K.K.PURUSHOTHAMAN vs. THE INCOME TAX OFFICER

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WP(C)/4081/2019HC KeralaKLHC01010660201912 February 2019Author: HONOURABLE MR. JUSTICE DAMA SESHADRI NAIDU3 pages
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What did the High Court hold?

The High Court held that procedural fairness requires tax authorities to defer coercive steps until the Income Tax Appellate Tribunal (ITAT) decides on the assessee's pending delay condonation and stay petitions. The Court reasoned that it is imperative for the appellate authority to first consider whether the appeal itself is maintainable (delay condonation) and whether a stay on recovery is warranted. The ratio is that the sanctity of the appellate process must be upheld, and coercive actions should not pre-empt the appellate authority's decision on preliminary matters. The operative direction was to defer coercive steps until the ITAT considers the delay and stay petitions. The Court also expressed hope that the ITAT would dispose of these petitions expeditiously. No issues were left undecided.

What were the facts?

The petitioner, K.K. Purushoman, an assessee, challenged an assessment order (Ext.P1) before the Commissioner of Income Tax (Appeals), which resulted in an order (Ext.P2). He then filed a second appeal before the Income Tax Appellate Tribunal (ITAT), along with delay condonation and stay petitions. The petitioner filed this writ petition before the High Court of Kerala, alleging that tax authorities were taking coercive steps before the ITAT could decide on his pending delay and stay petitions. The assessment year(s) are not specified. The amount in dispute is not stated. The procedural history involves an assessment order, an appeal to the CIT(A), and a further appeal to the ITAT.

What were the issues?

1. Whether the tax authorities can take coercive steps against the assessee when delay condonation and stay petitions are pending before the Income Tax Appellate Tribunal? (Question of procedure and fairness). The petitioner argued that procedural fairness dictates that authorities should wait for the appellate authority to decide on pending delay and stay petitions before initiating coercive measures. The revenue's contentions are not recorded in the judgment.

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 DAMA SESHADRI NAIDU TUESDAY ,THE 12TH DAY OF FEBRUARY 2019 / 23RD MAGHA, 1940 WP(C).No. 4081 of 2019 PETITIONER/S: K.K.PURUSHOTHAMAN AGED 76 YEARS 31/469, NADUVILE VEEDU, MUTHOOR, THIRUVALLA, PATHANAMTHITTA. BY ADVS. SRI.HARISANKAR V. MENON SMT.K.KRISHNA SMT.MEERA V.MENON RESPONDENT/S: 1 THE INCOME TAX OFFICER WARD-3, THIRUVALLA-689101. 2 THE INCOME TAX APPELLATE TRIBUNAL, COCHIN BENCH, KAKKANAD, ERNAKULAM-682030. OTHER PRESENT: SC SRI. JOSE JOSEPH THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 12.02.2019, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: W.P.(C) No.4081/2019 -2-

J U D G M E N T The petitioner, an assessee under the Income Tax Act, questioned the Ext.P1 assessment order, before the Commissioner of Income Tax (Appeals). It resulted in the Ext.P2 order.

2.

The petitioner again challenged the Ext.P2 order in the second appeal before the Appellate Tribunal, the second respondent. The petitioner, in the appeal, filed delay and stay petitions, too. Ventilating his grievance that the authorities are taking coercive steps before the appellate authority could consider those petitions, the petitioner has filed this writ petition.

2.

Heard the learned counsel for the petitioner and the learned Standing Counsel.

3.

True, before the Tribunal, both delay condonation and stay petitions are pending. Procedural fairness demands that the authorities wait, before taking further steps, until the appellate authority decides on those petitions.

W.P.(C) No.4081/2019 -3- Therefore, I dispose of the writ petition, directing the respondent authority to defer coercive steps until the second respondent considers the delay and stay petitions in the appeal. I also hope that the second respondent will dispose of those petitions expeditiously. DAMA SESHADRI NAIDU JUDGE jjj

Appendix — schedule of exhibits
APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1 COPY OF ASSESSMENT ORDER ISSUED BY THE 1ST RESPONDENT FOR THE YEAR 2014-15. EXHIBIT P2 COPY OF APPELLATE ORDER ISSUED BY THE COMMISSIONER OF INCOME TAX(APPEALS) FOR THE YEAR 2014-15. EXHIBIT P3 COPY OF APPEAL FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT FOR THE YEAR 2014-15. EXHIBIT P4 COPY OF PETITION FOR CONDONATION OF DELAY FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT FOR THE YEAR 2014-15. EXHIBIT P5 COPY OF STAY PETITION FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT FOR THE YEAR 2014-15.

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