M/S.v.v.mineral v. Mr.erulappan Mathusuthanassistant Commissioner Of Income Tax,Central Circle – 2,Madurai

Sub.Appl. Nos.150, 144, 146 & 152 of 2021in Cont.P.(MD).SR.Nos.30488 & 30484 of 2021and Cont.P.(MD).SR.Nos.30488 & 30484 of 2021 BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT DATED : 16.07.2021CORAM: THE HONOURABLE MR.JUSTICE T.S.SIVAGNANAM AND THE HONOURABLE MRS.JUSTICE S.ANANTHI Sub.Appl. Nos.150, 144, 146 & 152 of 2021 inCont.P.(MD).SR.Nos.30488 & 30484 of 2021and Cont.P.(MD).SR.Nos.30488 & 30484 of 2021 M/s.V.V.Mineral,represented by its PartnerS.Jegatheesan17, Keeraikaranthattu Tisayanvillai,Tirunelveli - 627 657.: Petitioner in allapplications Vs. 1.Mr.Erulappan MathusuthanAssistant Commissioner of Income Tax,Central Circle – 2,Madurai. 2. Mr.Rajesh Kumar,Joint Commissioner of Income Tax,Central – 1,Madurai.: Respondents in all applications Common Prayer in Sub.Aplc(MD).Nos.150, 144, 146 & 152 of 2021:Petitions are filed under Section 151 C.P.C praying to accept thecause title in so for the as the second Contemnor concern in theabove Contempt Petitions, respectively. Common Prayer in Sub.Aplc(MD).Nos.144 & 146 of 2021: Petitionsfiled under Section 15 C.P.C praying to implead the 2[nd] Respondentherein as 2[nd]contemnor in the above contempt petitions,respectively. Common Prayer in Cont.P.(MD).SR.Nos.30488 & 30484 of 2021:ContemptPetitions are filed under Section 11 of the Contempt Court Act,1971, to punish the 1[st] and 2[nd] Contemnor herein for wilfuldisobedience of the order passed by this Court in Writ MiscellaneousPetition (MD).Nos.7735 and 7732 of 2021 in Writ Petition (MD)Nos.10020 and 10019 of 2021 dated 11.06.2021, respectively.[.]https://hcservices.ecourts.gov.in/hcservices/ Sub.Appl. Nos.150, 144, 146 & 152 of 2021in Cont.P.(MD).SR.Nos.30488 & 30484 of 2021and Cont.P.(MD).SR.Nos.30488 & 30484 of 2021 Common Prayer in WMP(MD).Nos. 7732 & 7735 of 2021 : Writ Miscellaneous Petitions filed under Article 226 ofthe Constitution of India, to Direct the 3rd respondent to treat theapplication filed by the petitioner u/s 245C of the Income Tax Act,1961 before the ITSC (Income Tax Settlement Commission, Chennai) on09.03.2021 as a pending application as per the provisions amended bythe Finance Act, 2021, pending disposal of this writ petitions. Common Prayer in WP(MD).Nos.10019 & 10020 of 2021 :Writ Petition is filed under Article 226 of theConstitution of India, praying this Court to issue a writ directionor order in the nature of Declaration or any other appropriate writ,order or direction, declaring the amendment to the Income Tax Act,1961 in Section 245A by inserting sub clause (da), (ea) and (eb),245B, 245BC, 245BD, proviso to 245C, 245D, 245DD, 245F, 245G, 245Hand Insertion of new Section 245AA and 245M by way of Sections 54 to65, Finance Act, 2021 with retrospective effect from 01.02.2021 asarbitrary, illegal and void and infringing the fundamental rightsconferred under Article 14, 19(i)(g) 20, 20(2), and 21 ofConstitution of India, 1950 thus unenforceable and unconstitutional. COMMON ORDER ****************** [Order of the Court was made by T.S.SIVAGNANAM, J.] We have heard Mr.R.Sivaraman, learned counsel for thepetitioner and Mr.T.R.Senthil Kumar, learned Senior Standing Counselassisted by Mrs.K.G.Usharani, learned Junior Standing Counsel forthe respondents. 2.These applications have been filed to accept the causetitle in the contempt petitions. 3.The petitioner has also filed W.M.P(MD).Nos.8744 and 8737of 2021 in W.P(MD) Nos.10019 and 10020 of 2021, for stay of thehttps://hcservices.ecourts.gov.in/hcservices/order of assessment, dated 25.06.2021 passed by the fourth respondent Assessing Officer. The connected matter came up beforethis Court on 15.07.2021, are also listed today. COMMON ORDER ****************** [Order of the Court was made by T.S.SIVAGNANAM, J.] We have heard Mr.R.Sivaraman, learned counsel for thepetitioner and Mr.T.R.Senthil Kumar, learned Senior Standing Counselassisted by Mrs.K.G.Usharani, learned Junior Standing Counsel forthe respondents. 2.These applications have been filed to accept the causetitle in the contempt petitions. 3.The petitioner has also filed W.M.P(MD).Nos.8744 and 8737of 2021 in W.P(MD) Nos.10019 and 10020 of 2021, for stay of thehttps://hcservices.ecourts.gov.in/hcservices/order of assessment, dated 25.06.2021 passed by the fourth respondent Assessing Officer. The connected matter came up beforethis Court on 15.07.2021, are also listed today. 4.We pointed out to the learned Senior Standing Counsel forthe Revenue that the action of the department in passing theAssessment order and uploading the same to the official Email ID ofthe assessee was a blatant violation of the order and directionissued by the Court, dated 11.06.2021. 5.Pursuant to these observations, the learned SeniorStanding Counsel sought for a days time, to get necessaryinstructions from the department and accordingly, today the learnedsenior standing counsel for the Revenue has produced an order passedby the Assessing Officer, dated 15.07.2021 and by way ofillustration, we refer to the order in the case of the AssesseeM/s.V.V.Minerals, Tirunelveli, dated 15.07.2021. The order reads asfollows: "Order: The Assessment Orders in the case of theassessee for the Assessment Years 2012-14 to AY 2019-20 were passed and uploaded in ITBA on 24/25.06.2021.There is an interim order of the Hon’ble MaduraiBench of Madras High Court dated 11.06.2021 [citedunder ref] which clearly directed that -“Assessmentproceedings should not be interdicted and it shouldproceed and passing a final order, keeping to asealed cover is akin to not giving effect to theassessment order. If such procedure is adopted thatthe interest of not only the assessee as well as thedepartment will be protected, when the finaldecision is taken on the declaratory relief soughtfor.” This direction was not brought to the attentionof the Assessing Officer or other officers in thehierarchy. As a result, the above mentionedassessment orders were passed in ITBA and theassessment orders were communicated to the assessee,which was against the direction of the Hon’ble HighCourt. When the matter came up before the Hon’bleHigh Court on 15.07.2021, the Hon. High Court haspronounced the orders that an order has to be passedto the effect that the assessment order shall not begiven effect and the resultant demand shall be keptin abeyance pending the finality of the WritPetitions filed by the assessee before the Hon’blehttps://hcservices.ecourts.gov.in/hcservices/ Sub.Appl. Nos.150, 144, 146 & 152 of 2021in Cont.P.(MD).SR.Nos.30488 & 30484 of 2021and Cont.P.(MD).SR.Nos.30488 & 30484 of 2021 High Court challenging the abolition of Income TaxSettlement Commission. Under these circumstances, theabove mentioned assessment orders shall not be giveneffect and the resultant demand shall be kept inabeyance pending the finality of the Writ Petitions[cited under ref] filed in the Hon’ble High Court andthe resultant demand will not be enforced until suchtime." 6.In the light of the above order, this Court is of theconsidered view, the interest of the assessee has been sufficientlyprotected and as the Assessing Officer has in no uncertain termsstated that the assessment order shall not be given effect to andthe resultant demand shall be kept in abeyance, pending the finalityof the Writ Petitions filed before this Court and the resultantdemand will not be enforced until such time. High Court challenging the abolition of Income TaxSettlement Commission. Under these circumstances, theabove mentioned assessment orders shall not be giveneffect and the resultant demand shall be kept inabeyance pending the finality of the Writ Petitions[cited under ref] filed in the Hon’ble High Court andthe resultant demand will not be enforced until suchtime." 6.In the light of the above order, this Court is of theconsidered view, the interest of the assessee has been sufficientlyprotected and as the Assessing Officer has in no uncertain termsstated that the assessment order shall not be given effect to andthe resultant demand shall be kept in abeyance, pending the finalityof the Writ Petitions filed before this Court and the resultantdemand will not be enforced until such time. 7.It is submitted by the learned counsel for the petitionerthat in the event, there arises a need for the assesses to challengethe assessment order, which have been passed and uploaded and nowagreed to be not given effect to, then the assessee's interestshould be protected. 8.We have heard Mr.T.R.Senthilkumar, learned seniorstanding counsel on the above submission. 9.The Assessee's request appears to be reasonable.Therefore, we make it clear that in the event, the assessee isrequired to challenge the assessment orders which have been nowpassed by the Assessing Officer and kept in abeyance, by way offiling an appeal or otherwise, the period from, the date of filingthe writ petition i.e., on 09.06.2021 till the Writ Petitions aredisposed of shall be excluded, while computing limitation. 10.With the above observations, the Sub Applications aredisposed of. Consequently, the contempt petitions are also closedat the S.R stage itself. Assistant Registrar(CO) // True Copy // kmm/rmhttps://hcservices.ecourts.gov.in/hcservices/ Sub Assistant Registrar(CS) Note : In view of the present lock down owing to COVID-19pandemic, a web copy of the order may be utilizedfor official purposes, but, ensuring that the copyof the order that is presented is the correct copy,shall be the responsibility of the advocate/litigantconcerned. To 1.Mr.Erulappan MathusuthanAssistant Commissioner of Income Tax,Central Circle – 2,Madurai.2. Mr.Rajesh Kumar,Joint Commissioner of Income Tax,Central – 1,Madurai. Copy to The Section Officer, Contempt Section,Madurai Bench of Madras High Court, Madurai. +2 CC to M/s.M.P.SENTHIL, Advocate ( SR-23022 & 23023[F] dated19/07/2021 ) mj(CO)TR(10.08.2021) 5P 6C Sub.Appl. Nos.150, 144, 146 & 152 of 2021 in Cont.P.(MD).SR.Nos.30488 & 30484 of 2021andCont.P.(MD).SR.Nos.30488 & 30484 of 202116.07.2021