THE PRINCIPAL COMMISSIONER OF INCOME TAX (CENTRAL), BANGALORE vs. TIMBLO PRIVATE LIMITED

PDF · subscribers
MCA/177/2021HC BombayHCBM05002558202117 September 2021Author: HON'BLE SHRI JUSTICE MANISH PITALE,HON'BLE SMT. JUSTICE M. S. JAWALKAR3 pages
AI SummaryPartly Allowed

What did the High Court hold?

The High Court held that the proceedings initiated under Section 153A of the Income Tax Act, 1961, could continue. However, it directed that the Assessing Officer shall not pass any final orders during the pendency of the Tax Appeals. This decision was made to provide interim relief to the assessees, ensuring that their appeals could be heard and decided on merits without the assessments being finalized prematurely. The Court clarified that this direction applied to the assessment years that are the subject matter of these appeals. The applications were disposed of with this clarification, and the appeals were listed for final hearing on November 26, 2021. No issue was expressly left undecided.

What were the facts?

These are Miscellaneous Civil Applications filed by the respondents (assessees) in several Tax Appeals pending before the Bombay High Court at Goa. The applications were moved due to the initiation of proceedings under Section 153A of the Income Tax Act, 1961, against the appellants (assessees). The assessees highlighted the urgency as the Assessing Officer was required to pass assessment orders by September 30, 2021. The appeals themselves are Tax Appeals filed by the Principal Commissioner of Income Tax (Central), Bangalore, against Radha S Timblo and Timblo Private Limited. The specific assessment years are not explicitly stated in this order but are the subject matter of the pending appeals.

What were the issues?

1. Whether the High Court should grant interim relief to stay the passing of final assessment orders under Section 153A of the Income Tax Act, 1961, pending the final hearing of the Tax Appeals. The assessee argued for the necessity of such an order due to the impending deadline for the Assessing Officer to pass the assessment orders. The revenue did not record any specific arguments in this regard, but their presence as applicants in the Tax Appeals implies a stance against any stay that would impede the assessment process. The core of the issue is the balance between the revenue's right to complete assessments and the assessee's right to have their appeals heard without prejudice.

Which sections of the Income-tax Act were involved?

Section 153A

AI-generated summary — verify with the full judgment below

902-907 MCA-174 TO 179-2021.DOC Meena IN THE HIGH COURT OF BOMBAY AT GOA MISC. CIVIL APPLICATION NO. 174 OF 2021 IN TAX APPEAL NO. 84 OF 2015 AND MISC. CIVIL APPLICATION NO. 175 OF 2021 IN TAX APPEAL NO. 87 OF 2015 AND MISC. CIVIL APPLICATION NO. 178 OF 2021 IN TAX APPEAL NO. 92 OF 2015 THE PRINCIPAL COMMISSIONER OF INCOME

TAX

(CENTRAL), BANGALORE ...Applicant Versus RADHA S TIMBLO …Respondents Ms. Amira Razaq, Standing Counsel for the Applicant. Mr. Devidas J. Pangam with Mr.P. Sawant, Advocates for the respondents. AND MISC. CIVIL APPLICATION NO. 176 OF 2021 IN TAX APPEAL NO. 89 OF 2015 AND MISC. CIVIL APPLICATION NO. 177 OF 2021 IN TAX APPEAL NO. 91 OF 2015 AND MISC. CIVIL APPLICATION NO. 179 OF 2021 IN TAX APPEAL NO. 85 OF 2015 THE PRINCIPAL COMMISSIONER OF 17th September, 2021

902-907 MCA-174 TO 179-2021.DOC INCOME TAX (CENTRAL) BANGALORE ...Applicant Versus TIMBLO PRIVATE LIMITED …Respondents Ms. Amira Razaq, Standing Counsel for the Applicant. Mr. Devidas J. Pangam with Mr.P. Sawant, Advocates for the respondents. CORAM: MANISH PITALE & SMT. M.S. JAWALKAR,JJ DATED: 17th September, 2021. P.C.:

1.

These applications have been moved by the respondents in these appeals seeking appropriate orders from this Court. It is stated in the applications that proceedings under Section 153A of the Income Tax Act, 1961, have been initiated against the appellants and that there is urgency in the matters for the reason that according to the Assessing Officer the Assessment orders pursuant to such proceedings have to be passed by 30/09/2021. 2. This Court is of the opinion that these applications can be disposed of with a direction that the proceedings initiated under Section 153A of the aforesaid Act may continue but the Assessing Officer shall not pass any final orders during the pendency of these appeals.

3.

The applications stand disposed of with the aforesaid clarification. 17th September, 2021

902-907 MCA-174 TO 179-2021.DOC

4.

List these appeals for final hearing on 26/11/2021 at the top of the final hearing board.

5.

Needless to say that this clarification applies to the Assessment Years that are the subject matter of these appeals. SMT. M.S. JAWALKAR,J. MANISH PITALE, J. 17th September, 2021

More judgments on Section 153A

All 18,957 judgments and leading authorities on Section 153A →

Recent GST High Court judgments

Search GST case law →