Northern Coalifields Ltd. vs. Assistant Commissioner Of Income Tax

Writ Petition No. 3398/2014 04.03.2014 Shri H.S. Shrivastava, learned Senior Advocate assisted by Shri Shri Sandesh Jain, learned counsel for the petitioner. Shri S.A. Dharmadhikari, learned counsel for respondents. The petitioner has sought the following reliefs :- "(i) To send for the case records, (ii) To direct the respondent no. 3 to arrange the early disposal of the appeal pending before the Income Tax Appellate Tribunal, Jabalpur and the application for stay of demand during the pendency of appeal. (iii) To issue a writ of Certiorari or any other appropriate writ quashing the order of attachment of Bank account and blocking the operation of the bank account. (iv) To issue a writ of prohibition restraining the respondent no. 1 and 2 from taking coercive recovery during the pendency of the appeal before the Tribunal. (v) A writ of mandamus directing refund of the amounts recovered. (vi) Any other writ/order/direction as may be considered just and fair in the circumstances of the case may also kindly be passed." The facts of the case are that against assessment order for the year 2010-2011, the petitioner herein had filed an appeal before the C.I.T. (A). During pendency of the appeal, the Assessing Officer had granted interim stay on deposit of Rs. 175 crores. Thereafter appeal was dismissed by order dated 31st October 2013, against which second appeal has been preferred by the petitioner before the Income Tax Appellate Tribunal, Jabalpur which is stated to be pending. Thereafter, the respondents have initiated recovery proceeding and attached the bank account of the petitioner. In the meanwhile, the petitioner had approached the Chairman of the Tribunal for expediting hearing of the appeal, pending before the Tribunal, Jabalpur. It appears that on 9.2.2014 notices were issued in the matter, but the respondents have attached the bank account of the petitioner and recovered Rs.800.15.35 crores and transmitted to the department. Now the contention of the petitioner is that the aforesaid recovery has been made illegally, during the pendency of the appeal before the Income Tax Appellate Tribunal. The aforesaid amount may be directed to be refunded to the petitioner. The aforesaid contention of the petitioner appears to be misconceived. When the second appeal is pending before the Income Tax Appellate Tribunal, the petitioner ought to have made a prayer for stay or refund of the money before the Tribunal itself. At this juncture, we cannot issue any mandatory order by way of interim relief. The order passed by the Assessing Officer and confirmed by the C.I.T.A., against the petitioner, and the department have effected the recovery, we do not find any reason to interfere in the aforesaid order at this stage. The petitioner may seek the interim order from the Tribunal. However, in respect of appeal pending before the tribunal, we find it appropriate to direct the tribunal for early disposal of the matter as it involves substantial amount of tax. It is brought to our notice that Income Tax Appellate Tribunal is not holding a regular sitting at Jabalpur but at present is holding circuit sitting at Jabalpur, as submitted by the parties and there is no scheduled day of sitting, in these circumstances, we find it appropriate to issue direction for hearing of the appeal preferred by the petitioner herein for the assessment year of 2010-2011 with the following directions :- The petitioner is directed to move an application before the Income Tax Appellate Tribunal, respondent no. 3 for expediting hearing of the appeal at Jabalpur, within a period of two weeks from today. If any such application is filed by the petitioner before the tribunal, the tribunal shall allow the application and fix a date for hearing of the appeal on merits within a period of four weeks from the date of filing the application. On the aforesaid date, the Tribunal shall make endeavour, as far as possible to hear and decide the matter expeditiously. C c as per rules. (KRISHN KUMAR LAHOTI) (U.C.MAHESHWARI) Judge Judge bks