THE HON’BLE THE CHIEF JUSTICE SRI APARESH KUMAR SINGH AND THE HON’BLE SRI JUSTICE G.M.MOHIUDDIN WRIT PETITION No.28228 of 2025

ORDER:

Learned counsel Dr. C.P.Ramaswami appears for the petitioner.

Sri Vijhay K. Punna, learned Senior Standing Counsel for Income Tax Department, appears for the respondents.

2. The application for stay on the recovery of the demand of Rs.98,62,830/- pending the appeal preferred by the petitioner on 24.10.2024 in respect of the assessment year 2014-2015 has been rejected by the Commissioner of Income Tax (Exemption) – respondent No.1, by the following order dated 23.08.2025 impugned herein (Annexure P-1):

“GOVERNMENT OF INDIA MINISTRY OF FINANCE INCOME TAX DEPARTMENT CIT (EXEMPTION), HYD

To Darul Uloom Rahmania Rangeli Khadiki 23-1-433/3, Talab Katta 500023, Telangana India

PAN: Assessment Dated: DIN & Letter No: AACAD29020 Year 23/08/2025 ITBA/COM/F/17

2014-15 /2025-26/

1079915941(1)

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:

Asst. Year Out standing Demand

2014-15 13447590 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.2000000/- on or before 01.09.2025 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 timeframe 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 had claimed an exemption of Rs.1,88,69,321/- under Section 11 of the Income Tax Act, 1961 (hereinafter referred to as, “the Act”), and declared “NIL” income in its return for the assessment year 2014- 2015. At the relevant point of time, the petitioner, who claims to be a religious society constituted on 07.10.1991 to provide educational facilities without profit motive and not to carry on any commercial activities in that regard, did not have any registration under Section 12A/12AA of the Act, which was later granted on 30.11.2017. A demand of Rs.98,62,830/- was raised upon processing its return and an intimation under Section 143(1) of the Act was sent to the petitioner. It preferred rectification application under Section 154 of the Act in January 2017 and later again on 05.02.2018 upon grant of registration under Section 12AA of the Act claiming the benefit of exemption for three prior years as per the proviso to Section 12A(2) of the Act. The rectification application was rejected on 24.09.2024. The petitioner thereafter filed an appeal against such rejection, which is pending. Pending appeal, it filed the application for stay before respondent No.1, inter alia, taking a number of grounds such as, that it has more than a prima facie case in its favour and the balance of convenience is also weighed against the revenue. According to the petitioner, the order of rejection of the rec

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