High Court upholds liability of Civil Engineering Construction to pay Rs. 4,25,40,690, allows instalments

The High Court upheld the liability of a Civil Engineering Construction petitioner to pay Rs. 4,25,40,690 as directed by the assessment order. Despite a rejected stay petition, the court allowed instalment payments, with a specified schedule. The petitioner was required to pay the disputed amount and TDS pending appeal outcomes. Failure to comply would result in restoration of the original order. The court mandated expedited disposal of the appeal within three months. The case was concluded without costs, emphasizing consequences of non-compliance and closing all related legal proceedings.

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Issues:
1. Challenge to assessment order and demand raised by the respondent.
2. Rejection of stay petition and request for instalment payment.
3. Disputed liability and payment schedule directed by the court.
4. Pending appeal before the Commissioner of Income Tax (Appeals) and disposal timeline.

Analysis:
The petitioner, engaged in Civil Engineering Construction, challenged the assessment order dated 08.3.2014 by the respondent, demanding payment of Rs. 4,25,40,690. During the appeal process, the petitioner requested a stay on tax collection, offering to pay the arrears in instalments. The Joint Commissioner rejected the stay, prompting the petitioner to approach the High Court. The court noted the petitioner's willingness to pay in instalments and upheld the liability, directing payment of the full amount by specified dates.

Regarding the disputed amount and TDS, the court ruled that the petitioner must pay subject to appeal/rectification outcomes. The court set a payment schedule, requiring three equal instalments before 31.3.2015. The first instalment was due by 20.3.2015, followed by subsequent payments. The court instructed the authority to expedite the appeal process, mandating disposal within three months from the court order receipt.

The judgment emphasized that failure to adhere to the payment schedule would result in the restoration of the initial order, allowing the authority to proceed legally. The writ petition was disposed of without costs, with a reminder of the consequences of non-compliance. The connected Miscellaneous Petition was also closed, concluding the legal proceedings related to the case.

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