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2023 (5) TMI 1010 - HC - Income TaxHearing of the appeal out of turn - grievance of very high-pitched scrutiny assessment - Guidelines for priority/out of turn disposal of appeals by CsIT (AU) and CsIT (Appeals) - Local High Pitch Committee rejected the request - request for early hearing is made on the premise that the additional assessment u/s 143(3) and the demand u/s 156 is high-pitched and inasmuch as the demand is more than Rs. 1 Crore, appeal challenging the order u/s 246-A and which is pending before the Principal Commissioner of Income Tax, be heard out of turn - HELD THAT - We are not required to delve deeper. We note that personal hearing as such was not sought, and nothing is brought to our notice to suggest that a personal hearing is provided either under any statutory rule or then any guideline issued by the CBDT. The material placed on record would suggest that the High- Pitched Committee considered the grievance of the assessee along with the relevant record. High-Pitched Committee noted that the petitioner did not comply with notice under Section 142(1) of the Act dated 03-12-2020 nor did he comply with the reminder letter dated 20-12-2020 or then the show cause notice dated 19-1-2021. The Committee further noted that the reminder letter dated 03-2-2021 is responded belatedly and there is no compliance with the letter dated 26-2-2021. In writ jurisdiction, we are not inclined to delve deeper in the narrative and the counter narrative. The assessee is only denied out of turn hearing. We do not find any irrationality in the reasons recorded by the High-Pitched Committee. Stay of demand - Department has already shown indulgence inasmuch as Stay is granted for assessment year 2018-19 on the condition of payment of Rs. 4,00,000/- (Rupees Four Lakh) per month, the first installment being due and payable from November 2022. In essence, the petitioner is permitted to deposit 20% demand, in monthly installment of Rs. 4,00,000/- (Rupees Four Lakh). In our considered view, the department has been very reasonable and considerate. Petition is absolutely meritless, and is dismissed with costs of Rs. 10,000/- (Rupees Ten Thousand), which may be paid to the Department within four weeks from the date this order is uploaded on the High Court Website.
Issues Involved:
1. Constitutionality of Instruction F. No. 225/101/2021-ITA-II dated 23.4.2022. 2. Legality of the order dated 19.10.2022 rejecting the stay of tax recovery. 3. Validity of the minutes of the meeting dated 11.11.2022 by the Local High Pitch Committee. 4. Entitlement to stay on recovery of taxes without payment of any tax as per Instruction No. 1914 of 2016. Detailed Analysis: 1. Constitutionality of Instruction F. No. 225/101/2021-ITA-II dated 23.4.2022: The petitioner challenged the constitution of the Local High Pitch Committee by the Central Board of Direct Taxes (CBDT) as unconstitutional and ultra vires to the Income Tax Act, 1961. The court did not delve deeply into this broader question, focusing instead on the specific grievances and procedural aspects. 2. Legality of the order dated 19.10.2022 rejecting the stay of tax recovery: The petitioner sought to quash the order by the Principal Commissioner of Income Tax rejecting the application for stay of recovery of tax. The court noted that the Deputy Commissioner of Income Tax had informed the petitioner that the request for stay could only be considered after payment of at least 20% of the gross demand, which the petitioner did not comply with. The petitioner's appeal under Part A of Chapter XX of the Income Tax Act, 1961, is pending with the National Faceless Appeal Centre. 3. Validity of the minutes of the meeting dated 11.11.2022 by the Local High Pitch Committee: The petitioner contended that the minutes of the meeting by the Local High Pitch Committee, which rejected his grievance application, were illegal, invalid, and violative of Articles 14 and 19 of the Constitution of India. The court referred to the CBDT Circular dated 29-12-2021 and the revised instructions dated 23-4-2022, which outline the procedures for handling high-pitched scrutiny assessments. The court noted that the High-Pitched Committee considered the material on record from a prima facie perspective and concluded that the assessment was not high-pitched. The court found no irrationality in the reasons recorded by the High-Pitched Committee. 4. Entitlement to stay on recovery of taxes without payment of any tax as per Instruction No. 1914 of 2016: The petitioner sought a stay on recovery of taxes without payment of any tax in light of Instruction No. 1914 of 2016. The court observed that the department had already shown indulgence by granting a stay for the assessment year 2018-19 on the condition of payment of Rs. 4,00,000/- per month. The court considered this arrangement reasonable and considerate. Conclusion: The court dismissed the petition as meritless, emphasizing that the department had been reasonable in allowing the petitioner to pay the demand in monthly installments. The petition was dismissed with costs of Rs. 10,000/- to be paid to the Department within four weeks from the date the order is uploaded on the High Court Website.
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