Kusum Industrial Gases Limited v. The Income Tax Officer Ward 4/4 And Ors

ORDER SHEETWPO/1669/2023IN THE HIGH COURT AT CALCUTTACONSTITUTIONAL WRIT JURISDICTIONORIGINAL SIDE KUSUM INDUSTRIAL GASES LIMITEDVS THE INCOME TAX OFFICER WARD 4/4 AND ORS BEFORE: The Hon'ble JUSTICE MD. NIZAMUDDIN Date: 5[th] October, 2023. Appearance:Mr. J.P. Khaitan, Adv.Mr. Saurav Bagaria, Adv.Mr. Rites Goel, Adv.…For the PetitionerMr. Om Narayan Rai, Adv.…For the Respondents The Court: Heard Mr. Khaitan, learned senior advocate appearing forthe petitioner and Mr. Rai representing the respondent Income TaxAuthority concerned. By this writ petition, petitioner has challenged the impugned order ofrejection of petitioner’s application under Section 220(6) of the Income TaxAct, 1961 to not to treat it as an assessee in default during pendency of theappeal against the assessment order in question which was considered bythe assessing officer by asking it to pay 20% of the demand and thepetitioner is not satisfied with the aforesaid order on the ground of financialhardship as well as on merit of the impugned assessment order itself. I am of the considered view that in spite of non-consideration of thepetitioner’s application under Section 220(6) of the Act if according to thepetitioner even in that event the petitioner is not remediless for the redressalof grievance it has raised and the relief asked for and the remedy is available to an assessee before the appellate authority for stay of any demand ornot to treat the assessee in default by the CIT (Appeals) which is a settledlaw. Considering the facts and circumstances of the case, this writ petitionbeing WPO 1669 of 2023 is disposed of by granting liberty to the petitionerto make appropriate application before the CIT (Appeals) concerned fortreating the assessee petitioner as not in default/stay of the impugneddemand, within a week from date and if such application is made by thepetitioner before the appellate authority within the time stipulated herein,the appellate authority concerned shall consider and dispose of suchapplication within two weeks from the date of receipt of such application bypassing a reasoned and speaking order after giving opportunity of hearing tothe petitioner or its authorised representative. If petitioner files the aforesaidapplication within the time stipulated herein before the appellate authorityand files proof of filling of the same before the assessing officer concerned,the assessing officer shall not take any coercive action for recovery of thedemand in question till the order is passed by the appellate authority on theaforesaid application. It is clarified that this Court has not gone into the merit of theapplication under Section 220(6) of the Act and the appellate authorityconcerned shall consider the same strictly in accordance with law and byapplying his judicious mind. TR/ (MD. NIZAMUDDIN, J.)