W.P.No.6669 of 2020 IN HIGH COURT OF JUDICATURE AT MADRAS Dated : 16.03.2020 CORAM HON'BLE MR.JUSTICE R.MAHADEVAN W.P.No.6669 of 2020 and W.M.P.Nos.7908 & 7909 of 2020 Jothi Swaminathan Kalyanakumar C-64, 1st Main Road, Anna Nagar Chenni 600102 PAN No.AALPK7836P ... Petitioner Vs. 1.The Assistant Commissioner of Income Tax Non-Corporate Circle 7(1) Income Tax Department Mahatma Gandhi Road Chennai 600 034 2.The Commissioner of Income Tax (Appeals)-7 Income Tax Department Mahatma Gandhi Road Chennai 600 034 ... Respondents Prayer: Petition filed under Article 226 of Constitution of India praying to issue writ of Certiorarified Mandamus, calling for records of 1st respondent in PAN No.AALPK7836P and quash Impugned 1/6 http://www.judis.nic.in W.P.No.6669 of 2020 Letter No.ITBA/COM/F/17/ 2019-20/1024774781(1) dated 06.02.2020 passed by 1st Respondent for AY 2012-13 and consequential stay of recovery of tax pending disposal of appeal before 2nd Respondent filed under acknowledgement number 294763060230120 dated 23.01.2020. For Petitioner : Mr.Arun Kurian Joseph For Respondents : Mrs.Hema Muralikrishnan Standing Counsel ORDER According to petitioner, he is Income Tax Assessee. He had filed his returns for assessment year 2012-13 on 28.07.2012 admitting total income of Rs.3,56,08,020/-. After scrutiny of same, first respondent passed assessment order under Section 143(3), making addition of Rs.93,81,710/-, considering issue of long-term and short- term capital arising from joint development of property in Arumbakkam and also taking note of joint development agreement and area of share transferred to developer. Challenging said assessment order, petitioner preferred appeal to second respondent, who vide order dated 03.11.2016, partly allowed appeal by reducing addition to 2/6 http://www.judis.nic.in W.P.No.6669 of 2020 Rs.85,38,658/-, against which, department filed appeal before Tribunal, which ended in dismissal in favour of petitioner. When things stood thus, on 28.02.2019, first respondent issued notice under Section 148 stating that he had reason to believe that petitioner's income for assessment year 2012-13 had escaped assessment and hence, it was proposed to reassess income and petitioner was called upon to file his returns. Accordingly, petitioner filed his returns on 13.03.2019. Thereafter, assessment was reopened and reassessment order was passed on 27.12.2019, wherein addition was made under short-term capital gains and long-term capital gains and tax was determined at Rs.1,45,78,610/-. Aggrieved over same, petitioner filed appeal before second respondent on 25.01.2020. While so, first respondent, vide communication dated 06.02.2020, directed petitioner to pay 20% of disputed tax amount, which works out to Rs.29,15,722/-, treating him as Assessee in default . Hence, petitioner has filed this writ petition to quash said communication dated 06.02.2020 issued by first respondent and consequentially, stay recovery of tax till disposal of appeal by second respondent. 3/6 http://www.judis.nic.in W.P.No.6669 of 2020 2.Though petitioner raised many grounds assailing impugned communication issued by first respondent, learned counsel for petitioner restricted same to extent of seeking direction to second respondent to dispose of appeal filed by petitioner as against reassessment order within time frame to be stipulated by this Court, for which, learned standing counsel appearing for respondents has no serious objection. 3.Considering facts and circumstances of case and having regard to submissions now made by learned counsel on either side, this Court is inclined to modify order passed by first respondent vide communication dated 06.02.2020 and give appropriate direction to second respondent for disposal of appeal filed by petitioner. 4.Accordingly, order passed by first respondent vide communication dated 06.02.2020 is modified to effect that petitioner shall pay sum of Rs.10,00,000/- to first respondent within period of four weeks from date of receipt of copy of this order, failing which, it 4/6 http://www.judis.nic.in W.P.No.6669 of 2020 is open to first respondent to recover amount as mentioned in said communication. In meanwhile, second respondent shall consider appeal filed by petitioner as against order of reassessment dated 27.12.2019 for year 2012-13 and pass appropriate orders, on merits and in accordance with law, after affording due opportunity of personal hearing to petitioner. 5.This writ petition stands disposed of in above terms. No costs. Consequently, connected miscellaneous petitions are closed. 16.03.2020 kas Index : Yes/No Internet: Yes/No To 1.The Assistant Commissioner of Income Tax Non-Corporate Circle 7(1) Income Tax Department Mahatma Gandhi Road Chennai 600 034 2.The Commissioner of Income Tax (Appeals)-7 Income Tax Department Mahatma Gandhi Road Chennai 600 034 5/6 http://www.judis.nic.in W.P.No.6669 of 2020 R.MAHADEVAN, J. kas/rk W.P.No.6669 of 2020 and W.M.P.Nos.7908 & 7909 of 2020 16.03.2020 6/6 http://www.judis.nic.in Jothi Swaminathan Kalyanakumar v. Assistant Commissioner of Income-tax Non-Corporate Circle 7(1), Chennai / Commissioner of Income-tax (Appeals)-7, Chennai