The Principal Commissioner of Income Tax Vs SwadharmaSwaarajya… — Income Tax | Madras HC (2025)

The Principal Commissioner of Income Tax Vs SwadharmaSwaarajya… — Income Tax | Madras HC (2025)

What the court decided

AI extract

Outcome

Paragraph 4 of the order in W.P.No.22941 of 2024 dated 20.11.2024 modified: the appropriate authority in terms of Circular No.16/2024 dated 18.11.2024 and Circular No.11/2024 dated 01.10.2024 to consider the Section 119(2)(b) application and pass appropriate orders in accordance with law within 8 weeks, with all recovery proceedings kept in abeyance until disposal; all other paragraphs of the earlier order remain intact.

Issue for consideration

Whether the request of the income-tax authorities should be accepted and paragraph 4 of this Court's order in W.P.No.22941 of 2024 dated 20.11.2024 modified, so that disposal of the application dated 09.12.2022 under Section 119(2)(b) is directed to the appropriate authority in terms of Circular No.16/2024 dated 18.11.2024 and Circular No.11/2024 dated 01.10.2024 (to which the Board has delegated that power), with recovery proceedings kept in abeyance meanwhile.

Court's answer

Paragraph 4 of the order in W.P.No.22941 of 2024 dated 20.11.2024 is modified so that the appropriate authority in terms of Circular No.16/2024 dated 18.11.2024 and Circular No.11/2024 dated 01.10.2024 would consider the application under Section 119(2)(b) and pass appropriate orders in accordance with law.

Ratio / Principle

The modified direction requires the appropriate authority to pass orders in accordance with law within a period of 8 weeks from the date of receipt of a copy of the order.

Key takeaways

In view of the fact that both parties agreed to the above direction, all recovery proceedings shall be kept in abeyance until the disposal of the Section 119(2)(b) application.ratio¶28
Except the modification to paragraph 4, all other paragraphs of the earlier order dated 20.11.2024 remain intact, and the Registry was directed to carry out the necessary modification and issue the order copy to the parties forthwith.ratio¶30

Detailed headnote1 paragraphs

Madras High Court (Mohammed Shaffiq, J.) 09.04.2025 - W.M.P.No.9961 of 2025 in W.P.No.22941 of 2024 (Principal CCIT/CBDT/Assessing Officer v. M/s.SwadharmaSwarrajya Sangha): Writ miscellaneous petition by the income-tax authorities to modify paragraph 4 of the Court's order dated 20.11.2024 (which had directed the Central Board of Direct Taxes to dispose of the taxpayer's application dated 09.12.2022 under Section 119(2)(b) of the Income Tax Act) was accepted. Since the Board had delegated the Section 119(2)(b) power to the Principal Chief Commissioner of Income Tax / Commissioner of Income Tax vide Circular No.11/2024 dated 01.10.2024 and Circular No.16/2024 dated 18.11.2024, paragraph 4 was recast: the appropriate authority in terms of those Circulars would consider the application and pass appropriate orders in accordance with law within 8 weeks; both parties having agreed, all recovery proceedings were kept in abeyance until disposal of the application. All other paragraphs of the earlier order remain intact; Registry directed to carry out the modification and issue the order copy forthwith.

IN THE HIGH COURT OF JUDICATURE AT MADRAS

DATED : 09.04.2025

CORAM

THE HONOURABLE MR.JUSTICE MOHAMMED SHAFFIQ

W.M.P. No.9961 of 2025 in

W.P.No.22941 of 2024

The Principal Commissioner of Income Tax, Aayakar Bhawan, No.121, Mahatma Gandhi Road, Nungambakkam, Chennai 600 034.

The Central Board of Direct Taxes Rep By Its Member, Income Tax Building, Aayakar Bhawan, No.121, Mahatma Gandhi Road, Nungambakkam, Chennai-600 034.

The Assessing Officer Income Tax Building, Aayakar Bhawan, No.121, Mahatma Gandhi Road, Nungambakkam, Chennai-600 034.

..Petitioner(s)

Vs.

M/s.SwadharmaSwarrajya Sangha Regd. Office at No.29, Broadway, Chennai-108, Rep. by Its Director, B.V.S.Lakshmi Mani, D/o. Late B.V.S.S.Mani, Res. at Old No 9, New No 15, 1st Cross Street, Rathna Prabha Karpagam Avenue, R A Puram, Chennai 600 028. ...Respondent(s)

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For Petitioner(s) : Mr.V.Mahalingam Senior Standing Counsel assisted by Mrs.S.Premalatha Junior Standing Counsel

For Respondent(s) : Mr.P.Subba Reddy

ORDE R

The writ miscellaneous petition is filed to modify the order of this

Court passed in W.P.No.22941 of 2024 dated 20.11.2024.

2. It is submitted by th e learned counsel for the petitioner that although the impugned order is passed directing 2^nd respondent viz., Central Board of Direct Taxes to dispose of the application dated 09.12.2022, under Section 119(2)(b) of the Income Tax Act. However, vide Circular No.11/2024 dated 01.10.2024 and Circular No.16/2024 dated 18.11.2024, the power under Section 119(2)(b) of the Income Tax Act has been delegated by the Board to Principal Chief Commissioner of Income Tax / Commissioner of Income Tax.

In view thereof the learned counsel for the petitioner would

request that the appropriate authority in terms of the above Circulars

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may now be directed to dispose of the application under Section 119(2)(b) of the Act.

The above request is accepted and paragraph 4 in

W.P.No.22941 of 2024, dated 20.11.2024 is now modified as under:

“4. In view of the above submission the appropriate authority in terms of Circular No.16/2024 dated 18.11.2024 and Circular No.11/2024 dated 01.10.2024 would consider the application and pass appropriate orders in accordance with law within a period of 8 weeks from the date of receipt of a copy of this order. In view of the fact that both parties have agreed to the above direction, all recovery proceedings shall be kept in abeyance until the disposal of the above application.”

5. Except the above modification, all other paragraphs made in the

earlier order dated 20.11.2024 shall remain intact. Registry is directed to carry out necessary modification and issue the order copy to the parties forthwith.

08.04.2025

spp

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To:

SwadharmaSwarrajya Sangha Regd. Office at No.29, Broadway, Chennai-108, Rep. by Its Director, B.V.S.Lakshmi Mani, D/o. Late B.V.S.S.Mani, Res. at Old No 9, New No 15, 1st Cross Street, Rathna Prabha Karpagam Avenue, R A Puram, Chennai 600 028.

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