APHC010463512025 IN THE HIGH COURT OF ANDHRA PRADES AT AMARAVATI (Special Original Jurisdiction) THURSDAY,THE FOURTH DAY OF SEPTEMBER TWO THOUSAND AND TWENTY FIVE PRESENT HONOURABLE SRI JUSTICE BATTU DEVANAND AND HONOURABLE SRI JUSTICE A. HARI HARANADHA SARMA ^ WRIT PETITION NO: 23494 OF 2025 Between: Moulana Minorities Welfare and Educational Society, Rep. by its Secretary and Correspondent Mr. K.Ram Pavan Reddy, Aged about 32 years, Kadapa, YSR District. / 70. K.Janaradhana Reddy, ...PETITIONER AND 1. Union of India, Represented by its Secretary, Finance Department, New Delhi. 2. The Principal Chief Commissioner of Income Tax, Andhra Pradesh and Telangana, Hyderabad Room No 922, 9th Floor, B Block, I.T.Towers, 10-2-3, AC Guards, Hyderabad - 500 004, Telangana. 3. The Commissioner of Income Tax Exemption, Ayakar Bhavan, Basheer •/ Bhag, Hyderabad. 4. The Income Tax Officer, Kadapa Ward-1, having office at 1st Main Road, Maria Puram, Kadapa. 5. Faceless Assessing Officer, National Faceless Assessment Centre, Income Tax Deaprtment, New Delhi ...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 direction more particularly one in the nature of Writ of Mandamus declaring the Order, dated 30.08.2025 bearing DIN No.lTBA/COM/F/17/2025-26/1080186705(1) issued by the respondent No.3 herein directing the petitioner to pay Rs.23,00,000/- (Rupees Twenty Three Lakhs) on or before 08.09.2025 inpursuance of the stay petition filed by the petitioner under Section 220(6) of the Income Tax Act, 1961 without giving opportunity of hearing and without considering that the Assessment Order, dated 22.03.2024, bearing DIN No. ITBA/AST/S/143(3)/2023- 24/1063169764(1) for the Assessment Year 2022- 23 is a high pitched assessment order in comparison to the returns filed and contrary to an arbitrary, illegal, colourable exercise of power apart from being violative of the fundamental right guaranteed to the petitioner under Articles 14, 19 and 21 of the Constitution of Indi^ and consequently set aside the same by staying the recovery of demand inpursuance of the Assessment Order, dated 22.03.2024 as bearing DIN No. ITBA/AOTS/143(3)72023- an 24/1063169764(1) for the Assessment Year 2022-23. 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 to direct the respondents not to take coercive action including recovery inpursuance of the Assessment Order, dated 22.03.2024, bearing DIN No. ITBA/AST/S/143(3)/2023-24/1063169764(1) for t 23, pending disposal of the main writ petition. ^ 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 to direct the respondents to suspend the operation of order, dated 30.08.2025 bearing DIN No. No.lTBA/COM/F/17/2025-26/1080186705(1) issued by the Assessment Year 2022- herein directing the petitioner to pay Rs.23,00,000/- respondent No.3 (Rupees Twenty Three Lakhs) on or before 08.09.2025 pending disposal of % the main writnpetition. Counsel for the Petitioner: SRI B.ABHAY SIDDHANTH MOOTHA ^ Counsel for the Respondent No.1:THE ADDITIONAL SOLICITOR GENERAL OF INDIA Counsel for the Respondent Nos.2 to 5: SRI Y.N. VIVEKANANDA, SC FOR INCOME TAX The Court made the following order: 1 APHC010463512025 IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI [3545] (Special Original Jurisdiction) THURSDAY,THE FOURTH DAY OF SEPTEMBER TWO THOUSAND AND TWENTY FIVE PRESENT THE HONOURABLE SRI JUSTICE BATTU DEVANAND & THE HONOURABLE SRI JUSTICE A. HARI HARANADHA SARMA WRIT PETITION NO: 23494/2025 Between: 1.MOULANA MINORITIES WELFARE AND EDUCATIONAL SOCIETY REP. BY ITS SECRETARY AND CORRESPONDENT MR. K.RAM PAVAN REDDY, S/0. K.JANARADHANA REDDY, AGED ABOUT 32 YEARS, KADAPA, YSR DISTRICT. j j ...PETITIONER AND 1.UNION OF INDIA, REPRESENTED BY ITS SECRETARY, FINANCE DEPARTMENT, NEW DELHI. 2.THE PRINCIPAL CHIEF COMMISSIONER OF INCOME TAX, ANDHRA PRADESH AND TELANGANA, HYDERABAD ROOM NO 922, 9TH FLOOR, B BLOCK. I.T.TOWERS, 10-2-3, AC GUARDS, HYDERABAD - 500 004, TELANGANA. 3.THE COMMISSIONER OF INCOME TAX EXEMPTION, AYAKAR BHAVAN, BASHEER BHAG, HYDERABAD. 4.THE INCOME TAX OFFICER, KADAPA WARD-1, HAVING OFFICE AT 1ST MAIN ROAD, MARIA PURAM, KADAPA. 5.FACELESS ASSESSING OFFICER, NATIONAL FACELESS ASSESSMENT CENTRE, INCOME TAX DEAPRTMENT, NEW DELHI ...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 issue an appropriate Writ, order or direction more particularly one in the nature of Writ of Mandamus declaring the Order, dated 30.08.2025 bearing DIN f respondent No.3No.ITBA/COM/F/17/2025-26/1080186705(1) issued by the ' herein directing the petitioner to pay Rs.23,00,000/- (Rupees Twenty Three Lakhs) on or before 08.09.2025 in pursuance of the stay petition filed by the petitioner under Section 220(6) of the Income Tax Act, 1961 without giving opportunity of hearing and without considering that the Assessment Order, dated 22.03.2024, bearing DIN No. ITB/VAST/S/143(3)/2023- 24/1063169764(1) for the Assessment Year 2022- 23 is a high pitched assessment order in comparison to the returns filed and contrary to an arbitrary, illegal, colourable exercise of power apart from being violative of the fundamental right guaranteed to the petitioner under Articles 14, 19 and 21 of the Constitution of India and consequently set aside the same by staying the recovery of demand in pursuance of the Assessment as bearing DIN No. iTBA/AST/S/143(3)/2023- 24/1063169764(1) for the Assessment Year 2022-23 and pass such Order, dated 22.03.2024, an 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 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 Counsel for the Petitioner: 1.B.ABHAY SIDDHANTH MOOTHA Counsel for the Respondent(S): 1. The Court made the following: 3 r THE HON’BLE SRI JUSTICE BATTU DEVANAND & THE HONOURABLE SRI JUSTICE A. HARI HARANADHA SARMA WRIT PETITION No.23494 of 2025 ORDER: (PerHon’ble Sri Justice Battu Devanand) This Writ Petition has been filed against the action of the respondents '^espondent i.e., the Commissioner of Income Tax (Exemptions) in passing the Conditional Stay Orders, dated 30.08.2025 subject to pre-deposit of Rs.23,00,000/- or on before 08.09.2025. rd especially the 3 The case of the petitioner is that it is a minority Educational Institution established for improving the educational standards to persons belonging to minorities and backward classes on charitable basis and has been granted registration/approval under Sections 11 and 12 of the Income Tax Act, 1961, exempting from the Income Tax. The objects of the Society are solely educational and allied services. The Petitioner Society e-filed its return of Income for the Assessment Year 2022-2023 on 24.10.2022 declaring total income of Rs.Nil vide Acknowledgment No.747348200241022 as per the ITR claiming exemption under Sections 11 and 12 of the Act. The 1®^ respondent issued a notice under Section 143(2), dated 01.06.2023, seeking certain information from the petitioner directing to comply on or before 16.06.2023. Thereafter, another notice was issued under Section 142(1) of the Income Tax Act seeking certain information viz., trust deed, details of provisions claiming exemptions, certificate under Section 80(g) certification of Registration, P and L Account etc. The Petitioner Society complied the same by filing replies on 2. 12.08.2023 and 29.08.2023 by furnishing details supporting documents. Subsequent to the dated 19.07.2023 of accounts, expenditure and said notices, a show-cause notice, was issued by the 1®* respondent under Section 143(3) of the Income Tax Act proposing variations by disallowing tune of Rs.77,00,19,822/- and the repayment of loan to a petitioner is also submitted explanation 01.03.2024. Even without giving an opportunity of hearing to the petitioner, the proposed variation and added the specified under Section 69(c) r/w 115 the Assessment Order for A.Y 2022- was passed raising a demand of Rs. 1,57,50,883/- by treating the Petitioner Society as “non-compliant”. on 4*^ respondent confirmed the amount to the income as unexplained expenditure (BBE) of the Act. These being the facts, 23, dated 22.03.2024 3. The contention of the petitioner them has not been appreciated and is that the reply submitted by proper opportunity is not granted while passing the Assessment Order, dated 22.03.2024, which is in violation of Order issued by the appeal dated 21.04.2024 before the Appellate Authority i.e., the 3" resporrderrt herein which is pending for disposai. The Petitioner principles of natural justice. Aggrieved by the Assessment 1®' respondent on 22.03.2024 the Petitioner Society filed statutory Society filed stay petition before Considering the said the respondent on 30.08.2025. petition, the Commissioner of Income Tax (Exemptions), Hyderabad ie„ 3« respondent herein, by order, dated 30.08.2025 Rs.23,00,000/- i.e., 15% of the demand said order, the present Writ Petition is filed. granted stay subject to a pre-deposit of or before 08.09.2025. Against the , on 5 Sri B. Abhay Siddhanth Mootha, learned Counsel appearing for the petitioner would submit that from the date of order under challenge in the present Writ Petition i.e., 30.08.2025, hardly five (5) working days are granted 4. to the petitioner to deposit 15% of the demand amount which is unreasonable. The learned Counsel would further submit that while filing the stay application along with the main appeal, the petitioner requested the appellate authority to provide an opportunity of personal hearing before passing any order in the stay petition. But the said request is not considered which is in violation of principles of natural justice. The learned Counsel contends that the order impugned in the present Writ Petition has been passed by following the order of this Court in M/s. The General and Technical Education Society (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 Parks Authority of Telangana Vs CIT (E) (2024) 467 ITR 235. But, the appellate authority failed to consider the time granted in the said orders to deposit the amount. In the said cases. Six (06) weeks time is granted to deposit the amount. But in the present case. only one week time is granted that too in five (05) working days. In these circumstances, the learned Counsel requested this Court to set aside the order impugned in the present Writ Petition. The learned Counsel further contends that 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. 6 On the other hand, Sri Y.N. Vivekananda, learned Standing Counsel appearing for the respondents would submit that there is no infirmity or irregularity in the order passed by the respondent and the said order was passed by following the rulings of various High Courts passed on this aspect. The learned Standing Counsel further contends that the Hon’ble Apex Court while dealing with the identical matter in Civil Appeal No.6850 of 2018, clarified that it will be open to the authorities, on the facts of individual cases, to grant deposit orders of a lesser amount than 20%, pending appeal and by following the same, in the present case, the competent authority imposed 15% which is lesser amount than 20% mentioned in the Office Memorandum, dated 31.07.2017 framed by Ministry of Finance, Government of India. 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 to the contentions made by the respective counsels and carefully examined the material available on record. It is an undisputed fact that the appeal filed by the petitioner against the Assessment Order, dated 22.03.2024 is pending before the appellate authority which has to be decided on merits. During the pendency of the appeal only 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 supra, the competent authority after considering the facts of the individual cases can grant deposit orders of a lesser amount than 20%, though 20% is stipulated in the 5. as 7 Government of India Office Memorandum, dated 31.07.2017. admitted fact that in the present case only one week time is granted to the petitioner to deposit 15% of the demand amount. Taking this aspect into consideration, in our considered opinion, it is appropriate and reasonable to dispose of the Writ Petition at the admission stage in the interest of justice with certain directions to the respondents, without keeping this Writ Petition pending months together. Accordingly, this Writ Petition is disposed of with the following It is also an 7. directions:- 1) The impugned order, dated 30.08.2025 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. As a sequel, miscellaneous petitions pending, if any, shall stand closed. RAO ACHAri assistant regS^' //TRUE COPY// SEC TlON QjPFj FR To, 1. The Secretary, Finance Department, Union of India, New Delhi. 2. The Principal Chief Commissioner of Income Tax, Andhra Pradesh and Telangana, Hyderabad Room No 922, 9th Floor, B Block, I.T.Towers, 10-2-3, AC Guards, Hyderabad - 500 004, Telangana. 3. The Commissioner of Income Tax Exemption, Ayakar Bhavan, Basheer Bhag, Hyderabad. 4. The Income Tax Officer, Kadapa Ward-1, having office at 1st Main Road, Maria Puram, Kadapa. 5. The Faceless Assessing Officer, National Faceless Assessment Centre, Income Tax Department, New Delhi 6. One CC to Sri B.Abhay Siddhanth Mootha, Advocate [OPUC] 7. One CC to the Additional Solicitor General of India, High Court of A.P[OPUC] 8. One CC to Sri Y.N. Vivekananda, SC for Income Tax[OPUC] 9. Two CD Copies ssb ^ i HIGH COURT DATED:04/09/2025 ORDER WP No. 23494 OF 2025 ANO/^ S 15 SEP 2025 . Current Section . 'oY ITS; Pail DISPOSING OF THE W.P. WITHOUT COSTS