M/S Abhay Makers Privated Ltd Gwalior Through Its Director And Authorised Signatory Mr. Rajendra Sin vs. The Principal Commissioner Of Income Tax

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WP/3771/2023HC Madhya Pradesh22 June 2023Bench: HON'BLE SHRI JUSTICE ROHIT ARYA2 pages
For Petitioner: Pawan Kumar Dwivedi
AI SummaryRemanded

What did the High Court hold?

The High Court declined to entertain the writ petition for staying the demand. The Court reasoned that granting such relief under Article 226 was not appropriate given the circumstances. Firstly, a statutory appeal against the assessment order dated 29.03.2022 was already filed and was pending. Secondly, the petitioner had independently filed applications under Section 220(6) of the Income Tax Act before the CIT (Appeals) and the Chief Commissioner, which were also pending. The Court observed that these applications had been pending since 28.04.2022 and directed that they be addressed expeditiously. The Court explicitly stated that it had not expressed any opinion on the merits of the case. The writ petition was disposed of with these observations.

What were the facts?

The petitioner, M/s Abhay Makers Private Ltd., an assessee, filed a writ petition under Article 226 of the Constitution of India before the High Court of Madhya Pradesh at Gwalior. The petition sought to stay a demand raised after an assessment order was completed under Section 143(2) of the Income Tax Act, 1961. The assessee had already preferred a statutory appeal against this assessment order under Section 246 of the Act, which was pending. The assessee also contended that the assessment order was framed without foundational facts and material, creating a prima facie case for staying the demand. The respondents were the Principal Commissioner of Income Tax, Gwalior, and the Income Tax Officer, Range 2(2), Gwalior.

What were the issues?

1. Whether the High Court, in its writ jurisdiction under Article 226 of the Constitution of India, should grant a stay on a demand arising from an income tax assessment order when a statutory appeal against that order is pending before the appellate authority. Assessee's Contention: The assessee argued that there was a prima facie case for staying the demand because the assessment order was allegedly framed without adequate foundational facts and material. The assessee relied on the principle that a strong prima facie case warrants interim relief. Revenue's Contention: The judgment does not record any specific contentions from the revenue. However, the court's reasoning implies that the pendency of statutory remedies and applications for stay under Section 220(6) of the Income Tax Act are the primary considerations.

Which sections of the Income-tax Act were involved?

Section 143(2),Section 246,Section 220(6)

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF MADHYA PRADESH AT GWALIOR BEFORE HON'BLE SHRI JUSTICE ROHIT ARYA & HON'BLE SHRI JUSTICE SANJEEV S KALGAONKAR ON THE 22nd OF JUNE, 2023 WRIT PETITION No. 3771 of 2023 BETWEEN:- M/S ABHAY MAKERS PRIVATE LTD GWALIOR THROUGH ITS DIRECTOR AND AUTHORIZED SIGNATORY MR. RAJENDRA SINGH TOMAR S/O SHRI SHIV CHARAN SINGH TOMAR, AGED ABOUT 61 YEARS, OCCUPATION: BUSINESS, E-80 BLAWANT NAGAR, GWALIOR (MADHYA PRADESH) .....PETITIONER (BY SHRI PAWAN DWIVEDI - ADVOCATE ) AND 1. THE PRINCIPAL COMMISSIONER OF INCOME TAX, GWALIOR, GWALIOR (MADHYA PRADESH) 2. INCOME TAX OFFICER, INCOME TAX DEPARTMENT RANGE 2 (2) GWALIOR (MADHYA PRADESH) .....RESPONDENTS (BY SHRI HARSHVARDHAN TOPRE - ADVOCATE ) This petition coming on for admission this day, JUSTICE ROHIT ARYA passed the following: ORDER The petitioner, an assessee, is before this Court invoking writ jurisdiction under Article 226 of the Constitution of India to stay the demand raised after assessment has been completed under Section 143 (2) of the Income Tax Act. Admittedly, an appeal has been preferred against the said assessment 1 (ROHIT ARYA) JUDGE (SANJEEV S KALGAONKAR) JUDGE order under Section 246 of the Income Tax Act, which is pending. Learned Counsel tried to prick holes in the assessment order interalia alleging that the foundational facts and material were not available before the Assessing Officer while framing the assessment order to his prejudice. According to him there is a prima facie case for staying the demand raised pursuant to assessment order. We are afraid, contention so advanced cannot be countenanced under Article 226 of the Constitution of India in the obtaining facts and circumstances for more than one reasons, namely:- 1. Admittedly, statutory appeal has been filed against the assessment order dated 29.03.2022 and the same is pending. 2. On his own showing, the petitioner has already filed an application u/s. 220 (6) of the Income Tax Act before the CIT (Appeals) as well as before the Chief Commissioner. The same are pending consideration. In the fitness of things, we deem it appropriate to observe that in case such applications are pending before the authorities, the same may be addressed expeditiously as the application is pending since 28.04.2022. With aforesaid, writ petition stands disposed of. It is made clear that we have not expressed any opinion on the merits of the case ar

2 ABDUR RAHMAN 2023.06.24 12:21:39 +05'30'

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