Disposed

M/S Maba Corporate Services Pvt. Ltd. v. the Deputy Commissioner of Income Tax

Karnataka HC30 Mar 2021WP/6004/2021

Case brief

AI extract

What is this about?

The High Court of Karnataka disposed of a writ petition filed under Articles 226 & 227. Directing the Deputy Commissioner of Income Tax to pass an order under Section 154 of the IT Act to give effect to the ITAT order setting aside the assessment and directing consideration for a refund under Section 240.

What did the court decide?

Respondent No.1 directed to pass orders under Section 154 and consider refund under Section 240 within two months.

M/S Maba Corporate Services Pvt. Ltd. Vs the… — Writ and Judicial Review | Karnataka HC (2021)

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IN THE HIGH COURT OF KARNATAKA AT BENGALURU

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DATED THIS THE 30^TH DAY OF MARCH 2021

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BEFORE

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THE HON'BLE MR.JUSTICE S. SUNIL DUTT YADAV

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WRIT PETITION No.6004/2021 (T-IT)

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Between:

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M/s. MABA Corporate Services Pvt. Ltd., No.186/1, J.C. Complex Annexe, Sirur Park Road, Seshadripuram, Bangalore - 560 020 Rep. by its Managing Director, Sri C.M. Narayana. … Petitioner

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(By Sri M.V. Seshachala, Senior Advocate for Sri Aravind V. Chavan, Advocate)

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And:

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The Deputy Commissioner of Income Tax, Central Circle - 2(3), C.R. Building, Queens Road, Bengaluru - 560 001.

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Commissioner of Income Tax, Central Circle, C.R. Building, Queens Road, Bengaluru - 560 001. … Respondents

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(By Sri E.I. Sanmathi, Advocate)

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This Writ Petition is filed under Articles 226 & 227 of the Constitution of India, praying to direct the respondents to refund the tax and interest collected after the Assessment Order for the Assessment Year 2013-14 together with interest entitled to the petitioner by passing consequential order under Section 154 of the IT Act and Section 240 of the IT Act in view of the Assessment Order dated 30.03.2015 Annexure-A and Appellate Commissioner Order Dated 29.07.2016 Annexure-B having been set aside by the Tribunal under Order dated 12.05.2017 vide Annexure-C.

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This Writ Petition coming on for preliminary hearing this day, the Court made the following:

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ORDER

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The petitioner-assessee has sought for issuance of a writ of mandamus to direct the respondents to pass orders under Section 154 of the Income Tax Act, 1961 [for short 'I.T.Act] pursuant to the order of Income Tax Appellate Tribunal ['ITAT' for short] dated 12.05.2017 at Annexure-C setting aside the assessment order dated 30.03.2015 (Annexure-A) and that of the Commissioner of Income Tax (Appeals)-11 dated 29.07.2016 (Annexure-B) and has further sought for necessary direction to the respondents to refund their tax and interest collected pursuant to the assessment order for the Assessment Year 2013-2014.

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The petitioner submits that the Assessing Officer has passed an order on 30.03.2015 disallowing the petitioner's writing off bad debts with respect to Rs.51,87,360/-. The said order was taken up in appeal before the Commissioner of Income Tax (Appeals)-11, who affirmed the order of Assessing Officer by his order dated 30.04.2015 which again was carried up in appeal before the ITAT, which however has allowed the appeal by order dated 12.05.2017.

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It is submitted that the ITAT while allowing the appeal as regards the Assessment Year 2013-2014 has specifically observed that the claim for writing off bad debts with respect to Rs.51,87,360/- as claimed by the assessee has been affirmed while setting aside the order of Commissioner of Income Tax (Appeals)-11. Accordingly, it

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is submitted that pursuant to the order of ITAT, the respondent Authorities are required to give effect to the said order by passing necessary order under Section 154 and if that were to be so, consequently, the petitioner's

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request for refund ought to be ordered in terms of Section 240 of I.T. Act.

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Learned counsel appearing for the Revenue

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submits that in light of the prayer sought for, the Authorities would consider passing an order under Section 154 of I.T.Act consequent to the order of ITAT and also further consequential order under Section 240 as per law.

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Taking note of the same, the petition is disposed off . The respondent No.1 is to pass appropriate orders in accordance with law to give effect to the order of ITAT dated 12.05.2017 within a period of two months from the date of release of this order.

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The respondent is also directed to consider passing an order for refund, in the event, the order under Section 154 is passed simultaneously.

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Sd/JUDGE

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VGR

M/S Maba Corporate Services Pvt. Ltd. v. the Deputy Commissioner of Income Tax

Case brief

What is this about?

What did the court decide?

M/S Maba Corporate Services Pvt. Ltd. v. the Deputy Commissioner of Income Tax

Case brief

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