Madras High Court
Mr.Mohan Gandhi vs Principal Commissioner Of Income ... on 27 April, 2022
W.A.No.1235 of 2022
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED : 27.04.2022
CORAM
THE HONOURABLE MR. JUSTICE R. MAHADEVAN
AND
THE HONOURABLE MR. JUSTICE J. SATHYA NARAYANA PRASAD
W.A. No. 1235 of 2022
and
CMP.No.7810 of 2022
Mr.Mohan Gandhi ..
Appellant
Versus
1.Principal Commissioner of Income tax-1
Race Course Road
Coimbatore - 641 018
2.Income Tax Office
Non Corporate Ward 1 (5)
Race Course Road
Coimbatore - 641 018 .. Respondent
Writ Appeal filed under Clause 15 of the Letter Patent against the order
passed by this Court in W.P.No.8647 of 2022 dated 07.04.2022.
For Appellant : Mr.M.Velmurugan
For Respondents : Mr.A.P.Srinivas
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W.A.No.1235 of 2022
Senior Panel Counsel
JUDGMENT
(Judgment of the Court was delivered by R. MAHADEVAN, J.)
This writ appeal arises out of the order dated 07.04.2022 passed in
WP.No.8647 of 2022.
2. According to the appellant, the second respondent passed an
assessment order on 25.12.2019 demanding tax of Rs.1,52,38,850/-, against
which, the appellant preferred an appeal before the first respondent along with
stay petition and by order dated 22.03.2022, the stay petition was disposed of,
subject to make the mandatory payment of 20% of the disputed demand, by the
appellant on or before 31.05.2022, as per the schedule given under:
“The assessee is directed to remit 10% of the disputed
demand on or before 31.03.2022 and another 5% on or before
30.04.2022 which covers to 15% of the disputed demand and
the balance 5% of the disputed demand on or before
31.05.2022. Thus, the assessee is required to pay a sum of
Rs.15,23,890/- being 10% of the total demand outstanding on or
before 31.03.2022, another sum of Rs.7,61,940/- (5% of the
disputed demand) on or before 30.04.2022 and a sum of
Rs.7,61,940/- on or before 31.05.2022. The assessee shall
intimate the compliance of tax payments to the JAO in writing
along with copy of the challan evidencing the payment of taxes
for record purposes. The JAO shall monitor the installment
facility afforded to the assessee and thereafter, stay the balance
disputed demand till disposal of appeal by the Commissioner of
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W.A.No.1235 of 2022
Income Tax (Appeals) functioning under the National Faceless
Appeal Centre (NFAC), New Delhi. In case the assessee fails to
comply with the aforesaid installment facility, the entire scheme
will be cancelled and the Assessing officer shall enforce
collection immediately treating the assessee as “assessee in
default”.”
Challenging the aforesaid order dated 22.03.2022, the appellant filed
WP.No.8647 of 2022, which was disposed of, by order dated 07.04.2022, by
permitting him to remit 20% of the disputed amount (20% of Rs.1,52,38,850/-)
by way of six equal installments and the same shall be remitted on or before 12 th
of every succeeding English Calender Month, commencing from April 2022.
Aggrieved against the same, the appellant has come up with this writ appeal.
3. Mr. M.Velmurugan, learned counsel appearing for the appellant
submitted that the assessment is several times higher than the income returned
and the same is a high-pitched assessment and hence, the condition to deposit
20% of the disputed demand is arbitrary and unreasonable. Even then, the
appellant is inclined to comply with such mandatory deposit, but due to
financial constrains, he is unable to make the same by six equal installments as
ordered by the learned Judge. Therefore, the learned counsel prayed for some
leniency in payment of such mandatory deposit by the appellant.
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W.A.No.1235 of 2022
4. Heard Mr.A.P.Srinivas, learned senior panel counsel appearing for
the respondents.
5. Considering the facts and circumstances of the case coupled with
the submissions made by the learned counsel for the appellant that though the
appellant is willing to remit 20% of the disputed amount, due to his weak
financial status, he is unable to do the same, this court modifies the order of the
learned Judge, by extending the installments from six to twelve, for remittance
of 20% of the disputed demand and the first instalment shall be paid on or
before 30.04.2022 and the rest shall be remitted on or before 12 th of every
succeeding English Calender Month. Accordingly, this writ appeal stands
disposed of. No costs. Consequently, connected miscellaneous petition is closed.
[R.M.D,J.] [J.S.N.P, J.]
msr 27.04.2022
Index : Yes / No
To
1.Principal Commissioner of Income tax-1
Race Course Road, Coimbatore - 641 018
2.Income tax office
Non Corporate Ward 1 (5)
Race Course Road
Coimbatore - 641 018
https://www.mhc.tn.gov.in/judis
W.A.No.1235 of 2022
R. MAHADEVAN, J.
AND
J.SATHYA NARAYANA PRASAD, J.
msr
W.A. No. 1235 of 2022 &
CMP.No.7810 of 2022
27.04.2022
https://www.mhc.tn.gov.in/judis
