M/S SINDUR vs. ASSISTANT COMMISSIONER OF INCOME TAX

WP(C)/37667/2023HC KeralaKLHC01084986202314 November 2023Author: HONOURABLE MR.JUSTICE BASANT BALAJI3 pages

AI SummaryRemanded

What did the High Court hold?

The High Court of Kerala disposed of the writ petition by directing the 3rd respondent (Commissioner Income Tax (Appeals), National Faceless Appeal Center) to take up the stay petition (Ext.P4) and pass appropriate orders within a period of one month. The Court further ordered that Ext.P5, the demand notice, would stand stayed until such time as the stay petition is decided. The judgment does not provide a decision on the merits of the appeal or the stay petition itself, but rather directs the authority to expedite the decision on the stay application.

What were the facts?

The petitioner, M/s Sindur, represented by its Managing Partner K E Sasikumar, is aggrieved by an assessment order (Ext.P1). They filed a statutory appeal before the 2nd respondent (Commissioner Income Tax (Appeals)) as Ext.P3, along with a stay petition (Ext.P4). Subsequently, the petitioner received a notice under Section 2(21)(1) of the Income Tax Act for payment of the disputed amount (Ext.P5). The writ petition was filed seeking speedy disposal of the stay petition and a stay on further proceedings until the stay petition is decided.

What were the issues?

1. Whether the petitioner is entitled to a speedy disposal of their stay petition filed before the appellate authority? 2. Whether further proceedings for recovery of the demand should be stayed until the disposal of the stay petition? Assessee's Contentions: The petitioner contended that they have filed a statutory appeal and a stay petition and sought for a direction for speedy disposal of the stay petition. They also sought a stay on further proceedings until the stay petition is decided. Revenue's Contentions: No specific contentions were recorded for the revenue in the judgment.

Which sections of the Income-tax Act were involved?

Section 2(21)(1)

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR.JUSTICE BASANT BALAJI TUESDAY, THE 14TH DAY OF NOVEMBER 2023 / 23RD KARTHIKA, 1945 WP(C) NO. 37667 OF 2023 PETITIONER/S: M/S SINDUR MAIN ROAD, KALPETTA WAYANAD REPRESENTED BY ITS MANAGING PARTNER - - K E SASIKUMAR, PIN - 673121 BY ADVS. R.JAIKRISHNA NARAYANI HARIKRISHNAN C.S.ARUN SHANKAR ANISH P. RESPONDENT/S: 1 ASSISTANT COMMISSIONER OF INCOME TAX CIRCLE 2(1) OFFICE OF ASSISTANT COMMISSIONER OF INCOME TAX AAYAKAR BHAVAN, INCOME TAX OFFICE, SOUTH BLOCK, MANANCHIRA, KOZHIKODE, PIN - 673001 2 COMMISSIONER INCOME TAX (APPEALS) AAYAKAR BHAVAN, INCOME TAX OFFICE, SOUTH BLOCK, MANANCHIRA, KOZHIKODE, PIN - 673001 3 COMMISSIONER INCOME TAX (APPEALS) NATIONAL FACELESS APPEAL CENTER (NFAC) INCOME TAX DEPARTMENT NORTH BLOCK, NEW DELHI, PIN - 110001 OTHER PRESENT: SRI. P.R AJITH KUMAR SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 14.11.2023, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

JUDGMENT Dated this the 14th day of November, 2023 The petitioner aggrieved by Ext.P1 assessment order has filed statutory appeal before the 2nd respondent as Ext.P3. The stay petition filed along with appeal is Ext.P4. In the meanwhile, the petitioner is served with Ext.P5 notice under Section 2(21)(1) of the Income Tax Act for payment of the amount.

The limited prayer sought for in the writ petition is speedy disposal of Ext.P4 stay petition and to stay all further proceedings till then. Therefore, the writ petition is disposed of, directing the 3rd respondent to take up Ext.P4 stay petition and pass appropriate orders, within a period of one month. Till such time, Ext.P5 will stand stayed. BASANT BALAJI JUDGE AP

Appendix — schedule of exhibits

APPENDIX OF WP(C) 37667/2023 PETITIONER EXHIBITS Exhibit P1 TRUE COPY OF THE ASSESSMENT ORDER ALONG WITH THE COMPUTATION SHEET ISSUED BY THE 1ST RESPONDENT DATED 19.12.2019 Exhibit P2 TRUE COPY OF THE DEMAND NOTICE ISSUED BY THE 1ST RESPONDENT DATED 19.12.2019 Exhibit P3 TRUE COPY OF THE APPEAL FILED BY THE PETITIONER DATED 15.1.2020 Exhibit P4 TRUE COPY OF THE STAY PETITION FILED BY THE PETITIONER DATED 5.2.2020 Exhibit P5 TRUE COPY OF THE LETTER OF DEMAND ISSUED BY THE 1ST RESPONDENT TO THE PETITIONER DATED 17.10.2023

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