Wp/42943/2018 Of Khoday India Ltd v. The Income Tax Officer

IN THR HIGH COURT OF KARNATAKA AT BENGALURU DATBD THIS THER 1 DAY OF JANUARY, 2019 BEFORE: THR HON’BLE MRS. JUSTICK S.SUJATHA WRIT PETITION No.42943/2018 (T IT) BETWEEN: KHODAY INDIA LID .,“BREWERY HOUSE, 7|[‘L]MILKKANAKPURA ROAD,|BENGALURU - 560 062REP. BY [TTS DIRECIORSRI K.L.SWAMY_.. PETITIONER| |BY SRI A.SHANKAR, SENIOR ADV. FOR SRI S.SUKUMAR, ADV.|_ AND: 1.|THE INCOME TAX OFFICERWARD-4(1)(2) WARD-4(1)(2) BMTC BUILDING, 80 FEET ROAD,# BLOCK, KORAMANGALA|BBNGALURU - 560 O95.# BLOCK, KORAMANGALA|BBNGALURU - 560 O95. «|THE PRINCIPAL COMMISSIONEROF INCOME TAX, BENGALURU - 4]BMTC BUILDING, 80 FEET ROAD,#[‘T]BLOCK, KORAMANGALA|BBNGALURU - 560 O95.OF INCOME TAX, BENGALURU - 4]BMTC BUILDING, 80 FEET ROAD,#[‘T]BLOCK, KORAMANGALA|BBNGALURU - 560 O95. 3.|THE COMMISSIONBR OF INCOMB TAX(APPEALS) - 4, 7 FLOOR, ©BMTC BUILDING, 80 FEET ROAD,#[‘T]BLOCK, KORAMANGALA|BBNGALURU - 560 O95.~ RESPONDENTS(APPEALS) - 4, 7 FLOOR, ©BMTC BUILDING, 80 FEET ROAD,#[‘T]BLOCK, KORAMANGALA|BBNGALURU - 560 O95.~ RESPONDENTS IBY SRI JEEVAN J. NEERALGI, ADV.) THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND22/7 OF THE CONSTITUTION OF INDIA, PRAYING TO a) QUASHTHERE ORDER PASSED BY THE R-2 VIDE COMMUNICATIODATEBKED 12.06.2018 VIDE ANNX-W TO PAY 10% OF TDISPUTEDDHRMANTWITHIN|31.12.2018|KOR.THEASSESSMENT YEAR 2015-16, PENDING DISPOSAL OF.APPBRAL BY R-3 AND BIC. THIS PETITION COMING ON FOR PRELIMINARY HEARING,THIS DAY, THE COURT MADE THE FOLLOWING:- ORDER LearnedcounselSri.JeevanJ.Neeralgi1Spermitted to accept notice on behalf of the respondents. 2 |With the consent of the learned counsel|appearing for the parties, the matter is taken up forfinal disposal, at this stage. 3.|The petitioner-company has assailed theorder of demand arising out of the order of Assessmentunder Section 143 [3] read with the order passed undersection 194 of the Income Tax Act, 1961 |'Act' for short]dated 29.12.2017 passed by the respondent No.2,relating to the assessment year 2015-2016, whereby thepetitioner is directed to pay 10% of the disputeddemandbefore31.19.2018.1nNthreeinstallments pending disposal of the appeal by the respondent No.3interaliaseeking a direction to the respondent No.3 todispose of the appeals in an expedite manner. 4LearnedSeniorCounsel|Sri.A.Shankarrepresenting the petitioner’s counsel has submitted thatthough the Regular Appeal against the impugnedAssessment Order is pending before the First AppellateAuthority, since the Company is in financial doldrums,it is not in a position to pay the amount as directed bythe respondent No.2 and hence some interim protectionmay be given to the Company while the AppellateAuthority may be requested to dispose of the appeal inaccordance with the law, as the issue is covered by thespecial Bench decision of the Income Tax AppellateTribunal. 5.|Learned Senior Counsel submitted that!Rs.14 lakhs has already been deposited by thepetitioner against the demand made by the Revenue. | -4- 6. Reference was made to the very sameAssessee’sCasc,1NW.P.No0.42848/2018dated24.09.2018, wherein this Court was pleased to disposeof the Writ Petition directing the petitioner-company todeposit Rs.10,00,000/- out of the disputed demandreserving liberty to the petitioner to move before theconcerned First Appellate Authority for early hearing ofthe appeal subject to the deposit, as directed. It isobserved that the learned CIT [Appeals] may considerthe request of the Assessee-company to dispose of theappeal expeditiously. TS|LearnedcounselSri. JeevanJ.Neeralgiappearing for the Revenue has no objection to dispose ofthe writ petition in terms of the order of this Court inW.P.No.42848/2018, as aforementioned. | 8.|Having heard the learned counsel appearing for the parties and in view of the order passed by the TS|LearnedcounselSri. JeevanJ.Neeralgiappearing for the Revenue has no objection to dispose ofthe writ petition in terms of the order of this Court inW.P.No.42848/2018, as aforementioned. | 8.|Having heard the learned counsel appearing for the parties and in view of the order passed by the Co-ordinate Bench in the very same Assessee’s case as.aforesaid, this Court is of the considered opinion thatjustice would be sub-served in directing the petitioner-company to deposit Rs.8,00,000/- (Rupees Eight Lakhs—only) in addition to the amount already deposited if any,on or before 21.01.2019 with liberty to move before theconcerned First Appellate Authority for early disposal ofthe appeal, subject to the aforesaid deposit. Learned CIT |Appeals} may consider the request oftheAssessee-companyTO dispose oT|theappealexpeditiously. Ordered accordingly. — No costs. NGC. Sd/-.JUDGE