Wns Global Services Pvt. Ltd v. The Deputy Commissioner Of Income Tax

Dmt IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGNAL CIVIL JURISDICTION WRIT PETITION (L) NO. 2336 OF 2011 WNS Global Services Pvt. Ltd.,... Petitioner. versus The Deputy Commissioner of Income Tax 10(2), Mumbai & Ors... Respondents. ..... Mr. Percy J. Pardiwala, Sr. Adv., with Mr. Atul K. Jasani for the Petitioner. Mr. Jejveer Singh for Respondents. ...... CORAM : DR.D.Y.CHANDRACHUD & A. A. SAYED, JJ. 21 October 2011. P.C. : The Deputy Commissioner of Income Tax initially passed an order under Section 220 (6) of the Income Tax Act, 1961 in the following terms : “In this regards, the order u/s. 143(3) of theAct was passed on 21.02.2011 resulting into demand of Rs. 85,43,52,531/-. The same was rectified and the demand reduced to Rs.81,51,26,772/-. Later on assesee filed application for stay of demand against recovery till disposal of 1[st] appeal by CIT-(A). Now, looking to the facts of the case and legal position as well as that as directed, you have paid Rs. 15.45 Crores, out of the demand of Rs. 81.51 Crores for A.Y.2007-08, your request for stay against recovery of balance demand of Rs.66.06 Cr. has been accepted and you are hereby granted stay against recovery of balance demand till the disposal of 1[st] appeal by the CIT(A).”disposal of 1[st] appeal by the CIT(A).” 2.On 26 August 2011, a notice to show cause was issued to the assesee to the effect that since the CIT(A) has still not disposed of the appeal, it was proposed to review the stay granted. The assessee lodged objection on 3 October 2011. On 3 October 2011, an order has been passed by the Assistant Commissioner of Income Tax vacating the stay which was granted on 6 April 2011. The Petitioner has also moved the Commissioner of Income Tax for grant of stay. In view thereof, we are not inclined to entertain this petition under Article 226 of the Constitution save and except for a direction that the Commissioner may dispose of the application for stay expeditiously and preferably within a period of three weeks from today and that until the application for stay is disposed of and in the event an adverse order is passed, for a period of one week thereafter, no coercive steps shall be taken against the Petitioner. 3.The Petition is disposed of accordingly. (Dr. D.Y. Chandrachud, J.)