M/S.gaming India Distributor Limited, Rep.by Its Authorized Signatory Mr.r.anbalagan v. The Director Of Income Tax (Inv)

In the High Court of Judicature at Madras Dated : 25.7.2018 Coram : The Honourable Mr.Justice T.S.SIVAGNANAM Writ Petition No.18887 of 2018 & WMP.No.22273 of 2018 1.M/s.SNJ Distillers Private Limited, rep.by its Authorized Signatory Mr.R.Anbalagan 2.M/s.Gaming India Distributor Limited, rep.by its Authorized Signatory Mr.R.Anbalagan...PetitionersVs 1.The Director of Income Tax (INV), No.46, Old No.108, Mahatma Gandhi Road, Chennai-34. 2.The Deputy Commissioner of Income Tax, Central Circle-II (1), Investigation Wing, Room No.122, I Floor, No.46, Mahatma Gandhi Road, Chennai-34. 3.The Assistant Commissioner of Income Tax, Central Circle II(1), No.46, Mahatma Gandhi Road, Chennai-34. 4.The Deputy Commissioner of Income Tax, Central Circle 25, Room No.331, E2, ARA Centre, Jandewalan Extension, New Delhi. ...Respondents PETITION under Article 226 of The Constitution of Indiapraying for the issuance of a Writ of Mandamus directing the 3rdrespondent to consider and dispose of the representation of the1st petitioner dated 14.10.2016 and reminder dated 04.7.2017with regard to giving credit for the seized sum of Rs.50 Lakhswith effect from 12.5.2012 to the 1st petitioner. ORDER Mr.A.N.R.Jayaprathap, learned Standing Counsel acceptsnotice for the respondents. Heard both. In light of the limitedrelief sought for by the petitioners, the writ petition itselfis taken up for final disposal even at the admission stage. 2. The petitioners seek a direction to the third respondentto dispose of the representation of the first petitioner dated14.10.2016 with regard to giving credit for the seized sum ofRs.50 lakhs with effect from 12.5.2012 to the first petitioner. 3. The said sum of Rs.50 lakhs was seized from one Mr.BilashKathiwada. He stated that the money belongs to him. However,while passing the impugned order in respect of the firstpetitioner for the assessment year 2012-13 under Section 143(3)of the Income Tax Act, 1961, the Assessing Officer held thatpreponderance of probabilities shows that the unaccounted moneybelongs to the first petitioner being carried by their employee– the said Mr.Bilash Kathiwada and needs to be taxed in thehands of the first petitioner. 4. Accordingly, the assessment was completed and the saidsum of Rs.50 lakhs was brought to tax. The first petitioner paidthe tax on 30.6.2017 as computed in the assessment order. Thefirst petitioner, even prior to payment of tax, made arepresentation on 14.10.2016 to the third respondent requestingto rectify the total tax credit, calculate the interest payableunder Sections 234B and 234C of the said Act and pass necessaryrectification order. After payment of tax on 30.6.2017,enclosing the payment challan, another representation dated04.7.2017 was submitted to the third respondent, which wasreceived in the office of the third respondent on 05.7.2017. Inthe said representation dated 04.7.2017, apart from otherthings, the first petitioner stated that they paid the entiredemand based on the computation and after considering the taxcredit of Rs.50 lakhs along with applicable interest underSections 234A and 234B of the said Act, enclosed a copy of thetax paid challan to the tune of Rs.2,03,74,282/- and also soughtto rectify the demand issued earlier. Since the saidrepresentations have not been considered, the petitioners arebefore this Court. 5. The learned counsel for the petitioners submits that thepetitioners would be satisfied if the third respondent isdirected to consider the said representations and pass orders onmerits and in accordance with law. 6. In the light of the above limited relief sought for, thewrit petition is disposed of by directing the third respondentto consider the said representations of the first petitionerdated 14.10.2016 and 04.7.2017 and pass orders on merits and inaccordance with law within a period of three weeks from the dateof receipt of a copy of this order. In the event the third https://hcservices.ecourts.gov.in/hcservices/ respondent requires any clarification, it is well open to thethird respondent to afford an opportunity of personal hearing tothe authorized representative of the first petitioner. The firstpetitioner is directed to enclose copies of the saidrepresentations along with a copy of this order and forward thesame to the third respondent for effective compliance of theabove direction. No costs. Consequently, the connected WMP isclosed. Sd/- Assistant Registrar(CS IX) //True Copy// Sub Assistant Registrar To 1.The Director of Income Tax (INV), No.46, Old No.108, MahatmaGandhi Road, Chennai-34. 2.The Deputy Commissioner of Income Tax, Central Circle-II (1), Investigation Wing, Room No.122, I Floor, No.46, MahatmaGandhi Road, Chennai-34. 3.The Assistant Commissioner of Income Tax, Central Circle II(1), No.46, Mahatma Gandhi Road, Chennai-34. 4.The Deputy Commissioner of Income Tax, Central Circle 25, RoomNo.331, E2, ARA Centre, Jandewalan Extension, New Delhi. +1cc Mr.G.Thangapandian, Advocate sr.no.49676 WP.No.18887 of 2018& WMP.No.22273 of 2018 kan(co)nr 11/08/2018