BITS N BYTES SOFT PRIVATE LIMITED vs. PR COMMISSIONER OF INCOME-TAX 1 & ORS.

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W.P.(C)-14955/2021HC Delhi2021:DHC:440324 December 20212 pages
AI SummaryRemanded

What did the High Court hold?

The High Court declined to interfere with the discretion exercised by the Commissioner of Income Tax (Appeals) in putting in place an interim arrangement, finding no reason to intervene. However, considering the peculiar facts of the case, the Court directed the Commissioner of Income Tax (Appeals) to decide the appeal filed by the petitioner within three months of receiving the order. The Court explicitly clarified that it had not commented on the merits of the controversy and that the rights and contentions of all parties were left open. The writ petition and application were disposed of with this direction.

What were the facts?

The petitioner, BITS N BYTES SOFT PRIVATE LIMITED, filed a writ petition before the Delhi High Court challenging an order dated November 15, 2021, passed by the Principal Commissioner of Income-Tax (Respondent No. 1) under Section 220(6) of the Income Tax Act, 1961. This order pertains to Assessment Year 2017-18. The petitioner also sought directions to prevent them from being treated as an assessee in default and to waive the condition of a 15% pre-deposit of the disputed demand, as imposed by the impugned order. The High Court noted that an interim arrangement had been put in place by the Commissioner of Income Tax (Appeals).

What were the issues?

1. Whether the High Court should interfere with the discretion exercised by the Commissioner of Income Tax (Appeals) in imposing an interim arrangement, specifically the condition of a 15% pre-deposit of the disputed demand, under Section 220(6) of the Income Tax Act, 1961, for Assessment Year 2017-18. Assessee's Contention: The petitioner sought to challenge the order imposing the pre-deposit and requested it be waived, and to not be treated as an assessee in default. Revenue's Contention: The judgment does not record specific arguments from the revenue regarding the challenge to the order under Section 220(6) or the pre-deposit condition. However, the revenue was represented by counsel.

Which sections of the Income-tax Act were involved?

Section 220(6)

AI-generated summary — verify with the full judgment below

W.P. (C) 14955/2021 Page 1 of 2 $~20 * IN THE HIGH COURT OF DELHI AT NEW DELHI

+ W.P.(C) 14955/2021

BITS N BYTES SOFT PRIVATE LIMITED ..... Petitioner

Through: Mr. V. Lakshmi Kumaran, Advocate

with Mr. S. Vasudevan, Advocate.

versus

PR COMMISSIONER OF INCOME-TAX 1 & ORS.

..... Respondents

Through: Mr. Zoheb Hossain, Advocate.

Date of Decision: 24th December, 2021

CORAM:

HON'BLE MR. JUSTICE MANMOHAN

HON'BLE MR. JUSTICE NAVIN CHAWLA

J U D G M E N T

MANMOHAN, J (Oral):

CM Appl. 47228/2021 (for exemption)

Allowed, subject to all just exceptions.

Accordingly, present application stands disposed of.

1.

Present writ petition has been filed challenging the order dated 15 W.P.(C) 14955/2021 & CM Appl. 47227/2021 th November, 2021 passed by respondent No.1 under Section 220(6) of the Income Tax Act, 1961 (hereinafter referred to as ‘Act’) for Assessment Year 2017-18. Petitioner also seeks directions to the respondents not to treat the petitioner as an assessee in default and to waive the condition of pre-deposit 2021:DHC:4403-DB

W.P. (C) 14955/2021 Page 2 of 2 of 15% of the disputed demand as has been imposed under the impugned order dated 15th 2. Keeping in view the fact that by virtue of the impugned orders an interim arrangement has been put in place by the Commissioner of Income Tax (Appeals), this Court finds no reason to interfere with the discretion exercised by the Commissioner of Income Tax (Appeals). November, 2021. 3. However, in view of the peculiar facts of the present case, this Court directs the Commissioner of Income Tax (Appeals) to decide the appeal filed by the petitioner within three months of receipt of this order. It is clarified that this Court has not commented on the merits of the controversy. The rights and contentions of all the parties are left open. 4. With the aforesaid direction, present writ petition and application stand disposed of. However, list the matter for compliance on 09th

MANMOHAN, J

NAVIN CHAWLA, J DECEMBER 24, 2021 js May, 2022. 2021:DHC:4403-DB

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