The High Court · 2025

Petition under Article 226 of the constitution of lndia praying that in the circumstances stated in the affidavit fiied therewith, the High court may be pleased to issue a writ of mandamus declaring the action of 2nd Respondent as arbitrary and illegal or the Honourable court may be pleased to pass any other writ order or direction and to set aside the order of the Respondent No. 2 dated 20.122018 uls 279(2) of the lncome Tax Act, 1961 as ilegat, arbitrary and unconstitutiona I, and the Respondent initiated prosecution proceedings uts.276 CC of the lncome Tax Act is illegal, arbitrary and without jurisdiction. lA NO: 2 OF 2019 Petition under Sect on 151 cPC praying that in the circumstances stated in the affidavit filed in support of the petition, the High court may be p,leased to stay of a further proceedings against the order passed by the 2nd Respondent dated. 20.12.2018 for the Assess;ment Year 2013-14 pending disposal of the above writ Petition as otherwise the f)etittoner will be put to severe loss and hardship' lA NO: 4 OF 2019 Petition under Sect,on 151 CPC praying that in the circumstances stated in the affidavit filed in support of the petition, the High court may be pleased to declare that the INTERIM ORTDERS granted earlier, by this Hon'b,le court, shall continue until further orders as otherwise the petitioners will be put to irreparable loss and severe hardship. lA NO: 1 OF 2019 Petition under sectron 151 CPC praying that in the circumstances stated in the affidavit filed in support of the petition, the High Court may be pleased to suspend the proceedings pending before the Special Judge of Economic offences court, Hyderabad in cc No. 246 of 20 16, pending disposal of the writ petition. lA NO: 3 OF 2019 Between:

1. The Principal Chief ,lommissioner of lncome Tax, Andhra Pradesh and Telangana, Hyderai,ad.

2. The lncome Tax Officer, Ward- 2(3), Room No. 508, sth Floor, Signature Towers, Kondapur, Hyderabad. ...PETITIONERS AND

1. M/s llios lndia Private Ltd., Plot No. 'l , Road No. 76, Jubilee Hills, Hyderabad - 500033 Rep by its Director Mr. Sana Satish Babu. 2, Sri. Sana SatishBabu, S/o Sana Subba Rao. Aged about 46 years, Occ. Director, Rto. B-2-21t3182lA/13, Road No. 82. Jubilee Hills, Hyderabad.

3. Sri. V. Tirumala Rao, S/o.V. Subba Rao, Aged about 39 years Occ. Director, Rio. Plot No.4, BhavanaCenclave, Trilling Colony, Bowenapally, Secunderabad - 50(r 011.

4. Sri KiranKumar NSR, S/o.V. R. Swamy, Aged about 47 years, Occ. Director, R/o. '10-5-56, Nageshwara Rao Street, iirmiiaopetl, Kakinada - 533004. 5. Union of rndia. Reoresented by its Secretary, Department of Revenue(centrar Board of Direct Taies) 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 preased to vacate th6 interim order dated 05.03.2019 in wp . No.277 of 2019as extended from time to time and dismiss the present W.p. No. 277 ot 2O1g with costs. ...RESPONDENTS Counsel for the Petitioner : SRI VENKATRAM REDDY MANTUR Counsel for the Respondents No.1&2 : K.MAMATA CHOUDARY Counsel for the Respondent No.3 : SRI GADI PRAVEEN KUMAR, DY.SO.GEN The Court made the following: ORDER I THE HON'BLE SRI JUSTICE P.SAM KOSHY AND THE HON'BLE SRI JUSTICE NARSING RAO NANDIKONDA WRIT PETITION No. 277 of2Ol9 ORDER: (per Hon'ble Sri Justice p.Sam Koshy) The insteLnt Writ petition has been filed seeking to issue a Writ of Mandamus to quash the order dated 20. 12.2}lg passed under Section 229(2) of the Income Tax Act, 1961 (for short, 'the Act, 196 1 ') and also to take steps against the respondent in tnitiating prosecution proceedings under Section 276CC ofthe Act, 196 1.

2. The present Writ petition is the one whrch was filed as early as in the year 2019. This Court while entertaining the writ petition oe 05.03.2019 had granted interim stay of all further proceeclings and the said impugned orde.r has been continued till noq, from time to time. Mealwhile, however, it appears that even in the teeth of the interim stay granted by this Court on 05.03.2019, the respondent authorities have proceeded v'ith the proceedings before the learned Special Judge for Economic Offences vide C.C.No.246 of 2016. The said Criminal Case has been fina1ly adjucticated on I I 2 PSkJ&N\R.r Np tr7 20t9 \ I2.O1.2O23, wherein out of four accused, Accused No.l the Company and Accused No.2 one of the Managing Directors has been found guilty of the offences atleged against them. Accused No.l-Company has been sentenced with fine of Rs.5,OO0/- and Accused No.2 has been sentenced to undergo Rigorous Imprisonment for a period of one year with default sentence. However, the other two accused persons i.e., Accused Nos.3 & 4 have been acquitted having been not found guilty. This judgment of conviction has already been challenged by Accused No.2 in Criminal No.67 of 2023 which was already admitted by this Court and it is pending

3. Heard learned counsel appearing on either side.

4. Today, when we take up the matter, we find that the Criminal Appeal No.67 of 2023 rs also tagged upon this writ petition. The writ petition also arises out of the same proceedings. However we find that since the very same proceedings under challenge before the Writ Court has already been taken into its hnal conclusion by the concerned Court and which is challenged before this Court vide Criminal Appeal No.67 of 2023, th-e question what is left to be decided in the :r*:ri:{ -:aat1: . it t:rtt' - J PSX.]&NNR'J $p 21r l0l9 t I present writ petition' upon due deliberation on the submissions made by learned counsel for the parti€:s' we are of the considered opinion that as of nou' in the teeth of the prosecution having been concluded resulting in conviction of n the present writ petition and the order two of the Petitioners r of conviction has ztiready been chaliengr:d in the aforementionerl criminal appea-l' the grounds raised by the petitioners in the present writ petition and so also the prayer by the petitio':rers for compounding of the offences would be one which would be required to be taken care of in the Criminal Appt:a1 rather than exercising the writ jr-rrisdiction by this Court' 5 Ta.king into consideratron the aforesaid facts and circumstance's of the case' the present writ petif ion as of now stands dispc'sed of reserving the right of the petitioners to adjudicate the matter in the Criminal Appeal i.,:., Cr1.A.No.67 of 2023,lvhe:re they wouid be at liberty to raise rr11 the grounds and content ons as raised in the present writ petition and also if so, for c'rmpounding of can move aPProPriate aPPlication' the offences, in accordance with lt ) 4 PSK,]&NNR,J wp 27? 2019 ''l 6, With the aforesaid observations, the Writ Petition stands disposed of. There shall be no order as to costs. Miscellaneous petitions, if any, pending in this Writ Petition shall stand closed //rRuE coPY/' ,:Bl+"-?3,EfitR ,="rffiFr,"r* To, ent of Revenue(Central Board of Direct Taxes)Union of lndia.

1. The Secretary, DePartmr ? The Principal Chief C.ommissioner of lncome Tax' Andhra Pradesh and - Telangana, Hyderabad' Room No 508' 5th Froor' signature t 4 One CC to SRI VENKATRAM REDDY MANTUR' Advocate' IOPUCI 5. One CC to SRI K MAMATA CHOUDARY' Advocate tOPUCl li gi; ffi I P# I ffi,:tTY:'n|#Y l:;,:ls:ru"13i,?iHiJ;Hs:,12(3)' J?sI".,#o' ?5"J'3 tf "' " y}1 ra I or I n d ia)' 7 Two CD CoPies' BSK BS \ I .Ii'HE S t o u, 1t JUL 2075 * s I)r\ roi r' i 6l HIGH COURT DATED:19 10612025 ORDER WP.No.277 ot 2019 DISPOSING OF THE WRIT PETITION WITHOUT COSTS q ,'5 /t5