UNNIKRISHNAN K vs. INCOME TAX OFFICER, WARD-1 & TPS, TIRUR

WP(C)/1887/2023HC KeralaKLHC01004655202320 January 2023Author: HONOURABLE MR. JUSTICE GOPINATH P.4 pages

AI SummaryPartly Allowed

What did the High Court hold?

The High Court, considering the limited relief sought by the petitioner, directed that all proceedings pursuant to Ext.P4 (recovery notice) shall be kept in abeyance until orders are passed on Ext.P5 (stay petition). The Tribunal is directed to endeavor to pass orders on the stay petition within a period of three months from the date of receipt of a certified copy of this judgment. The principle here is that interim relief can be granted to maintain the status quo pending adjudication of a substantive appeal or application before the appellate authority, provided there is a reasonable ground for doing so and the relief sought is limited in scope.

What were the facts?

The petitioner, Unnikrishnan K, is challenging an order of assessment for assessment year 2011-12 (Ext.P1), which was largely upheld by the First Appellate Authority (Ext.P2). The petitioner filed an appeal (Ext.P3) before the Income Tax Appellate Tribunal (ITAT). Subsequently, upon receiving a notice proposing recovery proceedings (Ext.P4), the petitioner filed a stay petition (Ext.P5) before the ITAT. The present writ petition seeks to keep recovery proceedings in abeyance until the ITAT passes an order on the stay petition.

What were the issues?

1. Whether proceedings initiated as per Ext.P4 notice proposing recovery should be kept in abeyance until orders are passed on Ext.P5 stay petition filed before the Income Tax Appellate Tribunal. The petitioner argued that recovery proceedings should be stayed pending the ITAT's decision on the stay petition. The revenue, represented by the Standing Counsel, was heard. No specific arguments from either side regarding the merits of the appeal or the stay petition were recorded.

Which sections of the Income-tax Act were involved?

None explicitly mentioned

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE GOPINATH P. FRIDAY, THE 20TH DAY OF JANUARY 2023 / 30TH POUSHA, 1944 WP(C) NO. 1887 OF 2023 PETITIONER: 1 UNNIKRISHNAN K AGED 57 YEARS KUNNAMPALLY, U.K. HOUSE, WANDOOR, MALAPPURAM, PIN - 679328 BY ADVS. S.ARUN RAJ C.T.SUJA ARJUN S.RAJ RESPONDENTS: 1 INCOME TAX OFFICER, WARD-1 & TPS, TIRUR TOWN HALL ROAD, TIRUR, PIN - 676101 2 THE INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH, CENTRAL REVENUE BUILDING, KAKKANAD, ERNAKULAM, PIN - 682030 BY ADVS. SRI.CHRISTOPHER ABRAHAM, STANDING COUNSEL SRI. JOSE JOSEPH, SC, INCOME TAX DEPARTMENT, KERALA THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 20.01.2023, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WPC No.1887 of 2023 2 JUDGMENT Dated this the 20th day of January, 2023 The petitioner suffered Ext.P1 order of assessment under the provisions of the Income Tax Act, 1961 for the assessment year 2011-12. The said order of assessment has been substantially confirmed by the First Appellate Authority through Ext.P2 order. The petitioner has therefore approached the Tribunal by filing Ext.P3 appeal before the Income Tax Appellate Tribunal. On being served with Ext.P4 notice proposing recovery, the petitioner filed Ext.P5 stay petition before the Tribunal. The petitioner prays that till orders are passed on Ext.P5, the proceedings initiated as per Ext.P4 may be kept in abeyance. 2. Heard the learned Standing Counsel also. Having regard to the limited nature of relief sought for by the petitioner, this writ petition will stand disposed of directing that all proceedings WPC No.1887 of 2023 3 pursuant to Ext.P4 shall be kept in abeyance till orders are passed on Ext.P5 stay petition filed in Ext.P3 appeal. The Tribunal shall endeavour to pass orders on Ext.P5 within a period of three months from the date of receipt of a certified copy of this

judgment. GOPINATH P. JUDGE SKP/20-01

WPC No.1887 of 2023 4 APPENDIX OF WP(C) 1887/2023 PETITIONER'S EXHIBITS: EXHIBIT P1 AOF THE ASSESSMENT ORDER UNDER SECTION 143 (3) R.W.S 147 OF THE ACT DATED 19- 10-2016 FOR THE AY 2011-12 EXHIBIT P2 AOF THE ORDER DATED 10-10-2022 PASSED BY THE CIT (APPEALS), NATIONAL FACELESS APPEAL CENTRE, DELHI EXHIBIT P3 AOF THE APPEAL FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT FOR THE AY 2011-12 EXHIBIT P4 AOF THE LETTER DATED 29-12-2022 ISSUED BY THE 1ST RESPONDENT TO THE PETITIONER EXHIBIT P5 AOF THE STAY APPLICATION FILED BY THE PETITIONER IN EXHIBIT P-3 APPEAL BEFORE THE 2ND RESPONDENT FOR THE AY 2011-12 RESPONDENTS' EXHIBITS:NILP.A. TO JUDGE

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