High Court directs tax authorities to resolve pending appeals before enforcing tax demand notice

The Madras High Court directed the Joint Commissioner (CT) Appeals to first decide on the pending appeals before enforcing a tax demand notice of Rs. 16,57,47,615 for the assessment year 2014-2015 against the petitioner. The Court ordered that the demand notice should not be enforced until the appeals were resolved. The writ petition was disposed of accordingly, with related miscellaneous petitions closed without costs being awarded.

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Issues: Challenge to tax demand notice for assessment year 2014-2015; Pendency of separate appeals before Joint Commissioner (CT) Appeals; Enforcement of demand notice pending appeal consideration.

In the judgment delivered by the Madras High Court, the petitioner challenged a tax demand notice dated 18-01-2017 amounting to Rs. 16,57,47,615 for the assessment year 2014-2015. The demand was based on two orders - the original assessment order dated 28-09-2016 and a revisionary order dated 05-12-2016. The petitioner had filed separate appeals against these orders, which were pending consideration before the Joint Commissioner (CT) Appeals. The petitioner had also deposited 25% of the disputed tax amount with the authority. The Government Advocate representing the respondent acknowledged that issuing the demand notice while the appeals were pending, especially when stay applications were submitted, might not have been appropriate.

The Court, after considering the facts and submissions, directed the Joint Commissioner (CT) Appeals to dispose of the pending appeals before enforcing the demand notice. Until the appeals were decided, the Court ordered that the demand notice should not be enforced against the petitioner. The writ petition was disposed of in accordance with these directions, and the related miscellaneous petitions were closed without any costs being awarded.

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