Himatsingka Agencies Private Limited V. Union of India

CWJC/16625/2021

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Himatsingka Agencies Private Limited, represented by its director Shyam Sunder Khadria, filed a writ petition against various authorities of the Union of India concerning the reduction of compounding fees due to financial hardship. The petitioner sought the court's assistance to forward their application for fee reduction to the competent authority as per the compounding guidelines dated 14th June 2019. The court, after hearing the arguments, decided to dispose of the petition by allowing the petitioner to file an application under the specified guidelines and directed the concerned tax authority to forward the application promptly.

• Counselvise Citation: [2022] 140 COUNSELVISE.COM (IT) 723490 (HC-PATNA)
• Appeal Type: Others
• Pronouncement Date: 25-01-2022
• Assessment Year: misc
• Laws Referred To: Companies Act, 1956
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: KRISHNA NANDAN SINGH; ARCHANA SINHA
• Assessee Lawyers: D V PATHY
• Keywords: Compounding fees; Financial hardship; Income Tax; TDS Circle
• Section: 12

Judgement Text

"IN THE HIGH COURT OF JUDICATURE AT PATNA Civil Writ Jurisdiction Case No.16625 of 2021 ====================================================== Himatsingka Agencies Private Limited a company incorporated under the Companies Act, 1956 having its Head Office at C-1 Patliputra Industrial Area, Patliputra, Patna through its Director Shyam Sunder Khadria (Male) (aged about 75 years) Son of Late Prahlad Rai Khadria resident of 201 Ravi Mansion, Tarkeshwar Path, Opp. Vindhyachal Apartment, East Boring Canal Road, Patna, Bihar - 800001. ... ... Petitioner/s Versus 1. Union of India through its Secretary, Ministry of Finance, Department of Revenue, having its office at North Block, New Delhi. 2. Central Board of Direct Taxes through its Chairman, having its office at North Block, New Delhi. 3. Principal Chief Commissioner of Income Tax, Patna having its office at Central Revenue Building, Bir Chand Patel Marg, Patna. 4. Asst. Commissioner of Income Tax, TDS Circle, Patna having its office at Central Revenue Building, Bir Chand Patel Marg, Patna. ... ... Respondent/s ====================================================== Appearance : For the Petitioner/s : Mr. D.V. Pathy, Advocate For the Respondent/s : Mr. Dr. Krishna Nandan Singh, ASG Mrs. Archana Sinha, Advocate ====================================================== CORAM: HONOURABLE THE CHIEF JUSTICE and HONOURABLE MR. JUSTICE S. KUMAR ORAL JUDGMENT (Per: HONOURABLE THE CHIEF JUSTICE) ======================================================= (The proceedings of the Court are being conducted by Hon’ble the Chief Justice/ Hon’ble Judges through Video Conferencing from their residential offices/residences. Also, the Advocates and the Staffs joined the proceedings through Video Conferencing from their residences/offices.) ======================================================= Date : 25-01-2022 Heard learned counsel for the parties. Petitioner has prayed for the following relief(s):- Patna High Court CWJC No.16625 of 2021 dt.25-01-2022 2/5 Shri D.V. Pathy, learned counsel for the petitioner invites our attention to the contents of Paragraph No. 12 of Patna High Court CWJC No.16625 of 2021 dt.25-01-2022 3/5 the affidavit dated 23rd of November, 2021 filed by Shri Santosh Kumar Verma, posted as Assistant Commissioner of Income Tax, TDS Circle, Patna, which is reproduced as under: “12. That in reply to paragraph no. 27 of the writ petition it is stated that: As regards, reduction in the compounding fees, it is stated that the Para 13.10 of the Compounding Guidelines dated 14.06.2019 provides that '... in extreme and exceptional cases of genuine financial hardship, the compounding charges may be suitably reduced with the approval of the Finance Minister'. Therefore the assessee can move a petition before the Hon'ble Finance Minister through the Competent Authority, for considering the matter of reduction of compounding fees on merits.” Shri D.V. Pathy, learned counsel for the petitioner states that petitioner shall be content if petition is disposed of reserving liberty to the petitioner to take recourse to the compounding guidelines dated 14th of June, 2019, reproduced supra. However, the only assistance which the petitioner wants from the Revenue is to immediately Patna High Court CWJC No.16625 of 2021 dt.25-01-2022 4/5 forward the application to the competent authority for consideration in accordance with law. Well, we see no objection in allowing such payer made on behalf of the petitioner. As such, petition stands disposed of in the following terms:- (a). Shri Pathy states that petitioner shall file an application within a period of two weeks from today; (b) If so desired, petitioner shall take recourse to the mechanism provided under the compounding guidelines dated 14.06.2019; (c) Respondent No. 3 namely Principal Chief Commissioner of Income Tax, Patna having its office at Central Revenue Building, Bir Chand Patel Marg, Patna, shall ensure that the petitioner’s application is forwarded expeditiously, in accordance with law; (d) We are hopeful that the competent authority shall take a decision thereupon expeditiously, as per law; (e) We have not expressed any opinion on the merit of the case. All issues of fact and law are left open. The instant petition stands disposed of in the Patna High Court CWJC No.16625 of 2021 dt.25-01-2022 5/5 aforesaid terms. Interlocutory Application(s), if any, stands disposed of. Amrendra/PKP (Sanjay Karol, CJ) (S. Kumar, J) AFR/NAFR CAV DATE Uploading Date 27.01.2022 Transmission Date "