The Income Tax authority must address all specific grounds presented in a stay application thoughtfully and thoroughly.

ORDER:

Ms. Akruti Agarwal, learned counsel for the petitioner.

Mr. Vijhay K Punna, learned Senior Standing Counsel for the Income Tax Department appears for respondent Nos.1 to 3 through video conferencing.

2. The application for stay on the recovery of demand of Rs.25,86,36,931/- pending the appeal preferred by the petitioner on 20.03.2025 in respect of the Assessment Year 2023-24 has been rejected by the Commissioner of Income Tax (Exemptions), Hyderabad (for short, “the CIT”) by order dated 30.08.2025 impugned herein, which reads as under:

“GOVERNMENT OF INDIA

MINISTRY OF FINANCE

INCOME TAX DEPARTMENT

CIT (EXEMPTION), HYD

Sir,

Madam/M/s,

Subject: Online service of Orders – Letter

Sub: Decision on Stay Application – Request for Partial Payment – Reg.

This is with reference to your application for stay of collection of taxes, submitted before the Commissioner of Income Tax (Exemptions), Hyderabad. As per this the demand payable are as under:

After carefully examining all relevant facts and circumstances of your case, and also considering the recent order of the Hon’ble Andhra Pradesh High Court in the case of M/s. The General and Technical Education Society (IA No.1 of 2025 in WP No.12728 of 2025) and also considering the Hon’ble High Court of Telangana order in the case of Zoos and Parks Authority of Telangana v. CIT (E) (2024) 467 ITR 235 (Telangana) (HC), your stay application has been considered.

It is, therefore, decided that your stay petition is considered provided you pay an amount of Rs.3,87,00,000/- on or before 08.09.2025 and produce copies of challans before the Assessing Officer of your case and marked a copy to the undersigned.

Please note that if you fail to comply with this directive by the due date, the Assessing 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 time frame to avoid any further action by the Department.

BALA KRISHNA BATTULA

CIT(EXEMPTION), HYD

Copy to:

1. Assessing Officer.

2. Additional Commissioner of Income Tax (Exmp), Hyderabad.

BALA KRISHNA BATTULA

CIT(EXEMPTION), HYD”

3. The petitioner – assessee is a charitable institution, which was granted registration under Section 12AA (1)(b)(i) of the Income Tax Act , 1961 (for short, “the Act”) vide order dated 26.06.2008 by the Director of Income Tax (Exemptions), Hyderabad. According to the petitioner, the trust was also granted approval under Section 10(23C)(vi) from the Assessment Year 2008-09 onwards vide order dated 13.02.2009 of the Chief Commissioner of Income Tax, Hyderabad-I. It was also granted approval under Section 80G (5)(vi) of the Act vide order dated 26.06.2008 by the Director of Income Tax (Exemptions), Hyderabad. Such approvals were extended upto the Assessment Year 2026-27 as per order dated 24.09.2021 in Form 10AC. Similar approval under Section 80G (5)(vi) of the Act was also extended for the same period vide order dated 17.11.2021. Hence, according to the petitioner, for assessment year 2023-24 the assessee trust was in possession of valid approval under Section 10(23C)(vi) of the Act. The Assessing Officer vide order dated 06.03.2025 determined the total income of Rs.48,86,37,677/- as against Nil income raising a demand of Rs.25,86,36,931/-. Being aggrieved, the petitioner preferred an appeal against the said assessment order before the