K.V.V. PRASAD, Visakhapatnam V. Income Tax Officer, Ward-1, Visakhapatnam

MA 76/HYD/2012

• Counselvise Citation: [2012] 123 COUNSELVISE.COM (IT) 8070 (ITAT-HYDERABAD)
• Duration Of Justice: 22 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 25-05-2012
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: Not Allotted
• Assessment Year: 2008-2009
• Appeal Filed On: 03-05-2012
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: V SRINIVAS
• Assessee Lawyers: K V V PRASAD
• Keywords: Application of stay; Competent authority

Judgement Text

MIN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH A, HYDERABAD BEFORE SHRI CHANDRA PPOJARI, ACCOUNTANT MEMBER AND SHRI SHAKTIJIT DEY, JUDICIAL MEMBER. M.A., NO.76/HYD/2012 (IN STAY APPLN. NO.07/VIZ/2012 IN ITA NO.25/VIZ/2012) : ASSESSMENT YEAR 2 008-09 SHRI K.V.V.PRASAD, VISAKHAPATNAM ( PAN - AFNPV 7912 C ) V/S INCOME TAX OFFICER, WARD-I, PALAKOL (APPLICANT) (RESPONDENT) APPLICANT BY : SHRI K.V.V.PRASAD RESPONDENT BY : SHRI V.SRINIVAS DATE OF HEARING 21.5.2012 DATE OF PRONOUNCEMENT 25.5.2012 O R D E R PER CHANDRA POOJARI, ACCOUNTANT MEMBER: THE STAY APPLICATION, ORDER IN WHICH HAS GIVEN RI SE TO THE PRESENT APPLICATION, HAS BEEN DISPOSED OFF BY THE V ISAKHAPTNAM BENCH OF THIS TRIBUNAL, HAVING JURISDICTION OVER THIS MATTER , VIDE ITS ORDER DATED 12.4.2012, GRANTING CONDITIONAL STAY AGAINST RECOVE RY OF OUTSTANDING DEMAND, SUBJECT TO THE ASSESSEE PAYING AN AMOUNT OF RS.36 LAKHS OUT OF THE TOTAL OUTSTANDING DEMAND, IN MONTHLY INSTALMENT S OF RS.6 LAKHS EACH COMMENCING FROM 30 TH APRIL, 2012. 2. HOWEVER, THE ASSESSEE, VIDE ITS PETITION DATED 3.5.2012 SOUGHT CLARIFICATION WITH REGARD TO THE OPERATIVE P ORTION OF THE ORDER OF THE TRIBUNAL DATED 12.4.2012. AS A REGULAR BENCH I S NOT FUNCTIONING AT VISAKHAPATNAM, THE SAID APPLICATION OF THE ASSESSEE HAS BEEN FORWARDED BY THE REGISTRY OF THIS TRIBUNAL AT VISAKHAPATNAM S EEKING APPROPRIATE DIRECTIONS OF THE COMPETENT AUTHORITY FOR THE DISPO SAL OF THE SAID APPLICATION. IN TERMS OF THE DIRECTIONS OF THE COM PETENT AUTHORITY, VIZ. HONBLE VICE PRESIDENT, HYDERABAD ZONE, DATED 14.5. 2012, THE PRESENT MA NO.76/HYD/2012 (IN SA 7/VIZ/2012(IN ITA NO.25/V/2012) SHRI K.V.V.PRASAD, VISAKHAPATNAM 2 APPLICATION OF THE ASSESSEE HAS COME TO BE POSTED B EFORE THIS BENCH OF THE TRIBUNAL FOR APPROPRIATE DISPOSAL THEREOF. 3. IT IS MENTIONED BY THE IN THE PRESENT APPLICATI ON OF THE ASSESSEE DATED 14.5.2012 THAT THE ASSESSEE APPROACH ED THE ITO FOR LIFTING THE ATTACHMENTS ON THE IMMOVABLE PROPERTIES AND ON RENTS THEREON RECEIVABLE FROM THE TENANTS SO AS TO ENABLE HIM TO SECURE LOANS FOR SETTLING THE TAXES DUE, AS PLEADED BEFORE THE TRIBU NAL. HOWEVER, THE ASSESSING OFFICER INTERPRETED THE ORDER OF THE TRIB UNAL OTHERWISE AND REQUESTED THE ASSESSEE TO PAY THE ARREARS OF TAX AS PER THE SCHEDULE PRESCRIBED BY THE TRIBUNAL, WHICH ACCORDING TO HIM IS A PRECONDITION. IT IS IN THESE CIRCUMSTANCE, THAT THE ASSESSEE HAS APPROA CHED FOR SEEKING CLARIFICATION AS TO THE OPERATION PORTION OF THE TR IBUNAL DATED 12.4.2012. 4. THE LEARNED DEPARTMENTAL REPRESENTATIVE, SUPPOR TING THE STAND OF THE ASSESSING OFFICER, SUBMITTED THAT THE ORDER OF THE TRIBUNAL IS VERY CLEAR AND NEEDS NO CLARIFICATION WHATSOEVER. 5. WE HEARD BOTH SIDES AND PERUSED THE ORDER OF TH E TRIBUNAL DATED 12.4.2012. ASSESSEE, WHO APPEARED BEFORE US IN PERSON, FURNISHED A LIST OF BANK ACCOUNTS AND RENTAL ACCOUNTS WHICH A RE UNDER ATTACHMENT. THE SAID LIST OF BANK ACCOUNTS IS AS FOLLOWS- (1) SBI SIRIPURAM, VISAKHAPATNAM (A) SBA/C. 10012574648 - K.V.V.PRASAD (B) SBA/C. 30220614869 - K.V.V.PRASAD (C) SBA/C. 30168523710 - K.V.V.PRASAD (2) SBI PALAKOLU, MARKET STREET BRANCH (A) A/C. NO. 30593625706 MA NO.76/HYD/2012 (IN SA 7/VIZ/2012(IN ITA NO.25/V/2012) SHRI K.V.V.PRASAD, VISAKHAPATNAM 3 (3) SBI KHAIRATABAD, HYDERABAD (A) A/C. NO.20007159941 (4) AXIS BANK, POOLAPALLI, PALAKOLU (A) SB A/C. NO.216010100049568 IT IS THE CONTENTION OF THE ASSESSEE THAT ON ACCOUN T OF THE ATTACHMENTS ON THESE ACCOUNTS, ASSESSEE IS NOT IN A POSITION TO RA ISE THE LOANS FROM THE BANKS, THROUGH WHICH, AS PLEADED BEFORE THE TRIBUNA L IN THE EARLIER ROUND OF HEARING ON THIS APPLICATION, ASSESSEE COULD SETT LE THE TAXES DUE. IT APPEARS FROM THE ARGUMENTS OF THE ASSESSEE BEFORE U S THAT THE ASSESSING OFFICER HAD TREADED INTO THE DANGEROUS PART OF QUES TIONING THE CORRECTNESS OF THE ORDER OF THIS TRIBUNAL DATED 12.4.2012, INST EAD OF FOLLOWING THE SAME, WHICH IS NOT A HEALTHY SIGN, AND VIEWED SERIO USLY, THE ACTION OF THE ASSESSING OFFICER IN THIS BEHALF TANTAMOUNTS TO CON TEMPT OF COURT/TRIBUNAL. WHEN THE TRIBUNAL IN UNAMBIGUOUS TERMS, GRANTED STA Y OF OUTSTANDING DEMAND, AND DIRECTED THE ASSESSING OFFICER TO LIFT THE ATTACHMENT ON IMMOVABLE PROPERTIES AND ON RENTS FROM TENANTS AND NOT TO ENFORCE THE RECOVERY OF OUTSTANDING DEMAND, AND ALSO DIRECTED T HE ASSESSEE TO PAY CERTAIN AMOUNTS BY WAY OF INSTALMENTS TOWARDS THE O UTSTANDING DEMAND. IN TERMS OF THE DIRECTION OF THE TRIBUNAL IN ITS OR DER DATED 12.4.2012, THE ATTACHMENTS CANNOT CONTINUE DURING THE PERIOD OF OP ERATION OF STAY, AND THAT BEING SO, THE ASSESSING OFFICER SHOULD HAVE IM MEDIATELY LIFTED THE ATTACHMENTS, ON RECEIPT OF THE STAY ORDER DATED 12. 4.2012. NON- COMPLIANCE OF THE DIRECTIONS OF THE TRIBUNAL IS CLE ARLY AN ACT OF CONTEMPT OF TRIBUNAL ORDER, WHICH SHOULD NOT BE TREATED LIGH TLY. THE ASSESSING OFFICER, FOR ONE REASON OR THE OTHER, CANNOT FAIL I N COMPLYING WITH THE ORDER OF THE TRIBUNAL. ATTITUDE OF OFFICER IN NOT FOLLOWING THE ORDERS OF THE TRIBUNAL IS NOT A GOOD SIGN,. AND SHOULD BE AVOIDED , AND ANY REPETITION THEREOF SHALL HAVE TO BE VIEWED SERIOUSLY, AND THE SAME MAY RESULT IN INITIATION OF APPROPRIATE PROCEEDINGS AGAINST THE E RRING OFFICERS ATTEMPTING MA NO.76/HYD/2012 (IN SA 7/VIZ/2012(IN ITA NO.25/V/2012) SHRI K.V.V.PRASAD, VISAKHAPATNAM 4 TO DISRESPECT THIS TRIBUNAL. THE ASSESSING OFFICER IS DIRECTED TO GIVE EFFECT TO THE ORDER OF THIS TRIBUNAL DATED 12.4.2012, IN L ETTER AND SPIRIT, AND LIFT ALL THE ATTACHMENTS AS ORDERED BY THE TRIBUNAL. 6. FURTHER, CONSIDERING TOTALITY OF FACTS AND CIR CUMSTANCES OF THE CASE AND THE HARDSHIP EXPRESSED BY THE ASSESSEE, WE DIRECT THAT DRYING UP THE ABOVE ACCOUNTS, BY SUITABLY ADJUSTING THE BA LANCES IN THOSE ACCOUNTS TOWARDS THE INSTALMENTS DIRECTED, BY THIS TRIBUNAL, TO BE PAID BY THE ASSESSEE TOWARDS THE OUTSTANDING DEMAND, THE AT TACHMENTS MADE BY THE DEPARTMENT ON THE ABOVE ACCOUNTS SHOULD BE LIFT ED, IF IT IS CONTINUING AS ON DATE, SO THAT THE ASSESSEE COULD GO AHEAD WIT H HIS PLANS OF RAISING LOANS ETC. AND HIS NORMAL ACTIVITIES ARE NOT HAMPER ED IN ANY WAY. WE DIRECT ACCORDINGLY. 7. IN THE RESULT, PRESENT APPLICATION OF THE ASSE SSEE IS DISPOSED OFF ACCORDINGLY. ORDER PRONOUNCED IN THE COURT ON 25.5.2012 SD/- SD/- (SAKTIJIT DEY) ( CHANDRA POOJARI ) JUDICIAL MEMBER. ACCOUNTANT MEMBER. DT/- 25 TH MAY, 2012 COPY FORWARDED TO: 1. 2. 3 SHRI K.V.V.PRASAD, FLAT NO.301, VYTLA RESIDENCY BAL AJINAGAR, CBM COMPOUND, VISAKHAPATNAM 530 003. ITO WARD I, PALAKOL COMMISSIONER OF INCOME-TAX(APPEALS) VISAKHAPATNAM 4. COMMISSIONER OF INCOME - TAX, VISAKHAPATNAM 5. DEPARTMENTAL REPRESENTATIVE, ITAT, HYDERABAD B.V.S.