M/S. St.john Freight Systems Ltd.,C v. The Principal Commissioner Of Income-Tax,Central-2

IN THE HIGH COURT OF JUDICATURE AT MADRASDATED: 17.08.2016 CORAM THE HONOURABLE MR.JUSTICE T.S.SIVAGNANAMW.P.No.7989 of 2015 & M/s. St.John Freight Systems Ltd.,C-98, SIPCOT Industrial Complex,Harbour Express Road,Tuticorin-628 008.Rep. by its Managing Director,Shri T.Johnson .. Petitioner Versus The Principal Commissioner of Income-Tax,Central-2,No.46 M.G. Road,Chennai -600 034... Respondent Prayer: This Writ Petition is filed under Article 226 of theConstitution of India, seeking for a Writ of CertiorarifiedMandamus to call for records of Respondent in C.No.2802/C-2/2014-15/3, dated 13.03.2015 and quash the same andconsequently direct the Respondent to grant stay of collectionof demand for the assessment years 2012-13 till the disposal ofthe Petition u/s.119(2)(b)/(c), dated 10.03.2015 by the CBDT. For Petitioner: Mr.P.H.Aravind Pandian, Senior Counsel For Mr.S.Subbarayaaiyar Padmanabhan O R D E R Heard Mr.P.H.Aravind Pandian, learned Senior Counselappearing for the petitioner and Mr.T.Pramodkumar Chopda,learned SSCIT appearing for the respondent. 2. Challenging the order dated 13.03.2015 passed by thefirst respondent, which is an order on a stay petition filed by https://hcservices.ecourts.gov.in/hcservices/ the petitioner pertaining to the Assessments for the years2011-12 and 2012-13, earlier, in respect of the Assessment forthe year 2011-12, the matter was before the Income Tax AppellateTribunal in I.T.A.No.1124/Mds/2015 and the Tribunal has passedan order on 17.03.2016 and the operative portion of which readsas follows: "7. We heard the rival submissions and perusedthe material on record, judicial decisions cited. TheId. Authorised Representative argued that the returnof income could not filed within due date and fileddetailed submissions in assessment and appellateproceedings relying on the decisions of Co-ordinateBench of the Tribunal. But the Id. Commissioner ofIncome Tax (Appeals) considered the decision ofSpecial Bench in the case Saffire Garments (supra) andover ruled the assessee's objections and observedfiling return of income u/s.139(1) of the Act ismandatory. The Id. Authorised Representative drewattention to the decision of Hyderabad Bench, Tribunalin the case of S.Venkataiah (supra) were delay infiling return of income was condoned due totechnicalities. Subsequently, on appeal by Revenueu/s.260A of the Act the Hon'ble Andhra Pradesh HighCourt has confirmed the order of the Tribunal inI.T.T.A No.114 of 2013, dated 26.06.2013. The AndhraPradesh High Court considered the technicalities andcircumstances were the assessee could not file thereturn. The Assessee company has made an applicationon 03.07.2014 with CBDT u/s.119(2)(b) of the Act forcondonation of delay in filing return of income. Theassessee demonstrated the submissions made before theCBDT. Considering the factual aspects, evidence,provisions of law and decisions of High Court andTribunal relied by the assessee, we are inclined toremit the issue in dispute to the file of AssessingOfficer as the application u/sec. 119(2)(b) of the Actis pending with the CBDT. The Assessing Officer has topass the order based on the directions from CBDT afterproviding adequate opportunity of being heard to theassessee. This ground of the appeal is partly allowedfor statistical purpose." It is further submitted by the learned Senior Counsel for thepetitioner that for the year 2011-12, pursuant to the directionissued by this Court on 20.03.2015, a sum of Rs.25,00,000/- hasbeen paid by the petitioner. 3. The learned Senior Counsel appearing for thepetitioner would further submit that the issue involved in boththe Assessments being identical, they are entitled to rely uponthe decision of Income Tax Appellate Tribunal on the said issue, a direction contained therein. Therefore, prayer is made to passsimilar orders in this Writ Petition also. It is further submitted by the learned Senior Counsel for thepetitioner that for the year 2011-12, pursuant to the directionissued by this Court on 20.03.2015, a sum of Rs.25,00,000/- hasbeen paid by the petitioner. 3. The learned Senior Counsel appearing for thepetitioner would further submit that the issue involved in boththe Assessments being identical, they are entitled to rely uponthe decision of Income Tax Appellate Tribunal on the said issue, a direction contained therein. Therefore, prayer is made to passsimilar orders in this Writ Petition also. 4. In my view, such exercise need not be done by thisCourt, as the first respondent would be the appropriateauthority to take note of the facts and pass orders accordingly.Considering the submission that identical issue was consideredby the Tribunal and the Tribunal thought fit to issue the abovedirection, this Court is of the view that the first respondentshould consider the petitioner's petition dated 09.03.2015 forthe Assessment year 2012-13 as well. 5. Accordingly, the Writ Petition is partly allowed andthe impugned order in so far as rejecting the petitioner's staypetition for the Assessment year 2012-13, is being set-aside andthe petition dated 09.03.2015 filed by the petitioner before thefirst respondent on 10.03.2015 stands restored and the firstrespondent is directed to take fresh decision in the matter,taking note of the direction issued by the Income Tax AppellateTribunal in the above referred order for the Assessment year2011-12. The first respondent shall take a decision asexpeditiously as possible, preferably, within a period of sixweeks from the date of receipt of a copy of this order, afteraffording an opportunity of personal hearing to the petitioner.No costs. Consequently, connected miscellaneous petitions areclosed.-s/d- Assistant Registrar True Copy Sub-Assistant Registrar r n s ToThe Principal Commissioner of Income-Tax,Central-2,No.46 M.G. Road,Chennai -600 034. +1 CC to Mr. Subbaraya Aiyar, Advocate SR. No. 47034+1 CC to Mr. T. Praodkumar Chopda, Advocate, SR. No. 47173 https://hcservices.ecourts.gov.in/hcservices/