RAJESH GADODIA V. PRINCIPAL COMMISSIONER OF INCOME TAX,SAMBALPUR

WP(C)/23742/2017

AI Insights

In the writ petitions W.P.(C) No.23742 of 2017 and W.P.(C) No.23743 of 2017, petitioners Rajesh Gadodia and Archana Gadodia challenged a conditional stay order issued by the Principal Commissioner of Income Tax, Sambalpur. The stay required the petitioners to deposit 20% of an outstanding tax demand in installments. The petitioners sought relief from the court to lift the attachment orders on their bank accounts, which had been imposed to recover the tax demand. The court, considering the circumstances and the petitioners' willingness to comply with the deposit requirement, decided to lift the attachments temporarily to facilitate the deposit.

• Counselvise Citation: [2018] 140 COUNSELVISE.COM (IT) 677544 (HC-ODISHA)
• Appeal Type: Others
• Pronouncement Date: 09-01-2018
• Assessment Year: misc
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: S S MOHAPATRA
• Assessee Lawyers: S RAY
• Keywords: Assessment Year 2014-15; Attachment of bank accounts; Conditional order of stay; Income Tax; Pre-deposit

Judgement Text

" 04. 09.01.2018 W.P.(C) No.23742 of 2017 W.P.(C) Nos.23742 & 23743 of 2017 Heard Mr. S. Ray, learned counsel for the petitioners and Mr. S.S. Moh apatra, learned Senior Standing Counsel for the Income Tax Department. In both the aforesaid writ applications, the petitioner-Rajesh Gadodia in W.P.(C) No.23742 of 2017 and the petitioner-Archana Gadodia in W.P(C) No.23743 of 2017 hav e sought to challenge a conditional order of stay granted by the Principal Commissioner of Inc ome Tax, Sambalpur for the assessment year 2014-15 in which he has noted that there shall be s tay of further demand subject to the petitioners depositing 20% of the outstanding demand in i nstalments fixed in the said letter dated 31.10.2017. Mr. Ray, learned counsel for the petitioners raises various contention s in support of the writ applications. It is not necessary for us to presently deal with the s ame since the appeal on merit is pending consideration. However, insofar as the interim order is concerned, it is stated on behalf of the petitioners that approximately a sum of Rs.8.00 la khs has already been collected by the Income Tax Department by orders of attachment issued on various bank accounts of both of the petitioners. He further submits that his clients are read y and willing to deposit 20% as directed by the Principal Commissioner of Income Tax on or bef ore 31.03.2018 but, he prays that the orders of attachment may be lifted till then in order to enable the petitioners to operate the bank accounts for the purpose of complying with the dir ection of the Principal Commissioner of Income Tax. In view of the submission made, we are of the considered view that in the circumstance of the present case, ends of justice would be best served if the orders of at tachment are lifted till 31.03.2018 in order to enable the petitioners to comply with the dire ction of the Principal Commissioner of Income Tax for making pre-deposit as directed. This Cou rt orders accordingly. It is further made clear that if the petitioners do not comply with the se directions, the attachment shall be re-invoked and necessary action in accordance with law may be initiated against the petitioners for recovery of the demand amount and, in the event, the petitioners comply with the order, the opposite party shall do well to recall the orders o f attachment immediately on deposit of the amount as directed. On compliance of the directions as noted hereinabove, we further direct the First Appellate Authority to take up the matter e xpeditiously after deposit of pre-deposit amount and dispose of the same within a period of th ree months thereafter. With the aforesaid observations and directions, both the writ applicat ions stand disposed of. Free copy of this order be handed over to the learned counsel for the Revenue for necessary communication and compliance. Urgent certified copy of this order be granted on proper application. .. I. Mahanty, J. ....... Biswaj it Mohanty, J. 2 "