M/S. TULSI DEVELOPERS INDIA (P)LTD., vs. THE ASSISTANT COMMISSIONER OF INCOME TAX,

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WP(C)/6423/2019HC KeralaKLHC01016462201914 March 2019Author: HONOURABLE MR. JUSTICE A.MUHAMED MUSTAQUE3 pages
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What did the High Court hold?

The High Court directed the second respondent, the Commissioner of Income-Tax (Appeals), to decide the stay application (Ext.P8) within two months. Pending the decision on the stay application, recovery proceedings pursuant to the impugned assessment order were to be kept in abeyance. The Court did not decide on the merits of the assessment order or the appeal itself. The ratio decidendi is that when an appeal and a stay application are pending before the appellate authority, and a writ petition is filed seeking a direction, the High Court can direct the appellate authority to expedite the decision on the stay application while ensuring no coercive recovery is made in the interim. The operative direction is to dispose of the stay application within two months and keep recovery proceedings in abeyance until then.

What were the facts?

The petitioner, M/s. Tulsi Developers India (P) Ltd., challenged an assessment order (Ext.P2) passed by the Assistant Commissioner of Income Tax, Central Circle, Kollam. The petitioner filed an appeal before the Commissioner of Income-Tax (Appeals) IV, Kochi (second respondent), along with a stay application (Ext.P8). The writ petition was filed before the High Court of Kerala at Ernakulam seeking directions regarding the pending appeal and stay application. The assessment year(s) are not explicitly stated in the provided text. The dispute concerns the assessment order and the subsequent appeal.

What were the issues?

1. Whether the High Court should direct the Commissioner of Income-Tax (Appeals) to decide the stay application filed by the petitioner. Assessee's Contention: The petitioner sought a direction from the High Court to the second respondent (Commissioner of Income-Tax (Appeals)) to take a decision on their stay application (Ext.P8) filed along with their appeal against the assessment order. The petitioner implicitly argued for a timely resolution of their appeal and stay request. Revenue's Contention: No specific arguments from the revenue are recorded in the provided judgment excerpt. The revenue was represented by counsel, but their submissions are not detailed.

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 A.MUHAMED MUSTAQUE THURSDAY, THE 14TH DAY OF MARCH 2019 / 23RD PHALGUNA, 1940 WP(C).No.6423 of 2019 PETITIONER/S: M/S. TULSI DEVELOPERS INDIA (P)LTD., C.I.N.U70102KL2007PTC020894, VIII, 522B, 139, MAVELIPURAM, SEAPORT AIRPORT ROAD, KAKKANAD, PIN- 682030, REP. BY ITS MANAGING DIRECTOR, THULSI DAS GOPINATHAN NAIR. BY ADVS. SRI.ISSAC M.PERUMPILLIL SRI.JIJO PAUL KALLOOKKARAN SRI.SOJAN MATHEW SRI.V.C.CHARLY RESPONDENT/S: 1 THE ASSISTANT COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE, AAYAKAR BHAVAN, KARBALA JUNCTION, KOLLAM, PIN- 691001. 2 THE COMMISSIONER OF INCOME-TAX (APPEALS) IV, KOCHI, G-51, PARAPILLY LANE, MANORAMA JUNCTION, GIRI NAGAR, PANAMPILLY NAGAR, KOCHI, PIN- 682036. 3 THE COMMISSIONER OF INCOME TAX, KOCHI, 6TH FLOOR, M.G.ROAD, KARIKKAMURI, SHENOYS, KOCHI, PIN- 682011. BY ADVS. SRI.P.K.RAVINDRANATHA MENON (SR.) SRI.JOSE JOSEPH, SC, FOR INCOME TAX THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 14.03.2019, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C).No.6423/2019 2

JUDGMENT The petitioner, impugning Ext.P2 assessment order under the Income Tax Act, filed Ext.P3 appeal before the second respondent. The petitioner also filed Ext.P8 stay application. In view of the above, there shall be a direction to the second respondent to take a decision on Ext.P8 stay application within two months. Till then, recovery proceedings pursuant to the impugned order in the appeal shall be kept in abeyance. The writ petition is disposed of as above. A.MUHAMED MUSTAQUE JUDGE ln

WP(C).No.6423/2019 3 APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1 THEOF THE RETURN FOR THE ASSESSMENT YEAR, 2012-13, SUBMITTED BY THE PETITIONER ON 13.10.2012. EXHIBIT P1 A THEOF THE LETTER OF THE PETITIONER, ADDRESSED TO THE 1ST RESPONDENT, DATED 23.10.2018. EXHIBIT P2 THEOF THE ORDER OF ASSESSMENT, DATED 14.12.2018. EXHIBIT P2 A THEOF THE NOTICE OF DEMAND U/SEC.156, OF THE I.T ACT, 1961, DATED 14.12.2018. EXHIBIT P2 B THEOF THE REPLY GIVEN TO EXT.P2(A) NOTICE, DATED 29.01.2019. EXHIBIT P3 THEOF THE APPEAL FILED BY THE PETITIONER AGAINST EXT.P2 ORDER OF ASSESSMENT UNDER SEC.246A, OF THE I.T.ACT, 1961, DATED 24.01.2019. EXHIBIT P4 THEOF THE ORDER OF THE COMMISSIONER OF INCOME-TAX (APPEALS) IV, KOCHI, DATED 28.04.2017. EXHIBIT P5 THEOF THE ORDER OF THE INCOME TAX APPELLATE TRIBUNAL, DATED 13.12.2018. EXHIBIT P6 THEOF THE NOTICE RECEIVED BY THE PETITIONER FROM THE ASST.COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE, KOLLAM, DATED 11.02.2019. EXHIBIT P7 THEOF THE REPRESENTATION SUBMITTED BY THE PETITIONER BEFORE THE 3RD RESPONDENT, THROUGH THE ASST.COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE, KOLLAM, ON 20.02.2019. EXHIBIT P8 THEOF THE APPLICATION AND THE AFFIDAVIT IN SUPPORT THEREOF SUBMITTED BY THE PETITIONER BEFORE THE SECOND RESPONDENT DATED 06.03.2019. EXHIBIT P9OF THE ACKNOWLEDGEMENT FOR HAVING RECEIVED EXT.P8 APPLICATION DATED 06.03.2019. RESPONDENTS EXHIBITS:NIL. //// P.A.TO JUDGE

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