2015 (11) TMI 127 - SC - Income Tax

Reopening of assessment - certain proceedings under Central Excise Act - CIT(Appeals) passed orders granting stay of interest and in respect of the tax amount, the petitioner was permitted to deposit the same in 16 installments - Held that - Assessee filed additional documents wherein a copy of the decision dated 16.09.2015 passed by the Customs, Excise and Service Tax Appellate Tribunal (hereinafter referred to as CESTAT ) is annexed revealing that in appeal against the Order-in-Original of the Excise Department, the CESTAT has set aside the said order and remitted the case back to the Adjudicating Authority for fresh adjudication. In view of the aforesaid subsequent event, it would be appropriate if the petitioner approaches the CIT(Appeals) once again with an application for stay bringing the aforesaid events to the notice of the CIT (Appeals). We are confident that CIT(Appeals) shall consider the application on its own merits and pass orders thereon within a period of four weeks from the date of filing the application.

Summary

Issues: Reopening of assessment under Income Tax Act, default in payment leading to attachment of bank account, challenge of order in High Court, subsequent event affecting assessment, direction to approach CIT (Appeals) for stay.

In this judgment, the Supreme Court dealt with a case where the Income Tax Department reopened assessments for the years 2010-2011 and 2011-2012, resulting in a demand of Rs. 64 lakhs. The petitioner appealed this order, which was pending before the Commissioner of Income Tax (Appeals) (CIT (Appeals)). The petitioner sought a stay of the demand, which was partially granted, allowing installment payments. However, the petitioner defaulted on the first installment, leading to the attachment of their bank account. The High Court dismissed the writ petition challenging this order.

The petitioner had paid Rs. 27.7 lakhs so far. The main reason for the assessment reopening was linked to proceedings under the Central Excise Act. The petitioner submitted additional documents showing a decision by the Customs, Excise and Service Tax Appellate Tribunal (CESTAT), which set aside the Excise Department's order for fresh adjudication.

Considering this subsequent event, the Supreme Court directed the petitioner to approach the CIT (Appeals) again for a stay, highlighting the new developments. The Court expressed confidence that the CIT (Appeals) would review the application promptly and make a decision within four weeks of filing. Consequently, the special leave petitions were disposed of by the Supreme Court.