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 pleased to issue a Writ of Mandamus or any on this appropriate Writ, Order or Direction, declaring. a. the order passed by the 'l st Respondent, vide DIN and Letter No. ITBA/COM/F/1712024-2511070793291(1), dated 02.12.2024, in rejecting the stay application filed by the Petitioner, pending disposal of the appeal of the Petitioner before the 1st Appellate Authority, i.e., the Sth Respondent herein. for the Assessment Year 20'18 - 19. b. the garnishee notice issued by the 1st Respondent, dated 29.04.2025, vide DIN and Notice No.. ITBA/RCV/S/226(3) f -112025-2611075872286(1), uls 226(3) of the rncome Tax Arf, 'rg61, attaching the bank account of the Petitioner held with Respondent No.. 7, i.e, the banker oi the Petitioner, as arhritrary, illegal, bad in law, void-ab-initio, violative of the principles of natural justice apart from being violative of Articles 14, 19(1Xg) and zos of tre constitution of lndia a nd Sec 148A of the lncome Tax Act, 1 !161 , ind consequenfly set-aside the sane and grant stay of recovery, pending disprrsal of the petitioner's appeal before thr: 1st Appellate Authority, in the interests of .j-rstice. lA NO: 1 OF 2025 Petition under Section 151 cpc praying that in the ci-cumstances stated in the affidavit filed in support of the petition, the High court rray be pleased to stay all further procer:dings, including any recovery, pursuant kr vide DIN and Letter No.. ITBA/COMlFl17l2j24-25t1070753291(1), dated 02.12.2024, in rejecring the stay application filed by the Petitioner, seeking a blanket s ay of the outstanding demand, pending disposal of the appeal of the petitioner be fore the 1st Appellate Authority, i.e., the Sth Respondent herein. for the Assessrnent year 201g - 19. pending disposal of the above writ petition, pending dispc sal of the above 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 suspend the garnishee notices issued by the 1st Respondernt. dated 29.04.2025, vide DIN and Notice No. ITBA/RCVtSt226(3)_jt2o25-ntfi75872286(1), u/s 226(3) of the lnr;ome Tax Act, 1961, attaching the bank acrount of the petitioner held with Respondent No.. 7, i.e., the banker of the petitioner. Counsel for the Petitioner: SRI A.V.A.SIVA KARTIKEYA Counsel for the Respondent Nos.1 TO 6: M/s. BOKARO S/\pNA REDDy, SENIOR Counsel for the Respondent No.7: -- The Court made the following: ORDER SC INCOME TAX ./''' THE HONOURABLE SRI JUSTTCE P.SAM KOSHY AND THE HONOURABLE SRI JUSTICE NARSING RAO NANDIKONDA W.P.No.17123 OF 2025 ORDER, lper Hon'ble Sri Justice P.Sam Koshy) Heard Mr. A.V.A.Siva Kartikeya, learned counsel for the petitioner and Ms.B. Sapna Reddy, learned Senior Standing Counsel for the Income Tax Department for respondent Nos.1 to 6. Perused the record.

2. The present writ petition has been filed assailing the order dated 02.12.2024 rejecting the stay application of the petitioner, pending disposal of the appeal before the first Appellate Authority for the assessment year 2018-19 and the garnishee notice issued by respondent No.l dated 29.04.2025 to respondent No.7 i.e., the banker of the petitioner

3. The petitioner herein had filed statutory remedy of an appeal under Section 246A of the Income Tax Act, 196l (for short, the 'Act') before the Appeltate Authority along with the Memo of Appeal. The petitioner had also preferred lntenm protection so far as the recovery proceedings are concemed under 2 {.: ., Section 2,20(6) of the Act. It is this application which stands decided by the impugned order.

4. The contention of the leamed counsel for t rc petitioner is that the assessment order dated 08.12. 2023 itsell in the light of the Division Bench of this Court in the case of Kankanala Ravindra Reddy vs. Income Tax Officerr, is not sustainab e as the notice under Section I 48 was issued by the jurisdicti.tnal Assessing Offlcer, .,vhereas, as per the amended provision c,1'the Act, that ought to had been issued in the faceless manner. In the light of the aforesaid decision, there is all likelihood of the appeal pending before the Appellate Authority also having the szrme fate of the Assessmr:nt Order not being maintainable and being set aside.

5. In thc light of the subsequent amendments brought in the Act as also in the light of the decision rendered bv the Hon'bte Supreme Court in the case of Union of tndia & ors., v. Ashish Agarwat and others2, the Assessing Authority ought to had ' 120231 156 taxIn"nn.com 178(TELANGANA) 2022 SCC CnLine 5C 543 .Y' \ 3 granted interim protection to the Assessee till finalization of the appeal which the Assessing Authority has not considered.

6. The contention of the leamed counsel for the petitioner so far as the 148 notice issued by the jurisdictional Assessing Officer not being in dispute by the leamed Standing Counsel for the Department and also in the light of the aforesaid judgments rendered by this Court in the case of Kankanala Ravindra Reddy (supra 1) and in the light of the judgment of the Hon'ble Supreme \ Court in case of Ashish Agarrval (supra 2), rve are of the I considered opinion that the Assessing Authority in the course ol deciding the petition under Section 220(6) of the Act, ought to have taken a more pragmatic view and should had kept the recovery proceedings in abeyance, pending the appeal before the Appellate Authority

7. For the aforesaid reasons, we dispose of the present writ petition at this juncture directing the Assessing Officer not to pursue with the recovery proceedings in terms of the impugned order dated 02.12.2024 till the appeal for the assessment year 2018-19 is finally decided. \ 4 ,tr

8. Considering the fact that the appeal was filed in the year 2021, we expect that the Appellate Authority shall take up the appeal and decide the same as expeditiously as possible. There shall be no ordcr as to costs. Consequcntly, miscellaneous applications, pi:nding if any, shall stand closcd. ,TRUE COPY// Sd/- K. AMMAJI DEPUTY REGISTRAR \, . SECTION OFFICER -t l To 1 . The Assistant Commissioner of lncome fax, CircteU(t ), Hyderabad, Aayakar Bhavan, opposite to LB Stadium, Basheerbagl , Hyderabad - 500 004, Telangana.

2. The lncome Tax Officer, Ward 12(1), Hyderabad, Aayallar Bhavan, opposite to LB Stadium, Basheerbagh, Hyderabad - 500 004, Telangana.

3. Assessment Unit, lncome Tax Depa(ment, National e-l\ssessment Center, New Delhi, Room No.. 401 ,2nd Floor, E-Ramp, Jawah;:rlal Nehru Stadium, New Delhi - 1 10 003. 4. The Principal Commissionerof lncomeTax- 1, Hyderarad l.T.Towers, AC Guards, [t/]asab Tank, Hyderabad - 500 004, Telangana.

5. The Joint Commissioner, (Appeals) / the Commissioner of lncome Tax (Appeals), National Faceless Appeal Centre, Delhi, Thrcugh the Principal Chief Commissioner of lncome Tax (NaFAC), Delhi, Nc rth Block, New Delhi - 1 10 001

6. The Central Board of Direct Taxes, Represented by its Chairman, Department of Revenue, Ministry of Finance, Government of lndia, Secretariat Buildings, New Delhi - 'l 10 00'1 . Parel, fvlumbai.

7. M/s HDFC Bank Limited, HDFC Bank House, Senapati BAP at Marg, Lower 8. One CC to SRI A.V A.SIVA KARTIKEYA, Advocate [OI)UC] 9. One CC to M/s. BOKARO SAPNA REDDY, SENIOR SC INCOME TAX loPUCl

10. Two CD Copies PSK PVL HIGH COURT DATED:2010612025 I t ! : I I i i I I I , i I ORDER WP.No.17123 of 2025 ,t :' -) ti -) (r1 ' aa..'.f o( 11 SEP 2025 \ o", \- rnr I Cr'i ' DISPOSING OF THE WRIT PETITION WITHOUT COSTS o 6 Ar{ 6