M/S SRINIDHI DESIGNBUILD PVT LTD., vs. THE INCOME TAX OFFICER

WP/26161/2024HC KarnatakaKAHC01055966202425 September 2024Bench: S.R.KRISHNA KUMAR4 pages

AI SummaryRemanded

What did the High Court hold?

The High Court, without expressing any opinion on the merits or demerits of the rival contentions, disposed of the writ petition. The Court directed the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, to dispose of the appeal filed by the petitioner within a period of three months from the date of receipt of a copy of the order. The specific issues raised by the petitioner regarding the quashing of the orders and the stay on recovery proceedings were not decided on merits. The operative direction was to expedite the disposal of the pending appeal. No issue was expressly left undecided, as the petition was disposed of based on a concession.

What were the facts?

The petitioner, M/s. Srinidhi Designbuild Pvt Ltd., filed a writ petition before the High Court of Karnataka. The petition challenged an order dated 20.09.2024 passed by the Principal Commissioner of Income Tax (R-2) and an email communication dated 28.05.2024 from the Income Tax Officer (R-1) directing the petitioner to deposit 20% of the demand. The petitioner sought to quash these orders and requested a stay on recovery proceedings pending the disposal of their appeal before the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre. The assessment years are not specified. The amount in dispute is also not explicitly stated.

What were the issues?

1. Whether the order dated 20.09.2024 passed by the Principal Commissioner of Income Tax (R-2) is liable to be quashed (question of law)? 2. Whether the email communication dated 28.05.2024 from the Income Tax Officer (R-1) directing the petitioner to deposit 20% of the demand is liable to be quashed (question of law)? 3. Whether recovery proceedings should be stayed pending the disposal of the appeal before the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (question of mixed law and fact)? Assessee's Contention: The petitioner sought to quash the impugned orders and prayed for a stay on recovery proceedings. Subsequently, on instructions, the petitioner's counsel submitted that the petition may be disposed of by directing the Commissioner of Income Tax (Appeals) to dispose of the appeal within a stipulated time frame. Revenue's Contention: No specific contentions were recorded for the revenue as the matter was disposed of based on the petitioner's submission.

AI-generated summary — verify with the full judgment below

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NC: 2024:KHC:39820 WP No. 26161 of 2024 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 25TH DAY OF SEPTEMBER, 2024 BEFORE THE HON'BLE MR JUSTICE S.R.KRISHNA KUMAR WRIT PETITION NO. 26161 OF 2024 (T-IT) BETWEEN: M/S SRINIDHI DESIGNBUILD PVT LTD., A COMPANY REGISTERED UNDER THE INDIAN COMPANIES ACT, 1950 HAVING ITS REGISTERED OFFICE AT 401, SRI EMERALD PARK, BEHIND WASWANI WHISPERING WOOD, MARATHAHALLI, BANGALORE 560 037, REPRESENTED BY ITS DIRECTOR, SRI. JAGADEESH BEZAWADA, S/O. SRI. B. RAMACHANDRA REDDY, AGED ABOUT 64 YEARS. …PETITIONER (BY SMT. VANI H., ADVOCATE) AND: 1. THE INCOME TAX OFFICER, CIRCLE, 6(1)(1), BMTC BUILDING, 80 FEET ROAD, 6TH BLOCK, KORAMANGALA, BENGALURU 560 095 2. PRINCIPAL COMMISSIONER OF INCOME TAX, BENGALURU 1, BMTC BUILDING, 80 FEET ROAD, 6TH BLOCK, Digitally signed by YAMUNA K L Location: High Court of Karnataka

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NC: 2024:KHC:39820 WP No. 26161 of 2024 KORAMANGALA, BENGALURU 560 095 …RESPONDENTS (BY SRI. M. DILIP, ADVOCATE)

THIS WP IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE ORDER BEARING NO. ITBA/COM/F/17/2024-25/1068894292(1) DATED 20.09.2024 PASSED BY THE R-2 VIDE ANNEXURE-F AND ETC.

THIS PETITION, COMING ON FOR ORDERS, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR JUSTICE S.R.KRISHNA KUMAR ORAL ORDER In this petition, the petitioner seeks the following reliefs: (i) Issue a Writ of Certiorari or a writ in the nature of certiorari quashing bearing order the ITBA/COM/F/17/2024-25/1068894292(1) No. dated 20.9.2024 passed by the second respondent vide ANNEXURE F. (ii) Issue a Writ of Certiorari or a writ in the nature of certiorari quashing the order by way of email communication dated 28.5.2024 sent by the first Respondent directing petitioner to deposit 20% of the demand vide ANNEXURE P.

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NC: 2024:KHC:39820 WP No. 26161 of 2024 (iii) Issue a Writ of Mandamus or a direction in the nature of mandamus staying the recovery proceedings till the disposal of the appeal filed before the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre vide ANNEXURE B (iv) Issue any other writ or direction as this Hon'ble Court deems fit on the facts and in the circumstances of the case. 2. After arguing the matter for sometime, learned counsel for the petitioner on instructions, submits that the present petition may be disposed of directing the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre to dispose of the appeal within a stipulated time frame. 3. Submission is placed on record. 4. Without expressing any opinion on the merits / de- merits of the rival contentions, I deem it just and appropriate to dispose of this petition directing the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre to dispose of the

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NC: 2024:KHC:39820 WP No. 26161 of 2024 appeal filed by the petitioner within a period of three months from the date of receipt of a copy of this order. Sd/- (S.R.KRISHNA KUMAR) JUDGE SS List No.: 1 Sl No.: 28

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