The Madras High Court has rejected Kalaignar TV’s Writ Petition seeking stay of Collection of Taxes.
The petitioner, a private limited company, is engaged in the business of broadcasting of Tamil channels through television.
Justice T.S Sivagnanam observed that, the contentions advanced before this Court in the first writ petition were never pleaded before the first respondent while arguing the stay petition. In fact, the assessee’s submissions were extracted in the impugned order, from which, it is seen that the assessee, in unequivocal terms, agreed that they are prepared to pay Rs.50 lakhs by 25th of every month till the appeal before the Commissioner is decided. The assessee was confident that the appeal will be decided in their favour and that the tax paid will be refunded to them. These submissions were taken note of by the first respondent and an order to the said effect was passed permitting the petitioner to pay the arrears in monthly instalments of Rs.50 lakhs till 15% of the demand is collected. The Assessing Officer was directed to withdraw the attachment of the assessee’s bank accounts and debtors attachments. However, the petitioner did not keep up their commitment and they were able to pay only a sum of Rs.3.5 Crores.
While dismissing the Writ Petition, the Court also held that, when the petitioner had agreed to comply with the payment of disputed tax at the rate of Rs.50 lakhs per month, they are bound to comply with such an undertaking. Now arguing before this Court pleading their financial incapacity or requesting this Court to examine the merits of the assessment is unsustainable, as this Court finds that there is no error in the impugned order.
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