TaxTMI 
TaxTMI 
TaxTMI 
2025 (10) TMI 773
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....d counsel for the petitioner. Mr. Vijhay K. Punna, learned Senior Standing Counsel for Income Tax Department appears for respondents No. 1 to 3, virtually. 2. The petitioner - assessee has assailed the order dated 23.08.2025 passed on the stay application by the Commissioner of Income Tax (Exemption), Hyderabad [for short, 'the CIT (Exemption)'], in respect of the outstanding amount of Rs. 53,74,67,120/- relatable to the assessment year 2023-24. 3. The impugned order reads as under: "GOVERNMENT OF INDIA MINISTRY OF FINANCE INCOME TAX DEPARTMENT CIT (EXEMPTION), HYD ____________________________________________________ To, SPANDANA RURAL AND URBAN DEVELOPMENT ORGANISATION Plot No.31 and 32, Ramky Selenium Towers ....
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....ng Officer will be at liberty to initiate coercive recovery proceedings under Section 226(3) of the I.T. Act, 1961 without any further communication. Further you are informed to treat this matter with urgency and ensure compliance within the stipulated timeframe to avoid any further action by the Department. BALA KRISHNA BATTULA CIT (EXEMPTION), HYD" 4. Learned counsel for the petitioner has drawn the attention of this Court to the stay application, which is at Annexure P8. 5. The relevant part of the stay application is also extracted hereunder: "3. For AY 2023-24 the assessee filed its return of income on 30-11-2023 u/s 139(4A) admitting NIL income. The case was selected for compulsory scrutiny for verifying ....
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....an to those needy persons by charging at the higher rate of interest and the assessee takes the benefit of their need/urgency. It has also lessened its risk to a lower amount of Rs. 50000/- and charging the exorbitant rate of interest at around 22%. In such condition, the element of charity is totally missing." 4.10 "In view of the discussion in above paras, it is concluded that the assessee has not carried out any charitable activities as defined u/s 2(15) of the Act. The activity of the assessee are clearly of the nature of trade, commerce or business as defined in proviso of section 2(15) of the Act." 6. In this regard, the assessee would like to rely on the order of the Hon'ble High Court of Andhra Pradesh in its own c....
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....he same. Since the appellant society has been doing the same activity year after year, denial of benefit u/s 11 and 13 by the Ld. AO is uncalled for and the order so passed is against the order of the jurisdictional High Court in the assessee's own case. It is therefore, requested that stay may kindly be granted till the disposal of the appeal." 6. Learned counsel for the petitioner submits that the assessing authority, vide assessment order dated 20.03.2025, has made two additions by disallowing surplus of income and capital expenses under Section 13(10) read with Section 13(8) of the Income-tax Act, 1961 (for short 'the Act'). He further submits that the petitioner is a charitable organisation having been granted exemption under Sectio....
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....e 01.09.2025, failing which, recovery proceedings under Section 226(3) of the Act would be initiated without any further communication. Being aggrieved thereby, the present Writ Petition has been filed. 7. It is submitted that the impugned order does not address the relevant factors required to be taken into consideration while dealing with an application for stay of the demand or for partial payment. Therefore, the impugned order may be set aside. 8. Leaned counsel for the Revenue has sought to draw the attention of this Court to the assessment order in order to justify that the additions and disallowances made in the return of income filed by the petitioner are proper in the eye of law. However, learned counsel for the Revenue has n....