Wp/13729/2023 Of M/S Welcome Foods Limited v. The Principal Commissioner Of Income-Tax

Digitally signed byLAKSHMINARAYANNLocation: High Courtof Karnataka NC: 2023:KHC:26007 WP No. 13729 of 2023 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 26 DAY OF JULY, 2023 BEFORE THE HON'BLE MR JUSTICE S SUNIL DUTT YADAV -WRIT PETITION NO. 13729 OF 2023 (TIT) BETWEEN: M/S. WELCOME FOODS LIMITED, REPRESENTED BY ITS DIRECTOR, SMT. HEMAMALINI, W/O. SRI. ANAND, AGED ABOUT 53 YEARS, GROUND FLOOR, NO. 249, 14TH CROSS STREET, 2ND BLOCK, R.T. NAGAR, BANGALORE - 560 032. COMMUNICATION ADDRESS: NO.2/1, NORTH CRESCENT ROAD, T. NAGAR, CHENNAI - 600 017. (A LIMITED COMPANY UNDER REGISTERED COMPANIES ACT 1956) …PETITIONER (BY SRI. ANNAMALAI S., ADVOCATE) AND: 1. THE PRINCIPAL COMMISSIONER OF INCOME-TAX (CENTRAL), BENGALURU. CENTRAL REVENUE BUILDING, QUEENS ROAD, BENGALURU - 560 001. 2. THE DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE - 1(2), BENGALURU. CENTRAL REVENUE BUILDING, QUEENS ROAD, CENTRAL CIRCLE - 1(2), BENGALURU. CENTRAL REVENUE BUILDING, QUEENS ROAD, BENGALURU - 560 001. …RESPONDENTS (BY SRI. M. DILIP, ADVOCATE) THIS W.P IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE ORDER PASSED BY THE R-1 VIDE DIN NO.ITBA/COM/M/17/2023-24/1053906529(1) DATED 23-6-2023 HEREIN ENCLOSED AND MARKED AS ANNEXURE-A AND ETC., THIS PETITION, COMING ON FOR PRELIMINARY HEARING, THIS DAY, THE COURT MADE THE FOLLOWING: ORDER The petitioner has sought for issuance of writ in the nature of certiorari and to quash the Order dated 23.06.2023 at Annexure-A passed by respondent No.1, whereby the application of stay was disposed off by imposing conditions to deposit 20% of the disputed - 3 - amount and balance amount was required to be paid in eight equal instalments. 2. The learned counsel for the petitioner submits that the petitioners’ financial position being in dire state, the petitioner requires some indulgence and relaxation in the condition to be imposed. 3. The learned counsel for the petitioner during the course of the proceedings has submitted that the order at Annexure-A can be revoked by imposing the following conditions: "Agreed by the Assessee: 7.5% of the disputed demand - Rs.71,54,579/- --Less : Payment already made Rs.19,07,890/--Balance Amount to be paid Rs.52,46,688/ - Rs.71,54,579/- -- Rs.52,46,688/ In 8 equal instalments. Each instalment - Rs. 6,55,836/- Balance 12.5% of the disputed demand - personal Guarantee by the one of the Director of the Company. - Rs. 1,19,24,299/-" 4. After hearing the matter for sometime, considering that the present proceedings are only against the order of stay that is granted and the proposal by the assessee would take care of interest of the Revenue, the matter could be disposed off by directing that there would be stay of the balance disputed demand till disposal of appeal by the Commissioner of Income Tax (Appeals) subject to the payment as below: a) 7.5% of the dispute demand after deducting of Rs.19,07,890/- which would be Rs.52,46,688/- to be paid in the eight equal instalments and each instalment to be paid on 30[th] of each month. 5. Accordingly, the first of the instalment will be paid by 30[th] July, 2023 and the remaining balance to be paid in seven equal instalments and each instalment to be paid on or before 30[th] of each month. 6. As regards, the balance of 12.5% which would make upto 20%, the personal guarantee of one of the Directors of the Company to be filed with the authority within a period of two weeks after receipt of certified copy of the order. The details of the Director and its standing in the company must be accompanied by official records. 7. Accordingly, the order at Annexure-A is modified in terms of the order made above. 8. Needless to state that the observations made in the order at Annexure-A are made only for the purpose of disposal of the application for stay and cannot be taken to be a conclusive finding as regards to merits of the matter. 6. As regards, the balance of 12.5% which would make upto 20%, the personal guarantee of one of the Directors of the Company to be filed with the authority within a period of two weeks after receipt of certified copy of the order. The details of the Director and its standing in the company must be accompanied by official records. 7. Accordingly, the order at Annexure-A is modified in terms of the order made above. 8. Needless to state that the observations made in the order at Annexure-A are made only for the purpose of disposal of the application for stay and cannot be taken to be a conclusive finding as regards to merits of the matter. 9. Accordingly, the petition is disposed off. All contentions are kept open. Sd/- JUDGE MCR List No.: 1 Sl No.: 24