S.GURUSHANKAR Vs. A.SORNAM

JUDGEMENT

(1.) The petitioner herein filed WP(MD)No.109 of 2019 challenging the order dtd. 29/11/2018 PAN : ADSPG8325M/CC-1/MDU/2018-19 passed by the Deputy Commissioner of Income Tax, Central Circle-1, Madurai (I/C), Madurai in respect of the assessment year 2015-16. This Court vide order dtd. 4/1/2019 in had granted interim stay of the operation of the said order. There is no dispute that the interim stay is still in operation. In the meanwhile, the Assistant Commissioner of Income Tax, Central Circle-1, Madurai issued notice of demand under Sec. 156 of the Income Tax Act, 1961 on 23/3/2020 calling upon the petitioner to pay a sum of Rs.1,33,57,360.00. According to the petitioner, issuance of the said notice of demand constitutes a willful breach of the interim order granted by this Court.

(2.) Statutory notice was issued and the contemnor appeared before this Court and filed an affidavit justifying the issuance of the said notice of demand.

(3.) The learned Senior Counsel appearing for the petitioner submitted that the said notice of demand was issued even before filing of an application for vacating the interim order of stay granted by this Court. He pointed out that the petitioner was originally slapped with an assessment order dtd. 31/12/2016 in respect of the assessment year 2015-16. Aggrieved by the same, the petitioner filed an appeal before the Commissioner of Income Tax (Appeals), Chennai. The appellate authority passed an order dtd. 14/9/2018 partly allowing the petitioner's appeal. The Deputy Commissioner of Income Tax thereafter passed the order dtd. 29/11/2018 purporting to give effect to the order of the appellate authority.