SDS INFRACON PRIVATE LIMITED & ANR. V. INCOME TAX OFFICER ACIT CIRCLE 77 1 DELHI

CRL.M.C./10008/2024

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The case involves SDS Infracon Private Limited and another petitioner challenging an order by the ACMM (Special Acts), Central Delhi, which dismissed their application for a stay on complaint proceedings. The complaint was initiated by the Income Tax Officer regarding tax discrepancies. The petitioners had previously deposited a compounding fee and sought to stay the proceedings due to ongoing compounding processes with the tax department. The High Court's decision to stay the trial court's final order was influenced by the petitioners' agreement to settle the outstanding tax demand and compounding charges promptly.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 756156 (HC-DELHI)
• Appeal Type: Others
• Pronouncement Date: 09-01-2025
• Assessment Year: misc
• Other Referred Cases: CRL.M.C. 198/2020
• Laws Referred To: Section 528 BNSS
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: VIPUL AGRAWAL
• Assessee Lawyers: SANJEEV MAHAJAN; BHARAT BENIWAL; PRANJAL TANDON
• Keywords: Income Tax; Compounding proceedings; Stay of complaint proceedings; ACMM (Special Acts)
• Section: 528

Judgement Text

"$~5 * IN THE HIGH COURT OF DELHI AT NEW DELHI + CRL.M.C. 10008/2024 & CRL.M.A. 38365/2024 SDS INFRACON PRIVATE LIMITED & ANR. .....Petitioners Through: Mr. Sanjeev Mahajan, Mr. Bharat Beniwal and Mr. Pranjal Tandon, Advs. versus INCOME TAX OFFICER ACIT CIRCLE 77 1 DELHI .....Respondent Through: Mr. Vipul Agrawal, Sr. SC for IT. CORAM: HON'BLE MR. JUSTICE VIKAS MAHAJAN O R D E R % 09.01.2025 CRL.M.A. 38366/2024 (exemption) and CRL.M.A. 38367/2024 (exemption) 1. Allowed, subject to all just exceptions. 2. Application stands disposed of. CRL.M.C. 10008/2024 3. The present petition has been filed under Section 528 BNSS challenging the impugned order dated 22.11.2024 passed by the learned ACMM (Special Acts), Central Delhi, in Complaint Case No. 520562/2016 titled as “ITO vs. SDS Infracon Pvt. Ltd. & Anr.”, whereby the application filed by the petitioner seeking stay of the complaint proceedings on the ground that the petitioner has already initiated the compounding proceedings before the department, was dismissed on the ground that there is no provision for stay of the Court proceedings during the pendency of the This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 24/01/2025 at 12:57:54 compounding proceedings. 4. The learned counsel for the petitioners submits that the petitioner has deposited the entire compounding fee to the extent of Rs.1,19,66,914/-. 5. He submits that similar order was also passed earlier by this Court on 16.01.2020 in CRL.M.C. 198/2020, a copy of which has been annexed as Annexure P-2 to the present petition. Subsequently some discrepancies were found in the payment of tax and accordingly, fresh application for compounding along with the deposit of aforesaid compounding charges was made by the petitioners. 6. He submits that the matter is at the final stage of arguments and in case the proceedings before the learned Trial Court are not stayed, the petitioners will suffer an irreparable loss. 7. In view of the above, issue notice. The learned Sr. Standing Counsel for the respondent/IT accepts notice. He has handed over at bar a copy of the letter dated 03.01.2025 written by the Income Tax department to the petitioner herein indicating that there is still a demand of Rs.15,76,590/- pertaining to the Financial Year 2015-16 which is outstanding. The said letter is taken on record. 8. The learned counsel for the petitioner, on instructions from the petitioner, submits that the demand pointed out in the aforesaid letter will be deposited by the petitioner within a period of 15 days from today along with compounding charges, if any, found to be payable and intimated to the petitioners by the department in writing. 9. Having regard to the aforesaid circumstances, the learned Trial Court is directed not to pass the final order during the pendency of the compounding proceedings. This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 24/01/2025 at 12:57:54 10. The petitioners are directed to cooperate in the expeditious disposal of the compounding proceedings. 11. With the aforesaid directions, the petition stands disposed of. VIKAS MAHAJAN, J JANUARY 9, 2025/dss This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 24/01/2025 at 12:57:54 "