M/S. Saptashrungi Switchgears, Nashik v. The Assistant Commissioner Of Income Tax & Ors

Amk 1 (931) WP 2102/11 IN THE HIGH COURT OF JUDICATURE AT BOMBAYAPPELLATE CIVIL JURISDICTION WRIT PETITION NO. 2102 OF 2011 M/s. Saptashrungi Switchgears, Nashik.. Petitioner Vs. The Assistant Commissioner of Income Tax & Ors... Respondents Mr. S. N. Inamdar and Mr. Mihir Naniwadekar for the Petitioner.Mr. Vimal Gupta for the Respondents. P.C. 1.Rule returnable forthwith. By consent, the Petition is taken up for final hearing. 2.By this Petition, the Petitioner seeks stay of demands raised for the assessment year 2008-09 pursuant to the assessment order dated 20[th] November, 2010 as rectified by order dated 04.02.2011 under Section 154 of the Income Tax Act, 1961. Admittedly the Petitioner has filed an Appeal against the assessment order and has also filed a stay application before CIT on 8[th] March, 2011. In the said stay application the Petitioner has specifically pleaded that under Section 2(22)(e) of the Income Tax Act deemed dividend can be computed to the extent of accumulated profit of the lending company, however, in the present case the Assessing Officer has computed the deemed dividend on gross total income. Admittedly, the stay application filed by the Petitioner 2 (931) WP 2102/11 is pending before the CIT. Even before the disposal of the stay application, the Assessing Officer has attached the bank accounts of the Petitioner by his letters dated 8[th] February, 2011, 15[th] February, 2011 & 15[th] February, 2011 being Exhibit H-1 to H-3. Hence the attachment of the bank accounts are set aside and the CIT is directed to dispose of the stay application dated 8[th] March, 2011 in accordance with law. (ROSHAN DALVI, J.) (J.P. DEVADHAR, J.)