Mumbai: The Bombay High Court (HC) has directed Armstrong Pure Water Services to pay Rs 25,000 to the assessing officer for failing to inform the official about the stay granted by the court in its case.
A division bench of Justices NR Borkar and KR Shriram directed Armstrong observing that the company should have been proactive and promptly communicated the stay granted by the HC to the assessing officer so that he would have had enough time to make enquiries with his advocate and also check on the website about orders passed.
The HC was hearing a petition filed by Armstrong challenging the notice issued by the assessing officer, GS Naveen Kumar. As per the court’s direction, Kumar was present in the court.
Armstrong contended that the HC had stayed the hearing before the Income Tax on March 14, 2022. However, the assessing officer proceeded to issue an assessment order on April 30, 2022. Hence, there was a breach of the order passed by the court.
Kumar filed an affidavit explaining that the matter was getting time-barred. He was just informed that the stay in terms of prayer clause had been granted, but what that prayer was had not been explained. Also, he said that he was informed about the stay order on March 30, 2022.
The court took note of the fact that Armstrong, after obtaining the urgent order from the HC, informed the assessing officer about the order only after it received a notice dated March 29, 2022.
“Petitioner should have been proactive and promptly communicated the stay granted by this Court to the assessing officer so that he would have had enough time to make enquiries with his advocate and also check on the website about orders passed,” said the HC.
The court has directed Armstrong to pay Rs 25,000 to Kumar to take care of his expenses.
“Petitioner is also directed to pay within a period of two weeks from today, a sum of Rs 25,000 to Naveen Kumar to take care of the expenses incurred by him to travel to Mumbai and for staying in Mumbai to attend to this matter,” said the HC bench.
It further added: “Of course, Naveen Kumar shall not claim separately airfare and accommodation charges from revenue, up to Rs 25,000.”
The HC has kept the petition for further hearing on July 6, whereas it has continued the stay in the case till July 11.
