Maurya Motors Private Limited V. Union of India

CWJC/16746/2021

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Maurya Motors Private Limited, represented by its director Shyam Sunder Khadria, filed a writ petition against various authorities of the Union of India, including the Ministry of Finance and the Income Tax Department. The petitioner sought relief concerning the compounding fees imposed, citing financial hardship. The court's decision allows the petitioner to apply for a reduction in compounding fees under the guidelines established on 14th June 2019, emphasizing that the application should be forwarded by the Principal Chief Commissioner of Income Tax, Patna, to the competent authority for consideration.

• Counselvise Citation: [2022] 140 COUNSELVISE.COM (IT) 682976 (HC-PATNA)
• Appeal Type: Others
• Pronouncement Date: 24-01-2022
• Assessment Year: misc
• Laws Referred To: Companies Act, 1956
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: KRISHNA NANDAN SINGH
• Assessee Lawyers: D V PATHY
• Keywords: Compounding fees; Financial hardship; Income Tax; TDS Circle
• Section: 13(10)

Judgement Text

"IN THE HIGH COURT OF JUDICATURE AT PATNA Civil Writ Jurisdiction Case No.16746 of 2021 ====================================================== Maurya Motors Private Limited a company incorporated under the Companies Act, 1956 having its Head Office at C-1 Patliputra Industrial Area, Patliputra, Patna through its Director Shyam Sunder Khadria (Male) (aged about 75 years) Son of Late Prahlad Rai Khadria Resident of 201 Ravi Mansion, Tarkeshwar Path, Opp. Vindhyachal Apartment, East Boring Canal Road, Patna, Bihar- 800001. ... ... Petitioner/s Versus 1. Union of India through its Secretary, Ministry of Finance, Department of Revenue, having its office at North Block, New Delhi. 2. Central Board of Director Taxes through its Chairman, having its office at North Block, New Delhi. 3. Principal Chief Commissioner of Income Tax, Patna having its office at Central Revenue Building, Bir Chand Patel Marg, Patna. 4. Asst. Commissioner of Income Tax, TDS Circle, Patna, having its office at Central Revenue Building, Bir Chand Patel Marg, Patna. ... ... Respondent/s ====================================================== Appearance : For the Petitioner/s : Mr. D.V. Pathy, Advocate For the Respondent/s : Mr. Dr. Krishna Nandan Singh, ASG ====================================================== CORAM: HONOURABLE THE CHIEF JUSTICE and HONOURABLE MR. JUSTICE S. KUMAR ORAL JUDGMENT (Per: HONOURABLE THE CHIEF JUSTICE) ======================================================= (The proceedings of the Court are being conducted by Hon’ble the Chief Justice/ Hon’ble Judges through Video Conferencing from their residential offices/residences. Also, the Advocates and the Staffs joined the proceedings through Video Conferencing from their residences/offices.) ======================================================= Date : 24-01-2022 Heard learned counsel for the parties. Petitioner has prayed for the following relief(s):- Patna High Court CWJC No.16746 of 2021 dt.24-01-2022 2/5 Shri D.V. Pathy, learned counsel for the petitioner Patna High Court CWJC No.16746 of 2021 dt.24-01-2022 3/5 invites our attention to the contents of Paragraph No. 13 of the affidavit dated 23rd of November, 2021 filed by Shri Santosh Kumar Verma, posted as Assistant Commissioner of Income Tax, TDS Circle, Patna, which is reproduced as under: “13. That in reply to paragraph No. 27 of the writ petition it is stated that as regards, reduction in the compounding fees, it is stated that the Para 13.10 of the Compounding Guidelines dated 14.06.2019 provides that: '... In extreme and exceptional cases of genuine financial hardship, the compounding charges may be suitably reduced with the approval of the Finance Minister'. Therefore the petitioner can move a petition before the Hon'ble Finance Minister through the Competent Authority, for reduction of compounding fees for consideration on merits.” Shri D.V. Pathy, learned counsel for the petitioner states that petitioner shall be content if petition is disposed of reserving liberty to the petitioner to take recourse to the compounding guidelines dated 14th of June, 2019, reproduced Patna High Court CWJC No.16746 of 2021 dt.24-01-2022 4/5 supra. However, the only assistance which the petitioner wants from the Revenue is to immediately forward the application to the competent authority for consideration in accordance with law. Well, we see no objection in allowing such payer made on behalf of the petitioner. As such, petition stands disposed of in the following terms:- (a). If so desired, petitioner shall take recourse to the mechanism provided under the compounding guidelines dated 14.06.2019; (b) Respondent No. 3 namely Principal Chief Commissioner of Income Tax, Patna having its office at Central Revenue Building, Bir Chand Patel Marg, Patna, shall ensure that the petitioner’s application is forwarded expeditiously, in accordance with law; (c) We are hopeful that the competent authority shall take a decision thereupon expeditiously, as per law; (d) We have not expressed any opinion on the merit of the case. All issues of fact and law are left open. The instant petition stands disposed of in the Patna High Court CWJC No.16746 of 2021 dt.24-01-2022 5/5 aforesaid terms. Interlocutory Application(s), if any, stands disposed of. Amrendra/PKP (Sanjay Karol, CJ) (S. Kumar, J) AFR/NAFR CAV DATE Uploading Date 27.01.2022 Transmission Date "