M/S. SPS ASSAY AND HALLMARKING CENTRE vs. THE ADDITIONAL/JOINT/DEPUTY/ASSISTANT COMMISSIONER OF INCOME TAX/INCOME TAX OFFICER

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WP(C)/18852/2024HC KeralaKLHC01108659202427 May 2024Author: HONOURABLE MR.JUSTICE MURALI PURUSHOTHAMAN4 pages
AI SummaryRemanded

What did the High Court hold?

The High Court directed the 2nd respondent (Joint Commissioner (Appeals)/Commissioner of Income Tax (Appeals)) to consider the stay petitions (Exts.P3 and P3(a)) expeditiously, within a period of two months from the date of receipt of a copy of the judgment. Furthermore, the Court ordered that all recovery proceedings pursuant to the assessment order (Ext.P1) and penalty order (Ext.P1(a)) shall be deferred until orders are passed on the stay petitions. The writ petition was disposed of with this direction. The Court did not decide the merits of the assessment or penalty orders, nor did it decide the ultimate fate of the appeals.

What were the facts?

The petitioner, M/s. SPS Assay and Hallmarking Centre, is an assessee under the Income Tax Act, 1961. The assessment year in question is 2018-2019. The petitioner received an assessment order (Ext.P1) and a penalty order (Ext.P1(a)). The petitioner filed statutory appeals against both these orders (Ext.P2 and Ext.P2(a)) before the Joint Commissioner (Appeals)/Commissioner of Income Tax (Appeals), the 2nd respondent. Concurrently, the petitioner filed stay petitions (Exts.P3 and P3(a)) in relation to these appeals. The petitioner's grievance is that recovery proceedings are being initiated for the amounts demanded in the assessment and penalty orders while the appeals and stay petitions are pending.

What were the issues?

1. Whether the recovery proceedings for the amounts demanded in the assessment order (Ext.P1) and penalty order (Ext.P1(a)) can be pursued during the pendency of statutory appeals (Ext.P2 and Ext.P2(a)) and stay petitions (Exts.P3 and P3(a)) before the 2nd respondent? The petitioner contended that recovery steps are being taken prematurely, while their appeals and stay petitions are still under consideration by the appellate authority. The petitioner sought a deferral of recovery proceedings until orders are passed on their stay petitions. The revenue's contentions were not recorded in the judgment.

Which sections of the Income-tax Act were involved?

None explicitly mentioned in the provided text.

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. 18852 OF 2024 PETITIONER: M/S. SPS ASSAY AND HALLMARKING CENTRE 40-8223, CONVENT ROAD, ERNAKULAM, REPRESENTED BY ITS MANAGING PARTNER, SATISH PRATHAP SALUNKE, PIN – 682 035. BY ADVS. R.SREEJITH K.KRISHNA ACHYUTH MENON PADMANATHAN K.V. RESPONDENTS: 1 THE ADDITIONAL/JOINT/DEPUTY/ASSISTANT COMMISSIONER OF INCOME TAX/INCOME TAX OFFICER NATIONAL FACELESS ASSESSMENT CENTRE, DELHI, PIN – 100 001. 2 JOINT COMMISSIONER (APPEALS)/COMMISSIONER OF INCOME TAX (APPEALS) NATIONAL FACELESS APPEAL CENTRE, DELHI, PIN – 110 001. 3 THE ASSISTANT COMMISSIONER CENTRAL CIRCLE, INCOME TAX DEPARTMENT, AAYAKAR BHAVAN, INCOME TAX OFFICE, SHAKTHAN THAMPURAN NAGAR, THRISSUR, PIN – 680 001. SMT. SUSIE B.VARGHESE - 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.18852 OF 2024 2

JUDGMENT The petitioner is an assessee under the Income Tax Act, 1961. The petitioner has been assessed for the assessment year 2018 - 2019 by Ext.P1 assessment order. Ext.P1(a) is the penalty order. Against Ext.P1 assessment order, the petitioner has preferred Ext.P2 appeal. Against Ext.P1(a) penalty order, the petitioner has preferred Ext.P2(a) appeal. The petitioner has also preferred Exts.P3 and P3(a) stay petitions respectively in the above appeals. Both the appeals are pending before the 2nd respondent. The grievance of the petitioner is that during the pendency of the appeals, steps are being taken for realisation of the amounts under Exts.P1 and P1(a).

2.

Exts.P2 and P2(a) are statutory appeals. There will be a direction to the 2nd respondent to WP(C).No.18852 OF 2024 3 consider Exts.P3 and P3(a) 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 orders are passed on the stay petitions, all recovery proceedings pursuant to Exts.P1 and P1(a) shall be deferred. The writ petition is disposed of with the above direction. MURALI PURUSHOTHAMAN JUDGE SPR

WP(C).No.18852 OF 2024 4

Appendix — schedule of exhibits
APPENDIX PETITIONER’ S EXHIBITS :- EXHIBIT P1 COPY OF ASSESSMENT ORDER ISSUED BY THE 1ST RESPONDENT DTD. 23-03-2021. EXHIBIT P1 (a) COPY OF PENALTY ORDER ISSUED BY THE 1ST RESPODNENT FOR THE YEAR 2018-19 DTD. 08-02-2022. EXHIBIT P2 COPY OF APPEAL FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT DTD. 11-04- 2022. EXHIBIT P2 (a) COPY OF APPEAL FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT DTD. 11-04- 2022. EXHIBIT P3 COPY OF STAY PETITION FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT DTD. 28-02-2022. EXHIBIT P3 (a) COPY OF STAY PETITION FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT DTD. 28-02-2022. EXHIBIT P4 COPY OF LETTER ISSUED BY THE 3RD RESPONDENT DTD. 15-05-2024. EXHIBIT P5 COPY OF JUDGMENT IN WPC NO. 29879/2023 OF THIS HON'BLE COURT DTD. 20-09-2023. RESPONDENTS EXHIBITS: NIL.

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