KEVENTER AGRO LIMITED V. ASSISTANT/DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE 4(1), KOLKATA AND ORS

APOT/296/2023

AI Insights

This case involves Keventer Agro Limited, the appellant, who challenged an order by the assessing officer under Section 220(6) of the Income Tax Act, 1961, which directed the appellant to pay 50% of the demand following an assessment. The appellant had previously filed an appeal against the assessment order, which was still pending. The High Court of Calcutta, after hearing arguments from both sides, decided to keep the assessing officer's order in abeyance and directed the Commissioner of Income Tax, Appeals to expedite the hearing of the appellant's challenge to the assessment order.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 676016 (HC-CALCUTTA)
• Appeal Type: Others
• Pronouncement Date: 06-09-2023
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: HIGH COURT
• Department Lawyers: SMITA DE
• Assessee Lawyers: J P KHAITAN; AKHILESH GUPTA; PRANAV SHARMA; SWETANK RAI
• Keywords: Assessment Order; High-pitched assessment; Intra-Court Appeal; Stay Petition; Writ petition
• Section: 220(6)

Judgement Text

"OD 5 IN THE HIGH COURT AT CALCUTTA CIVIL APPELLATE JURISDICTION ORIGINAL SIDE APOT/296/2023 IA NO: GA/1/2023 KEVENTER AGRO LIMITED VS ASSISTANT/DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE 4(1), KOLKATA AND ORS BEFORE : THE HON’BLE THE CHIEF JUSTICE T.S. SIVAGNANAM And THE HON’BLE JUSTICE HIRANMAY BHATTACHARYYA Date : 6TH September, 2023 Appearance : Mr. J.P. Khaitan, Sr. Adv. Mr. Akhilesh Gupta, Adv. Mr. Pranav Sharma, Adv. Mr. Swetank Rai, Adv. …for appellant Ms. Smita Das De, Adv. …for respondent The Court : - This intra-Court appeal by the writ petitioner is directed against the order dated 22nd August, 2023 in WPO No. 1511 of 2023. In the said writ petition the appellant/assessee challenged an order passed by the assessing officer under Section 220(6) of the Income Tax Act, 1961 directing the appellant to pay 50% of the demand pursuant to the assessment proceeding completed on 29th May, 2023. It is not in dispute that as against the assessment order the assessee has preferred an appeal before the Commissioner of Income Tax, Appeals (CITA) on 26th June, 2023 and the appeal is pending. After elaborately hearing the learned Senior Advocate for the appellant and Counsel for respondent/department we are of the view that to decide the issue as to whether the appellant has to deposit 20% of the demand raised of the entitled sum to grant a stay and or whether the appellant is entitled for an unconditional stay would be a matter of academic interest in the instant case as the appellant has canvassed several points in the stay petition dated 31.07.29023 touching upon the merits of the assessment as well as relying upon various case laws and also 2 pointing out that the assessment being a high pitched assessment heavy condition imposed by the assessing officer to pay the 20% of the demand is onerous. Considering the material facts and circumstances of the case and also the fact that assessment is a high pitched assessment we are of the view that the appeal itself can be disposed of by the Commissioner of Income Tax, Appeals at an early date preferably within the period of two months from the date of receipt of the server copy of this order. In the result, the appeal is partly allowed and the order passed by the assessing officer dated 10th August, 2023 under Section 220(6) of the Act shall be kept in abeyance and there would be a direction to the CIT(A) to dispose of the appeal filed by the appellant challenging the assessment order on 26.06.2023 after affording an opportunity to the appellant as soon as possible preferably within a period of two months from the date of receipt of the server copy of this order. The appellant is directed to extend full cooperation to the Appellate Authority in expeditious disposal of the appeal without seeking for unnecessary adjournment. Till then, the order passed by the assessing officer under Section 220(6) of the Act dated 26.06.2023 shall be kept in abeyance. In order to ensure that this direction is complied with within the time line suggested by this Court, the matter may be assigned to Commissioner of Income Tax, Appeals having jurisdiction over the assessee instead of Commissioner of Income Tax, Appeals, Faceless Assessment Circle. We make it clear, that this order is passed considering the peculiar facts and circumstances of the case and not to be treated as a precedent. (T.S. SIVAGNANAM) CHIEF JUSTICE (HIRANMAY BHATTACHARYYA, J.) SN/PKD/GH/S.Das "