Mr. Dr. Arvind Kumar R Shaw V. Union of India Ministry of Finance Department of Revenue and The Tax Recovery Officer (Central) Income Tax Department

WP/26384/2023

AI Insights

The case involves Mr. Dr. Arvind Kumar R Shaw, represented by his power of attorney holder Mr. Vijayakumar A Shaw, who filed a writ petition against the Union of India and the Tax Recovery Officer (Central), challenging an order and an e-auction notice related to a Rolls Royce car. The petitioner contested an assessment order and subsequent actions by the tax authorities, which he claimed were unjustified and pending appeal. The court's decision focused on ensuring that the appeal process was not prejudiced by interim actions such as the auctioning of the car and mandated a swift resolution of the appeal by the Commissioner of Income Tax (Appeals).

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 801387 (HC-KARNATAKA)
• Appeal Type: Others
• Pronouncement Date: 05-02-2024
• Assessment Year: misc
• Laws Referred To: Articles 226 and 227 of the Constitution of India
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: NAYANA B G; RAVI RAJ
• Assessee Lawyers: JOSHUA SAMUEL
• Keywords: Appeal; Assessment Order; Certiorari; Certiorari; E-auction; Income Tax; Mandamus; Quash; Writ petition
• Section: ITBA/COM/F/17/2023-24/1057871945(1)

Judgement Text

" - 1 - NC: 2024:KHC:5027 WP No. 26384 of 2023 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 5TH DAY OF FEBRUARY, 2024 BEFORE THE HON'BLE MR JUSTICE S.R.KRISHNA KUMAR WRIT PETITION NO. 26384 OF 2023 (T-IT) BETWEEN: MR.DR. ARVIND KUMAR R SHAW SON OF RATILAL AGED ABOUT 79 YEARS R/A NO 121, WEST PONNUNAGARAM ROAD RS PURAM, COIMBATORE 641002 REP BY HIS POWER OF ATTORNEY HOLDER MR VIJAYAKUMAR A SHAW SON OF DR ARVIND KUMAR R SHAW AGED ABOUT 48 YEARS RESIDING AT NO 121 WEST PONNUNAGARAM ROAD R S PURAM COIMBATORE 641 002. …PETITIONER (BY SRI. JOSHUA HUDSON SAMUEL.,ADVOCATE) AND: 1. UNION OF INDIA MINISTRY OF FINANCE DEPARTMENT OF REVENUE ROOM NO 46, NORTH BLOCK NEW DELHI 110 001. REP BY ITS SECRETARY. 2. THE TAX RECOVERY OFFICER (CENTRAL) INCOME TAX DEPARTMENT OFFICE OF TAX RECOVERY CENTRAL ROOM NO 320, 3RD FLOOR CENTRAL REVENUE BUILDNG QUEENS ROAD BANGALORE 560 001. …RESPONDENTS (BY SMT. NAYANA TARA B.G..,CGC FOR R-1 SRI. RAVIRAJ.Y.V., ADVOCATE FOR R-2) Digitally signed by VANDANA S Location: HIGH COURT OF KARNATAKA - 2 - NC: 2024:KHC:5027 WP No. 26384 of 2023 THIS W.P IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO a) QUASH THE IMPUGNED ORDER BEARING NO. ITBA/COM/F/17/2023-24/1057871945(1) DATED 10/11/2023 PASSED BY THE R2, PRODUCED AT ANNEXURE-J. AND ETC. THIS PETITION, COMING ON FOR ORDERS, THIS DAY, THE COURT MADE THE FOLLOWING: ORDER In this petition, petitioner seeks for the following reliefs:- “ a) Issue a writ, order or Direction in the nature of a Certiorari filed Mandamus, quashing the impugned order bearing No. ITBA/COM/F/17/2023-24/1057871945(1) dated: 10.11.2023 passed by the Respondent No.2, produced at Annexure-J. b) Consequently Issue a Writ, Order or Direction in the nature of a Certiorari and quash then e-auction notice dated: 10.11.2023 issued by the Respondent No.2 vide Annexure-K, in so far as Lot No.6 pertaining to Rolls Royce Car bearing Registration No.DL-3C-AY-4199 and c) Pass any other Writ or Order or Direction as this Hon’ble Court deems fit under the facts and circumstances, in the interest of justice and equity.” 2. Heard learned counsel for the petitioner, learned counsel for 1st respondent as well as learned counsel for 2nd respondent and perused the material on record. - 3 - NC: 2024:KHC:5027 WP No. 26384 of 2023 3. In addition to reiterating the various contentions urged in the petition and referring to the material on record, learned counsel for the petitioner submits that aggrieved by the impugned assessment order dated 29.12.2021 passed by the Assistant Commissioner of Income Tax vide Annexure-F in relation to the subject car bearing Registration No.DL 3C AY 4199, the petitioner has filed the appeal which is pending before the appellate authority. It is submitted that necessary directions may be issued to the Commissioner of Income Tax (Appeals) – appellate authority to dispose of the said appeal within a stipulated timeframe and till then, the respondents may be directed not to take any precipitative / coercive steps or to auction the subject car. 3.1 Learned counsel for petitioner on instructions also submits that since a sum of Rs.50 lakhs was deposited by the petitioner as per the directions issued by this Court in the present petition, the said sum may be directed to be refunded back to the petitioner. It is further submitted that since the issue / question as regards whether the subject vehicle was sold by the petitioner in favour of one Shri.Sukash Chandrasekar or not is pending adjudication / determination before the appellate authority, the impugned communication at Annexure-J dated 10.11.2023 is also - 4 - NC: 2024:KHC:5027 WP No. 26384 of 2023 to be quashed and appellate authority be directed to decide the appeal, which is listed for hearing on 08.02.2024. Learned counsel for the petitioner submits that the petitioner would appear physically before the appellate authority on 08.02.2024 and submit the pleadings, documents in support of his claim. 4. Per contra, learned counsel for the respondents in addition to reiterating the various contentions urged in the statement of objections, submit that necessary directions be issued to the appellate authority for disposal of the appeal within a stipulated timeframe. 5. I have given my anxious consideration to the rival submissions. 6. A perusal of the impugned communication at Annexure-J will indicate that the 2nd respondent has recorded a finding that the subject vehicle has been sold by the petitioner in favour of Shri.Sukash Chandrasekar. However, since the said issue / question is seized by and pending adjudication before the appellate authority in the appeal filed by the petitioner against the impugned order at Annexure-J dated 10.11.2023, without expressing any opinion on the merits / demerits of the rival contentions, I deem it - 5 - NC: 2024:KHC:5027 WP No. 26384 of 2023 just and appropriate to set aside the impugned communication at Annexure-J and issue necessary directions in this regard to the appellate authority for disposal of the appeal and further directions in this regard. 7. In the result, I pass the following:- ORDER (i) Petition is hereby disposed of. (ii) The impugned communication at Annexure-J dated 10.11.2023 passed by the 2nd respondent is hereby quashed. (iii) The Commissioner of Income Tax (Appeals) – appellate authority before whom the appeals filed by the petitioner is pending and posted on 08.02.2024, is directed to dispose of the appeal within a period of six weeks from 08.02.2024. (iv) Petitioner is directed to be present physically before the Commissioner (Appeals ) on 08.02.2024 and file additional pleadings, documents etc., if any, which shall be considered by the appellate authority in accordance with law after providing sufficient and reasonable opportunity to the petitioner. (v) It is further directed that till the disposal of the appeal filed by the petitioner before the appellate authority, the respondents - 6 - NC: 2024:KHC:5027 WP No. 26384 of 2023 shall not take any precipitative / coercive steps against the subject car and shall not take steps to auction the car till disposal of the appeal. (vi) The respondents are directed to permit the petitioner and his mechanic to inspect the subject vehicle at any convenient time. (vii) The 2nd respondent before whom the petitioner has deposited a sum of Rs.50 lakhs pursuant to the interim order passed by this Court is directed to refund the entire amount back to the petitioner forthwith immediately upon the receipt of a copy of this order. Sd/- JUDGE Srl. "