TaxTMI 
TaxTMI 
TaxTMI 
2024 (2) TMI 846
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..... The petitioner has also challenged the order passed by the learned Principal Commissioner of the Income Tax (central), Bhopal dated 11.12.2023 in ITBA/RCV/F/17/2023-24/1058657759(1) whereby the application for stay of demand filed by the petitioner has been rejected and also granted reduced installment facility amounting to Rs. 13,85,000/- payable in 20 months till such installment reaches 20% of the total tax liability amounting to Rs. 13,84,43,552/- or till disposal of the appeal by CIT(Appeals) whichever is earlier. The PCIT has further directed the petitioner to deposit first installment of Rs. 13,85,000/- on 20.12.2023 and remaining installments by 20th of every month from month of January, 2024 and has further directed that if the petitioner fails to avail the facility of installment granted to it, the same shall be treated as null and void. 2. The brief facts as projected by the petitioner are that the Petitioner is a company engaged in the business of oil extraction from rice bran. For the assessment year 2018-19, it filed its return of income showing its total income at Rs. 26,93,557/-. A notice u/s 148 of the Act was issued to the Petitioner Company on 31.03.2022 and i....
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....ines of what has already been decided in large number of cases, namely that the requirement of deposit of 20% does not apply in cases of high pitched assessments. Thus the petitioner had a very good case for grant of stay of recovery of demands and the orders of ACIT and PCIT are illegal and grossly arbitrary. Hence the petitioner has prayed for following reliefs:- (10-1) Calling for the records of the case. (10-2) Quashing/setting aside setting aside the order dated 11.12.2023 made by the Principal Commissioner of Income Tax [Central], Bhopal being Annexure P/6. (10-3) Direct the respondent authorities that the tax demand, interest and penalty arising out of the assessment order dated 28.03.2023 being Annexure P/1 shall not be recovered till disposal of the appeal pending before the Commissioner (Appeals). (10-4) Stay the effect and operation of the order dated 11.12.2023 being Annexure P/6 and assessment order dated 28.03.2023 being Annexure P/1 till the disposal of this petition. (10-5) Direct the respondent authorities that they expeditiously decide the appeal and the stay application of the petitioner. (10-6) Hold that the instant case involves high pitched as....
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.... dated 23.04.2022 provides revised instruction for constitution and functioning of local committees to deal with taxpayers' grievances from high-pitched scrutiny assessment. This instruction further provides for initiation of suitable administrative action against the erring officer in case of high-pitched or non-observance of principles of natural justice, non-application of mind or gross negligence of assessing officer/Assessment Unit and would submit that stay be granted as it is a case of high pitched assessment to the tune of 20% of tax amount which is 10.27 times higher than the original return. To substantiate his contention he would refer to judgment of the Hon'ble High Court of Rajasthan in Maheshwari Agro Industries vs. Union of India and others {(2012) 346 ITR 375}, judgment of Hon'ble High Court of Delhi in Soul vs Deputy Commissioner of Income Tax {(2010) 323 ITR 0305}, judgment of High Court of Karnataka in case of Flipkart Internet Pvt. Ltd. vs. The ACIT and Others {(2017) 396 ITR 551}, judgment of Hon'ble High Court of Delhi in case of LG Electronics India Pvt. Ltd. vs. The PCIT and Others {(2022) 443 ITR 46}, judgment of Hon'ble High Court of Allahabad in case of H....
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.... of the petitioner as per the provisions of Income Tax Act. The petitioner has preferred stay petition which has been considered by the PCIT Central Bhopal wherein the opportunity of hearing was given to the petitioner and petitioner has also submitted written submission. Considering the submission of the petitioner, the impugned order was passed on 11.12.2023 reducing the installment which is neither perverse nor contrary to the law. As such, she would pray for dismissal of the petition. 9. I have heard learned counsel for the parties and perused the record. 10. From the above factual and legal submission raised by the parties the point to be determined by this Court is whether the petitioner is entitled to waive off the pre-deposit of 20% of the assessed tax liability being high pitched assessment in view of the factual matrix that the learned assessing authority and PCIT have already granted monthly installment facility to the petitioner. 11. From the records particularly the assessment order for the financial year 2018-2019 dated 28.03.2023 it is quite vivid that a survey was conducted under Section 133(A) of the Income Tax Act on 14/17.02.2018 in case of Shyam Warehousing a....
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....kart Internet Pvt. Ltd (supra) and other judgments and would submit that in case of high-pitched assessment instructions of CBDT are to be followed. The Delhi High Court in case of Taneja (supra) has held that the figure of 8 times and 74 times has been classified as unreasonably high pitched assessment. The High Court of Karnataka again in case of Flipkart has remanded the matter back to the PCIT to decide the review petition within two weeks from the date of receipt of certified copy. The High Court of Delhi in case of Harish Chandra Bhati has disposed off the petition giving liberty to the petitioner to avail of the statutory remedy of appeal or revision under the Act of 1961. 13. From the above factual matrix, it is quite vivid that the judgments cited by the learned counsel for the petitioner are not applicable to the present facts and circumstances of the case as ACIT and PCIT have already granted installment facilitates to the petitioner whereas in the judgments cited by the learned counsel for the petitioner either there was no order or passed order without assigning any reason whereas in the present case the revenue has granted adequate relief to the petitioner after givi....
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.... a self-imposed departmental restraint on the demand/ recovery, to be raised/pursued, which cannot affect the statutory power conferred upon the Appellate Authority. This discussion is made only in view of the lengthy submissions made by the learned counsel for the Appellant with regard to the 'scheme of the taxation jurisprudence' and never to say, if the Appellant is actually entitled to get a stay as sought for or not." 15. In the present case also the petitioner has preferred an application on 03.05.2023 before the ACIT, Bilaspur for grant of stay against outstanding demand by filing an application under Section 220 (6) of the Income Tax Act contending that the demand raised in assessment is high pitched and it is not possible for the assessee to pay even 20% of the disputed demand because the assessee does not possess enough resources to pay 20% of the demand relying upon the circulars which was considered favorably by providing installment facility. Thereafter he has preferred an application before the PCIT Central (Bhopal) reiterating the same which has been further considered and the installment was reasonably reduced vide order dated 11.12.2023. The record of the case wo....
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....Dictionary is defined as under: 'Genuine' means not fake or counterfeit, real, not pretending (not bogus or merely a ruse)" 18. The ingredients of genuine hardship must be determined keeping in view the dictionary meaning thereof and the legal conspectus attending thereto. For the said purpose, another well--known principle, namely, a person cannot take advantage of his own wrong, may also have to be borne in mind. The said principle, it is conceded, has not been applied by the courts below in this case, but we may take note of a few precedents operating in the field to highlight the aforementioned proposition of law. 19. Thus, the said principle, in our opinion, should be applied even in a case of this nature. A statutory authority despite receipt of such a request could have kept mum. It should have taken some action. It should have responded to the prayer of the appellant. However, another principle should also be borne in mind, namely, that a statutory authority must act within the four corners of the statute. Indisputably, the Commissioner has the discretion not to accede to the request of the assessee, but that discretion must be judiciously exercised. He has to arrive ....
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....g the interim orders as was done by High Court. There was no question of any balance of convenience being in favour of the respondent-Company. The balance of convenience was certainly in favour of the Government of India. Governments are not run on mere Bank Guarantees. We notice that very often some courts act as if furnishing a Bank Guarantee would meet the ends of justice. No governmental business or for that matter no business of any kind can be run on mere Bank Guarantees. Liquid cash is necessary for the running of a Government as indeed any other enterprise. We consider that where matters of public revenue are concerned, it is of utmost importance to realise that interim orders ought not to be granted merely because a prima facie case has been shown. More is required. The balance of convenience must be clearly in favour of the making of an interim order and there should not be the slightest indication of a likelihood of prejudice to the public interest........" 21. Again the Hon'ble Supreme Court in case of Reliance Airport Developers vs Airport Authority of India {(2006) 10 SCC 1} has considered the discretion and governing principle for exercise of discretion as held as ....