Seaways Liner Agencies Pvt. Ltd. V. Deputy Commissioner of Income Tax Circle- 3(1) and 5 others

WP/7102/2023

AI Insights

The case involves Seaways Liner Agencies, a logistics service provider and subsidiary of M/s. Seaways Shipping and Logistics Limited, which is the petitioner. The petitioner challenged the non-consideration of its stay application for the demand of tax for the assessment year 2018-19 by the Income Tax authorities. The petitioner had previously filed an appeal against the assessment order for the same year, which was pending. The High Court's decision focused on ensuring that the petitioner's stay application was considered by the appropriate authority (respondent No.4) and that no coercive actions were taken during the review period.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 692161 (HC-TELANGANA)
• Appeal Type: Others
• Pronouncement Date: 10-04-2023
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961, Constitution of India
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: J V PRASAD; GADI KUMAR
• Assessee Lawyers: C V NARASIMHAM
• Keywords: Assessment Year; Coercive Steps; Income Tax; Natural Justice; Stay of demand
• Section: 144; 143(3); 156; 226

Judgement Text

"[ 3311 J Between: Seaways...Liner Agencies p-*.^Ljd-.,Officg al 731, Seaways pride Road No. 36, Jubilee Hills, Hyderabad - 500034 Rep. by its Director pAN AASCSAOZOR. ...PETITIONER HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD . (Special Original Jurisdiction) MONDAY, THE TENTH DAY OF APRIL TWO THOUSAND AND TWENTY TNNCT PRESENT THE HONOURABLE THE CHIEF JUSTICE UJJAL BHUYAN AND THE HONOURABLE SRI JUSTICE N.TUKARAMJI WRIT PETITION NO: 7102 0F 2023 ...RESPONDENTS AND 1. Deputy commissioner of rncome Tax circre- 3(1) 7th froor, Signature Towers, Kondapur Serilingampally, Hyderabad - 5000g4: 2. National Faceless Assessment centre rncome Tax Department, Ministry of Finance Government of lndia Delhi - 11000J.- 3. National Faceress Aooear centre rncome Tax Department, Ministry of Finance Government of lndia' belhi - t iObOa.-' - 4. Princiqal chief commissioner of rncome Tax 1Oth floor, B- Brock, r. T. Towers, A. C. Guards, Hyderabad. 5. The Chairm3n, l-liqh pitched Assessments Committ ee 2A, 2 floor, l. T. Tow. ers, Masab Tank Hyderabad - SOOOO4. t H,Hffi1'il:lfii Eij;fil.',i B:?,liy?io??rn,.nt or Revenue, Ministry or Petition under Article 226 of rhe constitution of rndia praying that in the circumstances stated in the affidavit filed therewith, the High'C;; ;;y ;\" pleased to issue writ order or Direction more particularly in th6 nature or w?it or llf-Oqry: dectaring the impugned i,iotice Oift and Letter No lrBA/coM/F/1712022- 2sl1050469907(1) dated 06- 03- 2023 issued oy rit respondent for A- Y. 20'r8- 'r9_as being arbitrary, illegar, violative or principies or naturaljustice and violative of Artictes 14, 19 (l) g of constitution br rn,ii\" ,no set aside the same and restrain the respondents from taking any coercive steps for collection of disputed tax demand and interest for A y. 20i 8- t 9 till disDosat ofAppeal No NFAC/2017- 18t10141820 pending before the 3,d respondent l.A.NO:'l OF 2023 Petition under section '1 51 cpc praying that in the circumstances stated in the affidavit filed in support of the petition, the High court may be pleased to stay the impugned notice DIN and Letter No tTBA/CO|V/F/1 7 t2022_ 2311050469907(1) dated 06- 03- 2023 rssued by .l respondent for A y. 2018- 19 and restrain the respondents from initiating any coercive steps for recovery of the disputed tax and interest for A. Y. 2018- 19 Counsel for the Petitioner : SRI.C.V.NARASIMHAM Counsel for the Respondent Nos.'l to 5 : SR|.J.V.PRASAD (SC FOR INCOME TAX) Counsel for the Respondent No.6 : SRI.GADI PRAVEEN KUMAR, DEPUTY SOLICITOR GENERAL OF INDIA The Court made the following ORDER THE HON'BLE THE CHIEF IUSTICE UII BHUYAN AND THE HON'BLE SRI IUSTICE N.TTJKARAMII W.P.No.7102 of 2023 ORDER (Per tbe Hon'bh rhe (hieflttttcc Ujial Blaatl Ileard Mr. C.V.Narasimham, le arfled counsel for thc petitioner; Mr. J.V.Prasad, Icarncd Standing Counsei, Incomc 'fax l)epartmenr for rcspondents No.1 to 5; and N,Ir. (l.Praveen I(umar', lcarncd DcPun' Solicitor General o[ India reprcsenting respondent No.6. 2 Grievance cxpressed by the pctitioner ifl the present u.rit petition is non-consrderadon o[ its application [or stay o[ demand flor tlle assessment ycar 2018-19 by respondent No.4 3. Petitioner is an asscssec undcr the Income Tax Act, 1961 @riefly 'the Act' hereinafter), its status being that of a company. Petitioner is a subsidiary of M/s. Seaways Shipping and Logistics Limited. It is a logrstic service provide-r Toffenn1 integrated and turnkey scrvices in shipphg, logrsucs and internadonal trade. 2 4 Fo: the tsscssnrcirr vcar 2018 19, resy.r,rncicnr No.r 2.r., of thc , cr rvas issued t() thc Pctitioncr Nauonal li:rcelcss r sscssnrent (_cntcr passcci thc assc,ssrncnr Section 1448 of rhc , ct. By thc afrrrcsard order of order darec'l 16.08.2021 under Section t+3(3) rcacl r,,,ith assessmcnt, total incon-rc of the pctitioncr has been asscssed at Ii.s.107,05,88,904.00. I)ur.suant thereto, clcmencl noricc under- Scctron 156 on 16.08.202'1. It is starcd that pctiuoner has prcFerrccl appcal against the aforesaid or-dcr of assessment bcttrrc rcspondcnt No.3 2.e., Nat-ional Faccless Appeal Center. 1'hc appeal has bcen numbered as appeal No.NFAC.2O1l -1g / lO1 41g20. 5. Mr. C.V.Narasimham, learned counsei for the petitioner submits that followrng thc hcaring norjce dated 01.1,2.2022, written submissions were filed on 08.12.2022; the verdict is now awaited; in the meanwhile, petitioner had submitteci an application clated 29.09.2022 bcfore respondent No.4 lor stav of demand for the assessmcnt year 201,g_1,9. It is stated that : I I ,! l ,j 3 petitioner has also made a gricvance bcForc rcspondent No 5 i.e., Chairmao oi l{igh Pitcheci i sscsstneuts (-ommittcc rcgarcling the impugncd order oI assessrnent Florvcvcr' present gricvancc of the pe drioner is that rcspondent Ntl'4 has not considered its stay application dated 29'09'2022 but income tax authorities are insisting on the Peutioncr for payment of minimum 20ok ol thc dcmancl as per ('irculat o[ the Central Board of Direct'llaxes (CBl)l) 6. A fter he aring lcarncd cou nscl lt rr rlrc plrtics :rrld on d Ltc consideration, we are o[ the vicw that rt would be in the interest of justice if respondent No.4 takes on board the stay application of the petitioner dated 29.09-2022 and aiter giving an oppornrnity of hearing to the petitioller' pass appropriate order thereon in accordance with law. 7. Let the above decision be taken by respondent No'4 within a period of thirty days from the date o[ receipt of a coPy I thrs order. During this period, no coercive steps shall I bc talicn agarnst thc pctirioncr pursuant t() thc asscssnlcrrr afl '. rrrdcr datcd 16.08.2021 l)xsscd by respondcnt No.2 lor thc lssessmcnt Ycar 2018 1 9 8. 'l'his t s ORDER WP.No.7102 of 2023 DISPOSING OF THE W.P WITHOUT COSTS. j I @ ):, I i I I i .! I i.. *.' , I "