2016 (3) TMI 1407 - HC - Indian Laws

Seeking compensation in the letter pending before the Finance Minister of Assam against its liability of Agricultural Income Tax for the assessment year 2014-15 - seeking adjustment of refund and interest - HELD THAT - The petitioner is stated to have filed an application on 31-03-2014, under Section 39A of the Act before the Chief Secretary, Government of Assam, for remission of future tax liabilities with a copy endorsed to the Finance Minister of Assam. The respondent No. 4, however, did not consider the claim of the petitioner and passed the impugned Order of Assessment, dated 04-07-2015 and issued the impugned Notice of Demand, dated 01-09-2015 for the assessment year 2014-15. It is against the impugned order of assessment and the impugned notice of demand that this writ petition has been filed. The writ petition is disposed by directing the respondent authorities to consider the application of the petitioner filed under Section 39A of the Act and consider the question of taking such necessary action for adjustment of the assessed refund and interest that may be due to the petitioner from the assessment year 1986-87 to the assessment year 1992-93 and to make a fresh assessment in respect of the assessment year 2014-15.

Summary

Issues:
1. Adjustment of refund and interest against current liabilities under the Assam Agricultural Income Tax Act, 1939.
2. Claim for compensation pending before the Government of Assam.
3. Failure of the respondent No. 4 to consider the petitioner's claim and passing of the impugned Order of Assessment and Notice of Demand for the assessment year 2014-15.

Analysis:
1. The petitioner, a company operating multiple Tea Estates and Gardens in Assam, is seeking an adjustment of a substantial refund of Rs. 4,23,15,716 along with interest under the Assam Agricultural Income Tax Act, 1939. The petitioner asserts that despite filing for the refund and interest, the respondent No. 4 has neither refunded the amount nor adjusted it against the current tax liabilities. Additionally, the petitioner highlights a significant loss of cultivated tea land, emphasizing the financial impact suffered.

2. The petitioner has informed the authorities about a compensation claim of Rs. 208.07 crores pending before the Government of Assam. The company requested the respondent No. 4 to adjust this compensation against its Agricultural Income Tax liability for the assessment year 2014-15. Furthermore, the petitioner has filed for remission of future tax liabilities under Section 39A of the Act, indicating proactive steps taken by the company to address its financial obligations.

3. Despite the petitioner's efforts and submissions, the respondent No. 4 proceeded to pass an impugned Order of Assessment dated 04-07-2015 and issued a Notice of Demand dated 01-09-2015 for the assessment year 2014-15. In response, the High Court directed the respondent authorities to consider the petitioner's application under Section 39A, evaluate the adjustment of assessed refund and interest from previous years, and conduct a fresh assessment for the year 2014-15. The court also ordered a stay on acting upon the impugned Order of Assessment and Notice of Demand until the fresh assessment is completed, providing relief to the petitioner pending further review.