Wp/7579/2011 Of Najma Hussain v. Commissioner Of Income Tax

THE HON’BLE SRI JUSTICE V.V.S.RAOAND THE HON’BLE SRI JUSTICE RAMESH RANGANATHAN WRIT PETITION Nos.7579, 7596, 7626 and 7628 of 2011 Date:30.03.2011 Between: Najma Hussain .. Petitioner And The Commissioner of Income Tax,IV Ayakar Bhavan, Basheer Bagh,Hyderabad and othersr .. Respondents THE HON’BLE SRI JUSTICE V.V.S.RAOANDTHE HON’BLE SRI JUSTICE RAMESH RANGANATHAN WRIT PETITION Nos.7579, 7596, 7626 and 7628 of 2011 COMMON ORDER:(Per Hon’ble Sri Justice V.V.S.Rao) These four writ petitions are filed by the children of one SyedJamaluddin Ali Khan who, statedly, was the owner of property bearingMunicipal No.9-1-128, SD Road, Secunderabad, with appurtenant landadmeasuring 5814.95 sq. yards. He gifted the said property to thepetitioners herein under HIBA, each of them getting 1000 sq. yards. Allof them entered into a Development Agreement jointly with M/s.Sree JeeBuilders in December, 2004 whereunder they were entitled to a share of44% of the built up area. For the assessment year 2007-2008, thepetitioners in W.P.Nos.7579 and 7626 of 2011 did not file returns,whereas the petitioners in W.P.Nos.7596 and 7628 of 2011 filed returns. The returns were assessed under the Income Tax Act, 1961 (the Act, forbrevity). On 21.12.2010, the third respondent passed assessment ordersunder Section 147 read with 143(3) of the Act. Being aggrieved all thepetitioners filed separate appeals before the Commissioner of IncomeTax (Appeals) IV and the said appeals are still pending. The demand for payment of tax from all the petitioners was to atune of Rs.64,04,680/-. They filed an application before the thirdrespondent on 22.02.2011 to keep the recovery of disputed tax inabeyance till disposal of the appeals. In response thereto, by acommunication, dated 25.02.2011, the third respondent rejected therequest for stay. Therefore, they approached the second respondent on02.03.2011 requesting him to keep the collection of disputed tax inabeyance till disposal of the appeals. On considering the request the second respondent, presumably,exercising the administrative supervisory jurisdiction, passed an orderdated 14.03.2011 directing all the petitioners put together to pay a sum ofRs.15.00 lakhs on or before 22.03.2011, in default of which coercivesteps would follow. This order is assailed in these writ petitions. The counsel for the petitioners made submissions on the merits ofthe case pending before the Commissioner of Income Tax (Appeals) as well as the balance of convenience. According to him, the only source oflivelihood to all the petitioners is the rents received from the built upportion and, if they are now asked to pay an amount of Rs.15.00 lakhspending appeals, they would suffer hardship and irreparable injury. The Senior Standing Counsel for Income Tax opposes grant ofany order and, on instructions, submits that the matters would bedisposed of by the Appellate Commissioner within a period of threemonths from today. In the scheme of the Act, the power to treat an assessee as notbeing in default pending appeal is exclusively vested in the assessingofficer under Section 220(6) of the Act. When the petitioners havealready approached the authority and their prayer was rejected, we donot find any strong reason to differ from the assessing officer especiallywhen, on the administrative side, the petitioners got some relief byreason of the order passed by the second respondent which is impugnedin these writ petitions. We, therefore, refrain from showing anyindulgence in matters of this nature. It would be in the interests of justice,if the appeals are disposed of by the Commissioner of Income Tax(Appeals) IV, within a period of three months from today. These writ petitions are, accordingly, disposed of. There shall beno order as to costs. ________________ (V.V.S. RAO, J) ______________________________ (RAMESH RANGANATHAN, J) These writ petitions are, accordingly, disposed of. There shall beno order as to costs. ________________ (V.V.S. RAO, J) ______________________________ (RAMESH RANGANATHAN, J) 30.03.2011 Note:- Dispatch C.C. by 01.04.2011. (B/o) KH