VODAFONE MOBILE SERVICE LTD Vs. UNION OF INDIA

JUDGEMENT

(1.) This writ petition is directed against the order dated 03.01.2013 passed by the Additional Commissioner of Income-tax, Range-17, New Delhi and it pertains to the demand allegedly outstanding on account of the orders passed by the assessing officer under section 154 of the Income-tax Act, 1961 (hereinafter referred to as 'the said Act') pertaining to the assessment years 2004-05 and 2005-06. A demand of '. 288,41,16,037/- is said to be outstanding against the petitioner in respect of the said assessment years pursuant to the orders passed under section 154 of the said Act. The said amount is broken up into Rs. . 92,54,79,604/- for the assessment year 2004-05 and Rs. .195,86,36,433/- for the assessment year 2005-06. We may point out that, in fact, the figure was higher by '. 30 crores but the petitioner/assessee has already paid a sum of Rs. . 30 crores and, therefore, we are left with the total figure of '. 288,41,16,037/-.

(2.) The petitioner is aggrieved by the fact that despite its application for stay no relief has been given to the petitioner by virtue of the impugned order dated 03.01.2013 except to the extent of directing the petitioner to pay the said amount of Rs. . 288.41 crores in instalments. The first instalment was due on 22.01.2013 and was for Rs. . 150 crores, the second instalment was due today, that is, on 15.02.2013, and was to be of Rs. . 100 crores and the balance payment was to be made on or before 15.03.2013.

(3.) The learned counsel for the petitioner submitted that insofar as the assessment year 2004-05 is concerned, the entire demand of '. 92,54,79,604/- is time barred. He submitted that the assessment was completed under section 143(3) on 29.12.2006 which meant that the end of the financial year in which the assessment was completed would be 31.03.2007. The period of limitation for rectification under section 154(7) of the said Act is four years from the end of the financial year in which the assessment is completed. In other words, the last date was 31.03.2011. However, the notice itself has been issued beyond that date on 02.03.2012 and the order under section 154 has been passed on 23.03.2012 and therefore the entire demand of Rs. . 92,54,79,604/- is time barred. We have heard the learned counsel for the respondent also on this aspect of the matter. He submitted that the petitioner has already filed an appeal against the said order under section 154 and the same is pending. He also submitted that an appeal has also been filed by the petitioner against the original assessment order dated 29.12.2006 pertaining to the assessment year 2004-05 and that is yet to be adjudicated upon. Therefore, this court ought not to accept the plea of the petitioner with regard to the entire demand being time barred.