Nic Construction India Pvt. Ltd. vs. Commissioner Of Income Tax (Appeal)

WP/18162/2017HC Madhya Pradesh14 November 2017Bench: HON'BLE SHRI JUSTICE S.K. SETH2 pages

For Petitioner: Pratyush Tripathi

AI SummaryWithdrawn

What did the High Court hold?

The High Court of Madhya Pradesh disposed of the writ petition with a liberty to the petitioner. The Court directed that if the petitioner files a stay application before the Appellate Authority within 15 days from the date of the order, the Appellate Authority shall consider and decide the application on its merits within the subsequent 15 days. The Court did not decide on the merits of the original assessment or the appeal, focusing solely on the procedural aspect of the stay application. The ratio is that the High Court can direct expeditious disposal of procedural applications like stay applications when appropriate circumstances are presented, without delving into the substantive issues of the appeal.

What were the facts?

The petitioner, NIC Construction India Pvt. Ltd., is an assessee for Assessment Year 2012-13. The Assessing Officer passed an order dated 13.03.2015, raising an additional demand under Section 143(3) of the Income Tax Act. The assessee filed an appeal against this order but did not file any application for a stay. The assessee then filed a writ petition before the High Court of Madhya Pradesh, seeking a direction for the disposal of a potential stay application.

What were the issues?

1. Whether the High Court should direct the Appellate Authority to consider and decide a stay application, if filed, in accordance with law and CBDT Circulars? (Question of procedure and administrative direction). Assessee's Contention: The petitioner sought a direction from the High Court to the Appellate Authority to dispose of their stay application in accordance with law, including CBDT Circulars, if they were to file one. The petitioner did not argue on the merits of the original assessment or appeal. Revenue's Contention: The Revenue did not present any arguments on the merits of the case or against the petitioner's request for a procedural direction. Their participation was in response to the writ petition filed by the assessee.

Which sections of the Income-tax Act were involved?

Section 143(3)

AI-generated summary — verify with the full judgment below

THE HIGH COURT OF MADHYA PRADESH WP-18162-2017 (NIC CONSTRUCTION INDIA PVT. LTD. Vs COMMISSIONER OF INCOME TAX (APPEAL)) Jabalpur, Dated : 14-11-2017 Shri Pratyush Tripathi, Advocate for the petitioner. Shri Sanjay Lal, Advocate for the respondents. Heard. Petitioner is an assessee for the Assessment Year 2012-13. His income was assessed to tax by the Assessing Officer vide order dated 13.03.2015. Pursuant thereof, additional demand was raised under Section 143 (3) of the Income Tax Act. Against the order of the Assessing Officer, undisputedly petitioner has preferred an appeal, but has not moved any application for stay. Learned counsel for the petitioner submits that this petition may be disposed of with a direction that in case petitioner prefers stay application in accordance with the law including CBDT Circular then the stay application shall be disposed of by the Appellate Authority in accordance with law. In view of the submission made by counsel for the petitioner, this petition is disposed of with the said liberty. In case, an application for stay is filed before the Appellate Authority within 15 days from today then the application shall be considered and decided on its merit by the Appellate Authority within next 15 days. C.C. as per rules. (S.K. SETH) JUDGE (SMT. ANJULI PALO) JUDGE High Court of Madhya Pradesh @shish

High Court of Madhya Pradesh Digitally signed by ASHISH KUMAR JAIN DN: c=IN, o=High Court of Madhya Pradesh, ou=Administration, postalCode=482001, st=Madhya Pradesh, 2.5.4.20=ae1feb90b41e3a14b8c420508ecd8ba2bde2b62fc41b9 03d877df0a395fdd4c6, cn=ASHISH KUMAR JAIN Date: 2017.11.15 16:00:07 +05'30'

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