M/S.Tamilnadu Tobacco Company v. The Deputy Commissioner Of

IN THE HIGH COURT OF JUDICATURE AT MADRAS

DATED 12.07.2017

CORAM

THE HONOURABLE MR.JUSTICE T.S.SIVAGNANAM WP.NO.45873/2002 AND WMP.NO.66859/2002 M/s.Tamil Nadu Tobacco Company Ltd., represented by its Director, Mr.K.Narayanaswamy, 1/23,Allangadupudur, Thangalpalayam, Athanur Post, Salem-636 301.

...Petitioner

Vs

1. The Deputy Commissioner of Income-tax, Company Circle, Aayakar Bhawan, Gandhi Road, Salem.

2. The Commissioner of Income-tax(Appeals), Aayakar Bhawan, Gandhi Road, Salem.

3. The Officer-in-charge, Canara Bank, Industrial Finance Branch, Adi Marzben Path, Fort, Mumbai.

...Respondents

PRAYER:- Writ petition filed under Article 226 of the Constitution of India praying to issue a writ of Mandamus to forbear the 1st and 3rd respondents from proceeding with the recovery, collection or payment of the demand pursuant to the Notice No.GIR/PAN No.IDC T0029 dated 29.11.2002. For Petitioner : Ms.S.Sree Lakshmi Valli For R1 and R2 : Mr.A.P.Srinivas, Senior Standing Counsel

ORDER

Heard Ms.S.Sree Lakshmi Valli, learned counsel for the petitioner and Mr.A.P.Srinivas, learned Senior Standing Counsel for the respondents 1 and 2.

2. Though notice has been served on the 3rd respondent/Bank and their name got printed in the cause list, none appears for the 3rd respondent.

3. The petitioner has filed this writ petition, praying for issuance of writ of Mandamus to forbear the respondents 1 to 3 from proceeding with the recovery, collection or payment of the demand, pursuant to the Notice dated 29.11.2002.

4. The petitioner's case is that as against the Orders of Assessment passed by the 2nd respondent for the year 1991-1992 to 1995-1996, the petitioner has filed appeals before the 2nd respondent and the stay applications were also filed. However, when the said applications were pending before the 2nd respondent, the 1st respondent had issued notice under Section 226(3) of the Income Tax Act, 1961 by directing the 3rd respondent to freeze the petitioner's bank account. Therefore, the petitioner approached this Court by way of this writ petition.

5. At that time, the writ petition was admitted, an order of interim stay was granted on 20.12.2002 in WMP.No.66859/2002. The order of interim stay continues to remain in force till date.

6. Neither the learned counsel for petitioner nor the learned Senior Standing counsel for the Revenue, are able to readily inform the Court, as to whether the appeals have been disposed of by the 2nd respondent.

7. In any event, the writ petition being of the year 2002, this Court does not propose to keep the writ petition pending for any longer and the following order will meet the ends of justice. The impugned demand shall continue to remain stay, till the disposal of the appeals by the 2nd respondent/appellate authority, if not already disposed of. In the event, the appeals have been disposed of, then, it is open to the petitioner as well as the Revenue to workout their remedies before the appropriate forum in accordance with law. No costs. Consequently, connected miscellaneous petition is also closed.

Sd/- Assistant Registrar(CCC) //True Copy// Sub Assistant Registrar sk

To

1. The Deputy Commissioner of Income-tax, Company Circle, Aayakar Bhawan, Gandhi Road, Salem.

2. The Commissioner of Income-tax(Appeals), Aayakar Bhawan, Gandhi Road, Salem.

3. The Officer-in-charge, Canara Bank, Industrial Finance Branch, Adi Marzben Path, Fort, Mumbai.

+1cc to Mr.A.P.Srinivas, Advocate, S.R.No.48957 +1cc to Ms.Mallika Srinivas, Advocate, S.R.No.48691 WP.No.45873/2002 and WMP.No.66859/2002 KK(CO) CS/08/08/17