Ccteb India Private Limited v. Assistant Commissioner of Income Tax Central Circle 17 and Another

RAJIV SHAKDHER, J. (ORAL):

¶1On 31.05.2023, we had heard the matter and, broadly, etched out the contours of the case. For the sake of convenience, the relevant part of the order dated 31.05.2023 is extracted hereafter : "2. Issue notice.

2.1 Mr Zoheb Hossain, learned senior standing counsel, accepts notice on behalf of the respondents/revenue.

¶3These petitions concern Assessment Years (AYs) 2019-20, 2020-21 and 2021-22.

¶4The demands raised against each of the AYs is set forth hereafter: Assessment Year Demand Raised 2019-20 Rs.2,29,15,046/-2020-21 Rs.35,59,11,980/-2021-22 Rs.18,60,20,498/-Total Rs. 56,48,47,524/-

¶5As would be evident from the above, the total demand raised qua the petitioner is Rs.56,48,47,524/-.

¶6Counsel for the petitioner says that pursuant to the order of the Principal Commissioner of Income Tax [in short, "PCIT"], the petitioner is now called upon to pay Rs.35,42,16,461/-.

6.1 It is submitted by the counsel for the petitioner that the respondents/revenue have called upon the petitioner to deposit a substantial part of the demand, when, even according to them, the petitioner has the wherewithal to liquidate the demand, if it were to ultimately fail on merits.

¶7We are informed by the counsel for the petitioner that the appeal against the assessment order dated 29.07.2022 was lodged with the

Commissioner of Income Tax (Appeals) [in short, "CIT(A)"] on 27.10.2022.

¶8Mr Hossain, on instructions, says that a fixed deposit/bank balance created by the petitioner amounting to approximately Rs.42 crores stands attached under Section 281B of the Income Tax Act, 1961 [in short, "Act"].

8.1 Mr Hossain says that the attachment dissolves today.

¶9Given this position, for the moment, status quo as to the attachment ordered by the respondents/revenue will continue.

¶10Mr Hossain will place the particulars of the fixed deposits created by the petitioner and the bank accounts in which money stands credited, before the court on the next date of hearing.

¶11Accordingly, no further coercive measure will be taken against the petitioner, in respect of the demands referred to hereinabove.

¶12It is made clear that though this order will not come in the way of CIT(A), he/she is requested to take up the appeal for hearing and disposal at the earliest.

¶13The petitioner will be at liberty to place the order passed today before the concerned CIT(A)."

¶2Pursuant to the hearing held on 31.05.2023, Mr Zoheb Hossain, learned senior standing counsel, who appears on behalf of the respondents/revenue, has obtained instructions.

2.1 As a matter of fact, he has placed before us a hard copy of the counter-affidavit, which, we are told, has been filed with the Registry.

¶3The counter-affidavit is not on record. However, Mr Sumit Bansal, who appears on behalf of the petitioner, has been provided with a hard copy of the counter-affidavit.

¶4Briefly, what emerges is that a cumulative amount of approximately Rs.42 crores, which was available in the fixed deposits maintained by the petitioner with the Standard Chartered Bank, stands released to the petitioner.

¶5Mr Hossain says that as of today, the attachment order of the respondents/revenue extends to the Fixed Deposit No.50200025247964 maintained by the petitioner with the HDFC Bank, Lower Parel Branch,

Mumbai, worth Rs.2,14,14,742/-.

¶6As noticed on the previous date, the total demand raised against the petitioner is Rs.56,48,47,520/-.

6.1 The PCIT had called upon the petitioner to pay a part of the said demand, i.e., Rs.35,42,16,461/-.

¶7According to us, 20% of the total demand, i.e., Rs.56,48,47,520/- should suffice, in line with the CBDT office memorandum F.No. 404/72/93-ITCC dated 31.07.2017. Since respondents/revenue are secured to the extent of Rs.2,14,14,742/-, the petitioner will deposit the balance amount, i.e., Rs.9,15,54,762/- so that it reaches a figure of 20% of the demand referred to hereinabove [i.e., Rs.11,29,69,504/-].

7.1 The petitioner is granted four (4) weeks for this purpose.

¶8The aforesaid branch of HDFC Bank, i.e., HDFC Bank, Lower Parel Branch, Mumbai, will transfer the amount available in the said fixed deposit to the concerned officer, upon a suitable communication served upon them, within the next ten (10) days.

¶9Learned counsel for the parties say that the writ petitions can be disposed of, in the aforesaid terms.

¶10The Commissioner of Income Tax (Appeals) [in short, "CIT(A)"] will hear and adjudicate the appeal preferred against the assessment order dated

29.07.2022, on merits.

¶11Needless to add, once deposit is made by the petitioner, no coercive measures will be taken against the petitioner, till the disposal of the appeal.

¶12The above-captioned writ petitions are disposed of, in the aforesaid terms.

¶13Consequently, the pending applications shall also stand closed.

¶14The Registry will scan and upload the copy of the aforementioned counter-affidavit, so that it remains embedded in the case file.

¶15Parties will act based on the digitally signed copy of the order.

RAJIV SHAKDHER, J

GIRISH KATHPALIA, J

JULY 19, 2023

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* IN THE HIGH COURT OF DELHI AT NEW DELHI % Decision delivered on: 19.07.2023 + W.P.(C) 7854/2023 & CM Nos.30285-86/2023 CCTEB INDIA PRIVATE LIMITED ..... Petitioner Through: Mr Sumit Bansal, Mr Udaibir Singh Kochar and Ms Tulna Rampal, Advs. versus ASSISTANT COMMISSIONER OF INCOME TAX CENTRAL CIRCLE 17 AND ANOTHER ..... Respondents Through: Mr Zoheb Hossain, Sr Standing Counsel with Mr Sanjeev Menon, Standing Counsel. + W.P.(C) 7867/2023 & CM No.30306/2023 CCTEB INDIA PRIVATE LIMITED ..... Petitioner Through: Mr Sumit Bansal, Mr Udaibir Singh Kochar and Ms Tulna Rampal, Advs. versus ASSISTANT COMMISSIONER OF INCOME TAX CENTRAL CIRCLE 17 AND ANOTHER ..... Respondents Through: Mr Zoheb Hossain, Sr Standing Counsel with Mr Sanjeev Menon, Standing Counsel. + W.P.(C) 7954/2023 & CM No.30624/2023 CCTEB INDIA PRIVATE LIMITED ..... Petitioner Through: Mr Sumit Bansal, Mr Udaibir Singh Kochar and Ms Tulna Rampal, Advs. versus ASSISTANT COMMISSIONER OF INCOME TAX CENTRAL CIRCLE 17 AND ANOTHER..... Respondents Through: Mr Zoheb Hossain, Sr Standing Counsel with Mr Sanjeev Menon, Standing Counsel. CORAM: HON'BLE MR. JUSTICE RAJIV SHAKDHER HON'BLE MR. JUSTICE GIRISH KATHPALIA [Physical Hearing/Hybrid Hearing (as per request)]