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Issues:
Challenge to assessment orders, levy of penalty for non-payment of tax, arbitrary assessment, failure to issue pre-assessment notice, application for non-default treatment, jurisdiction for levying penalty, arbitrary order under exhibit P-14, pending appeals before Appellate Assistant Commissioner, relief under article 226 of the Constitution, second levy of penalty under exhibit P-14, discretion of the assessing authority, quashing of the second penalty levy, denial of relief by the court, stay of tax collection, directions for disposal of appeals. Analysis: The petitioner challenged the assessment orders and penalty levied for non-payment of tax. The counsel contended that the assessment was arbitrary and not based on actual facts, with no pre-assessment notice issued. The order levying penalty under exhibit P-8 was disputed on grounds of a pending application under section 40 and the officer's failure to consider it before imposing the penalty. Similarly, the order under exhibit P-14 was opposed as arbitrary and disregarding the petitioner's submissions and expectations of relief before the Appellate Assistant Commissioner. The court noted that appeals against the assessment order and the first penalty levy were pending before the Appellate Assistant Commissioner. Despite acknowledging the grievances raised by the petitioner, the court refrained from intervening based on a Division Bench ruling that limits the exercise of powers under article 226 while appeals are pending before appropriate tribunals. The petitioner was advised to pursue the grounds of attack before the Appellate Assistant Commissioner for potential relief. Regarding exhibit P-14, as no appeal was pending against that order, the court found no hindrance to addressing the second penalty levy under exhibit P-14. The court deemed the second penalty levy as arbitrary and unjustified, especially considering the pending application under section 40 that the officer had not properly considered. Consequently, the court quashed the second penalty levy under exhibit P-14, allowing the petitioner to seek appropriate reliefs in the pending appeals before the Appellate Assistant Commissioner. The writ petition was allowed to the extent mentioned, with each party bearing their own costs. The court directed a stay on the collection of tax and penalty until the disposal of the pending appeals and an additional two weeks thereafter. The Appellate Assistant Commissioner was urged to expedite the appeal process for a prompt resolution of the pending matters.
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