New Raja Traders, Rep. by Partner, Mr. Ashok Mukundan V. The Principal Commissioner of Income Tax, Trichy \\u2013 1 and The Commissioner of Income Tax (Appeals), CIT(A), Trichy and The Assistant Commissioner of Income Tax, Circle -2(1), Trichy and The Income Tax Officer, Ward No.1, Karur

WP(MD)/3448/2020

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The case involves New Raja Traders, represented by Mr. Ashok Mukundan, who filed a writ petition challenging an order dated 11.02.2020 issued by the Principal Commissioner of Income Tax, Trichy. The order was related to a stay petition concerning a disputed tax and interest amounting to Rs.3,26,14,508 for the assessment year 2017-2018. The petitioner had already paid Rs.17,25,000, which was 5% of the total disputed amount. The petitioner argued that the demand was raised without an opportunity for a hearing and that the online portal was closed before they could upload their application. The court, after hearing both parties, decided to stay the demand notice pending the appeal's disposal, provided the additional payment was made by the petitioner.

• Counselvise Citation: [2020] 140 COUNSELVISE.COM (IT) 795908 (HC-MISC)
• Appeal Type: Others
• Pronouncement Date: 20-02-2020
• Assessment Year: misc
• Laws Referred To: Article 226 of the Constitution of India
• Result in Favour of: Partly Allowed
• Court: HIGH COURT
• Department Lawyers: D NILIPKUMAR
• Assessee Lawyers: A R L SUNDARESAN
• Keywords: Assessment Order; Disputed tax; Stay Petition; Writ of Certiorarified Mandamus
• Section: 143(3)

Judgement Text

"W.P(MD)No.3448 of 2020 BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT DATED:20.02.2020 CORAM: THE HONOURABLE MRS.JUSTICE PUSHPA SATHYANARAYANA W.P(MD)No.3448 of 2020 and W.M.P(MD)No.2901 of 2020 New Raja Traders, Rep. by Partner, Mr.Ashok Mukundan 969/172, Kovai Road, Karur ... Petitioner Vs. 1.The Principal Commissioner of Income Tax, Trichy – 1. 2.The Commissioner of Income Tax (Appeals), CIT(A),Trichy. 3.The Assistant Commissioner of Income Tax, Circle -2(1),Trichy. 4.The Income Tax Officer, Ward No.1, Karur. ... Respondents Prayer: Writ Petition filed under Article 226 of the Constitution of India to issue a Writ of Certiorarified Mandamus, calling for the records pertaining to the impugned order of the first respondent dated 11.02.2020 and quash the same as illegal and consequently forbear the respondents from proceeding further in any manner against the petitioner pursuant to the assessment order dated 16.12.2019 for the year 2017-2018 passed by the third respondent. For Petitioner : Mr.AR.L.Sundaresan, Senior Counsel for Mr.J.Anandkumar For Respondents : Mr.D.Nilipkumar ORDER Mr.N.Dilipkumar, learned standing counsel takes notice for the respondents. 2. By consent, the writ petition is taken up for disposal at the admission stage itself. 3. This Writ petition has been filed praying for issuance of a Writ of Certiorarified Mandamus, calling for the records pertaining to the impugned order of the first respondent dated 11.02.2020 and quash the same as illegal and consequently forbear the respondents from proceeding further in any manner against the petitioner pursuant to the assessment order dated 16.12.2019 for the year 2017- 2018 passed by the third respondent. 4. The Writ Petition is filed challenging the order dated 11.02.2020 passed in the stay petition filed by the petitioner by the first respondent. There is a demand of disputed tax and 1/2 https://hcservices.ecourts.gov.in/hcservices/ W.P(MD)No.3448 of 2020 interest aggregate to Rs.3,26,14,508/-. Out of the said sum, the petitioner had already paid a sum of Rs.17,25,000/- being 5% of the total disputed amount pursuant to the assessment framed by the Deputy Commissioner of Income Tax, Circle -2, Trichy. 5. According to the learned Senior Counsel appearing for the petitioner, the very demand is raised even without giving an opportunity of hearing to the petitioner. It is stated that every process is through on-line and even before the petitioner would upload his application, the portal is closed. Though this was explained in person before the first respondent and pleaded for a stay, the impugned order came to be passed. 6. Heard the learned senior counsel appearing for the petitioner and the learned standing counsel appearing for the respondents. 7. After hearing both sides, as agreed by both parties, in addition to the amount already paid namely Rs.17,25,000/-, the petitioner is directed to pay another sum of Rs.10,00,000/-(Rupees Ten Lakhs Only), on or before 20.03.2020 as a condition precedent. On such payment, the demand notice is stayed till the disposal of the appeal by the second respondent Commissioner of Income Tax (Appeals), Trichy. The second respondent is also directed to dispose of the appeal in expedition, on merits and in accordance with law. With the above direction, the Writ Petition is disposed of. No Costs. Consequently, connected Miscellaneous Petition is closed. Sd/- Assistant Registrar (CS-III) // True Copy // / /2020 Sub Assistant Registrar(CS) pm To: 1.The Principal Commissioner of Income Tax,Trichy – 1. 2.The Commissioner of Income Tax (Appeals),CIT(A),Trichy. 3.The Assistant Commissioner of Income Tax,Circle -2(1),Trichy. 4.The Income Tax Officer,Ward No.1, Karur. +1 CC to M/s.J.ANANDKUMAR, Advocate ( SR-7300[F] dated 20/02/2020 ) +1 CC to M/s.N.DILIP KUMAR, Advocate ( SR-7341[F] dated 20/02/2020 ) W.P(MD)No.3448 of 2020 20.02.2020 SMA/28/02/2020/2P/7C 2/2 https://hcservices.ecourts.gov.in/hcservices/ "