Flytech Aviation Limited and Capt. K. Mamatha V. Union of India and Asst. Commissioner of Income Tax, Circle 1(3)

WP/26777/2009

AI Insights

The case involves Flytech Aviation Limited, represented by its executive director, Capt. K. Mamatha, who filed a writ petition against the Union of India, represented by the Assistant Commissioner of Income Tax, concerning a demand for detailed information about goods imported by the petitioner in 2006. The Income Tax authorities questioned the declared value of the goods, leading to a request for detailed importation costs. The petitioners sought to delay the income tax assessment for 2007-08 until the customs proceedings were concluded. The court found no legal basis to stay the income tax proceedings pending the outcome of the customs case, citing the need to prevent the stalling of tax assessments and the importance of maintaining an effective adjudication system.

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 799622 (HC-MISC)
• Appeal Type: Others
• Pronouncement Date: 14-03-2012
• Assessment Year: misc
• Laws Referred To: Income Tax Act, Foreign Exchange Management Act (FEMA)
• Result in Favour of: Revenue
• Court: HIGH COURT
• Keywords: Adjudication; Customs Valuation; Importation of goods; Importation of goods; Income tax assessment; Legal demand
• Section: 143(3)

Judgement Text

"HONOURABLE THE CHIEF JUSTICE SHRI MADAN B.LOKUR AND HONOURABLE SHRI JUSTICE SANJAY KUMAR WRIT PETITION NO.26777 OF 2009 Dt: 14-03-2012. Between: FLYTECH AVIATION LIMITED NAGAM TOWERS, 3RD AND 4TH FLOORS, NTR CIRCLE, SECUNDERABAD REP. BY ITS EXECUTIVE DIRECTOR CAPT.K.MAMATHA AND ANOTHER .. PETITIONERS AND UNION OF INDIA REP. BY THE ASST. COMMISSIONER OF INCOME TAX, CIRCLE 1(3) AYAKAR BHAVAN, L.B.STADIUM ROAD, BASHEERBAGH, HYDERABAD AND ANOTHER .. RESPONDENTS HONOURABLE THE CHIEF JUSTICE SHRI MADAN B.LOKUR AND HONOURABLE SHRI JUSTICE SANJAY KUMAR WRIT PETITION NO.26777 OF 2009 ORDER: (PER HON’BLE THE CHIEF JUSTICE SHRI Madan B.Lokur) The prayer made in this writ petition is for a direction to declare that the demand made by the respondents at item No.5 in the letter dated 18.11.2009 relating to importation of goods by the 1st petitioner during the year 2006 is illegal. The demand made by the respondents is to the effect that the Assistant Commissioner of Income Tax has asked the 1st petitioner to furnish complete details in respect of importation of goods and the actual cost incurred in connection with the importation of goods. 2. The dispute has arisen with regard to importation of certain goods. According to the Customs authorities, the value of the goods was much lower than the actual value. It is in this context that the Income Tax authorities have required the 1st petitioner to furnish complete details of the goods. We do not see any reason why the 1st petitioner should feel shy of submitting the relevant material. 3. The further prayer made by the petitioners is that until a final order is passed by the Customs authorities in OR.No.9/2009/ Adjudication/Customs pending before the Commissioner of Customs, Central Excise and Service Tax, Hyderabad-II, no steps should be taken by the respondents for completing the income tax assessment of the petitioners for the assessment year 2007-08. 4. In our opinion, no such relief can be granted. If the 1st petitioner succeeds in the proceedings before the Commissioner of Customs, Central Excise and Service Tax, Hyderabad-II, it can always have the assessment order passed for the assessment year 2007-08 set aside. It is not possible to keep the Income Tax proceedings pending merely because some Customs case is pending against the petitioners. If such a relief is granted, it will make the system of adjudication unworkable and in fact this has happened in this case as the petitioners have been able to stall proceedings under the Income Tax Act and the Foreign Exchange Management Act (FEMA) only because some proceedings are pending with the Commissioner of Customs, Central Excise and Service Tax, Hyderabad-II. The 1st petitioner has also filed a case with the police authorities and sought to link up that case also for the purpose of stalling the proceedings under the Income Tax Act as well as FEMA. 5. In our opinion, the 1st petitioner has not been able to show any right to have the proceedings under the Income Tax Act indefinitely stayed pending adjudication of proceedings before the Commissioner of Customs, Central Excise and Service Tax, Hyderabad-II. 6. Under the circumstances, we decline to interfere in this writ petition and it is accordingly dismissed. Interim orders dated 21-12-2009 shall stand vacated. Miscellaneous applications are also disposed of. 7. The 1st petitioner is given 15 days time to furnish all the material to the Income Tax authorities. ( MADAN B.LOKUR, CJ ) Dt: 14-03-2012. ( SANJAY KUMAR, J ) TNB HONOURABLE THE CHIEF JUSTICE SHRI MADAN B.LOKUR AND HONOURABLE SHRI JUSTICE SANJAY KUMAR WRIT PETITION NO.26777 OF 2009 ORDER: (PER HON’BLE THE CHIEF JUSTICE SHRI Madan B.Lokur) DT: 14-03-2012. "