GREATER MOHALI AREA DEVELOPMENT AUTHORITY vs. PRINCIPAL COMMISSIONER OF INCOME TAX-II AND ANR

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CWP/26451/2017HC Punjab & HaryanaPHHC01096210201705 December 2017Author: MR. JUSTICE SURINDER GUPTA,MR. JUSTICE ARUN MONGA2 pages
AI SummaryWithdrawn

What did the High Court hold?

The High Court noted the statement made by the learned counsel for the respondent-revenue. On instructions, it was stated that the attachment order dated 08.11.2017, passed for recovery of tax for assessment year 2014-15, had been withdrawn. It was further stated that the stay granted by the assessing officer for assessment year 2014-15 would continue until the decision of the appeal by the CIT(A). The revenue also agreed that recovery would not be made for a period of one week more from the date of receipt of the certified copy of the order, in case any adverse order was passed by the appellate authority. In view of these submissions, the writ petition was rendered infructuous. No specific finding was given on the legality of the revocation order itself, as the matter was resolved by the subsequent actions of the revenue.

What were the facts?

The petitioner, Greater Mohali Area Development Authority, filed a writ petition challenging an order dated 08.11.2017. This order revoked a stay that had been granted for assessment years 2013-14 and 2014-15, pending an appeal before the Commissioner of Income Tax (Appeals). The revenue, represented by the Principal Commissioner of Income Tax-II, Chandigarh, was the respondent. The dispute concerned the recovery of tax. The procedural history involves the issuance of a stay order by the assessing officer, its subsequent revocation, and the filing of the present writ petition to quash the revocation order.

What were the issues?

1. Whether the order dated 08.11.2017, revoking the stay granted for assessment years 2013-14 and 2014-15, is legally sustainable? (Question of law) Assessee's Contention: The petitioner argued that the revocation of the stay order was erroneous and sought its quashing. They relied on the principle that a stay granted during the pendency of an appeal should generally be respected until the appellate authority decides the matter. Revenue's Contention: The respondent-revenue, on instructions, stated that the attachment order dated 08.11.2017 for recovery of tax for assessment year 2014-15 had been withdrawn. Furthermore, the stay granted by the assessing officer for assessment year 2014-15 would continue until the decision of the appeal by the CIT(A). They also agreed that recovery would not be made for one week after receipt of the certified copy of the order, in case of an adverse order from the appellate authority.

Which sections of the Income-tax Act were involved?

Section 156

AI-generated summary — verify with the full judgment below

{1} IN THE HIGH COURT OF PUNJAB & HARYANA AT CHANDIGARH Date of decision:05.12.2017 Greater Mohali Area Development Authority, PUDA Bhawan, Mohali ... Petitioner Vs. Principal Commissioner of Income Tax-II, Chandigarh and another ... Respondents CORAM: HON'BLE MR. JUSTICE AJAY KUMAR MITTAL HON'BLE MR. JUSTICE AMIT RAWAL Present:- Ms. Radhika Suri, Senior Advocate with Mr. Manpreet Singh Kanda, Advocate for the petitioner. Ms. Urvashi Dhugga, Advocate for the respondent-revenue AJAY KUMAR MITTAL, J. (ORAL) 1. In this writ petition filed under Articles 226/227 of the Constitution of India, the petitioner has prayed for issuance of a writ in the nature of certiorari for quashing the order dated 08.11.2017 (Annexure P-5), whereby, the stay order granted for assessment years 2013-14 and 2014-15, during the pendency of the appeal before Commissioner of Income Tax (Appeals)-II, Chandigarh [for short “CIT(A)”], has been revoked. 2. At the outset, learned counsel for the respondent-revenue on instructions from Mr. Kultej Bains, Additional Commissioner of Income Tax, Range 6, Mohali stated that the attachment order dated 08.11.2017 Savita 2017.12.07 11:48 I attest to the accuracy and integrity of this document High Court Chandigarh

{2} (Annexure P-5) passed by respondent No.2 for recovery of tax for the assessment year 2014-15, in pursuance to the demand notice issued under Section 156 of Income Tax Act, 1961, has been withdrawn and further the stay granted by the assessing officer for the assessment year 2014-15 shall continue till the decision of the appeal by the CIT(A). It was also stated that recovery shall not be made for a period of one week more from the date of receipt of certified copy of the order, in case any adverse order is passed passed by the said appellate authority. 3. In view of the above, writ petition has been rendered infructuous and is disposed of as such. (AJAY KUMAR MITTAL)

JUDGE (AMIT RAWAL) December 05, 2017 JUDGE savita Whether Speaking/Reasoned Yes/No Whether Reportable Yes/No Savita 2017.12.07 11:48 I attest to the accuracy and integrity of this document High Court Chandigarh

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