Bipin Kumar Mirani V. Union of India and Central Board of Director Taxes and Chief Commissioner of Income Tax, Madhya Pradesh and Commissioner of Income Tax, Central Revenue and State of M.P. (Now State of C.G.) and M.P. State Minor Forest Produce (Trading and Development) Co-operative Federation Ltd. and Conservator of Forest, Bilaspur Circle and Conservator of Forest, Jabalpur and Conservator of Forest, Sarguja and Conservator of Forest, Raipur

WP/185/1998

AI Insights

The case involves Bipin Kumar Mirani, the petitioner, who filed a writ petition under Article 226 of the Constitution of India against various respondents including the Union of India, Central Board of Direct Taxes, and other state authorities. The petition sought relief concerning the computation and collection of Income Tax at source under Section 206C of the Income Tax Act, specifically challenging the method of tax calculation on the total amount payable for tendu leaves, which included various charges and commissions. The petitioner argued that the tax should be calculated on the net amount after excluding these charges. After initial arguments, the petitioner decided to withdraw the petition, opting to seek resolution through the appropriate forum.

• Counselvise Citation: [2013] 140 COUNSELVISE.COM (IT) 803320 (HC-CHHATTISGARH)
• Appeal Type: Others
• Pronouncement Date: 20-03-2013
• Assessment Year: misc
• Laws Referred To: Article 226/227 of the Constitution of India, Section 206C of the Income Tax Act
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: A S KACHHAWAHA; PANKAJ SHRIVASTAVA
• Assessee Lawyers: B D GURU
• Keywords: Certiorari; Certiorari; Income Tax; Income Tax at Source; Mandamus; Tendu leaves; Writ petition
• Section: 206C

Judgement Text

"6 ^'t^V l^ ^ _\"—^\"\" - i^^ v TTM •ru,: i ,^1 % IM . TI-E HIGH COUCT GF JUDICATUffi AT JA^A^UR W,P. No» ^ OF 1998 PETITION UNDER AOTICLii 226/227 OF TFE CDNSTITUTION OF INDIA FOR ISSUANCS OF AN APPRDPRIATE WRIT IN THE NATURE OF NANDAM'iJS, DIRECTION, CERl'IORARI OH THELIKE mTino R s t ^ B^Sx:CMANT^ i I ^ ^^'^^ //yrf~\"~^h K^,n^^ ^.(0/K.iyigrcj^^ U^:'^7 ^^•^..^-^/ V.'o.;,^.^^\" :---' s-j^ ^ 2. 4< 5. 6, Bipin Kumar Mirani^ aged 40 years S/0 Shri Chandulal Mirani, P.0. Kharsia, District Raigarhy A-'UP, VBHSUS • • ' ., . Union of India^ through Ninistry of Finance, North Block, New De&fiii Central Board of Director Taxes, Through Its Chairman, C/10, Mlnis-/ try of Finance, Noi-th Block, New Delhi \" Chief Commlssionero'f Income Tax^ Madhya Pradesh B^opal^•Aaykar Bhawar Hoshangabad Road, Bhopal Commissioner of Income Tax^ Central Revoue Qllding, Civil Lines -Raiour State of M,P. through Principal Secretary^ -.Departinent- of Forest^ Vallabh Qhawan^ Bhopal M^P^ State Minor Forast Produce ( Tradling anci Developinent) Co- operativs Federation Ltd., through^ Managln.g Director^ 4 th floor^ 38-B, Vikas Bhavvan, M.^ Nagar^ Bh^^pal Conservator of Rorest^ Bilaspur Circle^ Biiaspur. 99 ^ <& ® •<&-. » <^ »® 8. 10. ^) Conservator of Forest^ Jabalpur Conservator of Forest^ Sarguja Distt^ Sarguija Conseryator of Forest^ Raipur PETITION UNDER AHTICU; 226/227 OF THE CCNSTITUTION Or INDIA K)R I^SUANCE OF AN APProFRIATE WRIT IN THE MATUFS OF Iv^I^DAiWS, DIJ^CTION, CERTORARI OH THE LIK£ ,f ^^ ^ ^ f . ^ 1 Writ Petition No. 185 oF 1998 Page lof3 . '^'y ^&^ (£5S %yv ^' v PETITIONER HIGH COURT OF CHHATTISGARH AT BILASPUR WRIT PETITION No. 185 oF 1998 Bipin Kumar.Mirani rNINNNfc> Versus RESPONDENTS 1 UnionoFlndia 2 Central Board oF Director Taxes 3 Chief Commissioner oF Income Tax 4 Commissioner oF Income Tax 5 State of M.P. (Now State of C.G.) 6 M.P. Sfcate Minor Forest Produce (Trading and Development) Co- operative Federation Ltd. 7 Conservation oF Forest, Bilaspur Circle 8 Conservator of Forest, Jabalpur 9 Conservator oF Forest, Sarguja 10 Conservator oF Forest, Raipur rwrit Petition under Article 226/227 oF the Constitution oF Indial Present:- Mr. B.D. Guru, Advocate For the petitioner. Mr. A.S. Kachhawaha, Dy. Advocafce General with Mr. Pankaj Shrivastava, Panel Lawyer For the respondent Nos.5 to 10/ State. (SB: Hon'ble Mr. T.P. Sharma, J.) ORDER (Passedon 20/03/2013) 1. By this petition under Article 226 of the Constitution oF India the petitioner has prayed for following relieFs:- A. This Hon'ble Court may kindly be pleased to command the respondents No.1 to 4 to produce the records, orders, circulars etc. bearing on implementation oF Section 206C oF the Act for its kind perusal. B. This Hon'ble Court may kindly be pleased to issue a writ in the nature oF mandamus commanding the respondenbs by declaration of law made in this behalF that the respondents are nob authorized to compute and collect Income Tax at source under Section 206-C oF the Act, on the total amounfc payable by the peUUoners to the Federadon liillro%i^- T. ^^ ^•^•% ^ K '^•-.•'^ '•rt & ^ <1'::A\" 1 ¥^..S / WritPetitionNo.185of1998 Page 2 of; ?:^s ^^SsS^^ (Agent) and For the purpose oF SecUon 206 of the Act, the expression \"amount payable by buyers\", should only mean the net amount oF consideration payable by the petitioners/ purchasers oF tendu leaves to the seller / State Govemment through the agency oF Federation after exclusion oF collection charges, processing charges, agent's commission, commercial tax, Forest Development cess and surcharge; AND This Hon'ble Court may kindly be pleased to restrain and Forbear the respondents From computing and collection oF Income Tax under Section 206-C oF the Act on the basis oF totalamount payable by the petitioners / purchasers to the Federation as presently being done; C. This Hon'ble Court may kindly be pleased to issue a writ in the nature oF certiorari quashing the impugned letter oF demands issued by the respondents No.6 to 12 (Annexure P-5) to the extent demand oF 10% of the Income Tax has been calculated on the total amount payable by the petitioners to the Federation; D. This Hon'ble Court may kindly be pleased to issue a writ in the nature oF mandamus commanding the respondents No.1 to 4 and their all subordinate oFFicers not to issue exemption certiFicate in Form 27-C to the traders in tendu leaves purchasing lots on parwith the Petitioners pursuant to the tender issued by the respondent No.6 (Federation) AND Further restrain and Forbear the respondents No.6 to 12 From acting upon and accepting such exemption cerUFicate in Form 27-C produced by any trader in tendu leaves claiming exemption From collection of income tax at source under section 206 C oF the Act AND Further to efFect collection oF Income Tax as per Section 206-C oF Income Tax Act Frofn all purchasers oF tendu leaves from respondents No.6 to 12 irrespective of their place of business by issuing a writ of mandamus to that eFfect;\" '^ ^^ K^ ^\"^^s^-f' WritPetitionNo.185of199 Page; After arguing for some time, leamed counsel for the petitioner submits that this is an Income Tax matter oF the year 1996-97 and the petitionerwas under obligation to pay correct income tax aFter assessment. However, the respondents have not collected complebe income tax From the petitioner for which they were liable. ThereFore, the petitioner seeks to withdraw this petition with liberty to take appropriate steps beFore the appropriate Forum. Consequently, the writ petition is dismissed as withdrawn with the liberty available under the law. No order as to costs. Certified copy as per rules. Sd/- T.P. Sharma Judge Chandra "