Wp/9628/2019 Of R.dorairaj v. The Income Tax Appellate Tribunal

IN THE HIGH COURT OF JUDICATURE AT MADRASDATED : 11.06.2019 THE HONOURABLE MR. JUSTICE T.S.SIVAGNANAMandTHE HONOURABLE MRS. JUSTICE V.BHAVANI SUBBAROYAN W.P.No.9628 of 2019& W.M.P.No.10241 of 2019R.Dorairaj...PetitionerVs.1. The Income Tax Appellate Tribunal, A-3, II Floor, Rajaji Bhavan, Besant Nagar, Chennai – 600 090.2. Commissioner of Income Tax (Appeals) – Puducherry, D.P.Thottam, Muthialpet, Puducherry – 605 003.3. Assistant Commissioner of Income Tax, Cuddallore Circle, 4, Bharathi Road, Manjakuppam, Cuddalore – 607 001....RespondentsWrit Petition filed Under Article 226 of theConstitution of India praying to issue a Writ ofCertiorarified Mandamus calling for the records pertainingto the Order of the first respondent passed inS.A.No.72/Chny/2019 dated 22.03.2019 and quash the same anddirect the respondent Nos.2 and 3 not to recover theoutstanding tax demand till the disposal of appeal beforethe respondent No.1. ...RespondentsWrit Petition filed Under Article 226 of theConstitution of India praying to issue a Writ ofCertiorarified Mandamus calling for the records pertainingto the Order of the first respondent passed inS.A.No.72/Chny/2019 dated 22.03.2019 and quash the same anddirect the respondent Nos.2 and 3 not to recover theoutstanding tax demand till the disposal of appeal before For Appellant : N. Surya Senthil For Respondents : Mr.A.P.SrinivasSenior Standing CounselORDER [Order of the Court was made by T.S.SIVAGNANAM, J.] We have heard Mr.N.Surya Senthil, learned counsel forthe petitioner and Mr.A.P.Srinivas, learned Senior StandingCounsel for the respondents. https://hcservices.ecourts.gov.in/hcservices/ 2. This writ petition has been filed the Order passedby the Income Tax Appellate Tribunal 'C' Bench, Chennai. Inthe stay petition filed, the assessee requested for stay ofthe demand of Rs.85,53,832/- being tax penalty for theassessment year 2015-16 as computed by the AssessingOfficer in assessment order dated 12.12.2017. This order ofassessment was confirmed by the Commissioner of Income TaxAppeals, Puducherry vide order dated 25.02.2019 againstwhich appeal was preferred before the Tribunal by thepetitioner/assessee. The Tribunal held that out of thetotal demand of Rs.83,53,832/-, the assessee has paid a sumof Rs.51,31,278/- and directed the balance amount to bepaid in installments of Rs.3,00,000/- per month. 3. The issue would be as to whether the assessee isrequired to pay the entire amount of demand when the appealis pending. It is true that the assessee should establish aprima facie case and should show a balance of conveyance inhis favour and also establish that he will be put toirreperable hardship if the demand of entire tax andpenalty would not be stayed before the Tribunal. 4. The three cardinal principles which are granted byCivil Courts while granting reliefs are equally applicablebefore the Quasi Judicial and Tribunal. During the pendencyof this writ petition before this Court on account ofcertain technical errors, the assessee has paid a furthersum of Rs.5,00,000/- and as on date, the assessee has paidRs.60,31,279/- as against Rs.85,53,832/-. 5. In our considered view, this amount paid by theassessee would be sufficient to safeguard the interest ofthe Revenue. 6. In the result, the writ petition is partly allowedand the order and direction issued by the Tribunal ismodified and the Tribunal is directed to reckon thepayments effected upto date i.e., Rs.60,31,279/- to besufficient to protect the interest of Revenue and theTribunal may proceed to hear the appeal and decide onmerits and in accordance with law. 7. In the result, this writ petition is partly allowed.No costs. Consequently, connected miscellaneous petition isclosed. Sd/- Assistant Registrar(imp cell) //True Copy// Sub Assistant Registrar To 5. In our considered view, this amount paid by theassessee would be sufficient to safeguard the interest ofthe Revenue. 6. In the result, the writ petition is partly allowedand the order and direction issued by the Tribunal ismodified and the Tribunal is directed to reckon thepayments effected upto date i.e., Rs.60,31,279/- to besufficient to protect the interest of Revenue and theTribunal may proceed to hear the appeal and decide onmerits and in accordance with law. 7. In the result, this writ petition is partly allowed.No costs. Consequently, connected miscellaneous petition isclosed. Sd/- Assistant Registrar(imp cell) //True Copy// Sub Assistant Registrar To 1. The Income Tax Appellate Tribunal, A-3, II Floor, Rajaji Bhavan, Besant Nagar, Chennai – 600 090. A-3, II Floor, Rajaji Bhavan, Besant Nagar, Chennai – 600 090. 2. Commissioner of Income Tax (Appeals) – Puducherry, D.P.Thottam, Muthialpet, Puducherry – 605 003. D.P.Thottam, Muthialpet, Puducherry – 605 003. 3. Assistant Commissioner of Income Tax, Cuddallore Circle, 4, Bharathi Road, Manjakuppam, Cuddalore – 607 001. Cuddallore Circle, 4, Bharathi Road, Manjakuppam, Cuddalore – 607 001. +1cc to Mr.N. Surya Senthil , Advocate SR.No. 47421 +1cc to Mr. A.P.Srinivas, Advocate SR.No. 47046 W.P.No.9628 of 2019&& W.M.P.No.10241 of 2019 A.SK(28/06/2019)