HOSMAT HOSPITAL PRIVATE LIMITED V. THE COMMISSIONER OF INCOME-TAX (TDS)

WP/55992/2013

AI Insights

Hosmat Hospital Private Limited filed writ petitions against the Income Tax authorities seeking a stay on the recovery of taxes during the pendency of an appeal before the Commissioner of Income Tax (Appeals). The dispute arose from an order under Sections 201(1) and 201(1A) of the Income Tax Act, which led to the attachment of the petitioner's bank accounts for non-payment of 50% of the demanded tax. The court considered the financial circumstances of the petitioner, including a significant tax refund due for the assessment years 2012-13 and 2013-14, and the ongoing appeal process. The court's decision aimed to balance the interests of the tax authorities and the financial viability of the petitioner pending the appeal's outcome.

• Counselvise Citation: [2013] 140 COUNSELVISE.COM (IT) 727170 (HC-KARNATAKA)
• Appeal Type: Others
• Pronouncement Date: 20-12-2013
• Assessment Year: misc
• Laws Referred To: Income Tax Act
• Result in Favour of: Partly Allowed
• Court: HIGH COURT
• Department Lawyers: K V ARAVIND
• Assessee Lawyers: SHANKAR LAVA
• Keywords: Appeal; Bank Account Attachment; Income Tax; Tax Recovery; TDS
• Section: 201(1); 201(1A)

Judgement Text

"1 IN THE HIGH COURT OF KARNATAKA AT BANGALORE DATED THIS THE 20TH DAY OF DECEMBER 2013 BEFORE THE HON’BLE MRS. JUSTICE B.V.NAGARATHNA WRIT PETITION Nos.55992-994/2013 (T-IT) BETWEEN: HOSMAT HOSPITAL PRIVATE LIMITED REP.BY ITS MANAGING DIRECTOR SRI. THOMAS ALEXANDER CHANDY AGE 64 YEARS 45, MAGRATH ROAD BANGALORE - 560 027. PETITIONER (BY SRI SHANKAR A & M LAVA, ADVOCATES) AND: 1 THE COMMISSIONER OF INCOME – TAX (TDS) OFFICE OF THE COMMISSIONER OF INCOME – TAX (TDS) 4TH FLOOR, HMT BHAVAN, NO 59 BELLARY ROAD BANGALORE - 560 032. 2 THE ADDITIONAL COMMISSIONER OF INCOME – TAX (TDS) RANGE, 18, No.59, HMT BHAVAN 4TH FLOOR, BELLARY ROAD BANGALORE - 560 032. 3 THE ASSISTANT COMMISSIONER OF INCOME TAX (TDS) CIRCLE – 18(1), 4TH FLOOR, HMT BHAVAN 2 59, BELLARY ROAD BANGALORE - 560 032. 4 THE COMMISSIONER OF INCOME – TAX (APPEALS) – V No.59, HMT BHAVAN, BELLARY ROAD BANGALORE – 560 032. RESPONDENTS (BY SRI K V ARAVIND, ADVOCATE) THESE WRIT PETITIONS ARE FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA, PRAYING TO DIRECT THE R1 TO STAY THE RECOVERY OF TAXES TILL DISPOSAL OF THE APPEAL FILED BEFORE THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS), ETC., THESE PETITIONS COMING ON FOR ORDERS THIS DAY, THE COURT MADE THE FOLLOWING: ORDER The petitioner has sought modification of the communication dated 29.10.2013 (Annexure-A) and also a direction against respondent No.1 from recovering balance taxes. 2. Briefly stated the facts are that petitioner had filed an appeal before the Commissioner of Income Tax (Appeals)/ respondent No.4 herein assailing the order passed under Sections 201(1) and 201(1A) of the Income 3 Tax Act (hereinafter referred to as ‘the Act’, for short). During pendency of the appeal, the third respondent issued a communication to the petitioner to remit 50% of the demand, or else appropriate steps for recovery would be initiated under the provisions of the Act. In fact the bank accounts of the petitioner were attached by the respondents. By an interim order dated 16.12.2013 attachment in respect of one of the bank accounts of the petitioner was ordered to be lifted. It is in this context, aforesaid prayers have been made. 3. I have heard the learned Counsel for petitioner and the learned Counsel for respondent Nos.1 to 4. 4. It is submitted on behalf of petitioner that the total outstanding dues are Rs.4,13,64,121/-. That the stay order relates to 50% of the outstanding dues which is Rs.1,06,82061/-. Petitioner’s counsel states that on 26.09.2013, a sum of Rs.12,00,000/- has been paid and therefore, the balance of Rs.1,94,82,061/- is the outstanding to be deposited in terms of Annexure-A. In 4 this regard, counsel for petitioner states that a sum of Rs.3,03,71,740/- is the refund which the petitioner is eligible for, for the assessment years 2012-13 and 2013- 14. In the circumstances, submission is that the petitioner would not press for refund of the aforesaid amount and till the disposal of the appeal pending before the fourth respondent, no coercive steps may be initiated against the petitioner with regard to payment of balance 50% of outstanding dues. 5. Learned Counsel for respondents states that the submission made by the petitioner through its counsel, if accepted by this Court would be subject to the result of the appeal pending before the fourth respondent. The appeal could be disposed of expeditiously and till then, petitioner should not press for its refund claim. 6. In this background, the fourth respondent is directed to dispose of the appeal filed by petitioner on or before 28.02.2014. Till then, the petitioner shall not press for refund of Rs.3,03,71,740/-. Respondents are 5 directed not to take any precipitative action in regard to the balance outstanding dues. The respondents are directed to lift the attachment in respect of other bank accounts forthwith. Writ Petitions are disposed of in the aforesaid terms. It is needless to observe that in case the petitioner is not successful before the fourth respondent, the respondents would be at liberty to adjust the refund amount or to initiate recovery proceedings in accordance with law. Sd/- JUDGE kcm "