M/S.viswakarma Mines & Buildingmaterials Pvt. Ltd.,New v. The Deputy Commissioner Of Income-Tax, Central Circle-Iii (1) (I/C.)

IN THE HIGH COURT OF JUDICATURE AT MADRAS THE HONOURABLE MR. JUSTICE T.S. SIVAGNANAM M/s.Viswakarma Mines & BuildingMaterials Pvt. Ltd.,New No.216, Old No.65, ShriramBhavanam,Alwarpet Street,Alwarpet,Chennai – 600 018.Rep. By its Director, Sri.S.GanesanSon of Sivasankara Nadar... Petitioner Vs. 1. The Deputy Commissioner of Income-Tax, Central Circle-III (1) (i/c.) 46, Mahatma Gandhi Road, Nungambakkam, Chennai – 600 034. 2. The Commissioner of Income-Tax (Appeals), 121, Nungambakkam High Road, Chennai – 600 034.... Respondents Prayer: Petition filed under Article 226 of the Constitution ofIndia, praying for the issuance of writ of certiorarified mandamus,to call for the records in F.No.C.C.III (1)/2014-15/AACCV4607L dated08.10.2014 on the file of the 1[st] respondent and quash the same andfurther forbearing the 1[st] respondent from initiating or continuingwith any proceedings for recovery of the disputed demands pursuant tothe orders of assessment in PAN No. dated 31.03.2014relating to Assessment Years 2008-09 to 2012-13 passed by him. https://hcservices.ecourts.gov.in/hcservices/ The petitioner seeks for the issuance of writ of certiorarifiedmandamus, to quash the proceedings of the first respondent dated08.10.2014 and to forbear the 1[st] respondent from initiating anyproceedings for recovery of the disputed demands pursuant to theorders of assessment dated 31.03.2014 relating to Assessment Years2008-09 to 2012-13. 2. The petitioner is a Company incorporated under the IndianCompanies Act,1956 and Assessee under the provisions of the IncomeTax Act, 1961. 3. For the purpose of disposal of the writ petition, it may notbe necessary to go into the entire material factual matrix of thecase as set out in the affidavit filed in support of the writpetition, it would suffice to note the following facts. 3.1. As against the orders of assessment dated 31.03.2014relating to Assessment Years 2008-09 to 2012-13, the petitioner haspreferred appeals on 30.04.2014 before the Deputy Commissioner ofIncome Tax and the appeals are pending. 4. This fact is not disputed by the learned Standing Counsel forthe respondent and on instruction, he stated that the appeals arepending. After filing of the appeals, the petitioner filed apetition for stay under Section 220(6) of the Act on 05.05.2014. Inthe stay petition, the petitioner raised several grounds on themerits of the assessment orders and as to how the petitioner has aprima facie case for grant of stay and that the balance ofconvenience is in their favour for stay of recovery. 5. In the stay petition, the petitioner sought for stay ofcollection of tax pursuant to the orders of the assessment for therelevant assessment years; not treat the petitioner as an Assessee indefault; post the petition for early disposal and afford anopportunity of personal hearing. While the petition was pending, byimpugned proceedings, the petitioner was informed that as per therecords, there is a demand of Rs.270.39 lakhs outstanding for variousassessment years and the petitioner was called upon to pay the sameon or before 16.10.2014 and in case, the petitioner has alreadydeposited the amount, the petitioner was advised to present beforethe respondent and produced the relevant challan and if not, thepetitioner was directed to take the impugned communication as finalnotice and the Department will not initiate coercive measures, ifthere is no compliance. Challenging the proceedings dated08.10.2014, the petitioner has approached this Court submitting that the respondent is not justified in issuing the impugned communicationwhen the petition for stay is pending before the authority, whereseveral grounds were raised by the petitioner. the respondent is not justified in issuing the impugned communicationwhen the petition for stay is pending before the authority, whereseveral grounds were raised by the petitioner. 6. In order to ascertain as to whether any order has beenpassed on the stay petition filed by the petitioner, this Courtdirected the learned Standing Counsel to get instructions, by orderdated 29.10.2014 and posted the matter today, i.e. on 30.10.2014. 7. The learned Standing Counsel appearing for the respondents,on instructions, would submit that the stay petition is still pendingand the authority will pass an order on the petition. 8. It is to be noted that when the petitioner/Assessee hasfiled appeals before the appellate authority and filed the staypetition raising several contentions and when there is a statutoryprovision for filing a stay petition under Section 220(6) of the Act,the appellate authority is expected to consider the stay petition andpass a reasoned order after hearing the parties. In fact, thepetitioner has specifically sought for an opportunity of personalhearing. While so, the respondent is not justified in calling uponthe petitioner to pay the demand for various assessment years. 9. In the light of the stand taken by therespondents/Department stating that orders would be passed in thestay petition, the writ petition is allowed and the impugned ordersof the first respondent dated 31.3.2014 and 08.10.2014 are quashed.The respondents are directed to consider the petitioner's staypetition filed under Section 220(6) of the Act, on 05.05.2014 andafford an opportunity of personal hearing and pass a reasoned orderon merits and in accordance with law. No costs. Consequently,connected miscellaneous petition is closed. To1. The Deputy Commissioner of Income-Tax, Central Circle-III (1) (i/c.) 46, Mahatma Gandhi Road, Nungambakkam, Chennai – 600 034. 2. The Commissioner of Income-Tax (Appeals), 121, Nungambakkam High Road, Chennai – 600 034. 121, Nungambakkam High Road, Chennai – 600 034. 1 cc to Dr.Anita Sumanth,Advocate, SR.No.51134 1 cc to Mr.T.Pramod Kumar Chopda ,Advocate, SR.No.51254 W.P.No.28202 of 2014 sk(co)pmk.11.11.2014