Wp/9302/2015 Of M/S Iskcon Charities v. Additional Commissioner Of Income Tax

1 IN THR HIGH COURT OF KARNATAKA AT BBNGALURU| DATED THIS THE 19th DAY OF MARCH, 2015 BEFORE THE HON’BLE MR.JUSTICE ARAVIND KUMAR. #WRIT PETITION NO.9302/2015 (TIT) BETWEEN: M/S ISKCON CHARITIES.HARE KRISHNA HILL|WEST OF CHORD ROADRAJ AJINAGARBBNGALURU-560 010REPRESHKENIED BY THE TRUSTESRI RAMAKRISHNA K9/O SRI KANNAITAH CAGED ABOUT 43 YBARS._. PRHTITIONBR (BY SRI M.V. SESHACHALA, SR. COUNSEL A/W_SMT. VANI H, ADVOCATE) AND: 1.ADDITIONAL COMMISSIONER OFINCOME TAXEXEMPTIONS RANGE, FLOOR, C R BUILDING,|INCOME TAXEXEMPTIONS RANGE, FLOOR, C R BUILDING,|QUEENS ROAD,BBNGALURU-560 OO1..BBNGALURU-560 OO1..|COMMISSIONER OF INCOME TAX- 14LARGE TAX PAYERS UNIT|JSS TOWERS, 100 FEET RING ROADBANASHANKARI III STAGEBBNGALURU-560 O85.RBSPONDENTS|LARGE TAX PAYERS UNIT|JSS TOWERS, 100 FEET RING ROADBANASHANKARI III STAGEBBNGALURU-560 O85.RBSPONDENTS| (BY SRI JEEVAN NEERALGI, ADVOCATE) 2 WRIT PETITION [IS FILED UNDER ARTICLE 226 OFTHE CONSTITUTION OF INDIA, PRAYING TO QUASH THEORDER DATED 18.02.2015 ISSUED BY THE R-1 VIDEANNHBXURE-N. THIS PETITION COMING ON FOR PRELIMINARY|HEARING IN ‘B’ GROUP THIS DAY, THE COURT MADE THEKROLLOWING: ORDER Heard Sri M V Seshachala, learned Senior Counselappearing on behalf of Smt.Vani H appearing for|petitioner and Sri Jeevan Neeralgi, learned Standing|Counsel for respondents. ? Petitioner being aggrieved by assessment orderdated 28.03.2014 (Annexure-B) filed an appeal before|Commissioner of Income Tax (Appeals)-V, Bangalore|vide Annexure-D and an application for stay of the|demand notice also came to be filed. After considering|the contentions raised by the appellant, appellate|authority has stayed assessment order subject to|assessee depositing Rs.6 Crores in five instalments as| per order dated 17.06.2014 (Annexure-G). Same was|not deposited by the assessee. However, a sum ofRs.3 Crores came to be deposited. On account of non-compliance of the order of stay, assessee was treated as“an assessee in default’ by order dated 18.02.2015)(Annexure-N) passed by first respondent. Being|agerieved by said order dated 18.02.2015, appeal came|to be filed by petitioner and application for stay also|came to be filed before Commissioner of [Income Tax(Appeals)-14, Bangalore. Said authority by order dated|03.03.2015 (Annexure-P) rejected the stay application|which is also impugned in the present writ petitionalong with order dated 18.02.2015 passed by first|respondent. | 3,It is not in dispute that appellate authority isseized of the matter and contentions raised by petitioneris under adjudication by it. Perusal of the assessment|Order|wouldindicate.thatassessingofficerhas. disallowed the claim of Rs.2O Crores which is said to|have been paid by the assessee by virtue of a|compromise entered into with M/s.Harini Properties|before Civil Court in pending O.S.No.6040/2009 and_has treated said amount as income of the assessee. In|view of the fact that said amount has been paid by the|assessee on account of compromise entered into with|M/s.Harini Properties, issue which requires to be|examined, as to whether it should be treated as income|of the assessee or otherwise, by the appellate authority.Hence, this Court is of the considered view that ends otfjustice would be met if petitioner — assessee is directed|to deposit further sum of Rs.oO lakhs on or before)31.03.2015 and on such amount being deposited, first)appellate authority shall hear the appeal No.ITA)No.439/Trust/CIT(A)14/14-15 (Annexure — D) on merits|and in accordance with law expeditiously. In the event,of petitioner failing to deposit amount of Rs.oO lakhs on) 5 or before 31.03.2015, respondent-authorities would be|at liberty to proceed further for enforcing the order at|Annexure-N. Ordered accordingly. Writ petition stands disposed of. No opinion isexpressed on the merits of the case. Sd/- JUDGE !4: