M/S. D.C.MILLS PVT.LTD., vs. THE COMMISSIONER OF INCOME TAX (APPEALS),

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WP(C)/27614/2024HC KeralaKLHC01127818202405 August 2024Author: HONOURABLE MR. JUSTICE GOPINATH P.6 pages
AI SummaryRemanded

What did the High Court hold?

The High Court disposed of the writ petition by directing the Income Tax Appellate Tribunal, Kochi Bench, to consider and pass orders on the delay petition and the stay petition filed in the petitioner's appeal (Ext.P17). This is to be done within three months from the receipt of a certified copy of the judgment, after affording an opportunity of hearing to the petitioner. Crucially, until such orders are passed by the ITAT, any recovery proceedings for the penalty imposed for assessment year 2017-18 are to remain suspended. The Court clarified that the Tribunal needs to pass orders on the stay application on merits only if it decides to condone the delay. It is also open to the Tribunal to consider the maintainability of the stay petition concerning the pre-deposit requirement under Section 254(2A) of the Act.

What were the facts?

The petitioner, M/s. D.C. Mills Pvt. Ltd., is challenging an order of penalty dated August 7, 2021, issued under Section 270A of the Income Tax Act, 1961, for assessment year 2017-18. The penalty imposed amounts to Rs. 7,37,55,890/-. An appeal against this penalty order was dismissed. The petitioner has filed a second appeal before the Income Tax Appellate Tribunal (ITAT), which is pending, along with a stay petition and an application for condonation of delay. The petitioner filed a writ petition before the High Court of Kerala apprehending recovery proceedings while the ITAT appeal is pending.

What were the issues?

1. Whether the Income Tax Appellate Tribunal should be directed to consider and pass orders on the delay petition and stay petition filed in the petitioner's second appeal, and if so, within what timeframe? (Question of procedure and mixed law and fact) Assessee's Contention: The petitioner argued that pending consideration of the stay petition and the application for condonation of delay by the ITAT, recovery proceedings should be kept in abeyance. Revenue's Contention: The learned Senior Standing Counsel appearing for the Department was heard.

Which sections of the Income-tax Act were involved?

Section 270A,Section 254(2A)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, by filing a Second

G.O.(RT)NO.459/2021/DMD DATED 7.6.2021. Exhibit P10OF THE ORDER DATED 7.8.2021 ISSUED BY THE 2ND RESPONDENT. Exhibit P11OF

THE LETTER NO.ITBA/COM/F/17/2021-22/1036218070(1) DATED 7.10.2021 ISSUED BY THE 3RD RESPONDENT Exhibit P12OF THE JUDGMENT DATED 26.10.2021 IN W.P.(C)NO.22855/2021 OF THIS HON'BLE HIGH COURT OF KERALA, ERNAKULAM Exhibit P13OF THE ORDER DATED 18.3.2024 U/S.250 OF INCOME TAX ACT, 1961 ISSUED BY THE 1ST RESPONDENT TO THE PETITIONER Exhibit P14OF THE DISCHARGE SUMMARY OF THE AMRITA INSTITUTE OF MEDICAL SCIENCES AND RESEARCH CENTER, EDAPPALLY, ERNAKULAM DATED 27.6.2019. Exhibit P15OF THE DEATH CERTIFICATE OF ABBAS.P.M OF THE MARARIKKULAM NORTH PANCHAYATH DATED 12.7.2021

WP(C) NO. 27614 OF 2024 6 Exhibit P16OF THE REQUEST FOR MISSING ID DATED 7.6.2024. Exhibit P17OF THE APPEAL NO. NIL DATED 29.6.2024 FILED BY THE COMPANY BEFORE THE INCOME TAX APPELLATE TRIBUNAL, COCHIN BENCH. Exhibit P18OF THE STAY PETITION FILED BY THE COMPANY BEFORE THE INCOME TAX APPELLATE TRIBUNAL, COCHIN BENCH DATED 9.7.2024 Exhibit P19OF THE PETITION TO CONDONE THE DELAY FILED BY THE COMPANY BEFORE THE INCOME TAX APPELLATE TRIBUNAL, COCHIN BENCH DATED 18.6.2024 Exhibit P20OF THE ACKNOWLEDGEMENT OF E-FILING OF INCOME TAX APPEAL BEFORE THE INCOME TAX APPELLATE TRIBUNAL, COCHIN BENCH.

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