APHC010148312025 IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI (Special Original Jurisdiction) [3545] TUESDAY,THE EIGHTEENTH DAY OF NOVEMBER TWO THOUSAND AND TWENTY FIVE PRESENT THE HONOURABLE SRI JUSTICE BATTU DEVANAND THE HONOURABLE SRI JUSTICE A. HARI HARANADHA SARMA WRIT PETITION NO: 7826/2025 Between: 1. BAKIREDDY SARASWATHI, W/O BAKIREDDY JAYARAMI REDDY, AGE 64 YEARS, R/O PLOT NO. D 1001, FLOOR NO. 10, THE CELESTE, BLOCK D, GAJUWAKA, VISAKHAPATNAM, ANDHRA PRADESH - 530026 ...PETITIONER AND 1. THE UNION OF INDIA, REPRESENTED BY ITS SECRETARY, DEPARTMENT OF REVENUE, MINISTRY OF FINANCE, NEW DELHI. 2. THE INCOME TAX OFFICER, WARD 1(1), ROOM NO. 404, 4TH FLOOR, PRATYAKSHAKAR BHAVAN, MVP DOUBLE ROAD, VISAKHAPATNAM,A.P. 3. THE ASSESSMENT UNIT, NATIONAL FACELESS ASSESSMENT CENTRE, 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 topleased to issue a Writ, Order or Direction more particularly one in the nature of a Writ of Mandamus, declaring the impugned stay order passed by the 2nd Respondent bearing DIN and Notice No. ITBA/COM/F/17/2024- 25/1067989669(1) dated 26.08.2024 pertaining to the Assessment Year 2015- 16, granting stay subject to payment of 20 percent of the disputed demand without consideration of the facts of the case as being void, arbitrary, illegal and contrary to the Judgement of the Hon'ble Supreme Court in LG Electronics Vs. Income Tax Officer and consequently grant stay of collection of 2 tax pursuant to the assessment order dated 01.02.2024 bearing Din No. ITBA/AST/S/147/2023-24/1060366905(1) passed by the 3rd Respondent without any pre deposit on the ground that the order impugned is in parity with the order dated 01.11.2023 passed by this Hon'ble Court in lA No. 01 of 2023 in WP No. 14681 of 2023 as the same culminates out of a Notice u/s 148 issued by a jurisdictional officer who has no authority to issue such a notice as held by the Hon'ble Telangana High Court in Kankanala Ravindra Reddy vs. Income Tax Officer and Others and pass IA 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 further stay collection of tax pursuant to the Assessment Order passed by the 3rd Respondent dated 01.02.2024 bearing Din No. ITBA/AST/S/147/2023- 24/1060366905(1), including the demand notice having DIN and Letter No. ITBA/COM/F/17/2024-25/1068682633(1) dated 13.09.2024 and demand letter having DIN and Letter No. ITBA/COM/F/17/2024-25/1072459223(1) dated 23.01.2025 and pass IA 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 may be pleased to vacate interim order dated 28.03.2025 passed in lA No.1 of 2025 in W.P.No.7826 of 2025 and consequently dismiss the captioned Writ Petition with exemplary cost and pass IA NO: 3 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 please to grant leave for filing Rejoinder affidavit in Writ Petition No. 7826/2025 and pass Counsel for the Petitioner: 1. T PRADYOTH Counsel for the Respondent(S): 1. ANUP KOUSHIK KARAVADI 2. The Court made the following: 3 THE HON’BLE SRI JUSTICE BATTU DEVANAND & THE HONOURABLE SRI JUSTICE A. HARI HARANADHA SARMA WRIT PETITION No.7826 of 2025 ORDER:(Per Hon’ble Sri Justice Battu Devanand) This Writ Petition has been filed declaring the impugned stay order passed by the 2nd respondent bearing DIN and Notice No.ITBA/COM/F/17/2024-25/1067989669(1), dated 26.08.2024 pertaining to the Assessment Year 2015-16, granting stay subject to payment of 20% of the disputed demand. 2. Heard Sri T.Pradyoth, learned counsel appearing for the petitioner and Sri Anup Koushik Karavadi, learned Standing Counsel appearing for the respondent No.2. 3. The case of the petitioner is that she was issued a notice under Section 148A(b) on 22.03.2022 and an order under Section 148A(d) on 02.04.2022. Thereafter, a notice under Section 148 dated 06.04.2022 was issued. After receiving an intimation letter dated 27.01.2023 and a notice under Section 142(1) dated 23.06.2023, the petitioner filed her Return of Income on 04.07.2023, declaring total income of Rs.2,46,000/- for Assessment Year 2015-16. Subsequently, several notices were issued under Sections 142(1), 143(2) and a show cause notice under Section 144, calling for explanations. The reassessment proceedings were initiated on the grounds 4 that deposits of Rs.6,25,750/- were allegedly made in the petitioner’s ING Vysya Bank account and an immovable property worth of Rs.94,50,000/- was purchased and additional amounts were proposed under Sections 69A and 69 for unexplained money and unexplained investment. The petitioner submitted a detailed reply dated 20.12.2023, clarifying that she had not received Rs.3,49,800/- from Exide Life Insurance Company Limited, Hyderabad, that no such amount was credited in her bank account and no cash deposits of Rs.6,25,750/- were made during the year. She also explained that the property was purchased entirely from the foreign income of her NRI son and the savings of her daughter-in-law, though registered in her name. 4. 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 01.02.2024, which is in violation of principles of natural justice. Aggrieved by the Assessment Order issued by the 2nd respondent on 01.02.2024, the petitioner filed statutory appeal dated 25.05.2024 before the Appellate Authority i.e., the 3rd respondent herein which is pending for disposal. The petitioner filed stay petition along with appeal before the 2nd respondent on 08.08.2024. Considering the said petition, the Income Tax Officer, i.e., 2nd respondent herein, by order, dated 26.08.2024, granted stay subject to payment of 20% of the disputed demand. Against the said order, the present Writ Petition is filed. 5. We have given consideration to the contentions made by the respective counsels and carefully examined the material available on record. It 5 is an undisputed fact that the appeal filed by the petitioner against the Assessment Order, dated 01.02.2024 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 20% 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%. 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. 6. In an identical circumstance, this Court in the order dated 13.08.2025 in W.P.No.22770 of 2025, modified the amount to be deposited from 15% to 10% and directed the appellate authority to dispose of the appeal within a period of three (03) months. By following the same, this Writ Petition is disposed of with the following directions:- i. The impugned order, dated 26.08.2024 is modified to the extent of depositing 10% of the outstanding amount by the petitioner within a period of four (04) weeks from today. ii. The appellate authority shall dispose of the appeal within a period of two (02) months from the date of receipt of a copy of this order. 6 7. There shall be no order as to costs. As a sequel, miscellaneous petitions pending, if any, shall stand closed. __________________________ JUSTICE BATTU DEVANAND __________________________________ JUSTICE A.HARI HARANADHA SARMA Dated: 18.11.2025 SCS 7 237 THE HON’BLE SRI JUSTICE BATTU DEVANAND & THE HONOURABLE SRI JUSTICE A. HARI HARANADHA SARMA WRIT PETITION No. 7826 of 2025 Dt.18.11.2025 SCS