IN THE HIGH COURT OF JUDICATURE, ANDHRA PRADESH AT HYDERABAD (Special Original Jurisdiction) WEDNESDAY, THE EIGHTEENTH DAY OF MARCH TWO THOUSAND AND NINE PRESENT THE HON'BLE SRI ANIL R. DAVE, THE CHIEF JUSTICE and THE HON'BLE MR JUSTICE RAMESH RANGANATHAN WRIT PETITION NO : 5529 of 2009 Between: The Agricultural Market Committee Kubeer, Adilabad District, represented by its Assistant Secretary ..... PETITIONER AND 1 The Income Tax Officer, Ward No.1, Nirmal, Adilabad District. 2 The Commissioner of Income Tax (Appeals vi) 6th Floor, A Block, IT Towers, AC guards, Hyderabad. 3 The Sub Treasury Officer, Office of the District Treasury Office, Bhainsa, Adilabad District. 4 The State Bank of Hyderabad, Bhainsa, represented by its Branch Manager. .....RESPONDENT(S) Petition under Article 226 of the Constitution of India praying that in the circumstances stated in the affidavit filed herein the High Court will be pleased to issue a writ, order or direction more particularly one in the nature of Writ of Mandamus declaring the action of the 1st respondent in issuing notice dated 19-2-2009 issued under Sec. 226(3) of the Income Tax Act by the 1st respondent herein and given effect to the said notice by respondents 3rd and 4th herein as illegal, arbitrary and contrary to the provisions of the Income Tax Act and without jurisdiction and set aside the same Counsel for the Petitioner: MR.V.V.N.NARAYANA RAO Counsel for Respondent Nos. 1 to 3: MR.J.V.PRASAD (SC FOR INCOME TAX) The Court made the following : ORAL ORDER: (Per Sri Anil R. Dave, CJ) Learned advocate appearing for the petitioner seeks permission to delete respondent No. 4. 2. Permission is granted. Respondent No. 4 stands deleted. 3. Rule. Service of Rule is waived by Sri J.V. Prasad, learned standing counsel appearing for the respondents. At the request of the learned advocates, the petition is finally heard today. 4. The grievance which has been ventilated in the petition is that an application praying for stay of recovery had been rejected by the authority on the same day without assigning any reason. 5. The facts as stated by the petitioner in nutshell are as under: Assessment orders dated 31-12-2008 were made for the assessment years 2003-04, 2004-05, 2005-06 and 2006-07 whereby the petitioner was called upon to pay more than Rs.10,00,000/-. Being aggrieved by the orders of assessment, an appeal has already been filed by the petitioner. It has been submitted that there is no provision with regard to filing an application for stay before the appellate authority and, therefore, the assessing authority was requested to stay the proceedings with regard to recovery of the amount of tax or to keep the orders of assessment in abeyance by filing an application and the said application has been rejected. As a result thereof, the respondent authorities are making an effort to recover the aforestated amount by issuing a garnishee order. In the aforestated circumstances, the petitioner has approached this Court. 6. It has been stated on behalf of the petitioner that several petitions involving same legal issue have been admitted and the petitioners have been protected in all those cases upon payment of certain amount. It has been prayed that similar order be also passed in this matter. 7. The aforestated facts could not be disputed by the learned standing counsel. 8. In view of the above facts, we are of the view that it would be just and proper if the appellate authority is directed to decide the appeal as soon as possible. 9. Learned standing counsel appearing for the respondent authorities has submitted that it would be possible for the appellate authority to dispose of the appeal filed by the petitioner within four months from today, if the petitioner extends his cooperation. 10. In view of the above fact, it is directed that the appeal filed by the petitioner shall be disposed of as soon as possible and preferably within four months from today and till the appeal is finally disposed of, no recovery proceedings shall be initiated in pursuance of the assessment orders which are subject matter of the appeal on a condition that the petitioner pays one-third of the amount of tax payable under the impugned assessment orders within two weeks from today. 11. The petition stands disposed of as allowed with no order as to costs. 12. Intimation of this order shall be given by respondent No. 1 to State Bank of Hyderabad, Bhainsa Branch, Adilabad to whom a garnishee order had been addressed by respondent No.1. ANIL R. DAVE, CJ RAMESH RANGANATHAN, J 18th March, 2009 ks Note: Furnish Copy in three days. B/O ks