M/S PUNJAB INSTITUTE OF MEDICAL SCIENCES V. DEPUTY COMMISSIONER OF IT RANGE-3 AND ANR

CWP/14664/2011

AI Insights

The case involves M/s Punjab Institute of Medical Sciences, the petitioner, challenging the orders imposing a penalty of Rs.2,22,17,032 and adjusting a refund towards this penalty. The petitioner argued that the revenue should await the outcome of pending appeals before the Income Tax Appellate Tribunal before taking any coercive measures. The revenue contended that it had the statutory right to adjust the penalty against the refund. The court decided not to intervene in the ongoing recovery process but directed the Tribunal to expedite the hearing of the appeals.

• Counselvise Citation: [2013] 140 COUNSELVISE.COM (IT) 727281 (HC-MISC)
• Appeal Type: Others
• Pronouncement Date: 30-10-2013
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Revenue
• Court: HIGH COURT
• Department Lawyers: VIVEK SETHI
• Assessee Lawyers: ROHIT SUD
• Keywords: Coercive Measures; Income tax appellate tribunal; Penalty; Refund adjustment
• Section: 143(3)

Judgement Text

"CWP No.14664 of 2011 -: 1 :- IN THE HIGH COURT FOR THE STATES OF PUNJAB AND HARYANA AT CHANDIGARH CWP No.14664 of 2011 Date of decision: October 30, 2013. M/s Punjab Institute of Medical Sciences ... Petitioner v. Deputy Commissioner of I.T. Range-3 and another ... Respondents CORAM: HON'BLE MR. JUSTICE RAJIVE BHALLA HON'BLE MR. JUSTICE DR. BHARAT BHUSHAN PARSOON Present: Shri Rohit Sud, Advocate, for the appellant. Shri Vivek Sethi, Advocate for the respondents. Rajive Bhalla , J. (Oral): Prayer in this petition is to quash order dated 30.3.2011, whereby penalty of Rs.2,22,17,032/- has been imposed, as well as for quashing order dated 31.5.2011 whereby refund due to the present petitioner has been adjusted towards penalty. This apart, the petitioner prays that in view of pendency of appeals filed by the assessee as well as the revenue before the Income Tax Appellate Tribunal, the respondents should be restrained from taking coercive measures for recovering any amount from the petitioner. Counsel for the petitioner submits that as the appeals filed by the assessee and the revenue are pending adjudication before the Income Tax Appellate Tribunal, the revenue should have Kadyan Vinod Kumar 2013.11.07 11:58 I attest to the accuracy and integrity of this document Chandigarh CWP No.14664 of 2011 -: 2 :- awaited outcome of these appeals instead of adjusting refund due to the petitioner against penalty. It is further submitted that as the appeals are likely to be heard in the near future, the respondents should be restrained from taking any coercive steps in the matter. Counsel for the revenue submits that right of the revenue to adjust penalty against refund due to an assessee, is statutorily prescribed and, therefore, the petitioner's grievance should be raised before the Tribunal where admittedly appeals filed by the assessee and the revenue are pending. It is further submitted that as the Income Tax Act, 1961 grants a right to revenue to effect recovery, by means permissible under the statute, the petitioner should not be granted any relief with respect to coercive recovery or otherwise. We have heard counsel for the parties and as the entire penalty has been recovered by adjusting refund due to the petitioner and admittedly appeals filed by the assessee and the revenue are pending adjudication, find no reason, at this stage, to grant any relief to the petitioner, except to the extent of directing the Income Tax Appellate Tribunal, Amritsar to decide the appeals filed by the assessee and the revenue within one month of receipt of a certified copy of this order. While adjudicating the appeals, if the petitioner succeeds in the quantum of appeals, the Tribunal Kadyan Vinod Kumar 2013.11.07 11:58 I attest to the accuracy and integrity of this document Chandigarh CWP No.14664 of 2011 -: 3 :- shall pass appropriate consequential orders with respect to the adjustment of refund made by the revenue. Disposed of accordingly. [ Rajive Bhalla ] Judge [Dr. Bharat Bhushan Parsoon] October 30, 2013. Judge kadyan Kadyan Vinod Kumar 2013.11.07 11:58 I attest to the accuracy and integrity of this document Chandigarh "