Payment of Tax at 12% at time of Filing Returns and 10% of Disputed Tax as Pre-Deposit: Calcutta HC Remands Matter [Read Order]

A Division Bench of the Calcutta High Court remanded back the matter to Assistant Commissioner as payment of tax at the rate of 12% was made at the time of filing returns and 10% of the disputed tax was made as pre-deposit.

The intra court appeal by the writ petitioner, Mohammad Sikander Ali is directed against the order passed by the Single Bench refusing to grant any interim order while entertaining the writ petition challenging an order passed by the appellate authority rejecting the appeal filed by the appellant as against the demand of tax on the ground of limitation.

A show cause notice was issued stating that there is short payment of tax and the assessee was directed to produce certain documents as evidence in support of his claim on the date mentioned in the show cause notice. The assessee did not reply to the show cause notice nor produced any documents.

On account of this, an order was passed determining the tax liability under both the Central and the State Act and after the assessee’s bank account was attached, the appeal was preferred by the assessee before the Senior Joint Commissioner of Revenue. There was delay in filing the appeal and hence it was dismissed.

The Bench of Chief Justice TS Sivagnanam and Justice Hiranmay Bhattacharyya noted that one more opportunity can be granted to the assessee to produce proof to show that he is a registered government contractor as the assessee paid tax at the rate of 12% at the time of filing returns and also paid the 10% of the disputed tax as pre-deposit at the time of filing the appeal.

“The appeal and the writ petition are disposed of by setting aside the orders passed by the appellate authority and remanding the matter back to the Assistant Commissioner with a condition that the appellant shall pay a further sum of Rs.1 lakh and upon such payment, the said assessing officer shall consider the documents which the assessee may produce and examine as to whether the assessee was right in computing the tax” the Bench concluded.

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