2024 (7) TMI 228 - HC - Income Tax

Stay of demand pending statutory appeals - Challenging orders u/s 201/201(1A) - re-assessment proceedings u/s 148 - HELD THAT - The petitioner is directed to remit a sum of Rs. 15 crore within two weeks from the date of receipt of a copy of this order towards the tax demand under the impugned orders u/s 201/201(1A). Subject to the remittance of the said amount, the orders u/s 201/201(1A) shall be stayed until disposal of statutory appeals to be filed by the petitioner. Such statutory appeals shall be presented by the petitioner within ten days from the date of receipt of a copy of this order and the appellate authority is directed to receive and dispose of the same on merits without going into the question of limitation. The rectification petitions filed by the petitioner on 05.06.2024 and 20.06.2024 are directed to be disposed of within three months from the date of receipt of a copy of this order. The petitioner is directed to take necessary steps to upload the application and supporting documents on the portal within one week from the date of remittance of the sum of Rs. 15 crore. The respondents are directed to provide access to the portal and enable the uploading thereof. Proceedings for reassessment pursuant to the notice under Section 148 shall be kept in abeyance until disposal of the statutory appeals to be filed by the petitioner.

Summary

Issues:
Challenging orders under Section 201/201(1A) of the Income Tax Act, 1961 and consequential re-assessment proceedings under Section 148.

Analysis:
The writ petitions challenge orders under Section 201/201(1A) of the Income Tax Act, 1961, and consequential re-assessment proceedings under Section 148. The total tax demand under the impugned orders is approximately Rs. 126 crores across relevant assessment periods. The petitioner filed rectification petitions for about Rs. 50 crore, related to interest payments made to various entities, including the University of Madras and educational institutions. The Advocate General seeks expeditious disposal of these rectification petitions. The senior standing counsel for the respondents argues for a reasonable time for disposal of rectification petitions as per Section 154 of the Income Tax Act, emphasizing the need for online filing of such petitions. The court notes that interest payments to government entities are the subject of rectification petitions covering a significant portion of the tax demand. It directs the petitioner to approach the appellate authority for further review, considering the statutory remedy available. The court also orders the petitioner to remit Rs. 15 crore within two weeks towards the tax demand, staying the impugned orders pending statutory appeals. It mandates the filing of statutory appeals within ten days and directs their disposal on merits without limitation considerations. The court sets a deadline of three months for disposing of the rectification petitions, requiring online submission within one week of remittance. It instructs the respondents to facilitate portal access for uploading documents and suspends reassessment proceedings under Section 148 until the statutory appeals are resolved.

This comprehensive analysis covers the issues involved in the legal judgment delivered by the High Court of Madras.