M/s. Janahitha Credit Co-operative Society Limited v. The Income Tax Officer Ward 6(2)(3)/ The Additional Commissioner Of Income-tax Range 6(2)/ The Commissioner Of Income-tax (Appeals)-VI, Bangalore/ The Commissioner Income-tax, Bangalore
[Citation -2015-LL-1117-9]

Citation 2015-LL-1117-9
Appellant Name M/s. Janahitha Credit Co-operative Society Limited
Respondent Name The Income Tax Officer Ward 6(2)(3)/ The Additional Commissioner Of Income-tax Range 6(2)/ The Commissioner Of Income-tax (Appeals)-VI, Bangalore/ The Commissioner Income-tax, Bangalore
Court HIGH COURT OF KARNATAKA
Relevant Act Income-tax
Date of Order 17/11/2015
Assessment Year 2015-16
Judgment View Judgment
Keyword Tags co-operative society • outstanding demand
Bot Summary: THIS WRIT PETITION COMING ON FOR PRELIMINARY HEARING THIS DAY, THE COURT MADE THE FOLLOWING: ORDER Petitioner having suffered an order under Section 143(3) for the assessment year 2012-13 raising demand for 31,69,230/-, preferred an appeal before the Commissioner for Income Tax-6, Bengaluru, and filed an application dated. 09.09.2015 invoking Section 225 of the Income Tax Act, 1961, before the Tax Recovery Officer for stay of the aforesaid demand, which when considered by the Joint Commissioner of Income 3 Tax, Range-6(2), Bengaluru, by order dated 01.10.2015, Annexure-E, directed the petitioner to pay 50 of the total of demand i.e., 15,84,600/- in installments and directed stay of the demand for the balance i.e., 15,84,600/- until 15.03.2016 or disposal of the appeal before the CIT(A), whichever is earlier. Petitioner aggrieved by the order, Annexure-E, has presented this petition to quash the said order and to direct the CIT to dispose of the appeals at the earliest, in addition to a direction to the Assessing Officer not to enforce the payment of the outstanding demand consequent to the Assessment Order dated 18.03.2015 until disposal of the appeal. Although learned counsel for petitioner submits that Section 225(1) invests a jurisdiction in the Tax Recovery Officer to grant a blanket stay of the entire demand the submission is noticed only to be rejected. For better understanding of Section 225(1), it is useful to extract the said provision, which reads thus: 4 225(1) It shall be lawful for the Tax Recovery Officer to grant time for the payment of any tax and when he does so, he shall stay the proceedings for the recovery of such tax until the expiry of the time so granted. The order, Annexure-E cannot be said to be either arbitrary or illegal calling for interference in exercise of supervisory jurisdiction under Article 227 of the Constitution. In the facts and circumstances, no exception can be taken to the order impugned.


1 IN HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS 17TH DAY OF NOVEMBER 2015 BEFORE HON BLE MR. JUSTICE RAM MOHAN REDDY WRIT PETITION NO. 44621 OF 2015 (T-IT) BETWEEN: M/S JANAHITHA CREDIT CO-OPERATIVE SOCIETY LIMITED NO.53, 10TH CROSS, 2ND MAIN ROAD, WOC ROAD, 2ND STAGE, MAHALAKSHMIPURAM, BANGALORE-560086. REPRESENTED BY ITS SECRETARY SRI. M.P. RANGANATHAPPA, AGED ABOUT 55 YEARS, S/O LATE M.S.PUTTAKAMAIAH. ... PETITIONER (By Sri. BALRAM R RAO, ADV.,) AND 1. INCOME TAX OFFICER WARD 6(2)(3) 3RD FLOOR, JEEVAN SAMPIGE, NO.1/1, SAMPIGE ROAD, BANGALORE-560003. 2. ADDITIONAL COMMISSIONER OF INCOME TAX RANGE 6(2), 3RD FLOOR, JEEVAN SAMPIGE, NO.1/1, SAMPIGE ROAD, BANGALORE-560003. 3. COMMISSIONER OF INCOME TAX (APPEALS)-VI BANGALORE, 3RD FLOOR, HMT BHAVAN, 2 59, BELLARY ROAD, GANGANGAR, BANGALORE-560032. 4. COMMISSIONER INCOME TAX-BANGALORE R NO.A-123, CENTRAL REVENUE BUILDING, NO.1 QUEENS ROAD, BANGALORE-560001. ... RESPONDENTS THIS WRIT PETITION IS FILED UNDER ARTICLES 226 & 227 OF CONSTITUTION OF INDIA PRAYING TO QUASH INTERIM ORDER DTD.1.10.2015 PASSED BY R-2 VIDE ANNEX-E. DIRECT R-3 TO DISPOSE OF APPEAL IN ITA.NO.79/CIT[A]-6/2015-16. DIRECT R-1 NOT TO ENFORCE PAYMENT OF OUTSTANDING DEMAND CONSEQUENT TO ASSESSMENT ORDER DTD.18.3.2015 PASSED UNDER SECTION 143[3] OF INCOME TAX ACT 1961 IN ANNEX-A UNTIL DISPOSAL OF APPEAL IN ITA.NO.79/CIT[A]-6/2015-16. THIS WRIT PETITION COMING ON FOR PRELIMINARY HEARING THIS DAY, COURT MADE FOLLOWING: ORDER Petitioner having suffered order under Section 143(3) for assessment year 2012-13 raising demand for `31,69,230/-, preferred appeal before Commissioner for Income Tax (Appeals)-6, Bengaluru, and filed application dated. 09.09.2015 invoking Section 225 of Income Tax Act, 1961, before Tax Recovery Officer for stay of aforesaid demand, which when considered by Joint Commissioner of Income 3 Tax, Range-6(2), Bengaluru, by order dated 01.10.2015, Annexure-E, directed petitioner to pay 50% of total of demand i.e., `15,84,600/- in installments and directed stay of demand for balance i.e., `15,84,600/- until 15.03.2016 or disposal of appeal before CIT(A), whichever is earlier. Petitioner aggrieved by order, Annexure-E, has presented this petition to quash said order and to direct CIT (A) to dispose of appeals at earliest, in addition to direction to Assessing Officer not to enforce payment of outstanding demand consequent to Assessment Order dated 18.03.2015 until disposal of appeal. 2. Although learned counsel for petitioner submits that Section 225(1) invests jurisdiction in Tax Recovery Officer to grant blanket stay of entire demand submission is noticed only to be rejected. 3. For better understanding of Section 225(1), it is useful to extract said provision, which reads thus: 4 225(1) It shall be lawful for Tax Recovery Officer to grant time for payment of any tax and when he does so, he shall stay proceedings for recovery of such tax until expiry of time so granted. 4. order, Annexure-E cannot be said to be either arbitrary or illegal calling for interference in exercise of supervisory jurisdiction under Article 227 of Constitution. In facts and circumstances, no exception can be taken to order impugned. Petition devoid of merit is rejected. Sd/- JUDGE kcm M/s. Janahitha Credit Co-operative Society Limited v. Income Tax Officer Ward 6(2)(3)/ Additional Commissioner Of Income-tax Range 6(2)/ Commissioner Of Income-tax (Appeals)-VI, Bangalore/ Commissioner Income-tax, Bangalore
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