BHILAI INSTITUTE OF TECHNOLOGY TRUST (SETH BALKRISHAN MEMORIAL) V. UNION OF INDIA

WPT/177/2022

AI Insights

The case involves the Bhilai Institute of Technology Trust, represented by its Director Dr. Arun Arora, challenging a notice issued by the Deputy Commissioner of Income Tax (Exemption), Bhopal. The Petitioner sought to challenge the legality and validity of the notice and requested the Commissioner of Income Tax (Appeals) to expedite the decision on their pending appeal regarding the stay of recovery proceedings. The court noted that the Petitioner had already filed an application for stay with the Assessment Officer, which was to be considered under the guidelines set by the Central Board of Direct Taxes (CBDT) circular dated 03.03.2016.

• Counselvise Citation: [2022] 140 COUNSELVISE.COM (IT) 724419 (HC-CHHATTISGARH)
• Appeal Type: Others
• Pronouncement Date: 27-06-2022
• Assessment Year: misc
• Laws Referred To: Central Board of Direct Tax Circular dated 03.03.2016
• Result in Favour of: Applicant
• Court: HIGH COURT
• Department Lawyers: ANMOL SHARMA; NAUSHINA ALI; AJAY KUMRANI
• Assessee Lawyers: VINEET PANDEY
• Keywords: Assessment Officer; Income Tax; Recovery proceeding; Stay of demand

Judgement Text

"NAFR HIGH COURT OF CHHATTISGARH, BILASPUR WPT No. 177 of 2022 1. Bhilai Institute of Technology Trust (Seth Balkrishan Memorial) Bhilai House, Durg (Chhattisgarh) Through Its Director Dr. Arun Arora S/o Late Shri Kishan Chand Arora, Aged About 58 Years R/o MIG- II/392, Amdi Nagar, Hudco, Bhilai, District : Durg, Chhattisgarh. ---- Petitioner Versus 1. Union Of India Through The Central Secretary, Ministry Of Finance, Income Tax Department, Government Of India, A-Wing Shashtri Bhawan, Dr. Rajendra Prasad Road, New Delhi- 110001. 2. The Commissioner Of Income Tax (Appeals), Income Tax Department, National Faceless Appeal Center (NFAC) Room No.245-A, North Block, New Delhi- 110001, District : New Delhi, Delhi 3. The Additional Commissioner Of Income Tax, National E-Assessment Center, Mayur Bhawan, Connaught Lane, Barakhamba, New Delhi- 110001 4. The Deputy Commissioner Of Income Tax (Exemption), Room No. 209, 2nd Floor, Reac, Bhopal Madhya Pradesh- 462016 5. The Assistant Commissioner Of Income Tax (Exemption), Aayakar Bhawan Raipur (Chhattisgarh) ---- Respondents _____________________________________________________________ For Petitioner : Mr. Vineet Kumar Pandey, Advocate. For Respondent No.1 : Ms. Anmol Sharma, Advocate. For Respondents No. 2-5 : Ms. Naushina Afrin Ali and Mr. Ajay Kumrani, Advocates. Hon'ble Shri Justice Arvind Singh Chandel Order On Board 27/06/2022 1. This petition has been filed by the Petitioner challenging the legality and validity of notice dated 25.04.2022 issued by Respondent No.4 and also seeking direction to Respondent No.2 to decide the appeal of the Petitioner dated 12.04.2021 (Annexure P-2) in stipulated time. Further it has been prayed that till then, no recovery proceeding initiate against the Petitioner as per order dated 12.03.2021. 2. At this stage, Counsel for Respondents No.2 to 5 would submit that Central Board of Direct Tax (in short 'CBDT') has issued a circular on 03.03.2016 for revised guidelines for stay of demands at the first appeal stage and the Petitioner has already moved an application for grant of stay before the Assessment Officer i.e. Deputy Commissioner of Income Tax (Exemption), the same shall be considered in accordance with the circular dated 03.03.2016. 3. On perusal of the circular dated 03.03.2016, issued by the 'CBDT', it appears that the Assessment Officer has a power to consider the prayer for grant of stay of demand notice or recover of the disputed amount of tax assessed against the assessee on payment of 15% of the disputed amount. If the assessee is still aggrieved, he has been granted liberty to approach Jurisdiction Administrative Prinicpal Commissioner or Commissioner for a review of the decision of the Assessing Officer. In this case, the appeal before the Commissioner of Income Tax (Appeals)(NFAC) i.e. Respondent No.2 dated 12.04.2021 has already filed by the Petitioner which is still pending and an application for grant of stay to the recovery proceeding has also been filed by the Petitioner on 29.04.2022 which is present in page no.31 of the instant petition. 4. As the application for grant of stay to the recovery proceeding has already been filed by the Petitioner before the Assessment Officer, the present petition is disposed of directing the Assessment Officer to consider and decide the application already filed on 29.04.2022 within an outer limit of four weeks from the date of receipt of this order. 5. It is expected that the Appellate authority shall also decide the pending appeal of the Petitioner as early as possible preferably within an outer limit of 10 weeks from today. Sd/- (Arvind Singh Chandel) Judge Shubham "