India Power Corporation Limited And Anr v. Pr. Commissioner Of Income Tax – I, Kolkata And Ors

OD - 2 ORDER SHEET WPO 184 of 2020 IN THE HIGH COURT AT CALCUTTA Constitutional Writ JurisdictionORIGINAL SIDE INDIA POWER CORPORATION LIMITED AND ANRVS.PR. COMMISSIONER OF INCOME TAX – I, KOLKATA AND ORS BEFORE:The Hon’ble JUSTICE ARINDAM MUKHERJEEDate: 27[th] January, 2021. Appearance:Mr. Asim Choudhury, Adv.Ms. Aesa Dey, Adv.… for the petitionerMr. P.K. Bhoumick, Adv.… for the respondents The Court : The petitioner has challenged the order dated 31[st]December, 2019 pertaining to assessment year 2017-2018 before theCommissioner of Income Tax (Appeals) – I [in short CIT (Appeals) – I]. Thepetitioner also made an application under Section 220 (6) of the Income TaxAct, 1961 (hereinafter referred to as ‘the said Act’) for not being declared asan assessee in default. The said application under Section 220 (6) of the saidAct was disposed of by an order dated 23[rd] January, 2020. Challenging thesaid order dated 23[rd] January, 2020, the petitioner filed an application forstay before the Principal Commissioner of Income Tax-I (in short PCIT – I)being the forum before which the stay application is required to be filed ondismissal of the application under Section 220 (6) of the said Act. During thependency of the regular appeal before CIT (Appeals) and the stay application arising out of the order dated 23[rd] January, 2020, the petitioner filed a writpetition being WP 54 of 2020. In the said writ petition by an order dated 12[th]February, 2020 the Principal Commissioner of Income Tax (Appeals) todecide the stay petition within a period of three weeks from the date of thesaid order. A direction was also given to the Commissioner of Income Tax(Appeals) – I, Kolkata to decide the appeal as expeditiously possiblepreferably within three weeks. An order was also passed directing theIncome Tax Department not to take any coercive steps in the meantime. Thestay petition has been disposed of by the Principal Commissioner of IncomeTax (Appeals) by an order dated 5[th] March, 2020. I am also told that thehearing of the appeal before the CIT (Appeals) was virtually towards the end.However, owing to the pandemic and a subsequent introduction of the“faceless appeal provision”, the appeal pending before the CIT (Appeals) – I,Kolkata has not been disposed of yet. In the instant writ petition, the petitioner has challenged the orderdated 5[th] March, 2020 alleging that the same is without reason and does nottake into account the relevant factors, but have taken into accountirrelevant ones. This submission is denied by the respondents. After hearing the parties and considering the materials on record, Ithink justice will be sub-served if the appeal is directed to be decided by 31[st]March, 2021. The concerned Appellate Authority now in seisin of thepetitioner’s appeal under the faceless appeal hearing scheme is directed todispose of the appeal within 31[st] March, 2021. The Assessing Officerconcerned is restrained from recovering the remaining demand over and above Rs.19 crore till the disposal of the appeal, i.e. 31[st] March, 2021. Afterpassing of the order in appeal, the Assessing Officer shall be free to takesuch steps as permitted in law. Nothing further remains to be adjudicated in this writ petition, thesame is accordingly disposed of without any order as to costs. Since I have not called for any affidavit, the allegations contained inthe writ petition are deemed not to have been admitted by the respondents. (ARINDAM MUKHERJEE, J.)