Madras High Court
M/S Mohan Breweries And Distilleries vs The Principal Commissioner Of Income ... on 26 February, 2016
Author: M. Duraiswamy
Bench: M. Duraiswamy
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED : 26.02.2016
CORAM
THE Hon'ble Mr.JUSTICE M. DURAISWAMY
W.P.Nos.6879, 6880 and 6881 of 2016
and
WMP Nos.6108, 6109, 6110, 6111 and 6112 of 2016
M/s Mohan Breweries and Distilleries
limited,
South India Film Chamber of Commerce,
3rd floor, Nos.605 & 606,
T.R. Sundaram Avenue, Thousand Lights,
Chennai 600 006
rep by its Chief Financial Officer,
R. Balachandran
.... Petitioner in all the writ petitions
vs
1. The Principal Commissioner of Income Tax,
Central 2, No.46, M.G. Road,
Nungambakkam, Chennai 34
2. The Deputy Commissioner of Income Tax,
Central Circle 2(1), No.46, M.G. Road,
Nungambakkam,
Chennai 34
3. The Joint Commissioner of Income Tax,
Central Range 2, Chennai 600 034
4. The Commissioner of Income tax (Appeals)-19,
No.46, M.G. Road, Nungambakkam, Chennai -34.
..... Respondents in all the writ petitions
Writ Petitions filed under Article 226 of the Constitution of India praying this Court to issue Writs of Certiorarified Mandamus to call for the records of the petitioners on the file of the 1st respondent and quash the impugned order in C.Nos.2802/C-2/2015-16/5 dated 05.02.2016 and consequently direct the 1st respondent to grant stay of collection of tax and interest for the assessment years 2007-08, 2008-09 and 2009-10 till the disposal of the appeal by the 3rd respondent.
For petitioner : Mr.R. Venkat Narayanan
For respondents : Mr.T. Pramod Kumar Chopda
Standing Counsel
COMMON ORDER
The petitioners have filed the above writ petitions to issue Writs of Certiorarified Mandamus to call for the records of the petitioners on the file of the 1st respondent and quash the impugned order in C.Nos.2802/C-2/2015-16/5 dated 05.02.2016 and consequently direct the 1st respondent to grant stay of collection of tax and interest for the assessment years 2007-08, 2008-09 and 2009-10 till the disposal of the appeal by the 4th respondent.
2. According to the petitioner, the Assessment was completed under Sec.143(1) of the Act for the Assessment Year 2007-2008 on 16.02.2009 and the Scrutiny Assessment was completed under Sec.143(3) of the Act for the Assessment Year 2008-2009 on 31.12.2010. A search was conducted under Sec.132 of the Act and a notice under Sec.153-A was issued and returns were filed. On 31.03.2015, Assessment was completed under Sec.153A r/w Sec.143(3) for the Assessment Year 2007-2008 by disallowing deduction under Sec.80IA of the Act and disallowing the sales promotion expenditure.
3. In respect of Assessment Years 2008-2009 and 2009-2010, on the same day i.e., 31.03.2015, the assessment was completed under Sec.153A r/w Sec.143(3) by disallowing deduction under Sec.80IA of the Act and disallowing the sales promotion expenditure.
4. According to the petiitoners, as per the directions of the Assessing Officer, the second respondent has stayed the tax demand of Rs.5,60,61,656/- applicable to the account of disallowance of deduction under Section 80-IA of the Act and in respect of tax applicable on non-covered issues amounting to Rs.4,05,35,768/- the Assessing Officer has directed to remit the disputed taxes in monthly instalments of Rs.81,07,154/-, payable from November, 2015 to March 2016.
5. By the impugned order dated 05.02.2016, the first respondent has permitted the petitioners to pay a sum of Rs.2,00,00,000/- (Rupees two crores ony) in two instalments. Subsequently, the first respondent modified the order by directing the petitioner to pay a sum of Rs.1,00,00,000/-(Rupees one crore only) in two instalments in February 2016 and March 2016 so that the balance demand can be stayed till 31st March 2016.
6. The learned counsel submitted that since the time granted by the first respondent is very short, time may be extended till 31.05.2016 for making the payment of Rs.1,00,00,000/-
7. The learned counsel for the first respondent submitted that the first respondent has granted reasonable time and therefore, the same may not be interfered by this Court.
8. However, in the interest of justice, I am of the view that in the interest of justice, the petitioner can be given a reasonable time for complying with the orders of the first respondent. In these circumstnces, I extend time till 30.4.2016 for paying the sum of Rs.1,00,000/-(Rupees one crore only), as directed by the first respondent..
9. Accordingly, the petitioners shall pay
(i) the first instalment of Rs.50,00,000/-(Rupees fifty lakhs only) on or before 31.03.2016 and
(ii) the second instalment of Rs.50,00,000/- (Rupees fifty lakhs only) on or before 30.4.2016.
(iii) there shall be an order of interim stay with regard to the balance demand till the disposal of the appeal, filed by the petitioners.
(iv) The 4th respondent is directed to dispose of the appeal, filed by the petitioners, within a period of six months from the date of receipt of copy of this order.
(v) In other aspectrs, the order passed by the first respondent dated 23.02.2016 shall remain unaltered.
10. With these observations, all these writ petitions are disposed of. No costs. Consequently, connected Mps are closed.
26-02-2016 sr Index:no website:yes Note: Issue order copy on 29.02.2016 To
1. The Principal Commissioner of Income Tax, Central 2, No.46, M.G. Road, Nungambakkam, Chennai 34
2. The Deputy Commissioner of Income Tax, Central Circle 2(1), No.46, M.G. Road, Nungambakkam, Chennai 34
3. The Joint Commissioner of Income Tax, Central Range 2, Chennai 600 034
4. The Commissioner of Income tax (Appeals)-19, No.46, M.G. Road, Nungambakkam, Chennai -34.
M. DURAISWAMY,J.,
sr
W.P.Nos.6879, 6880 and 6881 of 2016
26-02-2016