IN THE HIGH COURT OF JUDICATURE AT MADRAS DATE: 25-02-2011 CORAM THE HONOURABLE MR.JUSTICE M.JAICHANDREN Writ Petition No.4624 of 2011 and M.P.No.1 of 2011 M/s.Tamilnadu State Marketing Corpn Ltd., 4th Floor, CMDA Tower-II, Gandhi Irwin Bridge Road, Egmore, Chennai-600 008, Represented by its Managing Director, Shri.Sandeep Saxena .. Petitioner. Versus 1.The Chief Commissioner of Income Tax, Chennai-1, 124, MG.Road, Chennai-34. 2.The Commissioner of Income Tax, Chennai-1, 124, MG.Road, Chennai-34. 3. The Commissioner of Income Tax (Appeals), Chennai III, 124, MG Road, Chennai-34. 4. The Additional Commissioner of Income Tax, Company Circle III (1), Chennai-34. 5. The Assistant Commissioner of Income Tax, Company Circle III (1), Chennai-34. .. Respondents. Prayer: Petition filed seeking for a Writ of Certiorarified Mandamus, to call for the records of the 5th respondent in PAN No.:AAACT2964P and quash the impugned order in AACT2964P/2011-11, dated 17.2.2011 and direct the fifth respondent to grant stay of collection of tax and interest for the assessment year 2008-09, till the disposal of appeal by the third respondent. For Petitioner : Mr.P.S.Raman Advocate General for Mr.Subbaraya Aiyar For Respondents : Mr.J.Narayanasamy(Standing Counsel Income Tax) O R D E R 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 2008-09, till the disposal of the appeal, in I.T.A.No.342/10-11, by the third respondent. https://hcservices.ecourts.gov.in/hcservices/ 2. The main contention of the learned counsel appearing on behalf of the petitioner is that the impugned order of the fifth respondent, dated 17.2.2011, 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.316,34,21,626/-, 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. 3. The learned counsel appearing on behalf of the respondents had submitted that this Court may pass an appropriate order, protecting the interest of the respondents, keeping in view the fact that the matter involves substantial public revenue. 4. In view of the submissions made by the learned counsels appearing on behalf of the petitioner, as well as the respondents, this Court finds it appropriate to direct the petitioner to pay a sum of Rs.25 crores, in respect of the tax demand of Rs.71,97,22,210/-, as per the impugned order of the fifth respondent, dated 17.2.2011, made under Section 220(6) of the Income Tax, 1961, within four weeks from the date of receipt of a copy of this order. On payment of the said sum before the fifth respondent, the third respondent shall consider the appeal, in ITA No.342/10-11, and dispose of the same, on merits and in accordance with law, within a period of twelve weeks, thereafter. Accordingly, the writ petition is disposed of, with the above directions. No costs. Consequently, connected miscellaneous petition is closed. Sd/- Asst. Registrar //true copy// Sub Asst.Registrar csh To 1.The Chief Commissioner of Income Tax, Chennai-1, 124, MG.Road, Chennai-34. 2.The Commissioner of Income Tax, Chennai-1, 124, MG.Road, Chennai-34. 3. The Commissioner of Income Tax (Appeals), Chennai III, 124, MG Road, Chennai-34. https://hcservices.ecourts.gov.in/hcservices/ 4. The Additional Commissioner of Income Tax, Company Circle III (1), Chennai-34. 5. The Assistant Commissioner of Income Tax, Company Circle III (1), Chennai-34. 1 cc to M/s.Subbaraya Aiyar, Advocate, Sr.No.13819 1 cc to Mr.J.Narayanaswamy, Advocate, Sr.No.13821 Writ Petition No.4624 of 2011 RL {CO} TP/28.2.2011. https://hcservices.ecourts.gov.in/hcservices/