Bank of Baroda V. The Income Tax Officer (TDS) and The Commissioner of Income Tax (Appeals)

WA/6035/2015

AI Insights

The case involves Bank of Baroda, which appealed against the orders dismissing their writ petitions and rejecting their applications for an interim stay on a demand notice. The demand was issued under Section 201(1) & (1A) of the Income Tax Act, 1961, treating the bank as an assessee in default. The main legal contention was the non-consideration of the first proviso to Section 201(1) by the First Appellate Authority and the learned Single Judge. The High Court found merit in the bank's argument and remanded the case for a fresh evaluation.

• Counselvise Citation: [2016] 140 COUNSELVISE.COM (IT) 812348 (HC-KARNATAKA)
• Appeal Type: Others
• Pronouncement Date: 14-03-2016
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: Y V RAVIRAJ
• Assessee Lawyers: B S N PRASAD; H R KAMBIYAVAR
• Keywords: Assessment; First Appellate Authority; Income Tax; Interlocutory order; Stay order
• Section: 201(1); 201(1A)

Judgement Text

"W.A. Nos. 6035-6038 of 2015 -1- IN THE HIGH COURT OF KARNATAKA DHARWAD BENCH DATED THIS THE 14TH DAY OF MARCH 2016 PRESENT THE HON’BLE MR. JUSTICE H.G.RAMESH AND THE HON’BLE MR. JUSTICE G.NARENDAR W.A. Nos. 6035-6038 of 2015 (T-IT) BETWEEN : BANK OF BARODA REPRESENTED BY CHIEF MANAGER: MR. UPADHYAYALAKAMESWARA RAO BELAGAVI BRANCH, 1568, MARUTI GALLI, BELAGAVI-590002. ... APPELLANT (BY SRIYUTHS B. S. N. PRASAD AND H.R. KAMBIYAVAR, ADVOCATES) AND : 1. THE INCOME TAX OFFICER (TDS) F.K.COMMERCIAL COMPLEX OPP. DISTRICT HOSPITAL DR.B.R.AMBEDKAR ROAD, BELAGAVI-590001 2. THE COMMISSIONER OF INCOME TAX (APPEALS) F.K.COMMERCIAL COMPLEX OPP. DISTRICT HOSPITAL DR.B.R.AMBEDKAR ROAD, BELAGAVI-590001. ... RESPONDENTS (BY SRI Y.V. RAVIRAJ, ADVOCATE) W.A. Nos. 6035-6038 of 2015 -2- THESE WRIT APPEALS ARE FILED U/S 4 OF THE KARNATAKA HIGH COURT ACT PRAYING TO SET ASIDE THE ORDER PASSED IN THE WRIT PETITION NOS.114181-114184 OF 15 DATED 18/12/15. I.A. NO.2/2015 IS FILED FOR STAY. THESE W.As. A/W. I.A. COMING ON FOR PRELIMINARY HEARING THIS DAY, H.G. RAMESH J., DELIVERED THE FOLLOWING: JUDGMENT H.G.RAMESH, J. (Oral): 1. These appeals are directed against an order of a learned Single Judge dated 18.12.2015 made in W.P. Nos.114181-114184 of 2015. By the impugned order, the learned Single Judge has dismissed the appellant’s (Bank of Baroda) aforesaid writ petitions by affirming the interlocutory order dated 15.04.2015 passed by the First Appellate Authority (respondent No.2 herein) rejecting the interlocutory applications filed in their appeals for grant of stay of the impugned demand dated 16.03.2015. The appeals are preferred against the orders of the Assessing Officer dated 23.02.2015 passed under Section 201(1) & (1A) of the Income Tax Act, 1961 (‘the Act’, for short) against the appellant treating the appellant as an assessee in default. W.A. Nos. 6035-6038 of 2015 -3- 2. By consent of learned counsel on both sides, the appeals are heard finally on merits and are being disposed of by this order. 3. The sole contention urged by learned counsel appearing for the appellant – Bank is that the First Appellate Authority as well as the learned Single Judge have not considered the applicability of the first proviso to Section 201(1) of the Act to the facts of the case. Learned counsel appearing for the appellant further submitted that the aforesaid proviso is attracted to the facts of the case. 4. Learned counsel appearing for the respondents – Revenue submitted that the appellant has now furnished a certificate dated 11.06.2015 contemplated under the first proviso to Section 201(1) of the Act. 5. In view of the above, in our opinion, the impugned order of the learned Single Judge dated 18.12.2015 as well as the order passed by First Appellate Authority dated 15.04.2015 rejecting the appellant’s application filed for interim stay are liable to be set aside and the matter W.A. Nos. 6035-6038 of 2015 -4- requires to be reconsidered by the Appellate Authority, namely the Commissioner of Income Tax (Appeals), in accordance with law. Ordered accordingly. The Appellate Authority shall inter alia consider as to whether the first proviso to Section 201(1) of the Act is applicable to the facts of the case or not. All contentions of both the parties are kept open. The appeals stand disposed of in the above terms. 6. In view of disposal of the appeals, I.A. No.2/2015 filed for interim stay does not survive for consideration; it stands disposed of accordingly. Appeals disposed of. Sd/- JUDGE Sd/- JUDGE hnm "