OFFICIAL LIQUIDATOR vs. ADDITIONAL/JOINT/DEPUTY/ASSISTANT COMMISSIONER OF INCOME TAX

PDF · subscribers
Co.Appl./22/2022HC KeralaKLHC01016529202208 January 2024Author: HONOURABLE MR. JUSTICE T.R.RAVI3 pages
AI SummaryWithdrawn

What did the High Court hold?

The counsel for the Official Liquidator submitted that since the Income Tax Department may not be able to take any coercive steps against the Liquidator for the realization of the claim for interest, there is no necessity to continue with the application. Consequently, the High Court closed the Company Application. The closure was made without prejudice to the right of the Official Liquidator to move the Court again if found necessary. The specific issues raised in the application, including the validity of the assessment order, request for personal hearing, consideration of the return, exemption from interest, and penalty proceedings, were not decided on merits due to the withdrawal of the necessity to pursue the application by the Official Liquidator.

What were the facts?

The Official Liquidator of M/s. Thomas Steaphen and Company Ltd. (in liquidation) filed a Company Application before the High Court of Kerala. The application sought to ratify service of the application, stay proceedings of an assessment order dated 15.02.2022 issued by the National Faceless Assessment Centre, Delhi, and quash the said assessment order. It also requested personal hearing, consideration of the Income Tax Return filed by the Official Liquidator on 08.02.2022, exemption from interest under Sections 234A and 234B due to legal disability, and to not initiate penalty proceedings under Sections 271(1)(c) and 271F. The assessment order was passed under Section 144 r.w. Section 147 r.w. Section 144B of the Income Tax Act, 1961.

What were the issues?

1. Whether the assessment order dated 15.02.2022, issued by the National Faceless Assessment Centre, Delhi, under Section 144 r.w. Section 147 r.w. Section 144B of the Income Tax Act, 1961, should be stayed and quashed. 2. Whether the Official Liquidator should be allowed personal hearing or video conferencing for oral submissions. 3. Whether the Income Tax Return filed by the Official Liquidator on 08.02.2022 should be considered. 4. Whether the Official Liquidator should be exempted from the levy of interest under Sections 234A and 234B of the Income Tax Act, 1961, due to legal disability. 5. Whether proceedings for penalty under Section 274 read with Section 271(1)(c) and Section 274 read with Section 271F of the Income Tax Act, 1961, should be initiated. Assessee's Contentions (Official Liquidator): The Official Liquidator sought to quash the assessment order, stay proceedings, obtain personal hearing, have their return considered, be exempted from interest due to legal disability, and avoid penalty proceedings. The delay in filing the return was attributed to the legal disability of the Official Liquidator. Revenue's Contentions: The judgment does not record any specific contentions from the Income Tax Department.

Which sections of the Income-tax Act were involved?

Section 144,Section 147,Section 144B,Section 234A,Section 234B,Section 274,Section 271(1)(c),Section 271F

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances
IN THE HIGH COURT OF KERALA AT ERNAKULAM (Original Jurisdiction) In the matter of the Companies Act, 1956 and In the matter of M/s.Thomas Steaphen and Company Ltd.(In Liquidation) Co.Appl. No.22/2022 in Co.Pet.53/2000 Before: The Honourable Mr.Justice T.R.RAVI Friday, the 5 th day of January, 2024/15 th Pousha, 1945 Applicant:- Official Liquidator, High Court of Kerala, Ernakulam, representing M/s.Thomas Steaphen & Company Limited (in liqn) Respondent: Additional/Joint/Deputy/Assistant Commissioner of Income Tax, National Faceless Assessment Centre, Delhi. Company Application under Rule 9 of the Company(Court) Rules, 1959 filed by the applicant above named praying for an order to:- i) Ratify the action of Official Liquidator for serving copy of this Company Application to the Standing Counsel of Income Tax Department. ii) pass an interim order to stay the entire proceedings of the Assessment order dated 15.02.2022 issued by the Income Tax Department, national Faceless Assessment Centre, Delhi. iii) Order to quash the Assessment Order dated 15.02.2022 under Section 144 rws Section 147 rws Section 144 B of the Income Tax Act, 1961. iv) Order to allow personal hearing/video conferencing to make oral submission in this matter; v) Order to consider the Income Tax Return filed by the Official Liquidator on 08.02.2022 vi) Order to consider to exempt any levy of interest under Section 234 A and 234 B of the Income Tax Act, 1961 as the delay in filing Income Tax return for reasons due to the legal disability of the Official Liquidator. vii) Order to Not to initiate the proceedings for penalty under Section 274 read with Section 271(1)(c) of the Income Tax Act, 1961 and under Section 274 read with Section 271/F of the Income Tax Act, 1961 vide Notices dated 15.02.2022; and viii) Pass such other order or orders as may be deemed fit and proper to this Hon'ble Court in the premises of the case. This Company Application coming on for orders on this day upon hearing Sri.K.Moni, Standing Counsel for the Official Liquidator and Sri.Jose Joseph, Standing Counsel for the Income Tax, the court passed the following-: T.R. RAVI, J. -------------------------------------------- Company Application No.22/2022 in C.P.No.53/2000 -------------------------------------------- Dated this the 05th day of January, 2024

ORDER The counsel for the Official Liquidator submits that since the Income Tax Department may not be able to take any coercive steps against the Liquidator for realisation of the claim for interest, there is no necessity to continue with this application.

This application is hence closed without prejudice to the right of the Official Liquidator to move the Court, if found necessary. T.R.RAVI JUDGE mpm

More judgments on Section 147

All 49,210 judgments and leading authorities on Section 147 →

Recent GST High Court judgments

Search GST case law →