Indo Auerlict Manufacturing Company V. Income Tax Officer Ward-2 (4) & 1

SCA/3432/2012

AI Insights

The case involves Indo Auerlict Manufacturing Company, the petitioner, who contested a demand notice under Section 156 of the Income Tax Act, amounting to Rs.5,08,12,640, following an assessment order dated 30.12.2011. The petitioner filed an appeal against the assessment order and concurrently sought a stay on the tax demand, initially depositing 10% and later 50% of the demanded tax as directed by the Assessing Officer. However, the Assessing Officer later reviewed his decision and demanded 100% of the tax, which led to the petitioner approaching the High Court. The court's decision emphasized the finality of the initial order during the pendency of the appeal.

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 794641 (HC-GUJARAT)
• Appeal Type: Others
• Pronouncement Date: 20-06-2012
• Assessment Year: misc
• Laws Referred To: Income Tax Act
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: S UDHIR M EHTA
• Assessee Lawyers: TANVISH BHATT
• Keywords: Assessment Order; Review of order; Stay Application; Tax demand
• Section: 156; 220(6)

Judgement Text

"SCA/3432/2012 1/3 JUDGMENT IN THE HIGH COURT OF GUJARAT AT AHMEDABAD SPECIAL CIVIL APPLICATION No. 3432 of 2012 For Approval and Signature: HONOURABLE MR.JUSTICE V . M. SAHAI Sd/- HONOURABLE MR.JUSTICE N.V . ANJARIA Sd/- ====================================== 1. Whether Reporters of Local Papers may be allowed to see the judgment ? NO 2. To be referred to the Reporter or not ? NO 3. Whether their Lordships wish to see the fair copy of the judgment ? NO 4. Whether this case involves a substantial question of law as to the interpretation of the constitution of India, 1950 or any order made thereunder ? NO 5. Whether it is to be circulated to the civil judge ? NO ====================================== INDO AUERLICT MANUFACTURING COMPANY THRO ITS PARTNER - Petitioner Versus INCOME TAX OFFICER WARD-2 (4) & 1 - Respondents ====================================== Appearance : MR TANVISH BHATT FOR M/S WADIA GHANDY &CO for Petitioner. MR SUDHIR M MEHTA for Respondents. ====================================== CORAM : HONOURABLE MR.JUSTICE V . M. SAHAI and HONOURABLE MR.JUSTICE N.V . ANJARIA SCA/3432/2012 2/3 JUDGMENT Date : 20/06/2012 ORAL JUDGMENT (Per : HONOURABLE MR.JUSTICE V . M. SAHAI) We have heard Mr. Tanvish Bhatt, learned counsel appearing for M/s. Wadia and Ghandy & Company for the petitioner and Mr. Sudhir Mehta, learned Standing Counsel appearing for the revenue. Learned counsel Mr. Tanvish Bhatt submitted that against the assessment order dated 30.12.2011, the petitioner filed an appeal before the Commissioner of Income-tax (Appeals-2) on 24.01.2012. Along with the Assessment Order, the petitioner also received demand notice under Section 156 of the Act on 30.12.2011 to the tune of Rs.5,08,12,640/-. During pendency of the said appeal, the petitioner filed an application on 30.1.2012 under Section 220 (6) of the Act before the respondent No.1 for staying the tax demand of Rs.5,08,12,640/- made in pursuance of the assessment order. For establishing the bonafides, the petitioner also deposited 10% amount of the demand. Thereafter, the Assessing Officer vide order dated 10.2.2012 came to the conclusion that the petitioner is required to deposit 50% of the demand on or before 25.2.2012. Accordingly, the petitioner has deposited 50% of the demanded tax on 22.2.2012. Thereafter, it appears that the Assessing Authority has reviewed his order and by order dated 15.2.2012 directed the petitioner to deposit 100% amount which was demanded as tax. SCA/3432/2012 3/3 JUDGMENT In our opinion, once the Assessing Officer has passed an order for depositing 50% amount of tax demanded from the petitioner and since the same was deposited by the petitioner, it was not open to the Assessing Officer to review his order and direct to deposit 100% amount of tax demanded from the petitioner while the appeal is pending before the Commissioner of Income-tax (Appeals). This writ petition is disposed of with a direction that till the decision of the appeal by the Commissioner of Income-tax (Appeals), further 50% amount demanded by the Assessing Officer by order dated 15.2.2012 shall remain in abeyance which shall be subject to the decision in appeal or any order passed by the Appellate Authority or by the Tribunal. Notice discharged. There shall be no order as to costs. Sd/- [V . M. SAHAI, J.] Sd/- [N. V . ANJARIA, J.] Savariya "