Court affirms Income Tax order for instalment payment pending appeal, deems amount reasonable.

The Court upheld the order of the Principal Commissioner of Income Tax directing the Petitioners to pay a specified amount in instalments pending the disposal of their appeals. The Court found the order reasonable, determining the amount payable by the Petitioners to be around 14% of the total demand. It refrained from delving into the merits of the challenges raised against the demands, noting that such issues were pending consideration in the appeals before the Commissioner of Income Tax (Appeals). The petitions were dismissed with a modification allowing payment of the upcoming instalment by a revised deadline.

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Issues:
1. Correctness of the order passed by the Principal Commissioner of Income Tax directing payment in instalments.
2. Validity of demands raised against the Petitioners.
3. Sustainability of assessments under Section 153A read with Section 153C of the Income Tax Act.
4. Reasonableness of the impugned order in determining the amount payable by the Petitioners.

Analysis:

1. The petitions raised a common issue challenging the order passed by the Principal Commissioner of Income Tax directing the Petitioners, who belong to a group of companies, to pay a specified amount in instalments pending the disposal of their appeals before the Commissioner of Income Tax (Appeals) against assessment orders for certain assessment years.

2. The Court extensively considered the submissions presented by the Senior Counsel for the Petitioners, highlighting the demands raised against each Petitioner and the legal basis for challenging these demands. It was argued that some demands were unsustainable in law due to residency status and validity concerns regarding assessment proceedings under Section 153A read with Section 153C of the Act.

3. Despite the arguments raised, the Court refrained from delving into the merits of the submissions as they were pending consideration in the appeals before the Commissioner of Income Tax (Appeals). The Court noted that the impugned order showed discretion in determining the amount payable by the Petitioners, which was around 14% of the total demand, and deemed the order reasonable without warranting interference.

4. The Court emphasized that the Petitioners were free to present all contentions before the Commissioner of Income Tax (Appeals) for unbiased consideration, unaffected by the observations made in the present order. Consequently, the petitions were dismissed with a modification allowing the payment of the upcoming instalment by a revised deadline, and all pending applications were disposed of accordingly.

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