First Flight Couriers Ltd v. Additional Commissioner Of Income Tax 4(2), Mumbai And Others

IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION WRIT PETITION NO.814 OF 2013 First Flight Couriers Ltd...Petitioner.versusAdditional Commissioner of Income Tax4(2), Mumbaiand others..Respondents. ..... Mr. Jehangir D. Mistri, Senior Advocate with Mr. Sandeep Dadwal i/b Mr. Prakash Mahadik for the Petitioner.Mr. Suresh Kumar for the Respondents. ..... CORAM : DR.D.Y.CHANDRACHUD, ANDA.A. SAYED, JJ. 2 May 2013. P.C. : The Petitioner seeks to question the action of the Income Tax Department in deducting an amount of Rs.3,86,41,602/- from the amount refundable for Assessment Year 2011-12. For Assessment Year 2011-12 an intimation was issued on 25 March 2013 under Section 143(1) of the Income Tax Act 1961 quantifying the amount refundable to the Petitioner at Rs.7,55,41,697/-. For Assessment Year 2007-08 an order of assessment was passed on 8 March 2013, following which a notice of demand under Section 156 dated 8 March 2013 came to be issued. The Petitioner has stated that the notice of demand under Section 156 was actually served on 22 March 2013 as result of which the Petitioner had a period of thirty days to pay the amount demanded. The grievance of the Petitioner is that without waiting for the expiry of the period of thirty days available in law under Section 245, the adjustment was carried out from the refund payable to the Petitioner for Assessment Year 2011-12 and the balance was refunded in the amount of Rs.3.69 Crores on 3 April 2013. In response to a representation dated 4 April 2013 the Petitioner was informed on 9 April 2013 by the Assistant Commissioner of Income Tax Circle 4(2) Mumbai that this was done in pursuance of the directions of the Additional Commissioner of Income Tax, Range 4(2). 2.The learned senior counsel appearing on behalf of the Petitioner states that the Petitioner shall within a period of one week from today file an application for stay of the demand for Assessment Year 2007-08. Counsel appearing on behalf of the Revenue states that upon such an application being filed, the Assessing Officer shall dispose of the application for stay within a period of one week from the receipt thereof and the balance, if any, that is refundable shall be refunded together with interest expeditiously within two weeks thereafter. The Petition is accordingly disposed of. There shall be no order as to costs. (Dr. D.Y.Chandrachud, J.) (A.A. Sayed, J.)