Oil and Natural Gas Corporation Ltd. V. The Additional Commissioner of Income-Tax, Range-I, Aaykar Bhawan, Subhash Road, Dehradun and another

WPMS/1324/2008

AI Insights

The case involves the Oil and Natural Gas Corporation Ltd. (petitioner) challenging an order from the Additional Commissioner of Income-Tax, which required the petitioner to deposit 20% of an outstanding arrear demand. This order was contested on the grounds that an interim order had been granted by the Recovery Officer until the disposal of an appeal. The Income Tax Department, through a counter affidavit, proposed a resolution that involved setting aside the contested order, provided the petitioner agreed to cooperate in a timely review and decision process. Both parties agreed to this resolution, leading to the disposal of the writ petition.

• Counselvise Citation: [2008] 140 COUNSELVISE.COM (IT) 673982 (HC-UTTARAKHAND)
• Appeal Type: Others
• Pronouncement Date: 14-08-2008
• Assessment Year: misc
• Result in Favour of: Partly Allowed
• Court: HIGH COURT
• Department Lawyers: ARVIND VASHIST
• Assessee Lawyers: AJAY VOHRA; UDYOG SHUKLA
• Keywords: Income Tax; Interim order; Recovery Officer; Writ petition; Consent of Parties

Judgement Text

"IN THE HIGH COURT OF UTTARAKHAND AT NAINITAL Writ Petition No. 1324 of 2008 (M/S) Oil and Natural Gas Corporation Ltd., Tel Bhawan, Dehradun- 248003. ….. Petitioner. Versus The Additional Commissioner of Income-Tax, Range-I, Aaykar Bhawan, Subhash Road, Dehradun and another. … Respondents. Sri Ajay Vohra and Dr. Udyog Shukla, learned counsel for the petitioner. Sri Arvind Vashist, learned Standing Counsel for Income Tax Deptt. For the respondents. Date August 14, 2008. Hon’ble B.S. Verma, J. Heard Sri Ajay Vohra and Dr. Udyog Shukla, learned counsel for the petitioner and Sri Arvind Vashist, learned Standing Counsel for Income Tax Department for the respondents and perused the record. This writ petition has been filed for quashing the order dated 29-7-2008 passed by respondent no. 1 (copy Annexure No.5) whereby the petitioner was directed to deposit 20% of the outstanding arrear demand on the ground that the Recovery Officer had granted interim order till the disposal of appeal by order dated 7-5-2008 (copy Annexure No.3 to the writ petition). On behalf of the respondents-Income Tax Department counter affidavit has been filed. In paragraph no. 4 it has been stated that the answering respondent is ready to review and re- decide the matter only subject to petitioner’s cooperation in hearing thereof. In paragraph no. 5 of the counter affidavit the following averments have been made:- “5. That in the aforesaid circumstances it is expedient in the interest of justice that this affidavit be accepted on record and the order dated 29.07.2008 be set aside by the consent of the parties provided the petitioner moves an application within 48 hours of the order of this Hon’ble High Court or within such further time as this Hon’ble Court may be fit and proper and agrees to extend its cooperation in deciding the applications within 7 days thereafter. It is further submitted that the answering respondent will not be proceeding for recovery of tax liabilities as demanded vide order dated 29.07.2008 during the aforesaid period.” Learned counsel for the petitioner has agreed to this proposition, which was stated to in paragraph of the counter affidavit filed on behalf of the respondents. In the facts and circumstances of the case, the petitioner is given liberty to move a fresh application in view of the facts as have been mentioned in paragraph no. 5 of the counter affidavit, before the first respondent within a period of one week from today and the first respondent shall decide the application of the petitioner thereafter within a period of two weeks. Till the decision on the application of the petitioner, no steps for recovery shall be taken against the petitioner. It is further directed that the Commissioner of Income (Appeals) Dehradun shall decide the appeal within one month from today and the petitioner shall also cooperate in the expeditious disposal of appeal. With the said observations, the writ petition is disposed of finally. Costs easy. All pending applications stand disposed of. Certified copy of this order be issued to the learned counsel for the parties today on payment of usual charges. (B.S. Verma, J.) RCP "