Raghav Chandra Ias vs. Deputy Commissioner Of Income Tax

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WP/3865/2015HC Madhya Pradesh19 March 2015Bench: HON'BLE SHRI JUSTICE RAJENDRA MENON2 pages
For Petitioner: Sumit Nema
AI SummaryRemanded

What did the High Court hold?

The High Court, without entering into the merits of the case, directed that the Income Tax Appellate Tribunal (ITAT) shall decide the petitioner's appeal (Appeal No. 425/Ind/2014) in accordance with law after hearing all concerned parties within a period of 3 months from the date of receipt of a certified copy of the High Court's order. Furthermore, the High Court ordered that further assessment proceedings, initiated in pursuance of an order passed under Section 263 of the Income Tax Act, 1961, shall remain stayed until the appeal is decided by the ITAT. The writ petition was disposed of with these directions.

What were the facts?

The petitioner, Shri Sumit Nema, filed a writ petition before the High Court of Madhya Pradesh. The petitioner's grievance was that an appeal filed by him, Appeal No. 425/Ind/2014, was pending before the Income Tax Appellate Tribunal (ITAT) under Section 254(1) of the Income Tax Act, 1961. The petitioner sought a stay on re-assessment and further action pending the finalization of his appeal before the ITAT. The High Court considered the short question involved and the nature of the order.

What were the issues?

1. Whether further assessment proceedings in pursuance of an order under Section 263 of the Income Tax Act, 1961, should be stayed pending the decision of an appeal before the Income Tax Appellate Tribunal (ITAT)? Assessee's contention: The petitioner argued that since his appeal was pending before the ITAT, steps for re-assessment and further action should be stayed until the appeal is decided. The petitioner sought a stay on further proceedings. Revenue's contention: The judgment does not record any specific contentions from the revenue. However, the High Court's direction implies that the revenue would be bound by the stay on further assessment proceedings.

Which sections of the Income-tax Act were involved?

Section 254(1),Section 263

AI-generated summary — verify with the full judgment below

W.P.NO.3865/2015 19/03//2015 Shri Sumit Nema, learned counsel for the petitioner. Considering the short question involved in the matter and the nature of order, we propose to pass pass an order instead to issue notice to the respondents. Grievance of the petitioner is that an appeal filed by the petitioner is pending before the Income Tax Appellate Tribunal being Appeal No.425/Ind/2014. The appeal is filed under Section 254(1). The grievance of the petitioner is that pending finalization of the appeal, steps for re-assessment and further action thereof should be stayed. Keeping in view the fact that the appeal filed by the petitioner is pending before the Appellate Tribunal, therefore, without entering into merit of the case it is directed that the appellate Tribunal shall decide the appeal of the petitioner in accordance with law after hearing all concerned within a period of 3 months from the date of receipt of the certified copy of this order. Till the appeal is not decided by the Tribunal, further assessment proceeding in pursuance of the order under Section 263 of the Act shall remain stayed. With the aforesaid directions, the writ petition is disposed of. C.C. as per rules.

(RAJENDRA MENON) (S.K.GANGELE) JUDGE JUDGE hsp

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