Indus Towers Ltd. v. ACIT (2020) 273 Taxman 563 / 190 DTR 370 / 315 CTR 201 (Delhi)(HC)

S. 220 : Collection and recovery – Not following the direction of Court and suppressing the facts – Petitioner mislead High Court at preliminary hearing of petition which led to passing interim order- Petition dismissed with costs quantified at Rs. 5 lakhs to be paid to Delhi High Court Advocates’ Welfare Trust [ S. 220(6), 250 , Art . 226 ]

Assessee had returned income of Rs. 210.25 crores on which a tax liability of Rs. 69.84 crores was computed .On writ, it had requested for stay of demand of tax under section 220 contending that prepaid taxes lying with revenue were much more than 20 per cent of disputed demand payable .  Vide interim order, revenue had been restrained from taking any coercive action against assessee for recovery of demand on condition that assessee would not seek any adjournment of hearing of appeal pending before Commissioner (Appeals) and this interim order would merge in order that Commissioner (Appeals) may pass.  However, assessee sought adjournments before Commissioner (Appeals) on two occasions and, thus, disobeyed direction of High Court.  Further, it was found that assessee itself computed book profit at Rs. 1127.45 crores and on that basis, it would be liable to pay tax of Rs. 224.71 crores and this was minimum tax liability of assessee, and thus, there was gross suppression and misstatement by assessee, which led to a false projection of outstanding liability/refund due from/to assessee. Dismissing the petition the Court held that since, petitioner mislead High Court at preliminary hearing of petition which led to passing interim order this writ petition was to be dismissed with costs quantified at Rs. 5 lakhs to be paid to Delhi High Court Advocates’ Welfare Trust .