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[Cites 2, Cited by 0]

Madras High Court

M/S.Southern Explosives Company P. Ltd vs The Principal Commissioner Of Income ... on 1 August, 2023

Author: C.Saravanan

Bench: C.Saravanan

                                                                     W.P.No.2334 of 2022

                              IN THE HIGH COURT OF JUDICATURE AT MADRAS

                                              DATED : 01.08.2023

                                                      CORAM

                                  THE HONOURABLE MR.JUSTICE C.SARAVANAN

                                              W.P.No.2334 of 2022
                                                     and
                                             W.M.P.No.2496 of 2022

                     M/s.Southern Explosives Company P. Ltd.,
                     (Represented by its Director),
                     No.161, Greams Road,
                     Chennai – 600 006.                                 .. Petitioner
                     (PAN : AABCS0204J)

                                                         Vs.

                     1.The Principal Commissioner of Income Tax
                       Chennai – 3, Room No.410, 4th Floor,
                       Main Building, Income Tax Department,
                       121, Nungambakkam High Road,
                       Chennai – 600 034.

                     2.The Income Tax Officer,
                       Company Ward – 6(3), Chennai
                       Income Tax Department,
                       121, Nungambakkam High Road,
                       Chennai – 600 034.

                     3.Central Processing Centre,
                       Income Tax Department,
                       Bangalore – 560 500.

                     4.National Faceless Appeal Centre,
                       C-Block, 4th Floor, S.P.M. Civic Centre,
                       New Delhi – 110 001.                             .. Respondents

https://www.mhc.tn.gov.in/judis
                     1/6
                                                                                 W.P.No.2334 of 2022

                     Prayer: Writ Petition filed under Article 226 of the Constitution of India,
                     to issue a Writ of Certiorarified Mandamus, to call for the records of the
                     Writ Petitioner Company / Asssessee on the file of the 1 st respondent to
                     quash the impugned order dated 11.01.2022 in DIN and Letter
                     No.ITBA/COM/F/17/2021-22/1038646163(1) in so far as the implied
                     rejection of the refund request pleaded and consequently direct the
                     respondents to refund forthwith the excessively recovered amount over
                     and above the 20% as prescribed.


                                        For Petitioner       : Mr.A.S.Sriraman

                                        For Respondents : Mrs.S.Premalatha
                                                          Junior Standing Counsel
                                                          for Mr.R.S.Balaji
                                                          Senior Standing Counsel

                                                             ORDER

The petitioner has challenged the impugned proceedings of the 1st respondent dated 11.01.2022 in DIN and Letter No.ITBA/COM/F/17/2021-22/1038646163(1), to quash the same and to direct the respondents to refund the excessively recovered amount over and above 20%.

2.The petitioner has suffered an adverse assessment order on 26.03.2015. Aggrieved by the same, the petitioner preferred an appeal on 21.04.2015 before the Commissioner of Income Tax (Appeals), Chennai. https://www.mhc.tn.gov.in/judis 2/6 W.P.No.2334 of 2022 The said appeal was numbered as ITA No.184/CIT(A)-15/2015-16.

3.It appears that the petitioner was heard and thereafter the Commissioner of Appeals has called for a remand report on several days. However, no order has been passed in ITA.No.184/CIT(A)-15/2015-16.

4.Meanwhile, the case appears to have been transferred to the National Faceless Appeal Centre, New Delhi and it is yet to be re- numbered and taken up for hearing by the aforesaid Centre. Meanwhile, the petitioner was entitled to refund of a sum of Rs.28,78,728/- for various assessment years, which has been adjusted on the following dates:

Sl.No Total Tax Date of deposit Challan Serial Number
1. 371970.00 25-Jun-2021 04676
2. 23440.00 18-Jun-2021 05151
3. 674820.00 04-Apr-2021 00870
4. 812530.00 11-May-2020 01526
5. 61380.00 07-Dec-2019 28321
6. 682080.00 24-Sep-2019 03198
7. 252060.00 25-Mar-2019 20800
8. 1000.00 27-Apr-2015 31662 https://www.mhc.tn.gov.in/judis 3/6 W.P.No.2334 of 2022

5.The petitioner submits that maximum amount that can be demanded pending appeal before the Appellate Commissioner is only 20% as per the prevailing circular which would amount to Rs.9,73,728/-. However, vide impugned communication dated 11.01.2022, the respondents have stated as follows:

“I am directed to communicate that the Principal Commissioner of Income Tax-3, Chennai has considered your petition for grant of stay of collection of demand since CPC has collected more than 20% of demand by way of refund adjustment. Accordingly, the PCIT-3, Chennai has stayed further collection till the disposal of Appeal by the CIT(A).”

6.In view of the above stand of the respondents in the counter, the respondents are directed to refund the excess amount of Rs.19,04,552/- (Rs.28,78,280/- - Rs.9,73,728/-) to the petitioner.

7.This amount shall be refunded to the petitioner by the respondents together with applicable rate of interest, within a period of six weeks from the date of receipt of a copy of this order.

8.The Writ Petition stands disposed of with the above observations. https://www.mhc.tn.gov.in/judis 4/6 W.P.No.2334 of 2022 Consequently, the connected Miscellaneous Petition is closed. No costs.




                                                                                 01.08.2023

                     krk

                     Index              : Yes / No
                     Internet           : Yes / No
                     Neutral Citation   : Yes / No

                     To

1.The Principal Commissioner of Income Tax Chennai – 3, Room No.410, 4th Floor, Main Building, Income Tax Department, 121, Nungambakkam High Road, Chennai – 600 034.

2.The Income Tax Officer, Company Ward – 6(3), Chennai Income Tax Department, 121, Nungambakkam High Road, Chennai – 600 034.

3.Central Processing Centre, Income Tax Department, Bangalore – 560 500.

4.National Faceless Appeal Centre, C-Block, 4th Floor, S.P.M. Civic Centre, New Delhi – 110 001.

C.SARAVANAN, J.

krk https://www.mhc.tn.gov.in/judis 5/6 W.P.No.2334 of 2022 W.P.No.2334 of 2022 01.08.2023 https://www.mhc.tn.gov.in/judis 6/6