M/S ESL STEEL LIMITED THROUGH ITS DEPUTY GENERAL MANAGER (ACCOUNTS) RAJESH KUMAR PANDEY V. PRINCIPAL CHIEF COMMISSIONER OF INCOME TAX

WPC/5141/2024

AI Insights

M/s ESL Steel Limited filed multiple writ petitions against the notices and orders issued by the Income Tax Department under Section 206C of the Income Tax Act, 1961, for various financial years. The petitions challenged the demand notices and the appellate orders confirming the tax liabilities imposed on the petitioner. The petitioner argued that the department was not entitled to recover the amounts demanded, citing a Supreme Court judgment that supported their position. The court, without delving into the merits of the case, directed the Income Tax authorities to decide on the petitioner's application referencing the Supreme Court's decision within three weeks.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 746919 (HC-JHARKHAND)
• Appeal Type: Others
• Pronouncement Date: 24-09-2024
• Assessment Year: misc
• Other Referred Cases: Ghanshyam Mishra and Sons Private Ltd. Vrs. Edelweiss Asset Reconstruction Company Ltd. (2021) 9 SCC 657
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: KUMAR VAIBHAV
• Assessee Lawyers: BIREN PODDAR; PIYUSH PODDAR; DEEPAK SINHA; MANAV PODDAR
• Keywords: Ex-parte appellate order; Income Tax; Notice of demand; Quashing and setting aside; Tax liability
• Section: 250; 206C

Judgement Text

" 1 IN THE HIGH COURT OF JHARKHAND AT RANCHI W.P.(T) No.5141 of 2024 ----- M/s ESL Steel Limited (earlier known as Electrosteel Steels Limited), a Company registered under the Companies Act, 1956, having its registered office and principal place of business at Vill-Siyaljori, P.O. Jogidih, Opp-Bangaria, P.S. Chandankiary, Bokaro, through its Deputy General Manager (Accounts) Rajesh Kumar Pandey, Aged about 52 years, Son of Late Shambhu Pandey, Resident of Vastu Vihar-4, Phase- 2, Road No. 5, P.O. Chas, P.S. Chas, District Bokaro-827 013. … … Petitioner Versus 1. Principal Chief Commissioner of Income Tax, having its Office at Central Revenue Building, (Annexee), Beer Chand Patel Marg, P.O. G.P.O., P.S. Kotwali, Town Patna, District Patna-800 001. 2. Principal Commissioner of Income Tax, having its Office at Central Revenue Building, 5A, Main Road, Ranchi, P.O. G.P.O., P.S. Kotwali, Ranchi-834 001. 3. Deputy Commissioner of Income Tax, TDS Circle, having its Office at Central Revenue Building (Annexee), 5A, Main Road, Ranchi, P.O. G.P.O., P.S. Kotwali, Ranchi- 834 001. 4. Assistant Commissioner of Income Tax, TDS Circle, having its Office at Central Revenue Building (Annexee), 5A, Main Road, Ranchi, P.O. G.P.O., P.S. Kotwali, Ranchi-834 001. … … Respondents With W.P.(T) No.5158 of 2024 M/s ESL Steel Limited (earlier known as Electrosteel Steels Limited), a Company registered under the Companies Act, 1956, having its registered office and principal place of business at Vill-Siyaljori, P.O. Jogidih, Opp-Bangaria, P.S. Chandankiary, Bokaro, through its Deputy General Manager (Accounts) Rajesh Kumar Pandey, Aged about 52 years, Son of Late Shambhu Pandey, Resident of Vastu Vihar-4, Phase- 2, Road No. 5, P.O. Chas, P.S. Chas, District Bokaro-827 013. … … Petitioner Versus 1. Principal Chief Commissioner of Income Tax, having its Office at Central Revenue Building, (Annexee), Beer Chand Patel Marg, P.O. G.P.O., P.S. Kotwali, Town Patna, District Patna-800 001. 2. Principal Commissioner of Income Tax, having its Office at Central Revenue Building, 5A, Main Road, Ranchi, P.O. G.P.O., P.S. Kotwali, Ranchi-834 001. 2 3. Deputy Commissioner of Income Tax, TDS Circle, having its Office at Central Revenue Building (Annexee), 5A, Main Road, Ranchi, P.O. G.P.O., P.S. Kotwali, Ranchi- 834 001. 4. Assistant Commissioner of Income Tax, TDS Circle, having its Office at Central Revenue Building (Annexee), 5A, Main Road, Ranchi, P.O. G.P.O., P.S. Kotwali, Ranchi-834 001. … … Respondents With W.P.(T) No.5159 of 2024 M/s ESL Steel Limited (earlier known as Electrosteel Steels Limited), a Company registered under the Companies Act, 1956, having its registered office and principal place of business at Vill-Siyaljori, P.O. Jogidih, Opp-Bangaria, P.S. Chandankiary, Bokaro, through its Deputy General Manager (Accounts) Rajesh Kumar Pandey, Aged about 52 years, Son of Late Shambhu Pandey, Resident of Vastu Vihar-4, Phase- 2, Road No. 5, P.O. Chas, P.S. Chas, District Bokaro-827 013. … … Petitioner Versus 1. Principal Chief Commissioner of Income Tax, having its Office at Central Revenue Building, (Annexee), Beer Chand Patel Marg, P.O. G.P.O., P.S. Kotwali, Town Patna, District Patna-800 001. 2. Principal Commissioner of Income Tax, having its Office at Central Revenue Building, 5A, Main Road, Ranchi, P.O. G.P.O., P.S. Kotwali, Ranchi-834 001. 3. Deputy Commissioner of Income Tax, TDS Circle, having its Office at Central Revenue Building (Annexee), 5A, Main Road, Ranchi, P.O. G.P.O., P.S. Kotwali, Ranchi- 834 001. 4. Assistant Commissioner of Income Tax, TDS Circle, having its Office at Central Revenue Building (Annexee), 5A, Main Road, Ranchi, P.O. G.P.O., P.S. Kotwali, Ranchi-834 001. … … Respondents With W.P.(T) No.5160 of 2024 M/s ESL Steel Limited (earlier known as Electrosteel Steels Limited), a Company registered under the Companies Act, 1956, having its registered office and principal place of business at Vill-Siyaljori, P.O. Jogidih, Opp-Bangaria, P.S. Chandankiary, Bokaro, through its Deputy General Manager (Accounts) Rajesh Kumar Pandey, Aged about 52 years, Son of Late Shambhu Pandey, Resident of Vastu Vihar-4, Phase- 2, Road No. 5, P.O. Chas, P.S. Chas, District Bokaro-827 013. … … Petitioner Versus 3 1. Principal Chief Commissioner of Income Tax, having its Office at Central Revenue Building, (Annexee), Beer Chand Patel Marg, P.O. G.P.O., P.S. Kotwali, Town Patna, District Patna-800 001. 2. Principal Commissioner of Income Tax, having its Office at Central Revenue Building, 5A, Main Road, Ranchi, P.O. G.P.O., P.S. Kotwali, Ranchi-834 001. 3. Deputy Commissioner of Income Tax, TDS Circle, having its Office at Central Revenue Building (Annexee), 5A, Main Road, Ranchi, P.O. G.P.O., P.S. Kotwali, Ranchi- 834 001. 4. Assistant Commissioner of Income Tax, TDS Circle, having its Office at Central Revenue Building (Annexee), 5A, Main Road, Ranchi, P.O. G.P.O., P.S. Kotwali, Ranchi-834 001. … … Respondents With W.P.(T) No.5161 of 2024 M/s ESL Steel Limited (earlier known as Electrosteel Steels Limited), a Company registered under the Companies Act, 1956, having its registered office and principal place of business at Vill-Siyaljori, P.O. Jogidih, Opp-Bangaria, P.S. Chandankiary, Bokaro, through its Deputy General Manager (Accounts) Rajesh Kumar Pandey, Aged about 52 years, Son of Late Shambhu Pandey, Resident of Vastu Vihar-4, Phase- 2, Road No. 5, P.O. Chas, P.S. Chas, District Bokaro-827 013. … … Petitioner Versus 1. Principal Chief Commissioner of Income Tax, having its Office at Central Revenue Building, (Annexee), Beer Chand Patel Marg, P.O. G.P.O., P.S. Kotwali, Town Patna, District Patna-800 001. 2. Principal Commissioner of Income Tax, having its Office at Central Revenue Building, 5A, Main Road, Ranchi, P.O. G.P.O., P.S. Kotwali, Ranchi-834 001. 3. Deputy Commissioner of Income Tax, TDS Circle, having its Office at Central Revenue Building (Annexee), 5A, Main Road, Ranchi, P.O. G.P.O., P.S. Kotwali, Ranchi- 834 001. 4. Assistant Commissioner of Income Tax, TDS Circle, having its Office at Central Revenue Building (Annexee), 5A, Main Road, Ranchi, P.O. G.P.O., P.S. Kotwali, Ranchi-834 001. … … Respondents ------- CORAM: HON’BLE THE ACTING CHIEF JUSTICE HON’BLE MR. JUSTICE ARUN KUMAR RAI ------- For the Petitioner : Mr. Biren Poddar, Sr. Advocate : Mr. Piyush Poddar, Advocate 4 : Mr. Deepak Sinha, Advocate : Mr. Manav Poddar, Advocate For the Respondents : Mr. Kumar Vaibhav, Sr. Standing Counsel, ITD ------ Order No. 02/Dated 24th September, 2024 1. All these writ petitions have been prayed to be heard together since common issues are involved. 2. These writ petitions have been filed under Article 226 of the Constitution of India praying therein for following directions :- “W.P.(T) No.5141 of 2024 a) For quashing and setting aside the Notice of Demand dated 19.03.2018 (Annexure-2) issued by the Respondent No. 3, whereby the Petitioner has been directed to pay the assessed amount of alleged tax liability for Rs. 4,33,030/- for the Financial Year 2012-13, in pursuance of the Order dated 19.03.2018 (Annexure-1) passed by the Respondent No. 3, under Section 206C of the Income Tax Act, 1961, as the Respondent Department is not entitled to recover the said amount from the Petitioner, in view of the Judgment passed by the Hon'ble Supreme Court in the case of Ghanshyam Mishra and Sons Private Ltd. Vrs. Edelweiss Asset Reconstruction Company Ltd. reported in (2021) 9 SCC 657, wherein the Petitioner is also one of the Appellants. b) For quashing and setting aside the ex-parte Appellate Order dated 19.06.2024 (Annexure-5) passed by the Commissioner of Income Tax (Appeals), Kolkata under Section 250 of the Income Tax Act, 1961, whereby the appeal dated 03.04.2018 (Annexure-3 Series) filed by the Petitioner challenging the Order dated 19.03.2018 (Annexure-1) passed by the Deputy Commissioner of Income Tax, TDS Circle, Ranchi (Respondent No. 3), under Section 206C of the Income Tax Act, 1961, for the Financial Year 2012-13, has been dismissed and the tax 5 liability of Rs. 4,33,030/- created by him, has been confirmed against the Petitioner. c) For quashing and setting aside the Order dated 19.03.2018 (Annexure-1) passed by the Deputy Commissioner of Income Tax, TDS Circle, Ranchi (Respondent No. 3), under Section 206C of the Income Tax Act, 1961, for the Financial Year 2012-13, whereby a tax of Rs. 4,33,030/ has been imposed/levied upon the Petitioner. W.P.(T) No.5158 of 2024 a) For quashing and setting aside the Notice of Demand dated 19.03.2018 (Annexure-2) issued by the Respondent No. 3, whereby the Petitioner has been directed to pay the assessed amount of alleged tax liability for Rs.52,99,327/- for the Financial Year 2016-17, in pursuance of the Order dated 19.03.2018 (Annexure-1) passed by the Respondent No. 3, under Section 206C of the Income Tax Act, 1961, as the Respondent Department is not entitled to recover the said amount from the Petitioner, in view of the Judgment passed by the Hon'ble Supreme Court in the case of Ghanshyam Mishra and Sons Private Ltd. Vrs. Edelweiss Asset Reconstruction Company Ltd. reported in (2021) 9 SCC 657, wherein the Petitioner is also one of the Appellants. b) For quashing and setting aside the ex-parte Appellate Order dated 19.06.2024 (Annexure-5) passed by the Commissioner of Income Tax (Appeals), Kolkata under Section 250 of the Income Tax Act, 1961, whereby the appeal dated 05.04.2018 (Annexure-3 Series) filed by the Petitioner challenging the Order dated 19.03.2018 (Annexure-1) passed by the Deputy Commissioner of Income Tax, TDS Circle, Ranchi (Respondent No. 3), under Section 206C of the Income Tax Act, 1961, for the Financial Year 2016-17, has been dismissed and the tax liability of Rs. 52,99,327/- created by him, has been confirmed against the Petitioner. c) For quashing and setting aside the Order dated 19.03.2018 (Annexure-1) passed by the Deputy Commissioner of Income Tax, TDS Circle, Ranchi (Respondent No. 3), under Section 206C of the Income Tax 6 Act, 1961, for the Financial Year 2016-17, whereby a tax of Rs. 52,99,327/- has been imposed/levied upon the Petitioner. W.P.(T) No.5159 of 2024 a) For quashing and setting aside the Notice of Demand dated 19.03.2018 (Annexure-2) issued by the Respondent No. 3, whereby the Petitioner has been directed to pay the assessed amount of alleged tax liability for Rs.17,46,020/- for the Financial Year 2013-14, in pursuance of the Order dated 19.03.2018 (Annexure-1) passed by the Respondent No. 3, under Section 206C of the Income Tax Act, 1961, as the Respondent Department is not entitled to recover the said amount from the Petitioner, in view of the Judgment passed by the Hon'ble Supreme Court in the case of Ghanshyam Mishra and Sons Private Ltd. Vrs. Edelweiss Asset Reconstruction Company Ltd. reported in (2021) 9 SCC 657, wherein the Petitioner is also one of the Appellants. b) For quashing and setting aside the ex-parte Appellate Order dated 19.06.2024 (Annexure-5) passed by the Commissioner of Income Tax (Appeals), Kolkata under Section 250 of the Income Tax Act, 1961, whereby the appeal dated 04.04.2018 (Annexure-3 Series) filed by the Petitioner challenging the Order dated 19.03.2018 (Annexure-1) passed by the Deputy Commissioner of Income Tax, TDS Circle, Ranchi (Respondent No. 3), under Section 206C of the Income Tax Act, 1961, for the Financial Year 2013-14, has been dismissed and the tax liability of Rs. 17,46,020/- created by him, has been confirmed against the Petitioner. c) For quashing and setting aside the Order dated 19.03.2018 (Annexure-1) passed by the Deputy Commissioner of Income Tax, TDS Circle, Ranchi (Respondent No. 3), under Section 206C of the Income Tax Act, 1961, for the Financial Year 2013-14, whereby a tax of Rs. 17,46,020/- has been imposed/levied upon the Petitioner. W.P.(T) No.5160 of 2024 a) For quashing and setting aside the Notice of Demand dated 19.03.2018 (Annexure-2) issued by the Respondent 7 No. 3, whereby the Petitioner has been directed to pay the assessed amount of alleged tax liability for Rs.50,30,722/- for the Financial Year 2015-16, in pursuance of the Order dated 19.03.2018 (Annexure-1) passed by the Respondent No. 3, under Section 206C of the Income Tax Act, 1961, as the Respondent Department is not entitled to recover the said amount from the Petitioner, in view of the Judgment passed by the Hon'ble Supreme Court in the case of Ghanshyam Mishra and Sons Private Ltd. Vrs. Edelweiss Asset Reconstruction Company Ltd. reported in (2021) 9 SCC 657, wherein the Petitioner is also one of the Appellants. b) For quashing and setting aside the ex-parte Appellate Order dated 19.06.2024 (Annexure-5) passed by the Commissioner of Income Tax (Appeals), Kolkata under Section 250 of the Income Tax Act, 1961, whereby the appeal dated 05.04.2018 (Annexure-3 Series) filed by the Petitioner challenging the Order dated 19.03.2018 (Annexure-1) passed by the Deputy Commissioner of Income Tax, TDS Circle, Ranchi (Respondent No. 3), under Section 206C of the Income Tax Act, 1961, for the Financial Year 2015-16, has been dismissed and the tax liability of Rs. 50,30,722/- created by him, has been confirmed against the Petitioner. c) For quashing and setting aside the Order dated 19.03.2018 (Annexure-1) passed by the Deputy Commissioner of Income Tax, TDS Circle, Ranchi (Respondent No. 3), under Section 206C of the Income Tax Act, 1961, for the Financial Year 2015-16, whereby a tax of Rs. 50,30,722/- has been imposed/levied upon the Petitioner. W.P.(T) No.5161 of 2024 a) For quashing and setting aside the Notice of Demand dated 19.03.2018 (Annexure-2) issued by the Respondent No. 3, whereby the Petitioner has been directed to pay the assessed amount of alleged tax liability for Rs.18,01,839/- for the Financial Year 2014-15, in pursuance of the Order dated 19.03.2018 (Annexure-1) passed by the Respondent No. 3, under Section 206C of the Income Tax Act, 1961, as the Respondent Department is not entitled to recover the 8 said amount from the Petitioner, in view of the Judgment passed by the Hon'ble Supreme Court in the case of Ghanshyam Mishra and Sons Private Ltd. Vrs. Edelweiss Asset Reconstruction Company Ltd. reported in (2021) 9 SCC 657, wherein the Petitioner is also one of the Appellants. b) For quashing and setting aside the ex-parte Appellate Order dated 19.06.2024 (Annexure-5) passed by the Commissioner of Income Tax (Appeals), Kolkata under Section 250 of the Income Tax Act, 1961, whereby the appeal dated 04.04.2018 (Annexure-3 Series) filed by the Petitioner challenging the Order dated 19.03.2018 (Annexure-1) passed by the Deputy Commissioner of Income Tax, TDS Circle, Ranchi (Respondent No. 3), under Section 206C of the Income Tax Act, 1961, for the Financial Year 2014-15, has been dismissed and the tax liability of Rs.18,01,839/- created by him, has been confirmed against the Petitioner. c) For quashing and setting aside the Order dated 19.03.2018 (Annexure-1) passed by the Deputy Commissioner of Income Tax, TDS Circle, Ranchi (Respondent No. 3), under Section 206C of the Income Tax Act, 1961, for the Financial Year 2014-15, whereby a tax of Rs.18,01,839/- has been imposed/levied upon the Petitioner.” 3. In course of argument, Mr. Biren Poddar, learned senior counsel assisted by Mr. Deepak Sinha, learned counsel, has submitted that the authorities have been tried to be impressed upon by filing application on 17.08.2024 showing applicability of the judgment passed by Hon'ble Apex Court in the case of Ghanshyam Mishra and Sons Private Ltd. v. Edelweiss Asset Reconstruction Company Ltd. reported in (2021) 9 SCC 657, but the authorities have not passed any order. 9 4. It has been submitted that suffice will be at this stage if the direction will be issued upon the competent authority to take a decision on that, if not already taken. 5. Mr. Kumar Vaibhav, learned counsel appearing for the Revenue, has submitted that if the application has not been decided, then the same will be decided in accordance with law within a reasonable period. 6. Considering the same, without entering into the merit of the issues, the concerned respondent is hereby directed to decide the application dated 17.08.2024, if not already decided, within a period of three weeks from the date of receipt of copy of the order. 7. Accordingly, the writ petitions stand disposed of. (Sujit Narayan Prasad, A.C.J.) (Arun Kumar Rai, J.) Birendra/ "