Wp/44621/2015 Of M/S Janahitha Credit Co-Operative Society Limited v. The Income Tax Officer Ward 6(2)(3)

1] IN THE HIGH COURT OF KARNATAKA AT BENGALURUDATED THIS THE 17 DAY OF NOVBMBEBR 2015. BEHKORE, THR HON’BLEB MR. JUSTICK RAM MOHAN RBDDY WRIT PETITION NO. 44621 OF 20109 (IT) BETWEEN: M/S JANAHITHA CREDIT CO-OPERATIVESOCIBTY LIMITKDNO.53, 10[‘T]CROSs, 2 MAIN ROAD,WOC ROAD, 2 STAGE, MAHALAKSHMIPURAM,BANGALORE-560086.|REPRBSBENTBED BY ITS SECRETARYoRI. M.P. RANGANATHAPPA,AGED ABOUT 99 YEARS,S/O LATE M.S.PUTTAKAMAIAH. _.. PHTITIONER (By Sri. BALRAM R RAO, ADV..,) ANI 1.THE INCOME TAX OFFICER WARD 6(2)(3)' FLOOR, JEEVAN SAMPIGE,|NO.1/1, SAMPIGE ROAD, |BANGALORE-5600038.' FLOOR, JEEVAN SAMPIGE,|NO.1/1, SAMPIGE ROAD, |BANGALORE-5600038. ?)THE ADDITIONAL COMMISSIONER OF INCOME TAXRANGE 6(2), 3 FLOOR,JEEVAN SAMPIGE,|NO.1/1, SAMPIGE ROAD, |BANGALORE-560003.|RANGE 6(2), 3 FLOOR,JEEVAN SAMPIGE,|NO.1/1, SAMPIGE ROAD, |BANGALORE-560003.| 3 THE COMMISSIONER OF INCOME TAX (APPEALS)-VIBANGALORE,' FLOOR, HMT BHAVAN,BANGALORE,' FLOOR, HMT BHAVAN, | 599, BELLARY ROAD,GANGANGAR, BANGALORE-560032. 4 THE COMMISSIONER INCOME TAX-BANGALORER NO.A-123, CENTRAL REVENUE BUILDING, NO.1 QUEENS ROAD, |BANGALORE-56000 1.R NO.A-123, CENTRAL REVENUE BUILDING, NO.1 QUEENS ROAD, |BANGALORE-56000 1. . RESPONDENTS THIS WRIT PETITION IS FILED UNDER ARTICLES 226.& 22/ OF THRE CONSTITULIION OF INDIA PRAYING TQUASH THE INTERIM ORDER DTD.1.10.20195 PASSED BYTHERE R-2 VIDE ANNEX-BE. DIRECT THE R-3 TO DISPOSE THE APPEAL IN ITA.NO.79/CITIA|-6/2015-16. DIRECT THER-]|NOTTO.HNRORCETHRPAYMENTOFTHEOUTSTANDINGDEMAND,CONSEQUENT|TO.THE;ASSHKSSMENT ORDER DTD.18.3.2015 PASSED UNDERSECTION 143/3]| OF THE INCOME TAX ACT 1961 INANNEX-A UNTIL THE DISPOSAL OF THERE APPEAL IITA.NO.79/CIT|A]-6/2015-16. THIS WRIT PKRHTITION COMING ON FOR PRELIMINARHEARING THIS DAY, THE COURT MADE THE FOLLOWING: ORDER Petitioner having suffered an order under Section|143(3) for the assessment year 2012-13 raising demandfor|=31,69,230/-, preferred an appeal before the|Commissioner for Income Tax (Appeals)-6, Bengaluru,and filed an application dated. 09.09.2015 invokingSection 225 of the Income Tax Act, 1961, before the TaxRecovery Oiticer for stay of the aforesaid demand, whichwhen considered by the Joint Commissioner of Income Tax, Range-6(2), Bengaluru, by order dated 01.10.2015,Annexure-E, directed the petitioner to pay 50% of the|total of demand 1.e.,=15,84,600/- in installments anddirected stay oft the demand for the balance 1.e.,=15,84,600/- until 15.03.2016 or disposal of the appealbefore the CIT(A), whichever is earlier. Petitioner|agerieved by the order, Annexure-E, has presented thispetition to quash the said order and to direct the CIT (A)to dispose of the appeals at the earliest, 1n addition to a|direction to the Assessing Officer not to enforce thepayment of the outstanding demand consequent to the|Assessment Order dated 18.03.2015 until disposal ot the appeal. 2)Although learned counsel for petitioner submitsthat Section 225(1) invests a jurisdiction in the TaxRecovery Officer to grant a blanket stay of the entire|demand the submission is noticed only to be rejected.3,For better understanding of Section 2205(1), it isuseful to extract the said provision, which reads thus: 4 “2209(1)It shall be lawful for the TaxRecovery Officer to grant time for the paymentof any tax and when he does so, he shall stay|the proceedings for the recovery of such tax|until the expiry of the time so granted.” 4 The order, Annexure-E cannot be said to be eitherarbitrary or illegal calling for interference in exercise OfSupervisory jurisdiction under Article 22/7 of theConstitution. In the facts and circumstances, no.exception can be taken to the order impugned. Petition|devoid of merit 1srejected kerm sd/-|JUDGE|