M/S. Rent A Device Trust v. Income Tax Officer (Tds) 2(1)(4), Mumbai & Ors

R.M. AMBERKAR (Private Secretary) IN THE HIGH COURT OF JUDICATURE AT BOMBAYO.O.C.J. WRIT PETITION NO. 551 OF 2019 M/s. Rent A Device Trust..Petitioner Versus Income Tax Officer (TDS) 2(1)(4), Mumbai & Ors...Respondents ................... Mr. Jehangir Mistri, Sr. Counsel a/w Mr. Madhur Agrawal and Mr.P.C. Tripathi i/by Raj Darak for the Petitioner Mr. Jehangir Mistri, Sr. Counsel a/w Mr. Madhur Agrawal and Mr.P.C. Tripathi i/by Raj Darak for the Petitioner Mr. Suresh Kumar for the RespondentsMr. Suresh Kumar for the Respondents ................... CORAM : AKIL KURESHI & M.S. SANKLECHA, JJ. DATE : FEBRUARY 28, 2019. P.C.: 1.The petitioner is facing coercive recovery initiated bythe Revenue Authorities in respect of the tax dues arising outof an order under Section 201 of the Income Tax Act, 1961passed on 10.1.2019. The petitioner has already filed anappeal against such order. Pending such appeal, thepetitioner had also urged the Assessing OfÏcer to keep thedemand in abeyance. The Assessing OfÏcer rejected therequest and insisted that the entire amount be deposited.Since the petitioner did not do so within the time permitted,the petitioner's bank accounts are attached and garnishee orders are served on the creditors of the petitioner. At thatstage, the petitioner has filed the petition. 2.We record, against such decision of the AssessingOfÏcer on stay petition, the petitioner assessee would have aright to approach the Commissioner of Income Tax or ChiefCommissioner of Income Tax. In the present case, in view ofthe facts on record, we desire that the Chief Commissionerlooks into the request of the petitioner for suspension ofdemand pending appeal. We notice that the RevenueAuthorities have acted rather quickly and taken steps underwhich the petitioner's business would adversely suffer andalso recoveries made without the petitioner's consent. In theprocess, the Assessing OfÏcer has allowed extremely shortperiod to the petitioner to take legal steps as may beadvised. 3.Mr. Suresh Kumar, the learned counsel for the Revenue,at our request, had consulted the Revenue Authorities underwhich the petitioner could raise grievance before the higherRevenue Authorities which would also enable such authorities to pass an appropriate order, as well taking care the interest of the Revenue. Under these circumstances, the petition is disposed of with following directions:- (i) The petitioner shall file a stay petition before the ChiefCommissioner of Income Tax (TDS) within a period ofseven days from today.Commissioner of Income Tax (TDS) within a period ofseven days from today. (ii) If such stay petition is filed within the time permitted, saidAuthority may dispose of the same as expeditiously aspossible. Authority may dispose of the same as expeditiously aspossible. (iii) For a period of ten days after the date of communicationof the order of Chief Commissioner passes, there shallbe no coercive recoveries against the petitioner inconnection with this issue.of the order of Chief Commissioner passes, there shallbe no coercive recoveries against the petitioner inconnection with this issue. (iv) In the meantime, since we have prevented furthercoercive recoveries, the attachment of the bank accountsof the petitioner as well as garnishee orders stand lifted.coercive recoveries, the attachment of the bank accountsof the petitioner as well as garnishee orders stand lifted. [ M.S. SANKLECHA, J. ] [ AKIL KURESHI, J ]