Rajendra Kumar Agrawal and Mohanlal Agrawal and M/s Mangelal Rawat and Bharat Shah and Pravir Kumar Shah and M/s Bharat Kumar Mirani and M/s Ifasadilal Mansara and Rajendra Kumar Mirani V. Union of India and Central Board of Direct Taxes and Chief Commissioner of Income Tax, Madhya Pradesh and Commissioner of Income Tax, Raipur and State of M.P. and M.P. State Minor Forest Produce (Trading & Development Co-operative Federation Ltd.) and Conservator of Forest, Bilaspur Circle and Conservator of Forest, Jabalpur and Conservator of Forest, Sarguja and Conservator of Forest, Balaghat

WP/4239/1997

AI Insights

The case involves a writ petition filed under Article 226 of the Constitution of India by Rajendra Kumar Agrawal and others against the Union of India and other respondents. The petitioners sought various writs including mandamus and certiorari concerning the collection of Income Tax at source under Section 206C of the Income Tax Act on transactions related to the purchase of tendu leaves. The primary contention was about the computation of the tax on the net amount after excluding certain charges and not on the total amount payable to the Federation. After initial arguments, the petitioners decided to withdraw the petition, retaining the right to approach the appropriate forum for their grievances.

• Counselvise Citation: [2013] 140 COUNSELVISE.COM (IT) 803334 (HC-CHHATTISGARH)
• Appeal Type: Others
• Pronouncement Date: 19-02-2013
• Assessment Year: misc
• Laws Referred To: Income Tax Act
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: S K TIWARI; A SURANA; P DWIVEDI; P SHRIVASTAVA
• Assessee Lawyers: ASHISH SHRIVASTAVA
• Keywords: Certiorari; Certiorari; Collection charges; Commercial tax; Income Tax; Mandamus; Processing charges; Surcharge; Tendu leaves; Agent's commission; Forest Development Cess
• Section: 206C; 206

Judgement Text

"•<^1 IN THE HI(Si COORT OF JUDICATURE AT JABALPUR W.-P. No.L i« ^f. ./1997 PETITIONERS i8!S'.a.;;-,;S-^:!,-,i?3 :^ 1. Rajendra Kumar Agrawal, s/o Shri Jayda^fal Agrawal, aged 45 years, R/o Samhar Bidi Works, Sadar Bazar, Ralgarh. _5 2. Mohanlal Agrawa'I, s/o Shri Hariram Agrawal, aged k3 years, Prop. M/s Hariran Agrawal, Sadar Bazar, Raigarh. 5. M/s Mangelal Raaawtar, Thru: its Partner Rajesh Kumar Agrawal, aged 54 years, Kharsia, Raigarii. 4. Bharat Shah, s/o Ravindra Kumar Shah, aged 25 years, R/o Darogapara, Raigarh. 5. Pravir Kumar Shah, S/o Ravindra Kumar Shah, aged 51 yeara, R/o Darogapara, Raigarh. 6. M/s Bharat Kumar Mirani, S/o Ehlrajlal Mirani, aged about 41 years, Kharsia, Raigaiti. 7. M/s Ifasadilal Mansaraa, Thru: its Partner Ifadhukar Mirani, aged 28 years, R/o Kbarsia, Raigarh 8. Rajendra Kumar Mirani, S/o Caiandulal Mirani, aged 44 years, C/o M/s Nishant Traders, Kharsia, Dist. Raigarh. hiP- RESPONDENTS '? ^ s !'\"< fc. glBgEisttiSESe! ;.-.i^;^.SS ^- ^ e^ 9. Smt. Uma Devi Agrawal, wife of Shri Natwarlal Agrawa3., aged 32 years, Prop. Uma Etaterprises, Near Gandhi Statue, Raigarh (M.P). 10« Smt. Pushpa Devi Agrawal, wife of Shri Arun Kumar Agrawal, aged 52 years, Pcop. M/s Kanishka Enterprises, Kharsia, Dist. Raigarh (M.P). VERSUS 1. Union of India, through Ninistry of Finance, North Block, New Delhi. 2. Central Bcsrd o£ Dlrector Taxes Throu^i: its Chairman C/10, Ministry of Finance, North Block, New Delhi. 5. Chief Commissioner of Incoae Tax, tdhya Pradesh, Bhopal, Aaykar Bhawan, Hoshangabad Road, Bhopalo 4« Conmissioner of Incoae Tax, Central Revenue Building, Civll Lines, Itaipur. 5. State of M.P. through Principal Secretary, Deptt. of Forest, Vallatah Bhawan, Bhopal. 6. M.P.State Hinor Forest Produce (Trading & Development Co-operative Federation Ltd., through: Managing Director, ^ttb Floor, 38-B, Vikas Bhawan, H.P.Nagar, Bhopalo 7. Conservator of Fbrest, Bilaspur Circle, Bilaspur. M;lls /^ f^. -3— -? 8. Conservator of Forest, Jabalpur. 9. Conservator of Etorest, Sarguja, Dist. Sarguja, __S 10. Conservator of Forest, Baj-iMr. PETITI^ WDER ARTICLE 226/227 OF THE COBSTITUTION OF INDIA POR ISSU^CE_ QF AN APPROPRIAIE XRIT IN THE NATORE OF MANDAHUS, DIRECTION._ CERTIORARI OR THE LIKE. rf!»s®ag» 1.1:'^ i l.x>: •r' -^ PETITIONERS RESPON&ENTS HI6H COURT OF CHHATTIS6ARH. BILASPUR (Sinole Bench: Hon'ble Mr. T.P. Sharma. J) W.P. No.4239/97 Rajendra Kumar Agrawai & others Vs Union of India & others Present: Mr. Ashish Shrivastava, Advocate for the petitioners. Mr. S.K. Tiwari, Standing Counsel for the respondent::Union of India. Mr. A. Surana, Advocate on behalf of Mr. A. Dadariya, Adv. for the respondent-Income Tax. Ms. P. Dwivedi, Adv. appears on behalf of Mr. A.S. Kachhawaha, Adv. for the respondent No.6. Mr. P. Shrivastava, P.L. for the respondent-State of C.&. ORDER (19.02.2013) 1. By this petition under Article 226 of the Constitution of India the petitioner has prayed for following reliefs:- i This Hon'ble Court may kir'dly be pleased to commond the respondents No.l to 4 to produce the records, orders, circulars etc. bearir.g on implementation of Section 206C of the Act for its kind perusal. ii. This Hon'ble Court may kindly be pleased to issue a writ in the nature of mandamus commanding the respondents by declaration of law made in This behalf that the respondents are not authorized to compute and collect Income Tax at source under Section 206-C of the Act on the total amount payable by the petitioners to the Federation (Agent) and for the purpose of Section 206 of the Act, the expression \"amount payable by buyers\", should only mean the net amount of consideration payable by the petitioners/ purchasers of tendu leaves to the seller / State Sovernment through the agency of Federation after exclusion of collection charges, processing charges, agent's commission, commercial tax, Forest Development Cess and surcharge; AND This Hon'ble Court may kindly be pteased to restrain and forbear the respondents from computing and collection of Income Tax under Section 206-C of the Act on the basis of total amount payable by The petitioners / purchasers to the Federation as presently being done; iii. This Hon'ble Court may kindly be pleased to issue a writ in the nature of certiorari quashing the impugned letter of demands V issued by the respondents No.6 to 12 (Annexure P-5) to the .-•a&^sSlJfe&i....^ Page2of2 W.P. No.4239/97 E9L8'S..!^.^L..a •;^1 '\"^^••~?iKE?i^ HE3a extent demand of 107o of the Income Tax has been calculated on the total amount payable by the petitioners to the Federation; iv. This Hon'ble Court may kindly be pleased to issue a writ in the nature of mandamus commanding the respondents No.l to 4 and their all subordinate officers not to issue exemption certificate in Form 27-C to the traders in tendu leaves purchasing lots on par with the Petitioners pursuant to the tender issued by the respondent No.6 (Federation) ANt> Further restrain and forbear the respondents No.6 to 12 from acting upon and accepting such exemption certificate in form 27- C produced by any trader in tendu leaves claiming exemption from collection of income tax at source under section 206 C of the Act AND Further to effect collection of Income Tax as per Section 206-C of Income Tax Act from all purchasers of tendu leaves from respondents No.6 to 12 irrespective of their place of business by issuing a writ of mandamus to that effect;\" 2. After arguing for some time, learned counsel for the petitioner submits that this is an Income Tax matter of the year 1996-97 and the petitioner was under obligation to pay correct income tax after assessment. However, the respondents have not collected complete income tax from the petitioner for which they were liable. Therefore, the petitioner seeks to withdraw this petition with liberty to take appropriate steps before tRe appropriate forum. 3. Consequently, the writ petition is dismissed as withdrawn with the liberty available under the law. No order os to costs. 4. Certified copy as per rules. .. y Sd/- T. P. Sharma Judge ^ A "