2018 (5) TMI 157 - HC - Income Tax

Process of filing a tax case appeal - attachment orders - Held that - Since the appeal filed as against the assessment order for the year 2009-10 is pending before this court in a tax case appeal filed by the petitioner, which is in SR stage, and as against the order passed by the tribunal for the assessment year 2010-11, the petitioner is in the process of filing an appeal, this court is of the view that a condition can be imposed, so that, interest of the Revenue will be safeguarded and simultaneously, the assessee will also have a partial relief. Considering the above, the writ petition is disposed of by directing the petitioner to pay a sum of ₹ 5,00,000/- towards assessment for the year 2010-11. Since it is represented that the petitioner is undergoing severe financial crisis, they are granted six weeks time from today to pay the said amount.

Issues:
1. Challenge to notice for payment of tax for assessment years 2009-10 and 2010-11.
2. Impugning the consequential notice of attachment of bank accounts.
3. Dispute over assessment for the year 2009-10.
4. Appeal against the order for assessment year 2010-11.
5. Petitioner's approach to the court due to bank account attachment.
6. Payment made by the petitioner for assessment years 2009-10 and 2010-11.
7. Court's decision on the case.

1. Challenge to Notice for Payment of Tax:
The petitioner contested a notice from the 1st respondent demanding payment of tax for the assessment years 2009-10 and 2010-11 totaling ?62,74,380. The petitioner also challenged the subsequent attachment of bank accounts.

2. Dispute over Assessment for 2009-10:
For the assessment year 2009-10, the petitioner's appeal to the Income Tax Appellate Tribunal was unsuccessful. The petitioner filed a Tax Case Appeal before the High Court against the tribunal's decision, which was pending numbering.

3. Appeal against Order for 2010-11:
Regarding the assessment year 2010-11, the Revenue's appeal against the Commissioner of Income Tax (Appeals) decision was allowed, instructing a reworking of depreciation amount. The petitioner was in the process of filing an appeal against this order.

4. Petitioner's Approach to Court:
Due to the attachment of the petitioner's bank account, they approached the court seeking relief. Simultaneously, a stay petition was filed before the Chief Commissioner of Income Tax, Coimbatore.

5. Payment Made by the Petitioner:
The petitioner had paid ?15,00,000 for the assessment year 2009-10 and was required to pay ?22,91,440 for 2010-11. The court acknowledged the petitioner's financial crisis.

6. Court's Decision:
Considering the pending appeals and the petitioner's financial situation, the court directed the petitioner to pay ?5,00,000 towards the tax for 2010-11 within six weeks. Upon payment, the attachment of bank accounts would be lifted. The remaining tax and penalty would be stayed until a stay petition was filed within six weeks. The court authorized the withdrawal of the specified amount from the petitioner's bank account for compliance.

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