M/S JAISINGPUR VYAPARI NAGRI SAHKARI PAT SANSTHA MARYADIT JAISINGPUR vs. INCOME TAX OFFICER, WARD 1, ICHALKARANJI AND ORS

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WP/3776/2024HC BombayHCBM01010426202410 April 2024Author: HON'BLE SHRI JUSTICE K.R. SHRIRAM,HON'BLE JUSTICE DR. NEELA KEDAR GOKHALE3 pages

AI SummaryRemanded

What did the High Court hold?

The High Court disposed of the petition without going into the merits of the case. The Court passed a consent order based on the submissions made by both parties. The Petitioner was directed to apply to the High Pitched Committee (HPC) headed by the Principal Chief Commissioner of Income Tax, Pune, for high-pitched assessment on or before April 20, 2024. The HPC was directed to dispose of the application on or before June 15, 2024, after giving the Petitioner a personal hearing at least seven working days in advance. Any written submissions by the Petitioner were to be filed within three working days of the personal hearing. The order passed by the HPC was to be a reasoned order. A stay on the demand made on the Assessee was granted until June 15, 2024, or earlier disposal by the HPC. The Petitioner could apply to the HPC for an extension of the stay. The Revenue also stated that the concerned banks would be informed to vacate the attachment of the Petitioner's bank accounts within 48 hours of the order being uploaded.

What were the facts?

The Petitioner, M/s. Jaisingpur Vyapari Nagri Sahkari Pat Sanstha Maryadit, filed a writ petition before the Bombay High Court challenging an order dated August 23, 2023, by the Income Tax Officer, Ward-1, Ichalkaranji, and subsequent orders dated September 26, 2023, November 15, 2023, and November 20, 2023, by the Principal Commissioner of Income Tax-1, Pune. The assessment years involved were 2015-2016 and 2018-2019. The primary grievance was against a direction in the order dated November 20, 2023, which stipulated a stay on the demand for three months or until the order of the high-pitched committee, whichever was earlier, conditional on the assessee filing an application before the committee. The court heard the matter and sought instructions from both parties.

What were the issues?

1. Whether the direction in paragraph 6 of the order dated November 20, 2023, passed by the Principal Commissioner of Income Tax-1, Pune, requiring the assessee to apply to the high-pitched committee and making the stay on demand conditional on this application, was legally permissible. (Question of law and fact, concerning the powers of the Principal Commissioner and procedural fairness). Assessee's contention: The Petitioner argued that such a direction could not have been passed by the Respondent No. 2 (Principal Commissioner). Revenue's contention: The Revenue, through Mr. Gupta, informed the Court that if the Petitioner made an application to the High Pitched Committee (HPC) within ten days, the HPC would dispose of it within two months, and a stay on the demand would be granted for the period the application is pending. The Petitioner agreed to this arrangement.

AI-generated summary — verify with the full judgment below

1/3 909-aswp-3776-2024.doc IN THE HIGH COURT OF JUDICATURE AT BOMBAY CIVIL APPELLATE JURISDICTION WRIT PETITION NO. 3776 OF 2024 M/s. Jaisingpur Vyapari Nagri Sahkari Pat Sanstha Maryadit, Jaisingpur …Petitioner Versus Income Tax Officer, Ward-1, Ichalkaranji & Ors. …Respondents Mr. Sham V. Walve a/w Mr. Bhuvanesh Kankani for Petitioner. Mr. Arjun Gupta for Respondent Nos. 1 & 2. CORAM: K. R. SHRIRAM & DR. NEELA GOKHALE, JJ. DATED: 10th April 2024 PC:-

In this petition, Petitioner is impugning an order dated 23rd August 2023 passed by Respondent No. 1, Income Tax Officer, Ward- 1, Ichalkaranji and the orders dated 26th September 2023, 15th November 2023 and 20th November 2023 passed by Respondent No. 2 viz. Principal Commissioner of Income Tax-1, Pune for Assessment Years 2015-2016 & 2018-2019. 2. The primary grievance, as submitted by Mr. Walve for Petitioner, is against the contents of paragraph no. 6 of the order dated 20th November 2023 passed by Respondent No. 2, which reads as under :

“06. On the advice of the undersigned, the assessee must have submitted application before the high pitched committee. Thus, I stay the demand of the assessee for three months viz. till 20.02.2024 or the order of the high pitched committee whichever is earlier. If the assessee does not file application before the said committee or the Gitalaxmi

2/3 909-aswp-3776-2024.doc committee holds the additions as not high pitched, the stay may be cancelled on 20.02.2024.”

Mr. Walve submitted initially that such a direction could not have been passed by Respondent No. 2. 4. After the petition was heard for sometime on 8th April 2024, the matter was stood over to today to enable both Mr. Walve and Mr. Gupta to take instructions.

Today, Mr. Gupta informed the Court that if Petitioner would make an application to the High Pitched Committee (“HPC”) within ten days, the HPC would dispose the application within a maximum period of two months. Mr. Gupta also submitted that for the period the application is pending before the HPC, there shall be a stay on the demand on Assessee. Mr. Walve was agreeable.

Therefore, we pass the following order without going into merits of the matter : a. Petitioner shall apply to the HPC headed by the Principal Chief Commissioner of Income Tax, Pune for high pitched assessment, on or before 20th April 2024. b. The HPC shall dispose Petitioner’s application on or before 15th June 2024. c. Before passing any order, a personal hearing shall be given to Petitioner, notice whereof shall be Gitalaxmi

3/3 909-aswp-3776-2024.doc communicated atleast seven working days in advance. d. After personal hearing, if Petitioner wishes to file any written submission, the same to be filed within three working days of the completion of personal hearing. e. The order to be passed, shall be a reasoned order dealing with all the submissions of Petitioner. f. Until 15th June 2024 or earlier disposal, there shall be stay on the demand made on Assessee. It is open to Petitioner to apply to the HPC for extension of stay, which the HPC shall consider and dispose in accordance with law.

At this stage, Mr. Gupta states that the application should be made to the Local Committee as mentioned in Instruction F. No. 225/101/2021-ITA-II dated 23rd April 2022. 8. In view of the above, Mr. Gupta states that Respondent No. 1 will inform the concerned banks to vacate the attachment of bank accounts of Petitioner. The communication shall be addressed within 48 hours of this order being uploaded.

Petition disposed. (DR. NEELA GOKHALE, J.) (K. R. SHRIRAM, J.) Gitalaxmi GITALAXMI KRISHNA KOTAWADEKAR KRISHNA KOTAWADEKAR Date: 2024.04.10 20:10:03 +0545

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