Madras High CourtWP/4574/2020disposed of

Arrs Silks v. The Deputy Commissioner Of Income Tax

2020-02-25Honourable Dr Justice Anita Sumanth5 pages

IN THE HIGH COURT OF JUDICATURE AT MADRAS

Dated: 25.02.2020

CORAM

THE HONOURABLE DR. JUSTICE ANITA SUMANTH W.P. Nos.4574, 4575, 4578, 4581, 4579, 4580, 4582 & 4583 of 2020 and WMP Nos.5420, 5424, 5427, 5433, 5340, 5432, 5435 & 5436 of 1 ARRS SILKS 7,8 & 9 CAR STREET SALEM 6336 001 REP. BY ITS PARTNER S. RAVICHANDRAN ... PETITIONER in WP No.4574 of 2020 1 EKTHA SANJEY AHUJA 1F RAJAJI ROAD SALEM 636 007 ... PETITIONER in WP No.4575 of 2020 1 REVATHI MODERN RICE MILL 34-A/2 ATTUR MAIN ROAD AYOTHIAPATINAM SALEM 636 103 REP. BY ITS PARTNER P. GANAPATHY ... PETITIONER in WP No.4578 of 2020 1 KAILASH S/O. RAMESH , 1F , RAJAJI SALAI SALEM -636 007 ... PETITIONER in WP No.4579 of 2020 1 SANGEETHA W/O. RAMESHLAL No.1F , RAJAJI SALAI SALEM -636 007 ... PETITIONER in WP No.4580 of 2020 1 N.A.SURESH S/O. B. ANANTHARAMAN 39 VASAGASALAI STREET SHEVAPET SALEM 636 002 ... PETITIONER in WP No.4581 of 2020 1 RAMESHLAL S/O. FATICHAND NO.1F RAJAJISALAI SALEM -636 007 ... PETITIONER in WP No.4582 of 2020

1 SREE BALAJI BULLIONS 22/43 VASAGASALAI STREET SHEVAPET SALEM -636 002 REPRESENTED BY ITS MANAGING PARTNER B.MOHAN ... PETITIONER in WP No.4583 of 2020 Vs.

1 THE DEPUTY COMMISSIONER OF INCOME TAX , CIRCLE (1), INCOME TAX OFFICE NO. 3 , GANDHI ROAD , SALEM 636 007 ..Respondents in W.P.No.4574, 4575, 4581, 4579, 4580, 4582, 4583/2020.

1 ASSISTANT COMMSISIONER OF INCOME TAX CIRCLE 1 HOSUR 737/1 , FIRST FLOOR R.K. TOWERS MARUTHI NAGAR HOSUR 635 109 ..Respondent in W.P.No.4578 of 2020 1 INCOME TAX OFFICER WARD 1(4) INCOME TAX OFFICE NO.3 GANDHI ROAD SALEM - 636 007 ... RESPONDENT in WP No.4579 of 2020 WP No.4574 of 2020 Petition filed under Article 226 of the Constitution of India praying for the issuance of a Writ of Certiorari, calling for the records relating to ITBA / AST / S / 143(3) / 2019-20 / 1023407692 (1) dated 30.12.2019 on the file of the Respondent relating to Assessment year 2017-18 and quash the same. WP No.4575 of 2020 To issue a Certiorari or any other Writ or order or direction in the nature of a Writ Calling for the recoreds relating to ITBA / AST / S / 143(3) / 2019-20 / 1022614390 (1) dated 18.12.2019on the file of the Respondent relating to Assessment year 2017-18 and quash the same.

WP No.4578 of 2020 Calling for the records relating to ITBA / AST / S / 143(3) / 2019-20 / 1023458297(1) dated 30.12.2019 the file of the Respondent relating to Assessment year 2017-18 and quash the same.

WP No.4579 of 2020 Calling for the records relating to ITBA/AST/S/143(3) /201920/1023436643 (1) dated 30.12.2019 on the file of the Respondent relating to Assessment Year 2017-18 and quash the same. WP No.4580 of 2020 calling for the records relating to ITBA/AST/S/143(3) /201920/1022613098 (1) dated 18.12.2019 on the file of the Respondent relating to Assessment Year 2017-18 and quash the same. WP No.4581 of 2020 To issue a Writ of Certiorari or any other Writ or order or direction in the nature of a Writ calling for the records relating to ITBA / AST / S / 143(3) / 2019-20 / 1021877874(1) dated 07.12.2019 on the file of the Respondent relating to Assessment year 2017-18 and quash the same.

WP No.4582 of 2020 Calling for the records relating to ITBA/AST/S/143(3) /20192020/1023453060(1) dated 30.12.2019 on the file of the Respondent relating to Assessment Year 2017-18 and quash the same.

WP No.4583 of 2020 To issue a Writ of Certiorari or any other Writ or order or direction in the nature of a Writ, calling for the records relating to ITBA/AST/S/143(3) /2019-20/1023350591 (1) dated 28.12.2019 on the file of the Respondent relating to Assessment Year 2017-18 and quash the same.

For Petitioner in all WPs.: Mr.B.Kumar, Senior Counsel for Mr.S.Ramachandran For Respondent in all WPs : Mr.A.P.Srinivas, Senior Standing Counsel C O M M O N O R D E R Mr.A.P.Srinivas, learned Senior Standing Counsel accepts notice for the respondent.

2. By consent of both learned Senior Counsel appearing for the learned counsel for the petitioners as well as the learned Senior Standing Counsel for the respondent, these Writ Petitions are disposed finally even at the stage of admission.

3. The petitioners have suffered an order of assessment for Assessment Year (AY) 2017-18, passed in terms of the Income tax Act, 1961 (in short 'Act'). The sole addition relates to certain deposits made in cash during the period of demonetization. According to the petitioners, only one portion of the cash deposit was in demonetised currency and this amount has already been offered to tax by the petitioner. The remaining deposits would not come within the ambit of unexplained money in terms of Section 115 BBE of the Act.

4. As against the orders of assessment, statutory appeals have been filed by the petitioners, which are pending before the Commissioner of Income Tax (Appeals), Salem. Inter alia, the petitioners have also sought a stay of the demand. The details of the appeals and the stay applications are as follows: S.No.

Case No.

Appeal filed on Stay Application filed on Status 1.

W.P.No.4574 of 23.01.2020 06.02.2020 Pending 2.

W.P.No.4578 of 29.01.2020 17.02.2020 Pending 3.

W.P.No.4581 of 30.12.2019 07.02.2020 Pending 4.

W.P.No.4583 of 25.01.2020 07.02.2020 Pending 5.

W.P.Nos.4575, 4579, 4580 and 20.01.2020 06.01.2020 Stay Applications allowed

5. Since the petitioners have rightly approached the authorities for interim protection, it would suffice that the stay applications be considered and disposed in accordance with law.

6. In W.P.Nos.4575, 4579, 4580 and 4582 of 2020, the stay applications have been allowed and hence, nothing survives in these writ petitions. Recording the aforesaid, these writ petitions are closed

7. In W.P.Nos.4574, 4578, 4581 and 4583 of 2020, the authorities are directed to consider and dispose the stay applications after considering the tri-fold aspects of prima facie case, financial stringency and balance of convenience and pass orders after hearing the petitioner in

accordance with law, within six (6) weeks from today. The aforesaid Writ Petitions are disposed in the aforesaid terms.

8. No costs. Connected Miscellaneous Petitions are closed.

s/d- Assistant Registrar(CS VIII) True Copy Sub-Assistant Registrar sl To 1.The Deputy Commissioner of Income Tax Circle (1), Income tax office, No.3, Gandhi Road, Salem - 636 007.

2.The Assistant Commissioner of Income Tax Circle i, Hosur 737/1, First Floor, R.K. Towers Maruthi Nagar, Hosur 635 109.

+2 Ccs to Mr.A.P.Srinivas, Advocate sr 16317, 16316. +8 Ccs to Mr.S.Ramachandran, Advocate sr 16454 to 16461. W.P. Nos.4574, 4575, 4578, 4581, 4579, 4580, 4582 & 4583 of 2020 and WMP Nos.5420, 5424, 5427, 5433, 5340, 5432, 5435 & 5436 of 2020 JP(CO) SP(06/03/2020)