SANKHA PRESS PVT. LTD. V. UNION OF INDIA AND 3 ORS.

WP(C)/7514/2019

AI Insights

Sankha Press Pvt. Ltd., represented by its Managing Director, Sri Pradip Kalita, filed a writ petition against the Union of India and other respondents concerning an income tax assessment. The Assessing Authority had assessed a tax liability of Rs.5,70,96,395 on the petitioner and rejected their request to stay the recovery process pending the appeal. The petitioner sought the High Court's intervention to stay the Assessing Authority's order until the appeal was decided. The court referenced a previous decision (Bongaigaon Refinery and Petro-Chemicals Ltd. Vs. Commissioner of Income-Tax) and directed that the petitioner could seek an interim relief from the Appellate Authority, which would stay the demand until a decision was made on the stay application.

• Counselvise Citation: [2019] 140 COUNSELVISE.COM (IT) 736918 (HC-MISC)
• Appeal Type: Others
• Pronouncement Date: 01-10-2019
• Assessment Year: misc
• Other Referred Cases: Bongaigaon Refinery and Petro-Chemicals Ltd. Vs. Commissioner of Income-Tax and Others
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: ASSISTANT S G I ADVOCATE
• Assessee Lawyers: ASHOK SARAF
• Keywords: Appellate Authority; Income tax assessment; Stay of demand
• Section: 143(3)

Judgement Text

"Page No.# 1/3 GAHC010244022019 THE GAUHATI HIGH COURT (HIGH COURT OF ASSAM, NAGALAND, MIZORAM AND ARUNACHAL PRADESH) Case No. : WP(C) 7514/2019 1:SANKHA PRESS PVT. LTD. HAVING ITS REGD. OFFICE SITUATED AT 1,13 GREEN PATH, JUGASANKHA BUILDING, G.S. ROAD, ULUBARI, GUWAHATI-781007, ASSAM AND IS AN ASSESSEE UNDER THE INCOME TAX ACT, 1961, ENGAGED IN THE WORK OF PRINT MEDIA BY PUBLISHING DAILY NEWS PAPERS NAMELY YUVO SHANKA AND EASTERN CHRONICLE IN THE STATE OF ASSAM AND WEST BENGAL, IN THE PRESENT PROCEEDING, THE PETITIONER COMPANY IS REP. BY ITS MANAGING DIRECTOR SRI PRADIP KALITA, S/O. LT. ASWANI KALITA, R/O. HOUSE NO.16, DAKHINGAON, KAHILIPARA, GUWAHATI. VERSUS 1:UNION OF INDIA AND 3 ORS. REP. BY THE SECRETARY TO THE GOVT. OF INDIA, MINISTRY OF FINANCE, DEPTT. OF REVENUE, NEW DELHI. 2:PRINCIPAL COMMISSIONER OF IMCOME TAX GUWAHATI-2 AAYAKAR BHAWAN G.S. ROAD CHRISTIAN BASTI GUWAHATI-781005. 3:COMMISSIONER OF INCOME TAX (APPEALS)-2 GUWAHATI AAYAKAR BHAWAN G.S. ROAD CHRISTIAN BASTI GUWAHATI-781005. 4:ASSTT. COMMISSIONER OF INCOME TAX CIRCLE 3 Page No.# 2/3 GUWAHATI AAYAKAR BHAWAN G.S. ROAD CHRISTIAN BASTI GUWAHATI-781005 Advocate for the Petitioner : DR. ASHOK SARAF Advocate for the Respondent : ASSTT.S.G.I. BEFORE HONOURABLE MR. JUSTICE N. KOTISWAR SINGH ORDER Date : 01-10-2019 Heard Dr. A. Saraf, learned senior counsel assisted by Mr. A. Goyal, learned counsel for the petitioner. Also heard Mr. G. Sarma, learned Senior Standing Counsel for the respondent Nos.2 to 4. 2. The grievance of the petitioner is that though the Assessing Authority, the Assistant Commissioner of Income Tax has made an assessment of liability fastened upon the petitioner to the extent of Rs.5,70,96,395/- and the petitioner has approached the Appellate Authority against the same, with the request to the Assessing Authority put on hold the recovery process till the disposal of the appeal, the Assessing Authority had rejected the same and directed the petitioner to pay 20% of the total amount in terms of the assessment order. 3. Leaned senior counsel for the petitioner submits that since the petitioner had already approached the Appellate Authority, the petitioner may be allowed to approach the Appellate Authority for passing appropriate order as regards the stay of the said direction of the Assessing Authority and in the meantime, the order of Assessing Authority be stayed. In this connection, learned senior counsel has referred to the decision of this Court in the case of Bongaigaon Refinery and Petro-Chemicals Ltd. Vs. Commissioner of Income-Tax and Others reported in 1999 SCC OnLine Gau 269 : (1999) 239 ITR 871 in which it has been stated in para-6 as follows: Page No.# 3/3 “6. In my considered opinion, since a remedy for interim relief pending disposal of the appeal filed by the petitioner is available to the petitioner as per the aforesaid decisions of the Allahabad High Court cited by Mr. Joshi, learned senior standing counsel for the Income-tax Department, the appropriate course for the petitioner would be to move the Commissioner of Income-tax (Appeals) Guwahati, for stay of the demand within a period of 15 days from today and in case an application is filed before the commissioner of Income-tax (Appeals) within the aforesaid period of 15 days, the said Commissioner of Income-tax (appeals) will consider the same in accordance with law and pass appropriate order within a period of 15 days from the date of filing of such application by the petitioner. The Commissioner of Income-tax (Appeals) will apply his judicial mind to the facts of the case and pass orders on the stay application of the petitioner after hearing the petitioner. Till the Commissioner of Income-tax (Appeals) passes such orders on the application of the petitioner for stay, the demand in dispute before the said Commissioner shall remain stayed. It is made clear that in case no application is filed by the petitioner within the aforesaid period of 15 days as directed above, this stay order shall stand vacated.” 4. This Court is of the view that in the present case also the petitioner may approach the Appellate Authority for seeking stay of the order passed by the Assessing Authority and till such appropriate order is passed by the Appellate Authority, the order passed by the Assessing Authority may not be given effect to. The petitioner may approach the Appellate Authority within a period of 15 days from today. 5. Till such appropriate order is passed by the Appellate Authority, impugned orders dated 05.03.2019 and 24.09.2019 shall not be given effect to. 6. With the above observation and direction, this petition stands disposed of. JUDGE Comparing Assistant "