M/S MABA CORPORATE SERVICES PVT LTD V. THE DEPUTY COMMISSIONER OF INCOME TAX

WP/6004/2021

AI Insights

The case involves M/s. MABA Corporate Services Pvt. Ltd., which filed a writ petition against the Deputy Commissioner of Income Tax and the Commissioner of Income Tax, seeking a directive for the refund of tax and interest collected following an assessment order for the Assessment Year 2013-14. The petitioner contested the disallowance of writing off bad debts amounting to Rs.51,87,360, initially disallowed by the Assessing Officer and upheld by the Commissioner of Income Tax (Appeals). However, the ITAT set aside these orders, leading to the current petition for enforcement of the ITAT's decision and a refund under the relevant sections of the IT Act.

• Counselvise Citation: [2021] 140 COUNSELVISE.COM (IT) 754555 (HC-KARNATAKA)
• Appeal Type: Others
• Pronouncement Date: 30-03-2021
• Assessment Year: misc
• Laws Referred To: Constitution of India, Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: E I SANMATHI
• Assessee Lawyers: M V SESHACHALA
• Keywords: Assessment Order; Bad debts; Income Tax; Interest; ITAT; Refund of Tax; Writ of Mandamus
• Section: 154; 226; 240; 227

Judgement Text

" 1 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 30TH DAY OF MARCH 2021 BEFORE THE HON'BLE MR.JUSTICE S. SUNIL DUTT YADAV WRIT PETITION No.6004/2021 (T-IT) Between: M/s. MABA Corporate Services Pvt. Ltd., No.186/1, J.C. Complex Annexe, Sirur Park Road, Seshadripuram, Bangalore - 560 020 Rep. by its Managing Director, Sri C.M. Narayana. … Petitioner (By Sri M.V. Seshachala, Senior Advocate for Sri Aravind V. Chavan, Advocate) And: 1. The Deputy Commissioner of Income Tax, Central Circle - 2(3), C.R. Building, Queens Road, Bengaluru - 560 001. 2. Commissioner of Income Tax, Central Circle, C.R. Building, Queens Road, Bengaluru - 560 001. … Respondents (By Sri E.I. Sanmathi, Advocate) 2 This Writ Petition is filed under Articles 226 & 227 of the Constitution of India, praying to direct the respondents to refund the tax and interest collected after the Assessment Order for the Assessment Year 2013-14 together with interest entitled to the petitioner by passing consequential order under Section 154 of the IT Act and Section 240 of the IT Act in view of the Assessment Order dated 30.03.2015 Annexure-A and Appellate Commissioner Order Dated 29.07.2016 Annexure-B having been set aside by the Tribunal under Order dated 12.05.2017 vide Annexure-C. This Writ Petition coming on for preliminary hearing this day, the Court made the following: ORDER The petitioner-assessee has sought for issuance of a writ of mandamus to direct the respondents to pass orders under Section 154 of the Income Tax Act, 1961 [for short 'I.T.Act] pursuant to the order of Income Tax Appellate Tribunal ['ITAT' for short] dated 12.05.2017 at Annexure-C setting aside the assessment order dated 30.03.2015 (Annexure-A) and that of the Commissioner of Income Tax (Appeals)-11 dated 29.07.2016 (Annexure-B) and has further sought for necessary direction to the respondents to refund their tax and interest collected pursuant to the assessment order for the Assessment Year 2013-2014. 3 2. The petitioner submits that the Assessing Officer has passed an order on 30.03.2015 disallowing the petitioner's writing off bad debts with respect to Rs.51,87,360/-. The said order was taken up in appeal before the Commissioner of Income Tax (Appeals)-11, who affirmed the order of Assessing Officer by his order dated 30.04.2015 which again was carried up in appeal before the ITAT, which however has allowed the appeal by order dated 12.05.2017. 3. It is submitted that the ITAT while allowing the appeal as regards the Assessment Year 2013-2014 has specifically observed that the claim for writing off bad debts with respect to Rs.51,87,360/- as claimed by the assessee has been affirmed while setting aside the order of Commissioner of Income Tax (Appeals)-11. Accordingly, it is submitted that pursuant to the order of ITAT, the respondent Authorities are required to give effect to the said order by passing necessary order under Section 154 and if that were to be so, consequently, the petitioner's 4 request for refund ought to be ordered in terms of Section 240 of I.T. Act. 4. Learned counsel appearing for the Revenue submits that in light of the prayer sought for, the Authorities would consider passing an order under Section 154 of I.T.Act consequent to the order of ITAT and also further consequential order under Section 240 as per law. 5. Taking note of the same, the petition is disposed off. The respondent No.1 is to pass appropriate orders in accordance with law to give effect to the order of ITAT dated 12.05.2017 within a period of two months from the date of release of this order. 6. The respondent is also directed to consider passing an order for refund, in the event, the order under Section 154 is passed simultaneously. Sd/- JUDGE VGR "