SRM Engineering Construction Corporation Limited v. The DCIT, CC-1(3), Chennai / The PCIT, Central-1, Chennai / The CIT(A)-18, Chennai
[Citation -2020-LL-0311-24]

Citation 2020-LL-0311-24
Appellant Name SRM Engineering Construction Corporation Limited
Respondent Name The DCIT, CC-1(3), Chennai / The PCIT, Central-1, Chennai / The CIT(A)-18, Chennai
Court HIGH COURT OF MADRAS
Relevant Act Income-tax
Date of Order 11/03/2020
Assessment Year 2017-18
Judgment View Judgment
Keyword Tags garnishee proceedings • outstanding tax • disposal of appeal • stay of demand of tax
Bot Summary: For Petitioner : Mr.G.Baskar For Respondents : Mr.A.N.R.Prathap, GA ORDER Challenging the order dated 31.12.2019 passed by the first respondent relating to the assessment year 2017-18, the petitioner has come up with this writ petition. A consequential direction has also been sought by the petitioner to the respondents not to collect the outstanding tax till the disposal of the appeal by the third respondent. 2.The facts leading to the filing of this writ petition are as follows: The petitioner are engaged in the business of constructions. Without issuing any communication to the petitioner, the first respondent issued two notices to the petitioner's bankers directing them to pay the demanded amount held in the account of the petitioner. The petitioner has approached this Court with this writ petition. 6220 of 2020 sought in this writ petition to the effect of seeking a direction to the respondents to accept the payment of 10 of disputed tax to be made by the petitioner in three equal instalments, for the purpose of considering the stay application by the third respondent. 5.Considering the limited nature of the relief now sought by the learned counsel for the petitioner, which has not been seriously opposed on the side of the respondents, this Court permits the petitioner to pay the 10 of disputed tax in three equal instalments i.e., the first instalment on 25.03.2020, second instalment on 05.04.2020 and the third instalment on 05.06.2020.


W.P.No.6220 of 2020 IN HIGH COURT OF JUDICATURE AT MADRAS DATED : 11.03.2020 CORAM HONOURABLE MR.JUSTICE R.MAHADEVAN W.P.No.6220 of 2020 and WMP.Nos.7314 & 7315 of 2020 SRM Engineering Construction Corporation Limited, Rep. by its Chief Executive Officer, Mr.S.Ramesh Babu. Petitioner Vs. 1. Deputy Commissioner of Income Tax, Central Circle 1(3), 3rd Floor, Director General of Income Tax, New Income Tax Building, No,46, (Old No.108), Mahatma Gandhi Road, Nungambakkam, Chennai - 600034. 2. Principal Commissioner of Income Tax, Central-1, Room No.301, New Building - 3rd Floor, No.46, (Old No.108), Mahatma Gandhi Road, Nungambakkam, Chennai - 600034. 3. Commissioner of Income Tax (Appeals) - 18, 3rd Floor, New Income Tax Building, No.46, (Old No.108), Mahatma Gandhi Road, Nungambakkam, Chennai - 600034. Respondents Petition filed under Article 226 of Constitution of India to issue Writ of Certiorarified Mandamus, calling for records in DIN & Order 1/6 http://www.judis.nic.in W.P.No.6220 of 2020 No.ITBA/AST/S/143(3)/2019-20/1023494227(1) dated 31.12.2019 on file of first respondent relating to A.Y.2017-18, quash same and direct respondents to grant stay of collection of outstanding tax demand pending disposal of appeal before third respondent. For Petitioner : Mr.G.Baskar For Respondents : Mr.A.N.R.Prathap, GA (T) ORDER Challenging order dated 31.12.2019 passed by first respondent relating to assessment year 2017-18, petitioner has come up with this writ petition. consequential direction has also been sought by petitioner to respondents not to collect outstanding tax till disposal of appeal by third respondent. 2.The facts leading to filing of this writ petition are as follows: petitioner are engaged in business of constructions. In respect of assessment year 2017-18, they filed its returns on 31.10.2017. After scrutiny of same, notice was issued, to which, petitioner duly furnished all informations. However, first respondent passed impugned order on 31.12.2019, assessing taxable income at Rs.122,60,73,790/- and raised demand to tune of Rs.51,40,08,788/-. Aggrieved over same, petitioner filed appeal before third 2/6 http://www.judis.nic.in W.P.No.6220 of 2020 respondent and same is pending. While so, without issuing any communication to petitioner, first respondent issued two notices to petitioner's bankers directing them to pay demanded amount held in account of petitioner. Subsequently, those two bank accounts were frozen and garnishee proceedings were also initiated. Immediately, petitioner sent letter dated 13.02.2020 to first respondent requesting to lift attachments. It was stated in said communication that petitioner is ready to pay sum of Rs.10,28,01,758/- representing 20% of disputed tax. Consequently, as per direction of first respondent, petitioner paid sum of Rs.5,14,00,000/- on different dates. Thereafter, they filed stay application before third respondent. However, second respondent vide order dated 28.02.2020, directed petitioner to pay 20% of disputed tax for staying collection of further demand. In such circumstances, petitioner has approached this Court with this writ petition. 3.Today, when matter was taken up for consideration, learned counsel for petitioner, on instructions, submitted that petitioner is now, ready and inclined to pay balance 10% of disputed tax, in three equal instalments, as they already paid sum of Rs.5,14,00,000/- towards 10% of disputed tax. Hence, learned counsel restricted relief 3/6 http://www.judis.nic.in W.P.No.6220 of 2020 sought in this writ petition to effect of seeking direction to respondents to accept payment of 10% of disputed tax to be made by petitioner in three equal instalments, for purpose of considering stay application by third respondent. 4.The learned Government Advocate (T) appearing for respondents has no serious objection in granting such relief to petitioner. 5.Considering limited nature of relief now sought by learned counsel for petitioner, which has not been seriously opposed on side of respondents, this Court permits petitioner to pay 10% of disputed tax in three equal instalments i.e., first instalment on 25.03.2020, second instalment on 05.04.2020 and third instalment on 05.06.2020. On such payment being made, respondents shall accept same and proceed further, in accordance with law, for speedy disposal of appeal said to be pending. 6.Accordingly, this writ petition stands disposed of. No costs. Consequently, connected Miscellaneous Petitions are closed. 11.03.2020 Index:Yes/No Internet:Yes/No av 4/6 http://www.judis.nic.in W.P.No.6220 of 2020 To 1. Deputy Commissioner of Income Tax, Central Circle 1(3), 3rd Floor, Director General of Income Tax, New Income Tax Building, No,46, (Old No.108), Mahatma Gandhi Road, Nungambakkam, Chennai - 600034. 2. Principal Commissioner of Income Tax, Central-1, Room No.301, New Building - 3rd Floor, No.46, (Old No.108), Mahatma Gandhi Road, Nungambakkam, Chennai - 600034. 3. Commissioner of Income Tax (Appeals) - 18, 3rd Floor, New Income Tax Building, No.46, (Old No.108), Mahatma Gandhi Road, Nungambakkam, Chennai - 600034. 5/6 http://www.judis.nic.in W.P.No.6220 of 2020 R.MAHADEVAN, J. av W.P.No.6220 of 2020 and WMP.Nos.7314 & 7315 of 2020 11.03.2020 6/6 http://www.judis.nic.in SRM Engineering Construction Corporation Limited v. DCIT, CC-1(3), Chennai / PCIT, Central-1, Chennai / CIT(A)-18, Chennai
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