Khoday India Ltd v. The Income Tax Officer And Ors

IN THE HIGH COURT OF KARNATAKA, BENGALURU. DATED THIS THE 24 DAY OF SEPTEMBER 2018 BEFORE THE HON'BLE Dr.JUSTICE VINEET KOTHARI #WRIT PETITION NO.42848 OF 2018 (TIT) Between: Khoday India Ltd..,“Brewery House’, 7[th]Mile,Kanakpura Road, |Bengaluru-560 062. Represented by its Directorori.K.L.swamyAged about 70 years| ...Petit1oner (By Mr.Shankar.A, Advocate forMr. Ganesh.R, Advocate) And: 1.|The Income Tax Officer| Ward-4(1)(2) BMTC Building, 80 Feet Road|![th]Block, KoramangalaBengaluru-560 O95. ![th]Block, KoramangalaBengaluru-560 O95. 2.|The Principal Commissioner of Income-tax Bengaluru-4 BMTC Building, 80 Feet Road, ![th]Block, Koramangala, Bengaluru-560 O95. 2/5 3.|The Commissioner of Income-tax, (Appeals)-o| 7[th]Floor, BMTC Building| 80 Feet Road, 6[th]Block. Koramangala, Bengaluru-560 O95. 4The Commissioner of Income-tax,(Appeals)-4|(Appeals)-4| BMTC Building 80 Feet Road, 6[th]Block|Koramangala,Koramangala, Bengaluru-560 O95. | ...Respondent (By Mr.Jeevan.J.Neerlagi, Advocate) This Writ Petition is filed under Articles 226 and227 of the Constitution of India praying to, quash theorder passed by the R-2 vide communication dated12.06.2018 at Annexure-Q to pay the disputed demandwithin 31.12.2018 for the assessment year 2014-195pending disposal of appeal by R-3 and 4 and etc. This Writ Petition coming on for PreliminaryHearing this day, the Court made the following:- ORDER Mr. Shankar.A, Adv. for| Mr. Ganesh.R, Adv. for Petitioner. Mr. Jeevan.J.Neerlagi, Adv. for Respondents.| 1.|The petitioner-Company has filed this Writ Petition aggrieved by the Interlocutory Orders passed bythe respondent-Authorities of Income Tax Department, Date of Order 24-09-2018 W.P.No.42848/2018 Khoday India Ltd., vs. The Income Tax Officer and Ors.3/5 namely, the Principal Commissioner of Income-tax,Bengaluru-4, Bengaluru and secondly, to quash theorder passed by concerned Income-tax Officer seeking torecover first of the three installments, which theCommissioner had directed the assessee-Company todeposit against 15% of the disputed demand in threeinstallments before01.12.2018vide Annexure-O dated |12.06.2018. since the assessee did not pay even thefirst installment, the concerned Income-tax Officer videAnnexure-Ydated18.09.2018>hasdirectedthe|assessee-Company to deposit first installment beforeI4 OOIDO1LS. 2.|Learned counsel for petitioner has submittedthat though the Regular Appeal against the impugnedassessment order is pending before First AppellateAuthority for the Assessment Year2014-2015, namely,CIT (Appeals)-4, since the company is in financialdoldrums, therefore, it is not in a position to pay the Date of Order 24-09-2018 W.P.No.42848/2018 Khoday India Ltd., vs. The Income Tax Officer and Ors.4/5 said amount, therefore, some interim protection may begiven to the Company while the Appellate Authority maybe requested to dispose of the appeal in accordance withlaw, as the issue is covered by Special Bench decision ofIncome Tax Appellate Tribunal. 3.|Having heard learned counsel for petitioner-company and learned AGA for respondents, this Courtis of the opinion that though against the _ saiinterlocutory orders, the writ petition is not anappropriate remedy, as the matters are pending beforetheconcerned.AppellateAuthority/ AdministrativeAuthority and the interim communication asking thepetitioner-Company to deposit 19% of the disputeddemand, that too in three installments, does not deserveany interference, at this stage. 4However, in view of the peculiar facts andcircumstances of the case, it is directed that the.petitioner-Company shall deposit Rs.10 lakhs out of the Date of Order 24-09-2018 W.P.No.42848/2018 Khoday India Ltd., vs. The Income Tax Officer and Ors. 5/5 disputed demand on or before00.09.2018and theconcernedfirstAppellateAuthority,|namely,CIT. 4However, in view of the peculiar facts andcircumstances of the case, it is directed that the.petitioner-Company shall deposit Rs.10 lakhs out of the Date of Order 24-09-2018 W.P.No.42848/2018 Khoday India Ltd., vs. The Income Tax Officer and Ors. 5/5 disputed demand on or before00.09.2018and theconcernedfirstAppellateAuthority,|namely,CIT. (Appeals) may be moved by the Assessee for earlyhearing of the appeal subject to the aforesaid deposit.Learned CIT(A) may consider the request of theassessee-CompanyTO dispose oT|theappealexpeditiously. 5.|With the aforesaid observations, this writpetition isdisposed of' No costs.| Copy of this order be sent to the Respondents,|forthwith. dn/- Sd/-| JUDGE|