JALALUDEEN SHAHUL HAMEED, vs. THE JOINT COMMISSIONER OR COMMISSIONER OF INCOME TAX (APPEAL),

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WP(C)/31387/2023HC KeralaKLHC01069672202301 November 2023Author: HONOURABLE MR. JUSTICE D. K. SINGH6 pages
AI SummaryPartly Allowed

What did the High Court hold?

The High Court of Kerala did not comment on the merits of the assessment order. Instead, it directed the 2nd respondent (National Faceless Appellate Authority) to consider and pass an appropriate order on the petitioner's stay application (Exhibit-P5) expeditiously, preferably within two months. For a period of two months from the date of the order, no recovery proceedings pursuant to the impugned assessment order were to be enforced against the petitioner. The writ petition was disposed of with these directions. No specific finding was made on the legality of the assessment order itself, as the focus was on the procedural aspect of the stay application and appeal disposal.

What were the facts?

The petitioner, Jalaludeen Shahul Hameed, filed a writ petition seeking directions to the respondents to provide a link for uploading a stay petition (Exhibit-P5) and to consider and dispose of his appeal (Exhibit-P4) filed before the National Faceless Appellate Authority (2nd respondent). The petitioner is challenging an assessment order passed by the Income Tax Officer (3rd respondent), which disallowed purchases amounting to Rs. 14,06,63,648/- as non-bonafide, leading to a demand of Rs. 7,59,16,442/-. The petitioner contends this demand is illegal. The High Court of Kerala was considering the admission of this writ petition.

What were the issues?

1. Whether the petitioner should be provided with a link to upload his stay petition (Exhibit-P5) before the appellate authority? (Question of procedure/mixed law and fact) 2. Whether the respondents 1 and 2 should be directed to consider and dispose of the petitioner's appeal (Exhibit-P4) within a stipulated time? (Question of procedure/mixed law and fact) Assessee's Contentions: - The petitioner argues that he needs a link to upload his stay petition (Exhibit-P5). - The petitioner contends that the demand of Rs. 7,59,16,442/- is illegal due to the disallowance of purchases. - The petitioner seeks a direction for the appellate authorities to dispose of his appeal expeditiously. Revenue's Contentions: - The judgment does not record any specific contentions made by the revenue.

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 DINESH KUMAR SINGH WEDNESDAY, THE 1ST DAY OF NOVEMBER 2023 / 10TH KARTHIKA, 1945 WP(C) NO. 31387 OF 2023 PETITIONER: JALALUDEEN SHAHUL HAMEED, AGED 57 YEARS S/O SHAHUL HAMEED, FOUSIYA MANZIL, VATTATRAMALA, VAYANNAM. P.O. KOLLAM, PIN – 691 533. BY ADVS. SREEJI M.M MADHUSOODANANNAIR.P RESPONDENTS: 1 THE JOINT COMMISSIONER OR COMMISSIONER OF INCOME TAX (APPEAL), INCOME TAX DEPARTMENT, NEAR KARBALA JUNCTION , RAILWAY STATION ROAD, KOLLAM DISTRICT, PIN – 691 001. 2 NATIONAL FACELESS APPELLATE AUTHORITY, GOVERNMENT OF INDIA, MINISTRY OF FINANCE, DEPARTMENT F REVENUE, (CENTRAL BOARD OF DIRECT TAXES), ROOM NO. 245- A, NORTH BLOCK, NEW DELHI, PIN – 110 001. 3 THE INCOME TAX OFFICER, INCOME TAX DEPARTMENT, WARD 2, AAYAKAR BHAVAN, INCOME TAX OFFICE , NEAR KARBALA JUNCTION , RAILWAY STATION ROAD -KOLLAM, KOLLAM DISTRICT, PIN – 691 001. OTHER PRESENT: CHRISTOPHER ABRAHAM-SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 01.11.2023, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C) NO. 31387 OF 2023 2 DINESH KUMAR SINGH, J. -------------------------------------------- WP(C) NO. 31387 OF 2023 -------------------------------------------- Dated this the 1st day of November, 2023

J U D G M E N T

1.

The present writ petition has been field for the following reliefs:- “i) To issue a writ of mandamus or any other appropriate writ, order or direction directing the respondents to provide a link to the petitioner so as to upload Exhibit-P5 stay petition; ii) Till orders are passed on Exhibit-P5, stay further proceedings including coercive proceedings pending disposal of the Writ Petition; iii) Issue a writ of mandamus or any other appropriate writ, order or direction directing the respondents 1 and 2 to consider and dispose of the Appeal a time limit to be fixed by this Honourable Court.”

2.

The learned counsel for the petitioner

WP(C) NO. 31387 OF 2023 3 submits that against the impugned assessment order the petitioner has filed Ext.P4 appeal before the 2nd respondent. The petitioner has also filed an application for stay on 24.09.2023 in Ext.P5. The Learned counsel for the petitioner also submits that huge demand of Rs.7,59,16,442/- as income tax due is illegal as the 3rd respondent, assessing authority has treated the purchases of Rs.14,06,63,648/- as non bonafide purchases and which has been disallowed.

3.

This Court would not like to comment upon the merit of the assessment order against which the appeal has been preferred by the petitioner. However, it would be suffice to direct the 2nd respondent to consider and pass an appropriate order in accordance with law on the stay application of the petitioner in Ext.P5 expeditiously, preferably within in a period of two months. For a period of two months, no recovery in WP(C) NO. 31387 OF 2023 4 pursuance to the impugned assessment order shall be enforced against the petitioner.

4.

With the aforesaid direction, the present writ petition is disposed of. DINESH KUMAR SINGH JUDGE rpr

WP(C) NO. 31387 OF 2023 5

Appendix — schedule of exhibits
APPENDIX OF WP(C) 31387/2023 PETITIONER’S EXHIBITS Exhibit-P1 A TRUE COPY OF THE ASSESSMENT ORDER DATED 21-12- 2022. Exhibit-P2 A TRUE COPY OF THE DEMAND NOTICE DATED 08-09-2023 ISSUED BY THE 3RD RESPONDENT Exhibit-P3 A TRUE COPY OF THE COMPUTATION STATEMENT IN RESPECT OF THE YEAR 2021-22 DATED 21-12-2022 Exhibit-P4 A TRUE COPY OF THE APPEAL MEMORANDUM DATED 20-01- 2023 VIDE ACKNOWLEDGEMENT NUMBER -928665100200123 BEFORE THE NATIONAL FACELESS APPEAL CENTRE, NEW DELHI. Exhibit-P5 A TRUE COPY OF THE STAY PETITION DATED 24-09-2023 Exhibit-P6 A TRUE COPY OF THE JUDGMENT OF THIS HONOURABLE COURT DATED 03-02-2023 IN W. P.(C) NO. 3584 OF 2023 Exhibit-P7 TRUE COPY OF THE STATEMENT OF ACCOUNTS FOR THE PERIOD 1.4.2020 TO 31.3.2021 AND CONFIRMATION LETTER OF SHARAFUDEEN SHANAVAS (PAN-DLIPS7454E) Exhibit-P7(a) TRUE COPY OF THE STATEMENT OF ACCOUNTS FOR THE PERIOD 1.4.2020 TO 31.3.2021 AND CONFIRMATION LETTER OF ABDUL RAHIM (PAN-ASWPA5589N) Exhibit-P7(b) TRUE COPY OF THE STATEMENT OF ACCOUNTS FOR THE PERIOD 1.4.2020 TO 31.3.2021 AND CONFIRMATION LETTER OF THAHA SAINABA BEEVI (PAN-DWGPS3083G) Exhibit-P7(c) TRUE COPY OF THE STATEMENT OF ACCOUNTS FOR THE PERIOD 1.4.2020 TO 31.3.2021 AND CONFIRMATION LETTER OF NAISAM MUHAMMAD MUSTHAFA (PAN- BDKPM5007R) Exhibit-P7(d) TRUE COPY OF THE STATEMENT OF ACCOUNTS FOR THE PERIOD 1.4.2020 TO 31.3.2021 AND CONFIRMATION LETTER OF AGASTHYACODU RUBBER TRADERS (PAN- AAZFA4436D) Exhibit-P7(e) TRUE COPY OF THE STATEMENT OF ACCOUNTS FOR THE PERIOD 1.4.2020 TO 31.3.2021 AND CONFIRMATION LETTER OF GENERAL MARKETING & PROCESSING COOP SOCIETY LTD (PAN-AAAAG4991P) Exhibit-P7(f) TRUE COPY OF THE STATEMENT OF ACCOUNTS FOR THE PERIOD 1.4.2020 TO 31.3.2021 AND CONFIRMATION LETTER OF RAJU SUKUMARAN (PAN-DLKPS2501E) Exhibit-P7(g) TRUE COPY OF THE STATEMENT OF ACCOUNTS FOR THE PERIOD 1.4.2020 TO 31.3.2021 AND CONFIRMATION LETTER OF SHAHUL HAMEED SHEREEF (PAN-KOZPS6893J) Exhibit-P7(h) TRUE COPY OF THE STATEMENT OF ACCOUNTS FOR THE PERIOD 1.4.2020 TO 31.3.2021 AND CONFIRMATION LETTER OF SUSEELA KUNJIKUTTY (PAN-HELPK4016N) WP(C) NO. 31387 OF 2023 6 Exhibit-P7(i) TRUE COPY OF THE STATEMENT OF ACCOUNTS FOR THE PERIOD 1.4.2020 TO 31.3.2021 AND CONFIRMATION LETTER OF NISAD ABDUL SALAM PAN-AUUPA7564P) Exhibit-P7(j) TRUE COPY OF THE STATEMENT OF ACCOUNTS FOR THE PERIOD 1.4.2020 TO 31.3.2021 AND CONFIRMATION LETTER OF SALEENA (PAN-FEFPS3809D ) Exhibit-P7(k) TRUE COPY OF THE STATEMENT OF ACCOUNTS FOR THE PERIOD 1.4.2020 TO 31.3.2021 AND CONFIRMATION LETTER OF MAMPUZHA RUBBER PROCESSING PVT LTD (PAN-AABCA9604J ) Exhibit-P7(l) TRUE COPY OF THE STATEMENT OF ACCOUNTS FOR THE PERIOD 1.4.2020 TO 31.3.2021 AND CONFIRMATION LETTER OF ABDUL REHUMAN BASHEER (PAN-DPZPB1123Q ) Exhibit-P7(m) TRUE COPY OF THE STATEMENT OF ACCOUNTS FOR THE PERIOD 1.4.2020 TO 31.3.2021 AND CONFIRMATION LETTER OF SHAJI GOPINATHAN (PAN-AMOPG4647HL;, M) Exhibit-P7(n) TRUE COPY OF THE STATEMENT OF ACCOUNTS FOR THE PERIOD 1.4.2020 TO 31.3.2021 AND CONFIRMATION LETTER OF SUBAIR ASBAR (PAN-AFUPA5755R) Exhibit -P7(o) TRUE COPY OF THE STATEMENT OF ACCOUNTS FOR THE PERIOD 1.4.2020 TO 31.3.2021 AND CONFIRMATION LETTER OF JOLLY SIBI (PAN-AVWPS4158E) Exhibit -P7(p) TRUE COPY OF THE STATEMENT OF ACCOUNTS FOR THE PERIOD 1.4.2020 TO 31.3.2021 AND CONFIRMATION LETTER OF SASIKUMAR.V. POOVATHUR (PAN-AELPP0434L) Exhibit-P7(q) TRUE COPY OF THE STATEMENT OF ACCOUNTS FOR THE PERIOD 1.4.2020 TO 31.3.2021 AND CONFIRMATION LETTER OF ABDUL HAMEED SALIM (PAN-BCCPS0343H)

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