M.S.Agarwal Foundries Pvt. Ltd. V. The Income Tax Officer, Ward-16(1), Ayakar Bhavan, Basheerbagh, Hyderabad and Assistant Commissioner of Income Tax, Circle-16(2)

WP/11003/2012

AI Insights

The case involves M/s. M.S. Agarwal Foundries Pvt. Ltd., the petitioner, who contested an assessment order demanding payment of Rs.2,64,57,598 for the Assessment Year 2009-2010. The petitioner filed an appeal against this order and simultaneously sought a stay on the payment of the disputed tax under Section 220(6) of the Income Tax Act, 1961. The stay application was initially handled by the Income Tax Officer, Ward-16(1), Hyderabad, and later transferred to the Assistant Commissioner of Income Tax, Circle-16(2), who rejected the application without providing reasons. The petitioner challenged this rejection in the High Court, citing a lack of reasoning and inconsistency with a relevant circular from the Central Board of Direct Taxes and a previous court order.

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 819872 (HC-ANDHRA_PRADESH)
• Appeal Type: Others
• Pronouncement Date: 18-04-2012
• Assessment Year: misc
• Other Referred Cases: Bothra Shipping Services, Visakhapatnam and The Income Tax Officer, Visakhapatnam and another
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: SRI ADVOCATE
• Assessee Lawyers: A V KAUNDINYA
• Keywords: Assessment Order; Disputed tax; Income Tax; Stay Application
• Section: 220(6)

Judgement Text

" THE HON'BLE MR JUSTICE V ESWARAIAH And THE HON’BLE SRI JUSTICE N.RAVI SHANKAR W.P.No.11003 OF 2012 DT.18-04-2012 Between: M/s. M.S.Agarwal Foundries Pvt. Ltd., … Petitioner And The Income Tax Officer, Ward-16(1), Ayakar Bhavan, Basheerbagh, Hyderabad & 2 ors. … Respondents Counsel for the Appellant: Sri A.V.Krishna Kaundinya Counsel for respondent: Sri The Court made the following ORDER: THE HON'BLE MR JUSTICE V ESWARAIAH And THE HON’BLE SRI JUSTICE N.RAVI SHANKAR W.P.No.11003 OF 2012 O R D E R: (Per the Hon’ble Sri Justice V.Eswaraiah) Against the Assessment Order dated 30-12-2011 for the Assessment Year 2009-2010 passed by the Income Tax Officer, Ward- 16 (1), Hyderabad in demanding to pay the tax of Rs.2,64,57,598/-, the petitioner filed an appeal on 30-01-2012, and pending disposal of the said appeal, it filed stay application under Section 220 (6) of the Income Tax Act, 1961 before the Assessing Officer/Income Tax Officer, Ward-16 (1) on 1-2-2012 seeking to grant stay of payment of the said disputed tax. The said stay application was transferred by the 1st respondent to the 2nd respondent and the 2nd respondent/Assistant Commissioner of Income Tax, Circle-16 (2) rejected the said application vide order dated 17-2-2012, which reads as follows: “The submissions made by you for stay of collection of taxes for the assessment year 2009-10 have been carefully examined. However, your request cannot be acceded and the same is rejected. Hence, you are requested to pay the demand immediately and produce a copy of challan in token of proof of payment of tax.” Aggrieved by the above order dated 17-02-2012 of the Assistant Commissioner of Income Tax, Circle-16 (2), this writ petition is filed. The learned counsel for the petitioner submits that the said order passed by the 2nd respondent is without assigning any reasons and contrary to the circular issued by the Central Board of Direct Taxes as well as the orders of this Court. In support of the said submission he placed reliance on the judgment of this Court in W.P.No.31382 of 2011 (Bothra Shipping Services, Visakhapatnam and The Income Tax Officer, Visakhapatnam and another), dated 29-12-2011. In view of the aforesaid orders of this Court dated 29-12-2011 in W.P.No.31382 of 2011 and as the stay application filed by the petitioner is rejected without assigning any reasons and having regard to the facts and circumstances of the case, we have no option except to set aside the order dated 17-02-2012 of the 2nd respondent herein/Assistant Commissioner of Income Tax, Circle-16 (2), Ayakar Bhavan, Hyderabad and direct the 2nd respondent herein/Assistant Commissioner of Income Tax, Circle-16 (2), Ayakar Bhavan, Hyderabad to consider the said stay application filed by the petitioner, in accordance with law, and pass appropriate orders, after considering all the relevant factors. Until a decision is taken on the stay application, the respondents will not resort to any coercive measures to recover the tax said to be due. The writ petition is accordingly disposed of. As a sequel, the W.P.M.Ps, if any, filed stands dismissed. No costs. ______________ V. ESWARAIAH,J ________________ N.RAVI SHANKAR,J Dt:18-04-2012 grk THE HON'BLE MR JUSTICE V ESWARAIAH And THE HON’BLE SRI JUSTICE N.RAVI SHANKAR (The Judgment of the Bench delivered by Hon’ble Sri Justice V.Eswaraiah) W.P.No.11003 OF 2012 DT.18-04-2012 "