The High Court · 2025

the affidavit filed in support of the petition, the High court may be pleased to suspend the operatiorr and effect of the order bearing DIN No. ITBA/COM/F/1 7 I 2024 -zsl 1 069933944( j ) dated 25. j 0 2024 passed by rhe Respondent No. 2 lA NO: 3 OF 2025 Petition under rlection 15i cpc praying that in the circumstances sl.ated in the affidavit filed in support of the petition, the High court may be pleased to stay all further proceedingrs, including but not rimited to recovery, pursuant to the notice of demand br:aring DIN No. lrBA/AST/s/1561 2o23-24t1o632ot3zB(1) dated 22.03.2024 iss.red by the Respondent No. 3 to the petitioner for A.\'2022- Counsel for the Petitioner: SRt. VIKRAM POOSERLA SENTOR COUNSEL Counsel for the Resp,rndents: SRI K. SUDHAKAR REDDY The Court made the following: ORDER (Sr SC FOR TNCOME TAX) FOR Ms. K. MAANASA THE HON'BLE THI] EEII]EJT]STICE SRI APARESH KUMAR S AND THtr H SRI U CE M.MOH DIN \Yri Petiti o 235 25 Ordcr IIeard tr1r. \'ikram l)ooserla, lcarned Scnior (lounsel appearing lcrr i\ls- I(. \lenasa, learncd counsel lor the peridoner and Mr. l(.Suc{haker Reddv, learned Senior Standing Counsei for Incomc l'ax l)cpzrrtmcnt appcaring for respondents / rc\:cn ue-

2. lror the asscssmcnt vcrer 2022-2023, the Petrtloncr comp2rn\i filccl its r-('tllro 1s r\-[].. Facclcss asscssment wits conductcd undcr SectLon 113(3) rcad with Section 144R of the lncome Tar \ct, 1961 (ftrr shot't 'thc 1961 Act') assessing the total incomc of thc pcrittoncr as 11s.62,57 ,82,042/ -. By otdcr da,rc<l 22.03.2021, dcmancl oi Rs.60,48,85,080/- was raised. 'fhe pctitioncr c()n1[)e1rv has hled an appcal before the National Facelcss r\ppcal (-cntrc, l)clhi,

11.04.2024. Pctitioner- company has elso tilctl :r pctition for sta1, of pavmcnt of demand u11 disposat of [hc eppcal bclirr:c respondent No.2- Principal 2 -=r (lommissrorret oI Incomc 'Iax I\/ (icrr shorr .pCI.t.), on 13.06.2021. 'fhe PCI'[', bv ordcr darccl 25.1()202.+, pcrmrr.cd pavmcrit of thc rmpugncd demancl throuqh insrrhncrrts ,,F lls.-i crores per'r)onrh star[ing from Nor-crrbcr, ]()2-1. rill disposal of thc Frr-st appcal, othcnvise the pctrrioncr- c()1rp:urv s.oukl be rreated as a1 asscssee in cicfault. pctirirtncr approachcd the Principal (lhreI Commissioner of I.c().tc [,.1r, -\.tll-rra pradcsh end Tclanqana (lor short .pCCIl',), or,r 0.1.11.2(t2-+, sccl<ins srry oF clcmancl .or the samc asscsstncnl vcar. l\. rhc lnpucnccl <rrder datcd 06.06.2025, such a pra\:e r \\.as rc l.rrsccl as tlrc pctltioncr .ornpan), has larlcd to esreltlish irs ilnancral stnngcltc\,. Petitioner, bcrng aggner.cd thercbt,, has appro:rchcd rhis Court.

3. Pctitioncr is also seeking sta\. of rcc()\rcl.of thc cicrnand tlrrough order. clared 22.03.2021, passccl undcr Sccuon 1-5(r of the .\ct o[ 1961 :y rcspondenr No.3, as rhe rppcal is strll penciinq bc[orc the Nadonal f acclcss _,\ppcel (_cnrcr. [. L,car:ncd counscl lrrr th e petJlr( )11(.r jtter ,tiia strbmittcd dtat rhc applicatiorr lor stay of dcn-rencl carcsor:icalli ma(lc out 2 c11s ( ) 3 of hnancial hardship. 'I he banli st^tement o[ thc Pe trtroner wxs also hLcd as annexure-3, s hich shorved only balance oI Rs.71,17,436/- as on 0r.11.:()2+. l-earned counsei further submits that thc corrcspondencc bv thc Additronal/Joint Commissioner o[ Income 'fax, r\dmrmstration, Hyderabad, dated 21 .02.2025, rvould shos' that the dccisit.rn of rhc Local t'ligh Pitchcd Scrutinr' ,'\sscssments Committee is not unequivocal as tt> u,hcthcr thc clemar-rd raised upon thc pctitroncr, on the basis of thc rt zrssessmcnt, is 'Not IJigh Pitche d Asse ssment'. He, hou evcr, sr-rbmits that rhc communicatron indicates that it is not a 'Not [{igh Pitched Assessment'' Ilven otherw.rse, as per thc judg'meut rcndered by Gujarat l-Iigh Court I Harsh Dipak Shah v. Union of Indial, 1fl parucular, 111 paragraph 32, thc 'high pirchcd asscssuent' means r'vhere thc income determined:tnd itsscssttrcnt w2rs substaflually higher than thc returned incomc. lior erample, nvicc thc rcturncd income or morc. I 2022 SCC ouline Guiarat 1679 4 -!

5. In the instant casc, the incomc \\-i1s ,rss,-,sscLl as tls.(r(l crorcs eeainsa the return of NIL incomc. I)cfinirclr,, i[ u..:rs a crsc ol high pitched scrutrny asscsstncnt. Fll.en tl-rc blnk srrrtcrre nt of the petrtion,:r substantiatcd the grounds of financ:ial stflnscncy 'l'he rcvenur: authoritics har.e [ai]ed to aPph, thcir rnirrci to the grouncls takr:n and rcjectcd thc pravcr [or stal e\-cn er thc lcr el oi P(_(_I1', -[ h,: direcrion ol the PCI'l' datcd 2-i 1() l( rl+ I.r'clc'r sit of instalrr-rents @ Rs.-r crore s per monrh :.mrnrlr tii,Ll Novcmbcr, .2024, tlll disposal of thc first appcal h:rs fl() mcrnlng s() far es the prayer lor stav of the impugnecl clcmrncl cJuring pcndcnct'of thc appeal is concerncd. 1'hcrch.,rc, thc pctirioncr. has appro:rcheci this Court

6. I-carrrr cl counscl f<rr thc rcvcnLlc strbnriis th:Lt tlrc pcutioncr has lailed to furnish othcr slrpporting ckrcumcnrs sur;l-r as cash flr,,rv, fin2rraiul statcment and also thc sourcc oi inhrsion <>f lunds t() r.1c pctitioner-companv, u,hich has bcc.: thc besis for scrudnv asscssment of such naturc. 'l'hcre Frrre. rl-rc impugr.rird r'.,rcler docs n()t rcquirc ant, intcrFctencc J ,/ - l 1 Fiowevcr, on being spccifLcallr, askcd as to the umeline rvrthin rvhich the appeal prclerrcd bv thc peuuoner is Likely to bc clisposcd o[, Iearned counsel lor thc rcvenuc rcplicd that he has no instructions regardiflg an1, particular tirnclinc 8 l,earnecl counscl for thc pcritioncr submits that in view oI the stand tahen b1' thc revenuc, Pclilioncr is rcadv to lurnish othcr supporting documcnts to makc r.,ut the casc of financial hardship such as the cash florv, ltntnctal statcmcnts anci such other documcnts.

9. In the wake of such submission, learnccl cottnscl lor thc rc\renuc submits that in casc tltis Court ts inclincd ro rcmand the matter, the competent officer $'ould. uPon nccessarv clocuments being submrtted, reconsider thc application r.r f the pctitioner for stay of thc demand in accordancc with la*' {

10. \Xl e have considcrcd thc submissiclns of lcarncd counsel for thc parties. --I 6 --i

11. Frtrr thc c()nspcctus of lacts and the rclc:vant clocunrcrrts taken into n()tc, as bornc out lrom thc pleadir-rgs on rcc( )f(., tI apPcars rhrt thc communicairon datcd 21 .02.2t.t25 on rhc tisuc u,hethcr the scrutiny assessmcnt undcrtakcrl againsr thc pctluon(ir was a high pitchcd asscssment or not ls 11a)t unecluivocuLl in its language as also quotcd hereinubor.c. In a :lsc s hcrc asscssec l-ras prcsented thc apP cal, t]tr. :r;scrsirtt , ,ftlr t r' trlr.\' ur Lrrs cliscrctior-r and subject to such condirions. ls lrc n,t\' thinl< fit. trcat the asscssee as not bcing in clc fur,rh in rcsfccr of thc arlorrr-rr in dispute oF the appcal and subjcct hln ftr pai'rrrc,nt of the clcrr and in instalments within a rimc prescribcd. I rr rlic prcscnt caie, thc petitioncr has approached rhc P(.1'l rntl subscqucrntll', thc PCCIT for stay o[ thc irnpuoncd dcrund I hc orcicr rlatcd 25.10.2024 passcd bv the P(.I'f, rhr-rs, pcrrnirrccl pa\.'nrcnt o1-thc irnpugned dcmancl rhrough irrs[rLlrncrrr: er ) cr()fcs pcr rnoflth staftlng from thc month of Novcmbcr, 2(.11, onwards tll disposal of thc first appcal. Howo.er, it rppcars that thc leanrcd P(ll'f or the lcarnecl ITCCIT havc rrot sl.rcci:icrlh dcalt *'ith thc issuc as rcgards ti-rc plea of Frnar-rcral lrarcrship n-r:rtlc \ \ 7 out by thc pcriuone r. It appe ars that thc Pctrtioner is recluited tcr submit lurther documents in thc naturc o[ cash florv and financiai statcments etc., for the competent officcr to takc a dccision thcreupon.

12. At this stage, therc[ore, wthout commcnung uPon thc mcrits of the plca raised by the petitioncr, wc 1r ro inclincd trr direct the pctitioner to approach thc cornpr:tcnt officcr respondent No.1 with a fresh applicauon t()gcthcr rvith supporting documents and case laws lor taking a clccision on thc qucstion of stay of payment of the demancl raisccl upon hin-r for the assessment year 2022-2023 ln terms of Scction t43 r/it' Sectton 144B of the 1961 Act.

13. Ncedless to say, if such application is r.nadc b.v thc petiuoner within a period o[ onc rveek, rcsponclcnt No.1 rvrlulcl consider thc same and take a decision thercon in accordance u,rth larv within a period of four u'ecks rhcre itotr-t 8

14. At:c<. rclingll., the insranr Writ petition is disposcd ot. N() cos ts cIoscd To, \ s a scrlr.rel, rniscellancous petitrons, pcnding if anr., stancl //TRUE COPY// SD/.P. PONNA KITISHNA ASSISTANT REGISTRAR 6SECTION OFFICER Pradesh And Telangana, lT Tower, Masab Tank, Hyderabad - 500004

1. The PRINCIPAL CHIEF COMMISSIONER OF INCOIME-TAX, Andhra 2. The PRINCIPi\L COMMISSIONER OF INCOIVIE-TAX - lV, lncorne Tax 3. The Priniciparl Commissioner,NATIONAL FACELESS ASSESSTMENT CENTRE (NFpC), lncome Tax Department, Ministry of Finance, Nera,Delhi - 1 '10001. Tower, l\,4asab Tank, Hyderabad - 500004.

4. One CC to Ms K. IVAANASA , Advocate IOPUCI 5. One CC to SRI K. SUDHAKAR REDDY, (Sr SC FOR INCOIVE TAX) IOPUC] 6. Two CD Copie:; BM a HIGH COUR DATED:1110812025 ORDER 'Ir'.1 I'I ir -'r*.. ,, .\ .,r. *, ,-.. \ .i rJi zBorTztfi '( \ WP.No.23594 of 2025 ..-.. DISPOSING OF THE WRIT PETITION WITHOUT COSTS I I i I I I l +