Fairmacs Shipping And Transport Services Private Limited v. The Deputy Commissioner Of Income-Tax Corporate Circle - 2(1) Room

IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED : 31.01.2019 CORAM: THE HONOURABLE MR.JUSTICE T.S.SIVAGNANAMAND THE HONOURABLE MR.JUSTICE N.SATHISH KUMAR Writ Appeal No.220 of 2019and C.M.P.Nos.2347 and 2351 of 2019 Fairmacs Shipping and Transport Services Private Limited,Represented by its Director,Sunil Shete,New No.31, B.A.Estates, Moore Street,Parrys, Chennai - 600 001. ... Appellant/Petitioner -vs- 1.The Deputy Commissioner of Income-Tax Corporate Circle - 2(1) Room No.511, Wanaparthy Block, 121, M G Road, Nungambakkam, Chennai - 600 034. 2.The Assistant Commissioner of Income Tax Corporate Circle - 2(1), Wanaparthy Block, 121, M G Road, Nungambakkam, Chennai - 600 034. ... Respondents/Respondents Prayer: Writ Appeal filed under Clause 15 of Letter Patentagainst the order dated 08.01.2019 passed in W.M.P.No.359 of2019 and W.P.No.356 of 2019. Prayer in W.P.No.356 of 2019: Writ Petition filed under Article 226 of Constitution ofIndia prayihg to issue a Writ of Certiorari to call for therecords in PAN AAACFO474A/13-14 dated 20-12-2018 for theAssessment year 2013-14 on the file of the 1st respondent. For Appellant:Mr.Sandeep BagmarFor Respondents:Mr.Naveen Durai BabuJunior Standing Counsel https://hcservices.ecourts.gov.in/hcservices/ J U D G M E N T [Delivered by T.S.SIVAGNANAM,J.] Heard Mr.Sandeep Bagmar, learned counsel for the appellantand Mr.D.Naveen Durai Babu, learned Junior Standing Counsel forthe respondents/Revenue. 2. This appeal has been filed by the writ petitionerchallenging the interim order passed in the writ petition dated08.01.2019. The learned Writ Court by the impugned order grantedan order of stay of the assessment order dated 20.12.2018subject to the condition that the appellant pays 20% of the taxdemand within a period of four weeks from the date of receipt ofa copy of the order. 3. It is the submission of the learned counsel for theappellant that directing the appellant to pay 20% of the taxdemand is without any merit because the assessment order waspassed without opportunity of personal hearing and withoutissuing any notice. Further, it is submitted that the learnedWrit Court having found that the appellant has made out a primafacie case ought to have granted a full stay of the assessmentorder. 4. In our considered view, the learned Writ Court aftergoing through the facts of the case and hearing the submissionsof the learned counsel for the appellant recorded a finding thatthe Court is of the prima facie view that there appears to be adeviation taken by the Assessing Officer from the reasons statedin the original communication dated 20.04.2018, while rejectingthe objections raised by the appellant in the impugned orderdated 17.12.2018. The Court further recorded that it is of theview that at this stage it is not required to direct theappellant to file a regular appeal against the assessment Order,since the Court is inclined to hear and decide the challengemade against the re-opening itself. Further, it was pointed outthat considering the facts and circumstances of the case andsince an order of assessment has already been passed, thelearned Writ Court was of the view that some protection can begiven, provided, the appellant should also safeguard theinterest of the Revenue without prejudice to the contentions ofrespective parties. Accordingly, the Court granted an order ofinterim stay subject to payment of 20% of the tax demanded. Inour considered view, the discretion exercised by the Courtcannot be questioned or cannot be stated to be either perverseor unsustainable. In such circumstances, we are not inclined tointerfere with the order passed by the learned Writ Court. 5. Accordingly, the writ appeal fails and the same standsdismissed. Time for compliance of the condition imposed by theWrit Court is extended by a period of four weeks from today. Nocosts. Consequently, connected miscellaneous petitions areclosed. 5. Accordingly, the writ appeal fails and the same standsdismissed. Time for compliance of the condition imposed by theWrit Court is extended by a period of four weeks from today. Nocosts. Consequently, connected miscellaneous petitions areclosed. Sd/- Assistant Registrar //True Copy// Sub Assistant RegistrarsvkiTo1.The Deputy Commissioner of Income-Tax Corporate Circle - 2(1) Room No.511, Wanaparthy Block, 121, M G Road, Nungambakkam, Chennai - 600 034.2.The Assistant Commissioner of Income Tax Corporate Circle - 2(1), Wanaparthy Block, 121, M G Road, Nungambakkam, Chennai - 600 034. +1cc to M/S.Hema Murali Krishnan, Advocate Sr.8755+1cc to M/S.Sandeep Bagmar, Advocate sr.7839 W.A.No.220 of 2019 ssv[co]srg 21/02/2019 https://hcservices.ecourts.gov.in/hcservices/