of various High Courts passed aspect. The learned Standing Counsel further Court while dealing with the identical on this contends that the Hon’ble Apex matter in Civil Appeal No.6850 of 2018 clarified that it will be open to the authorities, on the facts of individual to grant deposit orders of a lesser amount than 20% cases, pending appeal and by following the same, in the present case, the which is lesser amount than 20%. competent authority imposed 15% Accordingly, the learned Standing Counsel contends that there are no merits in the present Writ Petition and sought to dismiss the same. 6. We have given consideration respective counsels and carefully examined the an undisputed fact that the appeal filed to the contentions made by the material available on record. It by the petitioner against the IS 7 Assessment Order, dated 08.03.2025 is pending before the appellate authority which has to be decided on merits. During the pendency of the appeal only to grant stay as a pre-requisite condition, the appellate authority directed to deposit 15% of the demand amount during the pendency of the appeal. It is also an admitted fact that as per the opinion of the Hon’ble Apex Court stated I supra, the competent authority after considering the facts of the individual cases can grant deposit orders of a lesser amount than 20%. It is also an admitted fact that in the present case only one week time is granted to the petitioner to deposit 15% of the demand amount. Taking all these aspects into consideration, in our considered opinion, it is appropriate and reasonable to dispose of the Writ Petition at the admission stage with certain directions to the respondents, without keeping this Writ Petition pending months together in the interest of justice. 7. Accordingly, this Writ Petition is disposed of with the following directions:- 1) The impugned order, dated 23.08.2025 is modified to the extent of depositing 10% of the outstanding amount by the petitioner within a period of four (04) weeks from today. 2) The appellate authority shall dispose of the appeal within a period of three (03) months from the date of receipt of a copy of this order. There shall be no order as to costs. 8 As a sequel, miscellaneous petitions pending, if any, shall stand closed. Sd/- K TATA RAO deputy registrar 7/^ON OFFICER //TRUE COPY// SEC To, 1. The Secretary, Ministry of Finance, Income Tax Department, Union of India, Room N0.66-A, North Block, New Delhi - 110 001 2. The Assessment Unit, (Faceless Assessment), Income Tax Department, New Delhi. 3. The Commissioner of Income Tax Appeals, infinity tower, Visakhapatnam, Visakhapatnam District, Andhra Pradesh 4. The Commissioner of Income Tax, (Exemptions), Ayakar Bhavan (Income Tax Department), Basheerbhagh, Hyderabad, Telangana State 5. The Assessing Officer, Exemption Circle, Income Tax Department Stalin Corporate Complex, Auto Nagar, Vijayawada, Krishna District, Andhra Pradesh 6. One CC to M/s. LEO LAW ASSOCIATES LLP, Advocate [OPUC] 7. One CC to the Addl. Solicitor General of India, High Court of A.P. at Amaravati[OPUC] 8. One CC to Sri Y.N. Vivekananda, SC for Income Tax[OPUC] 9. Two CD Copies. ssb ' w-i HIGH COURT \ DATED:30/08/2025 ORDER WP No. 22770 OF 2025 ' 0 9 SEP 2025 ^ ntS«ctioax>' o «o DISPOSING OF THE W.P. WITHOUT COSTS