M/S. SARAF SEASONING UDHYOG, vs. INCOME TAX OFFICER, and ORS

CW/1559/2009HC RajasthanRJHC01013616200902 March 2009Author: GOPAL KRISHAN VYAS2 pages

AI SummaryRemanded

What did the High Court hold?

The High Court disposed of the writ petition with a direction to the Commissioner of Income Tax (Appeals)-III, Jaipur. The Commissioner was directed to decide the stay application filed by the petitioner after providing an opportunity of hearing. The decision on the stay application must also consider the CBDT Circular dated August 21, 1969, and the judgment reported in 1997 ITR V-223 page 192 (Maharana Shri Bhagwati Singhji of Mewar Vs. Income-Tax Appellate Tribunal, Jaipur Bench, & Ors.). The court did not decide the merits of the appeal or the stay application itself, but rather directed the expeditious disposal of the pending stay application.

What were the facts?

The petitioner, M/s Saraf Seasoning Udhrog, filed an appeal before the Commissioner of Income Tax (Appeals)-III, Jaipur, for the assessment year 2006-2007. A stay application was filed along with the appeal. The petitioner contended that no coercive action could be taken by the respondents while the stay application was pending, citing a Circular dated August 21, 1969, issued by the Central Board of Direct Taxes. The petitioner also noted that a prayer for stay had been rejected by the Additional Commissioner of Income Tax, Jhunjhanu, via an order dated February 17, 2009, despite the appeal and stay application being pending before the Commissioner (Appeals).

What were the issues?

1. Whether the respondents can adopt coercive methods for recovery of tax when the appeal and stay application of the petitioner are pending before the Commissioner of Income Tax (Appeals)? (Question of law and fact, turning on principles of natural justice and administrative circulars). Contentions: Assessee: No coercive action can be taken by the respondents as the stay application is pending before the Commissioner (Appeals). Reliance is placed on the CBDT Circular dated August 21, 1969. The rejection of a stay prayer by the Additional Commissioner, Jhunjhanu, is also highlighted as problematic when the primary appeal and stay application are before the Commissioner (Appeals). Revenue: No specific contentions are recorded in the judgment for the revenue.

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances

!! 1 !! IN THE HIGH COURT OF JUDICATURE FOR RAJASTHAN AT JODHPUR

S.B. CIVIL WRIT PETITION NO.1559/2009 (M/s Saraf Seasoning Udhrog Vs. Income Tax Officer, Ward-2, Churu & Ors.) Date of order :: 02.03.2009 P R E S E N T HON'BLE MR. JUSTICE GOPAL KRISHAN VYAS Mr.Suresh Ojha, for the petitioner. Heard learned counsel for the petitioner. It is contended by learned counsel for the petitioner that the appeal of petitioner is pending before the Commissioner of Income Tax (Appeals)-III, Jaipur against the assessment year 2006-2007. Further, it is contended by learned counsel for the petitioner that when stay application is yet to be decided, no coercive method can be adopted by the respondents in view of the Circular issued on 21st August, 1969 by the Central Board of Direct Taxes. It is also contended by learned counsel for the petitioner that prayer for stay has been !! 2 !! rejected vide order dated 17.02.2009 (Annexure-6) by the Additional Commissioner of Income Tax, Jhunjhanu, whereas, appeal of petitioner is pending before the Commissioner of Income Tax (Appeals)-III, Jaipur where stay application is still pending which is filed alongwith appeal. In this view of the matter, this writ petition is disposed of with the direction to the Commissioner of Income Tax (Appeals)-III, Jaipur to decide the stay application filed by the petitioner after providing opportunity of hearing to him, so also, after considering the Circular dated 21st August, 1969 issued by the Central Board of Direct Taxes and the judgment reported in 1997 ITR V-223 page 192 (Maharana Shri Bhagwati Singhji of Mewar Vs. Income-Tax Appellate Tribunal, Jaipur Bench, & Ors.). (GOPAL KRISHAN VYAS),J. A.K. Chouhan/- A.K. Chouhan/-

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