CHULLOPPILLI HOUSE ULAHANNAN POULOSE, vs. ADDITIONAL/JOINT/DEPUTY/ASSISTANT COMMISSIONER OF INCOME TAX/INCOME TAX OFFICER, NATIONAL FACELES

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WP(C)/10598/2024HC KeralaKLHC01091961202415 March 2024Author: HONOURABLE MR. JUSTICE GOPINATH P.6 pages
AI SummaryRemanded

What did the High Court hold?

The High Court directed the third respondent (Commissioner of Income Tax (Appeals)) to consider and pass orders on the stay petitions (Exts.P6 and P7) after affording an opportunity of hearing to the petitioner. Furthermore, any garnishee proceedings issued to the petitioner were ordered to be withdrawn until orders are passed on the stay petitions. The parties are to be governed by the orders passed by the third respondent on the stay petitions. The court did not decide on the merits of the assessment orders or the claim of agricultural income exemption.

What were the facts?

The petitioner, Ulahannan Poulose, is challenging assessment orders for AY 2018-19 and 2020-21. He has filed appeals against these orders and stay petitions. The petitioner's counsel submitted that the income assessed is entirely agricultural income, which is exempt from tax. He requested a direction for the third respondent (Commissioner of Income Tax (Appeals)) to consider the stay petitions after a hearing, and for garnishee proceedings against banks to be withdrawn pending the decision on the stay petitions. The Income Tax Department was represented by its Standing Counsel.

What were the issues?

1. Whether the third respondent should be directed to consider and pass orders on the stay petitions (Exts.P6 and P7) after affording an opportunity of hearing to the petitioner? (Question of procedure/natural justice). The petitioner argued for a direction to the third respondent to consider and pass orders on the stay applications, and for garnishee proceedings to be withdrawn pending this consideration. The revenue, represented by the Standing Counsel, was heard but no specific arguments were recorded regarding the stay petitions or garnishee proceedings.

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 15TH DAY OF MARCH 2024 / 25TH PHALGUNA, 1945 WP(C) NO. 10598 OF 2024 PETITIONER/S: CHULLOPPILLI HOUSE ULAHANNAN POULOSE, AGED 62 YEARS CHULLOPPILLIL KAKKODAN COLONY, KOTTAKKUNNU, SULTHAN BATHERY, WAYANAD, PIN - 673592 BY ADV S.ARUN RAJ RESPONDENT/S: 1 ADDITIONAL/JOINT/DEPUTY/ASSISTANT COMMISSIONER OF INCOME TAX/INCOME TAX OFFICER, NATIONAL FACELESS ASSESSMENT CENTRE, DELHI INCOME TAX DEPARTMENT, 2ND FLOOR, E- RAMP, JAWAHARLAL NEHRU STADIUM, NEW DELHI, PIN - 110003 2 INCOME TAX OFFICER, WARD-1, KALPETTA INCOME TAX OFFICE, SULTHAN BATHERY ROAD, KALPETTA, WAYANAD, PIN - 673122 3 COMMISSIONER OF INCOME TAX (APPEALS), NATIONAL FACELESS APPEAL CENTRE INCOME TAX DEPARTMENT, 2ND FLOOR, E- RAMP, JAWAHARLAL NEHRU STADIUM, NEW DELHI, PIN - 110003 4 THE PRINCIPAL COMMISSIONER OF INCOME TAX, AAYAKAR BHAVAN, NORTH BLOCK, MANANCHIRA, KOZHIKODE, PIN - 673001 WP(C)No.10598 of 2024 2 5 FEDERAL BANK, PULATH BUILDING CHULLIOD ROAD, SULTHAN BATHERY- THALOOR ROAD, SULTHAN BATHERY, WAYANAD, REPRESENTED BY ITS BRANCH MANAGER, PIN - 673592 BY ADVS. G.KEERTHIVAS P.PAULOCHAN ANTONY OTHER PRESENT: P.G. JAYASHANKAR-SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 15.03.2024, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C)No.10598 of 2024 3

J U D G M E N T The petitioner suffered Exts.P1 and P3 orders of assessment for the assessment years 2018-19, and 2020-21 under the Income Tax Act, 1961. The petitioner has preferred Ext.P2 appeal against Ext.P1 order of assessment and Ext.P4 appeal against Ext.P3 order of assessment. The petitioner has also preferred Exts.P6 and P7 stay petitions in Exts.P2 and P4 appeals.

2.

The learned counsel for the petitioner submits that there may be a direction to the third respondent to consider and pass orders on Exts.P6 and P7 stay applications, after affording an opportunity of hearing to the petitioner. He submits that the garnishee proceedings issued against the banks may be withdrawn, pending consideration of the stay petitions by the third respondent.

3.

Heard Sri.P.G.Jayashankar for the Income Tax Department also.

Having heard the learned counsel for the petitioner, the learned Standing Counsel appearing for the respondent Department and having regard to the facts and circumstances of the case and considering the submission of the learned counsel for the petitioner that the entire income assessed in terms of Exts.P1 and P3 is exempt from taxation under the Income Tax Act, 1961 on account of the same being completely agricultural income, this writ petition will stand disposed of directing the third respondent to consider and pass orders on Exts.P6 and P7 stay petitions, after affording an opportunity of hearing to the petitioner. Any garnishee proceedings issued to the petitioner shall be withdrawn till orders are passed on the stay petitions. Thereafter, the parties shall be governed by the orders to be passed in the stay petitions by the third respondent. The writ petition is disposed of as above. GOPINATH P., JUDGE rkj

Appendix — schedule of exhibits
APPENDIX OF WP(C) 10598/2024 PETITIONER EXHIBITS Exhibit P1 A TRUE COPY OF THE ASSESSMENT ORDER DATED 23-4-2021 UNDER SECTION 143(3) R.W.S 144 B OF THE ACT FOR THE AY 2018-19 ALONG WITH THE DEMAND NOTICE ISSUED BY THE 1ST RESPONDENT Exhibit P2 A TRUE COPY OF THE APPEAL FILED BY THE PETITIONER ON 8-11-2021 BEFORE THE 3RD RESPONDENT, COMMISSIONER OF INCOME TAX (APPEALS), NATIONAL FACELESS APPEAL CENTRE, DELHI FOR THE AY 2018-19 Exhibit P3 A TRUE COPY OF THE ASSESSMENT ORDER DATED 22-9-2022 UNDER SECTION 143(3) R.W.S 144 B OF THE ACT FOR THE AY 2020-21 ALONG WITH THE DEMAND NOTICE ISSUED BY THE 1ST RESPONDENT Exhibit P4 A TRUE COPY OF THE APPEAL FILED BY THE PETITIONER ON 31-10-2022 BEFORE THE 3RD RESPONDENT, COMMISSIONER OF INCOME TAX (APPEALS), NATIONAL FACELESS APPEAL CENTRE, DELHI FOR THE AY 2020-21 Exhibit P5 A TRUE COPY OF THE NOTICE DATED 4-3-2024 ISSUED BY THE 2ND RESPONDENT TO THE 5TH RESPONDENT BANK, A COPY OF WHICH FORWARDED TO THE PETITIONER BY THE 2ND RESPONDENT Exhibit P6 A TRUE COPY OF THE STAY PETITION FOR THE AY 2018-19 E-FILED ON 13-3-2024 BEFORE THE 3RD RESPONDENT:- CIT (APPEALS), NATIONAL FACELESS APPEAL CENTRE, DELHI SEEKING STAY OF RECOVERY BASED ON EXHIBIT P-1 ASSESSMENT ORDER WP(C)No.10598 of 2024 6 Exhibit P7 A TRUE COPY OF THE STAY PETITION FOR THE AY 2020-21 E-FILED ON 13-3-2024 BEFORE THE 3RD RESPONDENT:- CIT (APPEALS), NATIONAL FACELESS APPEAL CENTRE, DELHI SEEKING STAY OF RECOVERY BASED ON EXHIBIT P-3 ASSESSMENT ORDER

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