[aaykarbhavan] HC grants stay on arrest of director if Co. prefers further appeal before Tribunal within 15 days

IT : In recovery proceedings, stay was granted on arrest of assessee's Director for a fortnight on condition that appeal would be filed before Tribunal within 15 days

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[2013] 39 taxmann.com 131 (Punjab & Haryana)

HIGH COURT OF PUNJAB AND HARYANA

Eqbal Inn & Hotels Ltd.

v.

Chief Commissioner of Income-tax, Chandigarh*

RAJIVE BHALLA AND DR. BHARAT BHUSHAN PARSOON, JJ.

CWP NO. 6865 OF 2013

AUGUST  31, 2013 

Section 220 of the Income-tax Act, 1961 - Collection and recovery of tax - When tax and when assessee deemed in default [Arrest] - Assessee-company filed writ of certiorari for restraining revenue from resorting to recovery of penalty by coercive measures during pendency of appeal before Commissioner (Appeals) - Stay order was passed on arrest of assessee-company's director - Since appeal had been decided by Commissioner (Appeals), assessee prayed for further stay on arrest for a fortnight during which an appeal before Tribunal would be filed - Whether arrest of assessee's director should be stayed for 15 days more - Held, yes [Para 6] [In favour of assessee]

Ms. Radhika Suri for the Petitioner. Ms. Savita Saxena for the Respondent.

ORDER

 

Rajive Bhalla, J. - The petitioner prays for issuance of a writ of certiorari quashing order dated 26.02.2013 (Annexure P-11) and for restraining the respondents from resorting to recovery of the consequent penalty of Rs.1,74,40,950/- by coercive measures, during pendency of an appeal before the Commissioner of Income Tax.

2. Vide order dated 27.05.2013, the arrest of the petitioner's Director was stayed.

3. After taking into consideration the entirety of the dispute, the following order was passed on 24.07.2013: —

"Although judgment in this first appeal, filed by the petitioner was reserved in January, 2013 but as informed by counsel for the respondent, no order has been pronounced.

We, therefore, direct the Commissioner of Income Tax (Appeals), Patiala to make every attempt to pronounce orders in the pending appeal within 15 days after receipt of a copy of this order.

Adjourned to 31.08.2013.

A copy of the order be handed over to Ms.Savita Saxena, Advocate under the signatures of the Special Secretary attached to this Court."

4. Counsel for the revenue states that as the appeal has been decided by the Commissioner of Income Tax, on 27.08.2013, the petition has been rendered infructuous.

5. Counsel for the petitioner does not deny the correctness of the aforesaid assertion but prays that the order staying arrest of the petitioner's Director may be allowed to continue for a fortnight during which the petitioner shall file an appeal before the Income Tax Appellate Tribunal.

6. We have heard counsel for the parties and as admittedly, the appeal has been decided, dispose of the writ petition as infructuous by granting liberty to the petitioner to file an appeal before the Income Tax Appellate Tribunal. In case, such an appeal is filed within a fortnight from today, the arrest of the petitioner's Director shall remain stayed for this period of 15 days. In case, the petitioner files an application for stay, it shall be considered and decided within a week of its filing.

SB

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Regards

Prarthana Jalan

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