M/S EQBAL INN & HOTELS LTD. vs. CHIEF COMMISSIONER OF INCOME TAX AND ORS

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CWP/6865/2013HC Punjab & HaryanaPHHC01094614201331 August 2013Author: MR. JUSTICE DR. BHARAT BHUSHAN PARSOON,MR. JUSTICE RAJIVE BHALLA3 pages
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What did the High Court hold?

The High Court held that the writ petition had become infructuous as the appeal before the Commissioner of Income Tax (Appeals) had been decided. The Court disposed of the writ petition as infructuous, granting liberty to the petitioner to file an appeal before the Income Tax Appellate Tribunal within a fortnight from the date of the order. If such an appeal was filed within the stipulated period, the arrest of the petitioner's Director would remain stayed for those 15 days. Furthermore, if the petitioner filed an application for stay along with the appeal, it would be considered and decided within a week of its filing. The Court did not decide on the merits of the original dispute, focusing solely on the procedural development.

What were the facts?

The petitioner, M/s Eqbal Inn & Hotels Ltd., filed a writ petition before the High Court of Punjab and Haryana seeking to quash an order dated 26.02.2013 and to restrain the respondents from recovering a penalty of Rs.1,74,40,950/- by coercive measures during the pendency of an appeal before the Commissioner of Income Tax. The High Court had previously stayed the arrest of the petitioner's Director. On 24.07.2013, the Court directed the Commissioner of Income Tax (Appeals) to pronounce orders in the pending appeal within 15 days. Subsequently, the counsel for the revenue informed the Court that the appeal had been decided on 27.08.2013, rendering the writ petition infructuous.

What were the issues?

1. Whether the writ petition has become infructuous due to the decision of the appeal by the Commissioner of Income Tax (Appeals)? Assessee's Contention: The petitioner's counsel did not deny the correctness of the assertion that the appeal had been decided. However, the petitioner prayed for the continuation of the stay on the arrest of its Director for a fortnight to enable the filing of an appeal before the Income Tax Appellate Tribunal. Revenue's Contention: The counsel for the revenue stated that as the appeal had been decided by the Commissioner of Income Tax on 27.08.2013, the writ petition had been rendered infructuous.

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances
CWP No.6865 of 2013 -1- IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH CWP No.6865 of 2013 Decided on: 31.08.2013 M/s Eqbal Inn & Hotels Ltd., Patiala ..... Petitioner VERSUS The Chief Commissioner of Income Tax, Chandigarh and others ..... Respondents CORAM: HON'BLE MR. JUSTICE RAJIVE BHALLA HON'BLE MR. JUSTICE DR. BHARAT BHUSHAN PARSOON Present: Ms.Radhika Suri, Advocate, for the petitioner. Ms.Savita Saxena, Advocate, for the respondents. ******* RAJIVE BHALLA, J.(ORAL) The petitioner prays for issuance of a writ of certiorari quashing order dated 26.02.2013 (Annexure P-11) and for restraining the respondents from resorting to recovery of the consequent penalty of Rs.1,74,40,950/- by coercive measures, during pendency of an appeal before the Commissioner of Income Tax. Vide order dated 27.05.2013, the arrest of the petitioner's Director was stayed. After taking into consideration the entirety of the dispute, the following order was passed on 24.07.2013: - “Although judgment in this first appeal, filed by the petitioner was reserved in January, 2013 but as informed by counsel for the respondent, no order has been CWP No.6865 of 2013 -2- pronounced. We, therefore, direct the Commissioner of Income Tax (Appeals), Patiala to make every attempt to pronounce orders in the pending appeal within 15 days

after receipt of a copy of this order. Adjourned to 31.08.2013. A copy of the order be handed over to Ms.Savita Saxena, Advocate under the signatures of the Special Secretary attached to this Court.” Counsel for the revenue states that as the appeal has been decided by the Commissioner of Income Tax, on 27.08.2013, the petition has been rendered infructuous. Counsel for the petitioner does not deny the correctness of the aforesaid assertion but prays that the order staying arrest of the petitioner's Director may be allowed to continue for a fortnight during which the petitioner shall file an appeal before the Income Tax Appellate Tribunal.

We have heard counsel for the parties and as admittedly,

the appeal has been decided, dispose of the writ petition as infructuous by granting liberty to the petitioner to file an appeal before the Income Tax Appellate Tribunal. In case, such an appeal is filed within a fortnight from today, the arrest of the petitioner's

CWP No.6865 of 2013 -3- Director shall remain stayed for this period of 15 days. In case, the petitioner files an application for stay, it shall be considered and decided within a week of its filing.

[ RAJIVE BHALLA ] JUDGE 31.08.2013 [ DR. BHARAT BHUSHAN PARSOON ] shamsher JUDGE

Singh Shemsher 2013.09.02 15:43 I attest to the accuracy and integrity of this document Chandigarh

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