2019 (6) TMI 153 - HC - Income Tax

Recovery proceedings - seeking time to make payment of the dues towards the amount ordered at Ext. P2 by the issue of a writ of mandamus - HELD THAT - The circumstances though are not encouraging straight away in exercising discretion in favour of the petitioner, but appreciating the bonafides to clear the last instalment without further recourse to law by the Department, this Court is satisfied that the first respondent considers and disposes of Ext. P3 request in both the writ petitions to the limited extent of considering the time prayed by the petitioner for discharging the last instalment as expeditiously as possible, preferably within two weeks from the date of receipt of a copy of the judgment.

Summary

Issues:
1. Relief sought for granting time for payment of dues and permission to operate bank accounts.
2. Prayer to direct the respondents to dispose of Ext. P3.
3. Opposition by the Standing Counsel for revenue based on the petitioner's conduct.
4. Consideration of cooperation with the Department for an extension of time for payment.
5. Exercise of discretion in favor of the petitioner to clear the last instalment.

Analysis:

1. The petitioner sought relief in the form of granting two months' time to make payment of the dues ordered at Ext. P2 and permission to operate accounts with respondent banks. The counsel for the petitioner modified the prayer to direct the respondents to dispose of Ext. P3 and assured cooperation with the Department in adhering to the time granted for payment.

2. The Standing Counsel for revenue opposed the prayer, citing the petitioner's lack of seriousness in adhering to instalments stipulated by the Department. The counsel argued against showing indulgence due to the petitioner's complacency and requested the dismissal of the writ petition. However, the counsel also acknowledged the possibility of considering an extension of time for paying the last instalment upon proper cooperation from the petitioner.

3. Despite the discouraging circumstances, the Court recognized the petitioner's intention to clear the last instalment without further legal action by the Department. Consequently, the Court directed the first respondent to consider and dispose of Ext. P3 request to allow the petitioner the time requested for discharging the last instalment promptly, preferably within two weeks from the date of receiving the judgment.

This judgment reflects the Court's balancing act between the petitioner's request for leniency in payment and the revenue department's concerns regarding the petitioner's past conduct. The Court's decision to grant an extension of time while emphasizing the importance of cooperation sets a precedent for future cases involving similar circumstances.