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2013 (1) TMI 652 - HC - Income TaxDemand of tax dues and equivalent amount of penalty - communication directing the petitioner to pay Rs. 5,00,000/- by 10.1.2013 whereas the remaining demand was stayed up to 31.1.2013 - Held that - Petitioner is duty bound to pay the duty amount of tax and the penalty as assessed by the AO. The petitioner was granted indulgence at one stage by deferring the payment of tax and penalty but subsequently, on a request made by the petitioner, a conditional order has been passed as mentioned above. Since, the payment of tax and penalty is a statutory duty, do not find that any case is made out for interference in the writ jurisdiction of this Court - against assessee.
Issues: Challenge to communication directing payment of tax and penalty, violation of natural justice in declining stay order, statutory duty to pay tax and penalty.
In the present case, the petitioner challenged a communication directing them to pay a specified amount by a certain date, while the remaining demand was stayed. The petitioner argued that the conditional order was passed without giving them an opportunity of hearing, despite no change in circumstances from the previous stay order. The court noted that the petitioner was found liable to pay a substantial amount of tax and penalty for a specific assessment year. The court considered the fairness and reasonableness of the communication directing the petitioner to make a partial payment before the appeal hearing, to secure the revenue's interest and provide relief to the petitioner. The court also referred to a previous judgment emphasizing the importance of granting an opportunity of hearing before declining a stay order, citing a violation of the principle of natural justice. Regarding the duty to pay tax and penalty, the court emphasized that the petitioner was obligated to fulfill the assessed tax and penalty amounts. While the petitioner had been granted some leniency initially in deferring the payment, a conditional order was issued upon a request from the petitioner. The court reiterated that the payment of tax and penalty constituted a statutory duty, and no sufficient grounds were found to warrant interference in the writ jurisdiction of the court. As a result, the petition was dismissed by the court.
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