Income Tax 1 Kolkata vs M/S Shivam Dhatu Udyog Ltd

[Cites 0, Cited by 0] Calcutta High Court Income Tax 1 Kolkata vs M/S Shivam Dhatu Udyog Ltd on 22 March, 2024 Author: Hiranmay Bhattacharyya Bench: T.S. Sivagnanam, Hiranmay Bhattacharyya OD-1 IN THE HIGH COURT AT CALCUTTA SPECIAL JURISDICTION (INCOME TAX) ORIGINAL SIDE ITAT/205/2023 IA NO: GA/1/2023, GA/2/2023 PRINCIPAL COMMISSIONER OF INCOME TAX 1 KOLKATA VS M/S SHIVAM DHATU UDYOG LTD BEFORE : THE HON'BLE THE CHIEF JUSTICE T.S. SIVAGNANAM AND THE HON'BLE JUSTICE HIRANMAY BHATTACHARYYA DATE : 22ND MARCH, 2024. Appearance : Ms. Smita Das De, Adv. ...for appellant Mr. Samarjit Roychowdhury, Adv. ..for respondents. The Court :- Preference may be made to the order dated 9th February, 2024. In terms of the said order the Commissioner of Income Tax (Judicial), Calcutta has filed a report dated 14th March, 2024. For better appreciation the entire report is extracted hereunder :- "To The Registrar, Original side, Hon'ble High Court at Calcutta, Sir, Sub: Submission of report in compliance to order dated 19.02.2024 of the Hon'ble High Court at Calcutta in the case of PCIT-1, Kolkata, vs Shivam Dhatu Udyog Ltd [ITAT/205/2023; IA No GA/1/2023, GA/2/2023] May it please the Hon'ble Court This report is submitted with approval of the Pr. CCIT West Bengal and Sikkim in compliance to direction issued in the order issued by the Hon'ble Court on 19.2.2024 in the case of M/s Shivam Dhatu Udyog Ltd (IA No. GA/1/2023, GA/2/2023). 2 The Hon'ble Court has been pleased to hear the matter of alleged delay in payment of advocates bills and alleged inordinate pendency of bills of advocates on panel of the Income Tax Department. Interim directions have been issued from time to time to the departmental authorities to rationalize the processes of billing and payment of counsels. In this matter, Dr Tarun Seem, CIT Judicial, Kolkata, the Deputy Controller of Accounts, Kolkata and the ZAO, Kolkata have personally appeared on different dates before the Hon'ble Court to reiterate the sincerity of the department towards timely and rational handling of the billing issues. Sir, it is humbly reiterated that all appropriate actions for rationalizing the billing of counsels have already been taken by the IT Department and following facts are submitted for kind attention of the court: 1. As on date, there is no inordinate pendency of outstanding bills with the Income Tax department or the ZAO. No details of inordinate outstanding bills have been brought on record by any counsel despite repeated requests by the department calling for the same from each advocate on the panel. 2. There is no inordinate delay in processing of bills of the advocates on panel by the Income Tax Department. No details of inordinate delay have been brought on record by any counsel despite repeated requests by the department to share the same. 3. The operations of the departmental panel of advocates are governed by Instructions of the CBDT (instruction no 6/2016 and instruction no 7/2016both dated 7/9/2016). The new Instruction no 1/2024 dated 9/2/2024 supersedes instruction no 6/2016. Bills are processed as per these instructions of CBDT. a. In all these instructions (old as well as new) the PCIT concerned is the nodal agency for processing of bills of the advocates. b. The performance of departmental counsels is reviewed by the jurisdictional PCIT/CIT as per para 4(x) of instruction no 1/2024 dated 9.2.2024 read with para 4.1 of Instruction 7/2016 dated 7.11.2016. The report of PCIT/CIT in this regard is compiled by the CIT, Judicial, for sharing with the CBDT as per para 4.2 of Instruction 7/2016. 3 c. The counsels are required to provide a record of their performance to CIT, Judicial, Kolkata in Proforma E as per para 7.11 of Instruction 7/2016 dated 7.9.2016, by the 5th of every month. It is humbly submitted that, in his affidavit, Mr. Smarajit has pointed out pendency of some bills that relate to the Ministry of Law for the period prior to 19.4.2023. As such, no cases of inordinate delay or inordinate pendency of bills with the Income Tax Department has been brought on record before the CIT Judicial, Kolkata, nor any specific case brought on record before the Hon'ble Court. Vide order dated 19.02.2024, the Hon'ble Court has found merit in the suggestion that a single window system should be put in place for the processing and clearing of the advocates bills for the entire state of West Bengal. The Pr. CCIT, WB & Sikkim Region, in utmost humility and in compliance to the direction of the Hon'ble Court has developed the protocol for processing of bills of advocates through a single window at office of CIT Judicial, Kolkata. This protocol shall ensure compliance to the CBDT Instructions and ease/rationalize the processing of bills submitted by the advocates. The protocol has been finalized and shall be put into operation within the coming weeks. It is most humbly prayed that the matter of bills of panel counsels may most kindly be considered for closure and the issues in the tax matter in the appeal taken up as deemed appropriate. It is further requested that the counsels may be advised to submit their bills as per the new procedure when it is introduced and approach the CIT Judicial for any future grievance in the matter. The advocates on the panel may also be directed to ensure compliance to the CBDT Instructions so that their bills may be processed in a timely and accurate manner. Sd/-14.3.2024 [Dr Tarun Seem] Commissioner of Income-tax, Judicial, Kolkata" We are satisfied with the action taken by the Income Tax Department for streamlining the process of settlement of fee bills of its standing Counsel. 4 Therefore, the report is take on record and the same is accepted and the matter concerning the settlement of fee bills for standing Counsel of the Income Tax Department is closed for the present. Let the department furnish a copy of the report to all the standing Counsel appearing for the Income Tax Department. The learned Senior Government Advocate appearing for the Ministry of Law and Justice has filed a report, a copy of which has been handed over to Mr. Samarjit Roychowdhury. Let these copies also be handed over to the other Counsel appearing for the Income Tax Department. The learned Standing Counsel for Income Tax Department are at liberty to file their affidavit in response to the letter in the form of an affidavit filed by Ministry of Law & Justice. List the appeal on 19th April, 2024. . ( T.S. SIVAGNANAM) CHIEF JUSTICE (HIRANMAY BHATTACHARYYA,J.) pkd/GH.