SIBI THOMAS, vs. THE ADDITIONAL/JOINT/DEPUTY/ASSISTANT COMMISSIONER OF INCOME TAX/INCOME TAX OFFICER,

WP(C)/27608/2024HC KeralaKLHC01127801202402 August 2024Author: HONOURABLE MR. JUSTICE GOPINATH P.3 pages

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What did the High Court hold?

The High Court of Kerala disposed of the writ petition by directing the second respondent, the National Faceless Appeal Centre (NFAC), to consider and pass orders on the stay application (Ext.P4) filed by the petitioner. This consideration must be done after affording an opportunity of hearing to the petitioner, and the order is to be passed within two months from the date of receipt of a certified copy of the judgment. Furthermore, the Court ordered that any demand arising from the assessment order (Ext.P1) shall be kept in abeyance until such time as orders are passed on the stay application. The Court did not decide on the merits of the assessment order or the stay application itself, but rather on the procedural aspect of its timely consideration.

What were the facts?

The petitioner, Sibi Thomas, has challenged an assessment order (Ext.P1) under the Income Tax Act, 1961. He filed an appeal (Ext.P3) before the National Faceless Appeal Centre (NFAC), the second respondent, along with an application for stay (Ext.P4). The petitioner's sole prayer in this writ petition is for a direction to the NFAC to consider and pass orders on the stay application and to stay any recovery proceedings pursuant to the assessment order until a decision is made on the stay application. The writ petition was filed before the High Court of Kerala.

What were the issues?

1. Whether the High Court should direct the National Faceless Appeal Centre (NFAC) to consider and pass orders on the pending stay application (Ext.P4) filed by the petitioner. 2. Whether recovery proceedings pursuant to the assessment order (Ext.P1) should be stayed until the NFAC passes an order on the stay application. Assessee's Contention: The petitioner seeks a direction for the expeditious disposal of his stay application by the NFAC and a stay on recovery proceedings pending that decision. Revenue's Contention: The judgment records that Adv. P.G. Jayashankar appeared for the Income Tax Department, but their specific contentions are not detailed in the provided text. The 4th respondent Bank was represented by Adv. P. Binny Joseph, but their arguments are also not specified.

Which sections of the Income-tax Act were involved?

Income Tax Act, 1961

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 2ND DAY OF AUGUST 2024 / 11TH SRAVANA, 1946 WP(C) NO. 27608 OF 2024 PETITIONER: SIBI THOMAS, AGED 54 YEARS, VAZHAKKAL HOUSE, KALPETTA, WAYANAD, PIN – 673 121. BY ADVS. PADMANATHAN K.V. R.SREEJITH RESPONDENTS: 1 THE ADDITIONAL/JOINT/DEPUTY/ASSISTANT COMMISSIONER OF INCOME TAX/INCOME TAX OFFICER, NATIONAL E-ASSESSMENT CENTRE, DELHI, PIN – 110 001. 2 NATIONAL FACELESS APPEAL CENTRE, INCOME TAX DEPARTMENT, NEW DELHI, REPRESENTED BY COMMISSIONER OF INCOME TAX (APPEALS), PIN – 110 011. 3 INCOME TAX OFFICER, WARD 1, KALPETTA, WAYANAD, PIN – 673 122. 4 HDFC BANK, KALPETTA BRANCH, KALPETTA ARCADE, NEAR NEW BUS STAND, KALPETTA, WAYANAD, REPRESENTED BY THE BRANCH MANAGER, PIN – 673 121. SRI.P.G.JAYASHANKAR SRI.P.BINNY JOSEPH THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 02.08.2024, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C) NO. 27608 OF 2024 2

JUDGMENT Challenging Ext.P1 order of assessement under the Income Tax Act, 1961, the petitioner has filed an appeal (Ext.P3) before the 2nd respondent along with Ext.P4 application for stay. The only relief is sought for a direction to the 2nd respondent to consider and pass orders on Ext.P4 and to stay any proceedings for recovery of any amount determined under Ext.P1 till such time as orders are passed on the stay application.

Heard Adv.P.G.Jayashankar who appears for the Income Tax Department and Adv.P.Binny Joseph for the 4th respondent Bank. Having regard to the facts and circumstances of the case, this writ petition will stand disposed of directing the 2nd respondent before whom Ext.P4 application for stay is pending, to consider and pass orders on Ext.P4 after affording an opportunity of hearing to the petitioner within 2 months from the date of receipt of a certified copy of this judgment. Till such time as orders are passed on Ext.P4, any demand pursuant to Ext.P1 shall be kept in abeyance. GOPINATH P. JUDGE DK

WP(C) NO. 27608 OF 2024 3

Appendix — schedule of exhibits

APPENDIX OF WP(C) 27608/2024 PETITIONER EXHIBITS Exhibit P 1 COPY OF ASSESSMENT ORDER DTD. 22-09- 2022 ISSUED BY THE 1ST RESPONDENT Exhibit P2 COPY OF DEMAND NOTICE DTD. 22-09-2022 ISSUED BY THE 1ST RESPONDENT Exhibit P3 COPY OF THE APPEAL IN FORM NO. 35 DTD. 22-10-2022 FILED BY THE PETITIONER Exhibit P4 COPY OF THE STAY APPLICATION STAY DTD. 22-10-2022 BEFORE THE 2ND RESPONDENT. Exhibit P 5 COPY OF THE NOTICE TO ATTACH BANK ACCOUNT DTD. 23-7-2024 ISSUED BY 3RD RESPONDENT TO 4TH RESPONDENT Exhibit P6 TRUE COPY OF JUDGMENT DATED 11/07/2024 IN W.P(C) NO.24361/2024 OF THIS HON'BLE COURT.

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