SINDHU SHAJI, vs. THE ADDITIONAL/JOINT/DEPUTY/ASSISTANT COMMISSIONER OF INCOME TAX/ INCOME TAX OFFICER,

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WP(C)/7487/2024HC KeralaKLHC01085843202405 March 2024Author: HONOURABLE MR. JUSTICE GOPINATH P.4 pages
AI SummaryPartly Allowed

What did the High Court hold?

The High Court disposed of the writ petition by directing the 3rd respondent (Commissioner of Income Tax (Appeals)) to consider and pass orders on the delay petitions (Exhibits P-3 series) and stay petitions (Exhibits P-4 series) within six weeks of receiving a certified copy of the judgment. The court clarified that the appellate authority should only pass orders on the stay petitions on merits if it decides to condone the delay in filing the appeals. Crucially, the court ordered that until orders are passed on the delay and stay petitions as directed, any proceedings for recovery of amounts due under the assessment and penalty orders (Exhibits P-1, P-1(a), and P-1(b)) shall remain suspended. The court did not decide on the merits of the assessment or penalty orders themselves.

What were the facts?

The petitioner, Sindhu Shaji, is challenging an order of assessment (Exhibit P-1) and two penalty orders (Exhibits P-1(a) and P-1(b)) passed under the Income Tax Act, 1961. She has filed appeals (Exhibits P-2 series) against these orders before the 3rd respondent, the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi. Along with the appeals, she has also filed delay petitions (Exhibits P-3 series) and stay petitions (Exhibits P-4 series). The present writ petition seeks a direction to prevent the enforcement of the amounts demanded in the assessment and penalty orders until the delay and stay petitions are considered by the appellate authority.

What were the issues?

1. Whether the petitioner is entitled to a direction for the suspension of recovery proceedings pending the consideration of her delay and stay petitions by the appellate authority? (Question of law and fact, concerning the procedural rights of an assessee). Assessee's Contention: The petitioner argues that recovery of the demanded amounts should be stayed until the appellate authority decides on the condonation of delay and the grant of stay. The petitioner relies on the principle that coercive recovery should be deferred pending the disposal of preliminary applications for condoning delay and granting stay. Revenue's Contention: The learned Standing Counsel for the Income Tax Department appeared before the court. No specific arguments or contentions from the revenue's side regarding the stay of recovery or the merits of the delay/stay petitions are recorded in the judgment.

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. TUESDAY, THE 5TH DAY OF MARCH 2024 / 15TH PHALGUNA, 1945 WP(C) NO. 7487 OF 2024 PETITIONER: SINDHU SHAJI, AGED 52 YEARS, 9-31/27E THAMARACHALIL HOUSE, 33 PANCHAVADI COLONY, VYTTILA, ERNAKULAM, PIN – 682019. BY ADVS. SRI. K. S. HARIHARAN NAIR SMT. G. REMADEVI SMT. HARIMA HARIHARAN SRI. RAJATH R NATH SRI. DHEERAJ SASIDHARAN RESPONDENTS: 1 THE ADDITIONAL/JOINT/DEPUTY/ASSISTANT COMMISSIONER OF INCOME TAX/ INCOME TAX OFFICER, NATIONAL FACELESS ASSESSMENT CENTRE, DELHI, PIN – 110001. 2 THE INCOME TAX OFFICER, NON-CORP WARD 1(1), KOCHI, C. R BUILDING, I. S. PRESS ROAD, KOCHI, PIN – 682018. 3 THE COMMISSIONER OF INCOME TAX (APPEALS), NATIONAL FACELESS APPEAL CENTRE, DELHI, PIN – 110001. BY ADV. SRI. CYRIAC TOM – SC – INCOME TAX THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 05.03.2024, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C) NO. 7487 OF 2024 2 GOPINATH P., J. -------------------------- W.P.(C) No. 7487 of 2024 ------------------------- Dated this the 5th day of March, 2024

JUDGMENT The petitioner suffered Exhibit P-1 Order of Assessment under the provisions of the Income Tax Act, 1961. Exhibits P-1(a) and P- 1(b) are the orders imposing penalty on the petitioner. The petitioner has preferred Exhibit P-2 series of appeals against Exhibits P-1, P-1(a) and P-1(b) along with Exhibits P-3 series of delay petitions and Exhibits P-4 series of stay petitions.

2.

The only relief sought for by the petitioner, presently, is for a direction that the amounts demanded in terms of Exhibits P-1, P-1(a) and P-1(b) orders shall not be enforced, pending consideration of the delay petitions and the stay petitions by the 1st Appellate Authority. Heard the learned Standing Counsel for the Income Tax Department also.

3.

Having heard the learned Counsel for the petitioner and the learned Standing Counsel appearing for the Income Tax Department and, considering the limited nature of relief sought for by the petitioner, this writ petition will stand disposed of directing the 3rd

WP(C) NO. 7487 OF 2024 3 respondent to consider and pass orders on Exhibits P-3 series of delay petitions and Exhibits P-4 series of stay petitions filed in Exhibits P-2 series of appeals within a period of six weeks from the date of receipt of a certified copy of this Judgment. I make it clear that the Appellate Authority needs to pass orders on the stay petitions on merits only if it is decided to condone the delay in filing the appeals. Till such time as orders are passed on Exhibits P-3 series of delay petitions and Exhibits P-4 series of stay petitions as directed above, any proceedings for recovery of amounts due in terms of Exhibits P-1, P-1(a) and P-1(b) shall remain suspended. GOPINATH P. JUDGE Svn

WP(C) NO. 7487 OF 2024 4

Appendix — schedule of exhibits
APPENDIX OF WP(C) 7487/2024 PETITIONER’S EXHIBITS Exhibit P1 COPY OF ASSESSMENT ORDER DATED 29-03-2022 ISSUED UNDER SECTION 147 READ WITH SECTION 144 OF THE INCOME TAX ACT BY THE 1ST RESPONDENT FOR THE ASSESSMENT YEAR 2013-14 Exhibit P1(a) COPY OF PENALTY ORDER DATED 16-09-2022 ISSUED UNDER SECTION 271(1)(B) OF THE INCOME TAX ACT BY THE 2ND RESPONDENT FOR THE ASSESSMENT YEAR 2013- 14 Exhibit P1(b) COPY OF PENALTY ORDER DATED 28-09-2022 ISSUED UNDER SECTION 271(1)(C) OF THE INCOME TAX ACT BY THE 2ND RESPONDENT FOR THE ASSESSMENT YEAR 2013- 14 Exhibit P2 COPY OF APPEAL MEMORANDUM DATED 31-01-2024 SUBMITTED BY THE PETITIONER AGAINST EXT. P1 Exhibit P2(a) COPY OF APPEAL MEMORANDUM DATED 15-02-2024 SUBMITTED BY THE PETITIONER AGAINST EXT. P1(A) Exhibit P2(b) COPY OF APPEAL MEMORANDUM DATED 09-02-2024 SUBMITTED BY THE PETITIONER AGAINST EXT. P1(B) Exhibit P3 COPY OF THE DELAY CONDONATION PETITION FILED BY THE PETITIONER IN EXT. P2 APPEAL Exhibit P3(a) COPY OF THE DELAY CONDONATION PETITION FILED BY THE PETITIONER IN EXT. P2(A) APPEAL Exhibit P3(b) COPY OF THE DELAY CONDONATION PETITION FILED BY THE PETITIONER IN EXT. P2(B) APPEAL Exhibit P4 COPY OF THE STAY PETITION DATED 31-01-2024 FILED BY THE PETITIONER BEFORE THE 3RD RESPONDENT IN EXT. P2 APPEAL Exhibit P4(a) COPY OF THE STAY PETITION DATED 15-02-2024 FILED BY THE PETITIONER BEFORE THE 3RD RESPONDENT IN EXT. P2(A) APPEAL Exhibit P4(b) COPY OF THE STAY PETITION DATED 09-02-2024 FILED BY THE PETITIONER BEFORE THE 3RD RESPONDENT IN EXT. P2(B) APPEAL

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