PRECIOUS INFRAPROJECTS PVT LTD vs. THE COMMISSIONER OF INCOME TAX (APPEALS)

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WP(C)/17263/2024HC KeralaKLHC01105115202427 May 2024Author: HONOURABLE MR.JUSTICE MURALI PURUSHOTHAMAN5 pages
AI SummaryRemanded

What did the High Court hold?

The High Court of Kerala directed the Commissioner of Income Tax (Appeals) to consider and pass orders on the stay petitions (Exts.P5 and P7) expeditiously, within a period of two months from the date of receipt of a copy of the judgment. Until such time as orders are passed on the stay petitions, all recovery proceedings against the petitioner, pursuant to the assessment orders (Exts.P2 and Ext.P3), shall be deferred. The Court disposed of the writ petition with this direction. The substantive merits of the appeals were not decided.

What were the facts?

The petitioner, Precious Infaprojects Pvt. Ltd., is challenging assessment orders for assessment years 2018-2019 (Ext.P2) and 2019-2020 (Ext.P3) passed by the Assessing Unit of the Income Tax Department. The petitioner filed statutory appeals (Ext.P4 and Ext.P6) before the Commissioner of Income Tax (Appeals), the National Faceless Appeal Centre, along with stay petitions (Ext.P5 and Ext.P7). The petitioner's grievance is that coercive recovery proceedings are being initiated by the revenue authorities while these appeals and stay petitions are pending. The matter came before the High Court of Kerala at Ernakulam.

What were the issues?

1. Whether the petitioner is entitled to a stay of recovery proceedings pending disposal of their statutory appeals before the Commissioner of Income Tax (Appeals)? Assessee's Contention: The petitioner argued that coercive proceedings are being taken against them during the pendency of their appeals and stay petitions before the first respondent (Commissioner of Income Tax (Appeals)). Revenue's Contention: The judgment does not record any specific contentions made by the revenue. The learned Standing Counsel for the respondents appeared and was heard.

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 MURALI PURUSHOTHAMAN MONDAY, THE 27TH DAY OF MAY 2024 / 6TH JYAISHTA, 1946 WP(C) NO. 17263 OF 2024 PETITIONER: PRECIOUS INFRAPROJECTS PVT. LTD HAVING ITS OFFICE AT : ST.LOUIS COMMERCIAL COMPLEX, CHUREH CIRCLE, THRISSUR REPRESENTED BY ITS DIRECTOR- MR. JOE LOUIS, AGED 49, S/O.E.O.LOUIS, ELUVATHINGAL HOUSE, KIZHAKKUMPATTUKARA, THRISSUR – 680 005. BY ADV BINU PAUL (NETTOOR) RESPONDENTS: 1 THE COMMISSIONER OF INCOME TAX (APPEALS) THE NATIONAL FACELESS APPEAL CENTRE, INCOME TAX DEPARTMENT, MINISTRY OF FINANCE, NEW DELHI, PIN – 110 001. 2 THE DEPUTY COMMISSIONER OF INCOME TAX OFFICE OF THE DEPUTY COMMISSIONER OF INCOME TAX, DCIT CIRCLE 1 (1) & PTS THRISSUR, AAYAKAR BHAVAN, SHAKTHAN THAMPURAN NAGAR, THRISSUR, PIN – 680 001. SRI.P.G. JAYASHANKAR - SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 27.05.2024, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C).No.17263 OF 2024 2

JUDGMENT The petitioner is a private Limited Company incorporated under the Indian Companies Act, 1956. Ext.P2 is the assessment order passed by the Assessing Unit, Income Tax Department in respect of the year 2018 - 2019. Ext.P3 is the assessment order for the year 2019 - 2020. Against Exts.P2 and P3 assessment orders, the petitioner has filed Exts.P4 and P6 appeals respectively before the 1st respondent. Ext.P5 is the stay petition filed along with Ext.P4 appeal and Ext.P7 is the stay petition filed along with Ext.P6 appeal. The grievance of the petitioner is that coercive proceedings are being taken during the pendency of Exts.P4 and P6 appeals.

2.

Heard the learned counsel for the petitioner and the learned Standing Counsel for the respondents.

WP(C).No.17263 OF 2024 3

3.

In the facts and circumstances of the case and having regard to the fact that Exts.P4 and P6 are statutory appeals, there will be a direction to the 1st respondent to consider and pass orders on Exts.P5 and P7 stay petitions, as expeditiously as possible, at any rate, within a period of two months from the date of receipt of a copy of this judgment. Till such time, all recovery proceedings against the petitioner pursuant to Exts.P2 and P3 assessment orders shall be deferred. The writ petition is disposed of with the above direction. MURALI PURUSHOTHAMAN JUDGE SPR

WP(C).No.17263 OF 2024 4

Appendix — schedule of exhibits
APPENDIX PETITIONER’ S EXHIBITS :- EXHIBIT P1 TRUE COPY OF CERTIFICATE OF INCORPORATION DATED NIL. EXHIBIT P2 TRUE COPY OF ASSESSMENT ORDER DATED 27- 03-2023 PASSED BY THE ASSESSING UNIT, INCOME TAX DEPARTMENT IN RESPECT OF ASSESSMENT YEAR 2018-19. EXHIBIT P3 TRUE COPY OF ASSESSMENT ORDER DATED 21- 02- 2024 PASSED BY THE ASSESSING UNIT, INCOME TAX DEPARTMENT IN RESPECT OF ASSESSMENT YEAR 2019-20. EXHIBIT P4 TRUE COPY OF ACKNOWLEDGMENT OF RECEIPT DATED 22-04-2023 ISSUED FROM INCOME TAX DEPARTMENT ACKNOWLEDGING E-FILING OF APPEAL AND STAY PETITION ON 22-04-2023. EXHIBIT P5 TRUE COPY OF STAY PETITION FILED BY THE PETITIONER BEFORE THE FIRST RESPONDENT FOR STAYING RECOVERY PROCEEDINGS BASED ON EXHIBIT P2 ASSESSMENT ORDER (2018- 2019. EXHIBIT P6 TRUE COPY OF ACKNOWLEDGMENT OF RECEIPT DATED 23-03-2024 ISSUED FROM INCOME TAX DEPARTMENT ACKNOWLEDGING E-FILING OF APPEAL AND STAY PETITION ON 23-3-2024. EXHIBIT P7 TRUE COPY OF STAY PETITION FILED BY THE PETITIONER FOR STAYING RECOVERY PROCEEDINGS BASED ON EXHIBIT P3 ASSESSMENT ORDER (2019-20) 2024. EXHIBIT P8 TRUE COPY OF LETTER/ COMMUNICATION NO.ITBA/RCVA/F/17-2024-25/1064046378 (1) DATED 11-04-2024 ISSUED BY THE SECOND RESPONDENT PETITIONER. EXHIBIT P9 TRUE COPY OF REPLY DATED 16- 04-2024 SUBMITTED BY THE PETITIONER BEFORE THE INCOME TAX OFFICER, DCIT CIRCLE 1(I ) & TPS, THRISSUR (WITHOUT ENCLOSURES). EXHIBIT P10 TRUE COPY OF COMMUNICATION/LETTER NO.ITBA/COM/F/17/2024-25/106417494(1) DATED 18-04-2024 ISSUED BY THE SECOND RESPONDENT TO THE PETITIONER. WP(C).No.17263 OF 2024 5 EXHIBIT P11 COPY OF JUDGMENT DATED 18-11-2022 PASSED BY THE HON'BLE HIGH COURT OF DELHI IN W.P(C)NO.15850/2022 (DABUR INDIA LTD VS CIT(TDS)) AND CONNECTED CASES. EXHIBIT P12 COPY OF JUDGMENT DATED 01-03-2024 PASSED BY THE HON'BLE HIGH COURT OF DELHI IN W.P(C)NO.9310/2022 (NATIONAL ASSOCIATION OF SOFTWARE AND SERVICES COMPANIES VS DEPUTY COMMISSIONER OF INCOME TAX & OTHERS). RESPONDENTS EXHIBITS: NIL.

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