2017 (9) TMI 482 - HC - Income Tax

Stay of collection of taxes - Held That - It would be appropriate to secure the principal amount of the claim of the Department without the necessity of recourse to any coercive measures to the extent possible. - The order of collection of tax for the assessment years 2010-2013 will remain stayed unconditionally for the period of two weeks from date. - the order of collection of tax for the assessment years 2010-2013 will remain stayed unconditionally for the period of two weeks from date. In the event the petitioner deposit a sum of Rs. 5 crores 10 lakhs with the Revenue Authorities within the period of two weeks from date the stay will continue until disposal of the appeal pending before the Tribunal. The Tribunal is requested to take up the appeal as expeditiously as possible. The Tribunal is also requested not to grant any unnecessary adjournment to any of the parties to the appeal.

Summary

Issues involved:
Challenge to refusal of stay on tax collection for assessment years 2010-2013 by Income Tax Appellate Tribunal 'B' Bench, Kolkata.

Analysis:
The petitioner challenged the order of the Income Tax Appellate Tribunal 'B' Bench, Kolkata, which refused to stay the collection of taxes outstanding for the assessment years 2010-2013. The petitioner argued that the issue under consideration for these assessment years is similar to a different assessment year currently being reviewed by the Hon'ble Supreme Court, where a stay on coercive measures has been granted. The Department highlighted that the amount involved for the concerned assessment years exceeds Rs. 22 crores, including the interest component. The petitioner had already paid Rs. 1,50,00,000 out of the total tax claimed of Rs. 2,00,983,498. The Tribunal, however, found that it was not a fit case for granting a stay as the balance of convenience was not in favor of the assessee, noting that the petitioner did not face financial stringency.

The Court acknowledged the demand of Rs. 2,00,983,498 against the petitioner for the three assessment years and the partial payment made. It was noted that the issue raised in the writ petition was already pending before the Income Tax Appellate Tribunal 'B' Bench, Kolkata, which had refused to grant a stay on the tax collection for the concerned assessment years. The Court decided that it would be appropriate to secure the principal amount without resorting to coercive measures as much as possible. Consequently, the order for tax collection for the assessment years 2010-2013 was stayed unconditionally for two weeks. If the petitioner deposited Rs. 5 crores 10 lakhs with the Revenue Authorities within two weeks, the stay would continue until the appeal's disposal. Failure to make the deposit would automatically vacate the stay, allowing the Department to proceed legally. The Tribunal was instructed to expedite the appeal process and avoid unnecessary adjournments.

In conclusion, the writ petition was disposed of with no order as to costs, providing a detailed directive for the stay on tax collection, deposit conditions, and appeal proceedings to be followed by the concerned parties and the Tribunal.