Writ petition allowed with stay on specific demands, fresh consideration ordered, Assessing Officer to proceed as per law

The writ petition was allowed, with demands related to the 1st and 2nd heads to remain stayed until the appeal by the Commissioner of Income Tax (Appeals) was disposed of. The 3rd head issue was set aside for fresh consideration with a personal hearing opportunity for the petitioner. The Assessing Officer was to proceed in accordance with the law for the 4th head upon receiving the necessary documents. No costs were awarded, and the connected miscellaneous petition was closed.

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Issues:
Petitioner seeks Writ of Certiorarified Mandamus to quash order dated 15.10.2014 by Assessing Officer for assessment year 2011-2012.

Analysis:

1st Head:
- The issue of disallowance made to M/s.Jaldhi Overseas Pvt., Ltd., was covered by a previous decision of the Hon'ble Division Bench.
- The Division Bench had allowed the writ petition related to disallowance under Section 49(a)(i) for non-deduction of tax at source.
- The issue was prima facie covered by the Division Bench's decision, providing a good ground for granting stay of the demand.

2nd Head:
- Concerning disallowance of interest on amount borrowed and advance to a Sister company, the petitioner had a prima facie case.
- The petitioner had relied on a judgment of the Supreme Court in the case of M/s.SA Builders for a similar issue in a previous assessment year.
- The demand related to this head was also ordered to remain stayed.

3rd Head:
- The disallowance under Section 14A was challenged by the petitioner through submissions and a stay petition.
- The Assessing Officer did not provide reasons for rejecting or accepting the petitioner's contentions, leading to a non-speaking order.
- The matter was set aside, and the Assessing Officer was directed to reconsider the issue after affording a personal hearing to the petitioner.

4th Head:
- The Assessing Officer granted the petitioner time to file necessary documents and statements regarding the discrepancy in 26AS.
- The Assessing Officer was entitled to proceed in accordance with the law upon receiving the required documents.

Conclusion:
- The writ petition was allowed, with demands related to the 1st and 2nd heads to remain stayed until the appeal by the Commissioner of Income Tax (Appeals) was disposed of.
- The 3rd head issue was set aside for fresh consideration with a personal hearing opportunity for the petitioner.
- The Assessing Officer was to proceed in accordance with the law for the 4th head upon receiving the necessary documents.
- No costs were awarded, and the connected miscellaneous petition was closed.

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