Ceat Ltd. Mumbai v. The Commissioner Of Income Tax

IN THE HIGH COURT OF JUDICATURE AT BOMBAY IN THE HIGH COURT OF JUDICATURE AT BOMBAY IN THE HIGH COURT OF JUDICATURE AT BOMBAY CIVIL APPELLATE JURISDICTION CIVIL APPELLATE JURISDICTION WRIT PETITION NO.1269 OF 2008 WRIT PETITION NO.1269 OF 2008 CEAT Ltd. Mumbai ... Petitioner Vs. The Commissioner of Income Tax... Respondent Mr. P.J. Pardiwala with Mr.Nishant Thakkar i/by M/s. Mulla & Mulla & Craigie Blunt & Caroe for Petitioner. Mr. B.M.Chatterjee and Mrs.Poonam Bhosale for the Respondent. CORAM: F.I.REBELLO&R.S. MOHITE, JJ.DATED: FEBRUARY 25, 2008 CORAM: F.I. R.S. MOHITE, JJ. DATED: FEBRUARY 25, 2008 P.C. P.C. . Rule. Heard forthwith. . It is the case of the Petitioner that they have given work on job basis to three other units and in respect of the amount paid, they have done deductions at source. The contention of the assessee is that this amounts to taking the premises on lease within the meaning of section 194-i. The Petitioner in the appeal preferred, applied for interim relief as it is the power in the commissioner (Appeals) to grant interim relief without deposit. On hearing the parties the Petitioner was called upon to deposit sum of Rs.1,58,84,621/- in two instalments. The Petitioner aggrieved by the said order is before this court. . Normally in such matters this court would not interfere in exercise of its extra ordinary jurisdiction, more so, as the matter pertains to revenue. In the instant case, however, considering the prima facie interpretation advanced before us of Section 194(1) and on behalf of the revenue it is not disputed that the assessee herein has no control over the management or production done by the unit where job work is done, in our opinion, this is a fit case to grant interim relief. However, Revenue will have to be protected for the sum which is directed to be deposited by the Commissioner (Appeals). In the light of that the following order : . Rule made absolute to the instant that instead of deposit, the Petitioner is called upon to furnish a Bank guarantee for the amount of Rs.1,58,84,621/- within eight days from today and keep the same alive till the passing of the order and for the further period of four weeks thereafter. . Rule made absolute accordingly. (R.S. MOHITE, J.) (R.S. MOHITE, J.)(F.I.REBELLO, J.) (R.S. MOHITE, J.) (F.I.REBELLO, J.)