TAMILNADU STATE MARKETING CORPORATION LTD REPRESENTED BY ITS MANAGING DIRECTOR T SOUNDIAH Vs. CHIEF COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THIS writ petition has been filed praying that this Court may be pleased to issue a Writ of Certiorarified Mandamus to call for and quash the impugned order of the fifth respondent and to direct the fifth respondent to grant stay of the collection of tax and the interest thereon, for the assessment year 2004-05, till the disposal of the appeal preferred before the third respondent.

(2.) THE main contention of the learned counsel appearing on behalf of the petitioner is that the impugned order of the fifth respondent, dated 7.2.2012, directing the petitioner to pay 50% of the tax demand, while granting the order of stay, is arbitrary and illegal. He had also stated that the fifth respondent had erred in disallowing a sum of Rs.232,64,49,342/- out of the additional vend fee special privilege fee payable for the relevant previous year, under the Tamilnadu Indian made Foreign Spirit (Supply by Wholesale) Rules, 1983. It had also been submitted that the first respondent had erred in holding that the Special Privilege Fee rates, enhanced at the end of the financial year, is not an allowable deduction, which is claimed in the P&L Account on mercantile system. Various other grounds have also been raised on behalf of the petitioner.