High Court · 2025

Petition under Article 226 of the Constitution of lndia praying that in the circumstances stated in the affidavit filed therewith, the High Court may be pbased to issue a wriUorder or direction more particularly one in lhe nature of Writ of Certiorari thereby calling for the record and proceedings culminating into the lmptgned Assessment Order dated 2oth March 2025 and the inpugned denrand notice dated 20th March 2O25 and pleased to quash and set asirCe the same. i I lA NO: 2 OF 2025 Petition under Se,ltion 151 CPC praying that in the circumstances stated in 'may be pleased the affidavit filed in support of the petition, the High Courl pteased to direct the Re,spondents/ lncome Tax Department to forthwith rectify the Assessments for AY 2019-2020 and further restrain the Respondents/ lncome Tax Department from making any other any demands or assessments with respect to the Petitioner No. 1 for.any period prior to 01 .O2.2024. lA 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 to lssue interim orders staying the effect, operation and implementation of the lmpugned Assessment Order dated 20th March 2025 and the impugned demand notice dated 20th Marcir 2025 pending disposal of the writ petition. Counsel for the Petitioner : SRI R.SUSHANTH REDDY Counsel for the Respondent No.'l: SRI K.V.RAMA RAO (Sr SC FOR CENTRAL GO\fi) Counsel for the Respondents No.2to4 : SRI K.SUDHAKAR REDDY, Sr.SC FOR lT The Court made the following: ORDER I I TTIE IION'BLE THE CHIEF JUSTICE SRI APARESII KTIMAR SITiIGH AND THE HON'BLE SRI G.M.MOHII'DDIN WRIT PETITION No.1O2OO of 2O25 ORDER: Mr. R.Sushanth Reddy, learned counsel for the petitioners. Mr. K.V.Rama Rao, learned Senior Standing Counsel for Central Government appea-rs for respondent No. 1. Mr. K.Sudhakar Reddy, learned Senior Standing Counsel for Income Tax Department appears for respondent Nos.2 to 4.

2. Heard learned counsel for the parties.

3. Petitioners are aggrieved by the demand notice dated

20.O3.2025 passed for Rs. 1,43,97,93,84O / - assessment year 2Ol9-2O in a faceless assessment for the conducted under Section 147 read with Section 1448 of the Income Tax Act, 1961 (hereinafter referred to as the Act'). \ :L 2

4. Learned counsel for the petitioners submits that the Resolution Plan submitted by the Committee ,:f Creditors was approved by the National Company Larv Tribunal, Hyderabad llench-Il (hereinafter referred to as 'ttre Tribunal') on OL.O2.2O24. Upon approval of the Resolution Plan, all dues under the Income Tax Act, 1961 got extinguished whether adnlitted or not, due or contingent, assr:rted or not, crystallized or not from the effective date pursuant to the Resolution PIan. However, in view of the issuance of the demand notice' for the assessment year 2Ol9-2O even after approval of the Resolution Plan whereby the Income tax dues got extinguishr:d, petitioner was compelled to approach this Court in the present writ petition.

5. On 19.08.2O25 when the matter was taken up, learned Senior Standing Counsel for Income Tax Department, on instructions, submitted tJlat tJle Assessing Oflicer is in the process of isstring a fresh order under Section 156,{ of the Act after taking note of the Resolution Plan approved by the Tribunal. The matter was adjourned on his request. 'i l| ) 3 r

6. Section 1564, ofthe Act reads as under: "ItrA. (1) Where any tax, interest, penalty, fine or any other sum in respect of which a notice of demand has been issued under section 156, is reduced as a result of an order of the Adjudicating Authority as defined in cliuse (l) of section 593 of the Insolvency and Bankruptcy Cod€, 2016 (31 of 2016), tJ'e Assessing Offrcer shall modift the deoand pavable in confiormity wit]r such order and strall thereafter serve on the assessee a notice of demand speciffing the sum payable, if any, and such notice of demand shall be deemed to be a notice under section 156 and the provisions of tbis Act shall accordingly, apply in relation to such notice. (2) Where the order refrrred to in sub-section (1) is modilied by the National Company Law Appellate Tribunal or the Supreme Court, as the case may be, the modified notice of demand as referred to in sub-section (1), issued by the Assessing OIIicer shall be revised accordingly."

7. Today when the matter has been taken up, learned Senior Standing Counsel for Income Tax Department submits that the writ petition may be disposed of with a 1r direction upon the Assessing OIIicer to pass a fresh order \ under Section 1564' of the Act after taking note of the Resolutiori Plan approved by the Tribunal. 4

8. l,earned counsel for the petitioners pra],s that the Assessing Offir:er may be directed to pass an order under Section 156A of the Act within a time frame.

9. Having r,:gard to the aforesaid submissions made by learned couns,el for the parties and the provisions quoted above, the Wri,- Petition is disposed of with a direction to the Assessing Offic:er to pass an order in view of the approval of the Resolution Plan by the learned Tribunal under Section 1564 of the Act, in accordance with law, within a reasonable time, preferabl.r eight weeks from the date of receipt of a copy of the order. Let it be made clear that we have not gone into the merits of'the case of the parties. However, there shall be no order as to oosts. Miscellaneous applications pending, if any, shall stand closed. //TRUE COPYII SD/. ASS MY ECTION OFFICER To, BSK LS Guards, Masab Tank Hyderabad SOO 004 Telangana.

1. The Principal Ser;retary, Ministry Of Finance. Union of krdia 2. The Principal Commissioner of lncome Tax .1, lncome Tax Towers, A C 3. The Deputy commissioner of rncome Tax, circie t t Hyderabad, rncome Tax 4. The Assessmenl Unit, lncome Tix Department Nationa[ e_Assessment center New Derhi, Room No 401,2nd Froor, ERamp.lawananai ruetrru Stadium, New Delhi 110 003 Towers, A C Guads Masab Tank, Hyderabad SOO OO4 ielangana

5. One CC to SRt R SUSHANTH REDDY, Advocate. tOpUCj 6 One CC to SRI K SUDHAKAR REDDY, SR.SC FOR lT DEPT. tOpUCJ 7. One CC to SRt K V,RAMA RAo, ( Sr SC FOR CENTRAL GOVi). tOpitCt 8. Two CD Copies. HIGH COURT DATED:261081it025 ORDER WP.No.10200 of 2025 c ) J o ( ( * 1n€ S 14 .{: (s( z C, ,+ 01 N0ll P5 t-D SPATCtl r,'i DISPOSING OI. THE WRIT PETITION WITHOUT COSTS qA. 716[x-