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TMI Blog2021 (10) TMI 246X X X X Extracts X X X X X X X X Extracts X X X X ..... ability of a particular provision. When the issue is yet to be decided, the authority can very well take a stand in the meanwhile. Grant of interim order of stay will not amount to handing out a final decision on the particular issue. This Court had taken only a prima facie view and passed an interim order of stay. That will not tie the hands of the authority in reiterating their stand in the rectification proceedings. Even while granting 100% deduction under Section 80-1B (11C) of the Act, the appellate authority had given a finding that the petitioner had accepted an undisclosed income at the time of search. He had also offered to pay tax for the same. The penalty to the tune of 10% on the said undisclosed income is also worked out und ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ifying the issuance of the said notice of demand. 3.The learned Senior Counsel appearing for the petitioner submitted that the said notice of demand was issued even before filing of an application for vacating the interim order of stay granted by this Court. He pointed out that the petitioner was originally slapped with an assessment order dated 31.12.2016 in respect of the assessment year 2015-16. Aggrieved by the same, the petitioner filed an appeal before the Commissioner of Income Tax (Appeals), Chennai. The appellate authority passed an order dated 14.09.2018 partly allowing the petitioner's appeal. The Deputy Commissioner of Income Tax thereafter passed the order dated 29.11.2018 purporting to give effect to the order of the ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t of the orders passed by the subsequent assessment orders by invoking Section 115JC, the contemnor summarily rejected the same by stating that the said statutory provision is very much applicable to the petitioner. The learned Senior Counsel would point out that the applicability of the said provision is pending before this Court and when by a reasoned order this Court had granted interim stay, a contra view could not have been expressed by the contemnor. The learned Senior Counsel also placed reliance on the decisions reported in 2005 SCC Online Guj 423, (2014) 1 SCC 674, (2014) and SCC Online All 16144. 5.Per contra, the learned standing counsel appearing for the department submitted that no contempt has been committed and she called ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent developments have not been set out. In my view, that will in no way amount to contempt of the interim order passed by this Court. It is for the petitioner to canvas his contentions before the Tribunal and I fail to understand as to how filing of a statutory appeal before the Tribunal will constitute violation of the order passed by this Court. The statutory right available to the assessing authority cannot be stifled by holding out the threat of contempt. When the petition filed by the petitioner is taken up for final disposal, it will be decided based on the legal and factual position then obtaining. Hence, I do not find any merit in the first contention urged by the learned Senior counsel appearing for the petitioner. 8.Likewise, t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ting 100% deduction under Section 80-1B (11C) of the Act, the appellate authority had given a finding that the petitioner had accepted an undisclosed income to the tune of ₹ 12,62,28,580/- at the time of search. The net income of the assessee was ₹ 12,63,63,600/- and he had also offered to pay tax for the same. The penalty to the tune of 10% on the said undisclosed income works out to ₹ 1,26,36,360/- under clause (a) of sub-section (1) of Section 271AAB. The contemnor in her affidavit had given the justification as follows : 4.I respectfully submit that the petitioner had filed an appeal before Commissioner of Income Tax (Appeals) against the original assessment order. The CIT (Appeals) has partly allowed the appeal an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d the amount is ₹ 1,33,57,360/- and for this amount only the demand notice under Section 156 dated 23.03.2020 was issued. In fact this notice was issued along with the order passed imposing penalty and in the order these details are stated. However the assessee has not enclosed the copy of the order in the typed set but has enclosed only the demand notice. Now the same is enclosed in the typed set of papers. 7.I respectfully submit that at the cost of repetition the CIT (Appeals) has allowed in entirety the deduction (i.e. 100% deduction) claimed under section 80-1B(11C) and to give effect the revised assessment order was passed. But as far as the unaccounted receipts are concerned the assessee himself has admitted ₹ 12,63,63 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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