LG Electronics India Private Limited v. Pr. Commissioner of Income-tax & Ors
[Citation -2017-LL-0808-5]
| Citation | 2017-LL-0808-5 |
|---|---|
| Appellant Name | LG Electronics India Private Limited |
| Respondent Name | Pr. Commissioner of Income-tax & Ors. |
| Court | HIGH COURT OF DELHI AT NEW DELHI |
| Relevant Act | Income-tax |
| Date of Order | 08/08/2017 |
| Judgment | View Judgment |
| Keyword Tags | limitation period • stay of demand of tax • imposition of penalty • recovery proceeding |
| Bot Summary: | The challenge in this petition is to the order dated 2nd August, 2017 passed by the Principal Commissioner of Income Tax by which the Petitioner was directed to pay 20 of the tax demand of Rs. 32 crores amounting to Rs. 6.4 crores by 11th August, 2017 in order to get a stay of the demand up to 15th December, 2017 pending consideration of the Petitioner s appeal before the Commissioner of Income Tax CIT(A) against the order dated 30th June, 2017 passed by the Assistant Commissioner of Income Tax-Circle 15(1) 6778/2017 Page 1 of 3 AO), levying a penalty under Section 271 of the Income Tax Act, 1961. The Petitioner-Assessee filed an appeal against the order before the CIT. The Petitioner also filed an application under Section 220(6) of the Act seeking stay of the recovery proceedings. In the said application for stay, the Assessing Officer directed the Petitioner, by order dated 20th July 2017, to deposit 15 of the total tax demand in terms of the Office Memorandum dated 29th February, 2016. Aggrieved by the above order dated 20th July, 2017, the Petitioner went before the PCIT who, by the impugned order dated 2nd August, 2017, disposed of the application of the Petitioner by the following order sheet entry. The impugned order clearly makes no reference to the central issue in the W.P.(C) 6778/2017 Page 2 of 3 pending appeal or the grievance of the Petitioner regarding the order passed by the AO. The impugned order in short is without reasons and is therefore unsustainable in law. For the above reasons, the impugned order is set aside and a direction is issued that the Petitioner s application will once again be heard by the PCIT on merits and without reference to the OM dated 31st July, 2017, which, on the face of it, appears to curtail his discretion. The PCIT will dispose of the application with a reasoned order not later than two weeks from the date of receipt of this order. |