INDIAN OIL CORPN. LTD BONGAIGAON REFINERY V. THE COMMISSIONER OF INCOME TAX AND ORS.

WP(C)/1378/2009

AI Insights

The case involves a dispute between the petitioner and the Assistant Commissioner of Income Tax, Bongaigaon, regarding a tax assessment for the year 2006-2007, amounting to Rs. 2,95,48,591. The petitioner had already filed an appeal against the assessment order and sought interim relief to stay the recovery proceedings, which was still pending. However, the Assistant Commissioner issued a directive for the petitioner to pay 70% of the assessed tax, leading to the filing of this writ petition. The court, referencing a previous decision, directed the appellate authority to expedite the consideration of the interim relief application and provided temporary relief to the petitioner by halting the recovery proceedings during this period.

• Counselvise Citation: [2009] 140 COUNSELVISE.COM (IT) 748559 (HC-ASSAM)
• Appeal Type: Others
• Pronouncement Date: 31-03-2009
• Assessment Year: misc
• Other Referred Cases: Bongaigaon Refinery & Petrochemicals Limited, vis-a-vis, Commissioner of Income Tax & Ors. [(239 ITR 871) (1999)]
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: U BHUYAN
• Assessee Lawyers: A SARAF
• Keywords: Assessment Order; Interim relief; Recovery proceeding; Stay Application; Tax demand
• Section: 226(3)

Judgement Text

"WP(C) 1378/2009 BEFORE THE HON’BLE MR. JUSTICE AMITAVA ROY Heard Dr. A. Saraf, Senior Advocate assisted by Ms. ML Gope for the petitioner a nd Mr. U. Bhuyan, learned Standing Counsel, Revenue. For the order, which I propose to pass, it is not considered necessary to deal w ith the factual details. Suffice it to mention that against the order of assessment dated 31.12.2008 of t he Assistant Commissioner of Income Tax, Circle-Bongaigaon, Bongaigaon, an amoun t of Rs. 2,95,48,591/- tax is payable by the petitioner for the assessment y ear 2006-2007. It has already preferred a statutory appeal before the Commissio ner of Income Tax (Appeals), Guwahati, which is still pending. Along with the a ppeal, the petitioner has also filed an application on 27.01.2009 before the sam e authority praying for an order to keep in abeyance the recovery proceeding r elating to the impugned demand pending disposal of the appeal. While the appeal, as well as the application for the interim relief, is pending , the Assistant Commissioner of Income Tax, Bongaigaon Circle, Bongaigaon, Assam has issued the impugned letter dated 24.03.2009(Annexure - G of the writ petiti on), directing the petitioner to make payment of 70% of the tax assessed amoun ting to Rs.2,06,84,020/-, on or before 31.03.2009. Being aggrieved, the petitio ner is before this Court for redress. Dr. Saraf, has submitted that the impugned order in visible enforcement of the demand, which is the subject matter of appeal, is arbitrary, unfair and unjust and therefore ought to be interfered with. The learned Senior Counsel on instructions, has submitted that the unfairness in disposition of the revenue authorities is also apparent from the letter dated 2 8.03.2009 issued by the Asstt. Commissioner of Income Tax, Circle-Bongaigaon, Bo ngaigaon to the Branch Manager, State Bank of India, Dhaligaon Branch, Dhaligaon , District- Chirang requiring the bank U/s. 226(3) of the Income Tax Act, 1961 t o disburse the aforementioned amount forthwith from the account of the petitione r. The decision of this Court in Bongaigaon Refinery & Petrochemicals Limited, vis-a-vis, Commissioner of Income Tax & Ors. [(239 ITR 871) (1999)] has been pre ssed into service on behalf of the petitioner. Mr. Bhuyan, without prejudice to the rights and contentions of the parties, has submitted that if deemed expedient, this petition may be disposed of by directi ng the Commissioner of Income Tax(Appeals) to pass appropriate orders on the pe titioner’s application for interim relief fixing a time frame. Upon hearing the learned counsel for the parties and on a consideration of the p leaded facts, as well as the decision of this Court in Bongaigaon Refinery & Pet rochemicals Limited, vis-à-vis, Commissioner of Income Tax & Ors. (Supra), I am of the view that it would be in fitness of things if the stay application file d by the petitioner along with the appeal is directed to be disposed of on merit s by granting a limited interim protection for the present. In the above view of the matter, this petition stands disposed with a direction to the Commissioner, Income-Tax (Appeals), Guwahati to take up for consideration the petitioner’s application for interim relief as indicated hereinabove and pa ss appropriate order(s) thereon in accordance with law within a period of 15 day s from today. In other words, the aforementioned appellate authority would tak e a decision on the petitioner’s application for stay latest by 10.04.2009. On balancing the equities, it is provided that for this period, the respondents would not pursue the recovery proceeding in terms of the impugned letter dated 2 4.03.2009. The petition stands allowed in the above terms. No costs. "