Navadisha Educational Trust v. The Director Of Income Tax, (Exemptions)

IN THE HIGH COURT OF JUDICATURE AT MADRASDATED : 22.01.2018 CORAM Navadisha Educational Trust,No.635/1, 3[rd] Cross Street,Kalki Nagar,Near AG's Colony VI Main Road,Velachery,Chennai-600 0042.Represented by its Managing Trustee,Ms.Rukmini Ramachandran ... Petitioner Vs. 2.The Director of Income Tax, (Exemptions), 124,M.G.Road, Chennai-600 034. 3.The Deputy Director of Income -tax, (Exemptions)-III, 124,M.G.Road, Chennai-600 034. ... Respondents Prayer : Petition filed under Article 226 of the Constitution ofIndia praying for issuance of Writ of Certiorarified Mandamuscall for the records of the third respondent and quash theimpugned order in PAN : AAAATN3824D/10-11 dated 14.06.2013 anddirect the third respondent to grant stay of recoveryproceedings till the disposal of the appeal by the fourthrespondent. https://hcservices.ecourts.gov.in/hcservices/ For Petitioner : Mr.Subbaraya Aiyar PadmanabhanFor Respondents: Mr.Naveen Durai Babu Standing Counsel and Ms.Hema Murali Krishnan Standing Counsel Heard Mr.Subbaraya Aiyar, learned counsel for the petitionerand Mr.Naveen Durai Babu & Ms.Hema Muralikrishnan, learnedStanding Counsels appearing on behalf of the respondents. 2.The learned counsel for the respondents vehementlycontended that the impugned proceedings is only a recoverynotice and therefore, the department should not be injunctedfrom enforcing the same and they should be permitted to recoverthe tax as quantified in the assessment order dated 31.03.2013under Section 143 (3) of the Income Tax Act, 1961 [in short "theAct"], passed by the third respondent. 3.The assessment order dated 31.03.2013 is an outcome of thecancellation of the approval granted in favour of the petitionerunder Section 10(23C)(vi) of the Act by order dated 24.03.2011.This order has been put to challenge by the petitioner inW.P.No.5560 of 2012 and the Court by order dated 09.03.2012 hasgranted an order of interim stay and the said writ petition ispending and it is not known, whether the respondents have filedcounter affidavit in the said writ petition. And the said orderof interim stay dated 09.03.2012 has been in force till date. 4.Therefore, at this juncture to permit the third respondentto proceed to enforce the collection of tax pursuant to theassessment orders dated 31.03.2013 would be inequitable. Onemore reason for saying so, if the petitioner succeeds in W.P.No.5560 of 2012 then it would have a direct impact on theassessment done on the petitioner, which culminated in the orderdated 31.03.2013. 5.For the above reasons, the impugned demand notice shallcontinue to be remained stay till the disposal of W.P.No.5560 of2012. Accordingly, the writ petition stands disposed of. Nocosts. Consequently, connected miscellaneous petitions areclosed. maya Sd/- Assistant Registrar(CS IV) //True Copy// Sub Assistant Registrar To 1.The Chief Commissioner of Income Tax, Chennai-III, 124,M.G.Road, Chennai-600 034. 2.The Director of Income Tax, (Exemptions), 124,M.G.Road, Chennai-600 034. 3.The Deputy Director of Income -tax, (Exemptions)-III, 124,M.G.Road, Chennai-600 034. 4.The Commissioner of Income Tax(Appeals)-XII, 124, M.G.Road, Chennai-600 034. +1cc to M/s.Subaraya Aiyar, Advocate Sr.No.4698+1cc to M/s.Hema Murali Krishnan, Advocate Sr.No.4756KAN(CO)sm:9.2.2018 W.P.No.20206 of 2013