Expovan v. The Deputy Commissioner Of Income Tax,Non-Corporate Circle 4

IN THE HIGH COURT OF JUDICATURE AT MADRAS CORAM THE HONOURABLE MR.JUSTICE C.SARAVANAN (Through Video Conferencing) Expovan,Represented by its Managing Partner,Mr.R.Mahendran,No.124/16, Vadakkipalayam Road,R.Ponnapuram, Pollachi – 642 002.... Petitioner Vs The Deputy Commissioner of Income Tax,Non-Corporate Circle 4,No.63, Race Course Road,Coimbatore – 641 018.... Respondent Prayer: Petition filed under Article 226 of the Constitutionof India to issue a Writ of Certiorarified Mandamus callingfor the records of the respondent contained in its Order dated17.09.2021 bearing DIN & Letter No.ITBA/COM/F/17/2021-2022/1035676709(1) issued under Section 220(6) of the IncomeTax Act, 1961 and all proceedings in furtherance thereof, andto quash the same as arbitrary, illegal and unjust, and toconsequently forbear the respondent and/or any of itssubordinates, agents, representatives or any other personclaiming under/through the respondent from in any mannertaking any steps towards the recovery of any demand madepursuant to the assessment order passed by the respondentbearing DIN:ITBA/AST/S/143(3)/2021-2022/1032276622(1) passedunder Section 143(3) read with Section 143(3A) and 143(3B) ofthe Income Tax Act, 1961, dated 07.04.2021 for the AssessmentYear 2018-2019 for PAN: pending disposal of thepetitioner's appeal by the Commissioner of Income Tax(Appeals). For Petitioner : Mr.A.R.L.Sundaresan Senior Counsel for Mr.M.Velmurugan For Respondent : Mr.A.N.R.Jayaprathap Junior Standing Counsel https://hcservices.ecourts.gov.in/hcservices/ ORDER Mr.A.N.R.Jayaprathap, learned Junior Standing Counseltakes notice on behalf of the respondent. 2. This Writ Petition is disposed at the time ofadmission after hearing the learned counsel for the petitionerand the learned Junior Standing Counsel for the respondentIncome Tax Department. 3. The petitioner had suffered the Assessment Order forthe Assessment Year 2018-2019 vide the Final Assessment Orderdated 07.04.2021. Against the aforesaid order, the petitionerpreferred an appeal before the Commissioner of Income Tax(Appeals) and had simultaneously filed an application underSection 220(6) of the Income Tax Act, 1961 before therespondent to stay operation of the recovery proceedings. 4. The respondent has now passed the impugned order dated17.09.2021 after referring to circulars which have been issuedthe Central Board of Direct Taxes. As per the aforesaidorder, the petitioner is required to deposit 20% of the taxdue as the condition for the appeal to be heard subject towhich stay was to be granted to the petitioner pendingdisposal of the appeal. 5. The petitioner has sent a request asking therespondent to allow to deposit Rs.10,00,000/- per monthconsidering the fact that the amounts to be pre-depositedcomes to Rs.2,98,81,885/-. Since the petitioner has notdeposited the amount of Rs.2,98,81,885/-, the respondent hasnow attached the bank accounts of the petitioner whichthreatens the business of the petitioner as the petitioner hasto pay for the procurements in the auctions conducted by theBoard. 6. Considering the same, I am inclined to dispose thiswrit petition by directing the petitioner to pay a sum ofRs.30,00,000/- per month till the amount is paid. The amountsshall be paid by the petitioner by 5[th] of every month. In casethere is failure to pay the amounts by the due date, theprotection under this order shall come to an end sine die andthe respondent will be at liberty to attach the bank accountsof the petitioner. In other words, the impugned AssessmentOrder shall stand revived without any reference. 7. The appeal of the petitioner which is pending beforethe Commissioner of Income Tax (Appeals) shall be taken up fora final hearing only after the petitioner pays the entireamount of Rs.2,98,81,885/- in terms of this order. 6. Considering the same, I am inclined to dispose thiswrit petition by directing the petitioner to pay a sum ofRs.30,00,000/- per month till the amount is paid. The amountsshall be paid by the petitioner by 5[th] of every month. In casethere is failure to pay the amounts by the due date, theprotection under this order shall come to an end sine die andthe respondent will be at liberty to attach the bank accountsof the petitioner. In other words, the impugned AssessmentOrder shall stand revived without any reference. 7. The appeal of the petitioner which is pending beforethe Commissioner of Income Tax (Appeals) shall be taken up fora final hearing only after the petitioner pays the entireamount of Rs.2,98,81,885/- in terms of this order. 8. It is needless to state that the payments to be paidhttps://hcservices.ecourts.gov.in/hcservices/by the petitioner is without prejudice to the rights of the petitioner in the appeal pending before the Commissioner ofIncome Tax (Appeals). The first instalment shall be paid bythe petitioner by 05.01.2022. 9. This Writ Petition stands disposed of with the aboveobservations. No costs. Consequently, connected WritMiscellaneous Petitions are closed. Sd/-Assistant Registrar //True copy// Sub Assistant Registrar arb To The Deputy Commissioner of Income Tax,Non-Corporate Circle 4,No.63, Race Course Road,Coimbatore – 641 018. +1cc to Mr.M.Velmurugan, Advocate SR.No.66441 +1cc to Mr.A.P.Srinivas, Advocate SR.No.66542 W.P.No.26650 of 2021and W.M.P.Nos.28092 & 28093 of 2021 PM(CO)GMY(11/01/2022)