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Delhi High Court - Orders

Hyatt International Southwest Asia Ltd vs Additional Director Of Income Tax on 8 September, 2021

Author: Manmohan

Bench: Manmohan, Navin Chawla

                              $~67-70
                              *    IN THE HIGH COURT OF DELHI AT NEW DELHI
                              +    ITA 216/2020
                                   HYATT INTERNATIONAL SOUTHWEST ASIA LTD
                                                                                  ..... Appellant
                                                  Through   Mr. S. Ganesh, Senior Advocate with
                                                            Mr. U.A. Rana and Mr. Himanshu
                                                            Mehta, Advocates.
                                                  versus

                                   ADDITIONAL DIRECTOR OF INCOME TAX
                                                                                ..... Respondent
                                                  Through   Mr. Sanjay Kumar, Advocate
                              68
                              +    ITA 217/2020
                                   HYATT INTERNATIONAL SOUTHWEST ASIA LTD
                                                                                  ..... Appellant
                                                  Through   Mr. S. Ganesh, Senior Advocate with
                                                            Mr. U.A. Rana and Mr. Himanshu
                                                            Mehta, Advocates.
                                                  versus

                                   DEPUTY COMMISSIONER OF INCOME TAX
                                                                                ..... Respondent
                                                  Through   Mr. Sanjay Kumar, Advocate
                              69
                              +    ITA 218/2020
                                   HYATT INTERNATIONAL SOUTHWEST ASIA LTD
                                                                                  ..... Appellant
                                                  Through   Mr. S. Ganesh, Senior Advocate with
                                                            Mr. U.A. Rana and Mr. Himanshu
                                                            Mehta, Advocates.


Signature Not Verified
Digitally Signed By:JASWANT
SINGH RAWAT
Signing Date:09.09.2021
08:12:26
                                                        versus

                                    ASSISTANT DIRECTOR OF INCOME TAX
                                                                                           ..... Respondent
                                                       Through      Mr. Sanjay Kumar, Advocate
                              70
                              +     ITA 219/2020
                                    HYATT INTERNATIONAL SOUTHWEST ASIA LTD
                                                                                             ..... Appellant
                                                       Through      Mr. S. Ganesh, Senior Advocate with
                                                                    Mr. U.A. Rana and Mr. Himanshu
                                                                    Mehta, Advocates.
                                                       versus

                                    ADDITIONAL DIRECTOR OF INCOME TAX
                                                                                           ..... Respondent
                                                       Through      Mr. Sanjay Kumar, Advocate
                                    CORAM:
                                    HON'BLE MR. JUSTICE MANMOHAN
                                    HON'BLE MR. JUSTICE NAVIN CHAWLA
                                            ORDER

% 08.09.2021 CM APPL. 30076/2021 in ITA 216/2020 CM APPL. 30157/2021 in ITA 217/2020 CM APPL. 30077/2021 in ITA 218/2020 CM APPL. 30156/2021 in ITA 219/2020 Present applications have been filed on behalf of the appellant seeking ad interim stay of the penalty proceedings initiated by th e Penalty Notices dated 25th February, 2021 pending the final disposal of the Appeals.

Learned senior counsel for the appellant st ates t hat t his Court vide order dated 05th July, 2021 admitted the Appeals and framed the substantial questions of law and fixed the matter for hearing on 28th Sept ember, 2021.

Signature Not Verified Digitally Signed By:JASWANT SINGH RAWAT Signing Date:09.09.2021 08:12:26

He states that respondents have in the meantime issued fresh n otices dat ed 25th February, 2021 purporting to be a final opportunity to t he appellant t o show cause why penalties under Section 271(1)(c) of the Income Tax Act , 1961 ["the Act"] for furnishing of inaccurate particulars of in come sh ould not be imposed on the appellant for the Assessment Years 2009-10, 2010- 11, 2011-12 and 2012-13. He further states that the respondents have informed the appellant that the time available for im posing t he penalty is upto 30th September, 2021 and unless the respondents are interdicted by an order of this Court, they will proceed, in the im mediate fu ture, t o im pose huge penalties on the appellant under Section 271(1)(c) of the Act.

He also submits that penalty proceedings in the present cases are liable to be quashed in view of the judgment passed by this Court in PR. Commissioner of Income Tax (Central)-2 vs. M/S Harsh International Pvt. Ltd., ITA 620/2019.

Issue notice.

Mr. Sanjay Kumar, learned counsel for the Revenue accepts n otice. He prays for and is permitted to file reply affidavits before the n ext dat e of hearing.

List on the date fixed.

Till further orders, penalty proceedings initiated by way of Pen alt y Notices dated 25th February, 2021 are stayed.

MANMOHAN, J NAVIN CHAWLA, J SEPTEMBER 8, 2021 AS Signature Not Verified Digitally Signed By:JASWANT SINGH RAWAT Signing Date:09.09.2021 08:12:26