M/S. SAFE DEVELOPMENT ALMS TRUST vs. THE ASST. COMMISSIONER OF INCOME TAX,

WP(C)/21695/2019HC KeralaKLHC01055421201908 August 2019Author: HONOURABLE MR.JUSTICE S.V.BHATTI4 pages
AI SummaryPartly Allowed

What were the facts?

The petitioner, M/s. Safe Development Alms Trust, filed an appeal (Ext.P2) against an assessment order (Ext.P1) passed under Section 143(3) r.w.s. 153A of the Income Tax Act. Along with the appeal, a stay petition (Ext.P3) was filed. The petitioner approached the High Court of Kerala seeking a direction to the appellate authority (second respondent) to consider and dispose of the stay petition expeditiously. The petitioner argued that the delay in deciding the stay petition would allow the assessing officer to initiate recovery proceedings, rendering the appeal ineffective. The High Court perused the documents and found a case made out for issuing directions.

What did the High Court hold?

The High Court directed the appellate authority (second respondent) to consider and dispose of the stay petition (Ext.P3) as early as possible, preferably within two months from the date of receipt of a copy of the judgment. Additionally, the respondents were directed not to take coercive steps or recover the amounts determined in the orders under appeal for ten weeks from the date of the judgment. The court was satisfied that a case was made out for issuing necessary directions based on the limited prayer and grounds presented by the petitioner. The ratio of this decision is that the High Court can direct expeditious disposal of stay petitions and grant a temporary reprieve from coercive recovery actions to ensure the efficacy of the appellate process.

What were the issues?

1. Whether the High Court should direct the appellate authority to expeditiously consider and dispose of the stay petition filed by the assessee pending appeal? Assessee's contentions: - Mere filing of an appeal or pendency of a stay petition does not amount to a stay being granted by the appellate authority. - Delay in disposing of the stay petition would enable the assessing officer to take steps for recovering the disputed tax amount. - Such recovery actions would render the statutory appeal either academic or ineffective. - The law provides for expeditious disposal of stay petitions to protect the interest of the appellant pending appeal. Revenue's contentions: - The judgment does not record any specific contentions from the revenue.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 153A

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 S.V.BHATTI THURSDAY, THE 08TH DAY OF AUGUST 2019 / 17TH SRAVANA, 1941 WP(C).No.21695 OF 2019(J) PETITIONER: M/S. SAFE DEVELOPMENT ALMS TRUST I, MELAMURI, PALAKKAD, REPRESENTED BY ITS CHAIRMAN AND MANAGING TRUSTEE, P.V.MOHAMMED HARIF, AGED 51, S/O.P.V.HASSAN. BY ADVS. SRI.HARISANKAR V. MENON SMT.MEERA V.MENON RESPONDENTS: 1 THE ASST. COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE, THRISSUR-680001. 2 COMMISSIONER OF INCOME TAX (APPEALS), PANAMPILLY NAGAR, ERNAKULAM-682036. BY SRI. JOSE JOSEPH, SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 08.08.2019, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C).No.21695 OF 2019(J) 2

JUDGMENT The petitioner filed appeal in Ext.P2 aggrieved by the order of assessment in Ext.P1 made under Section 143(3) r.w.s. 153A of the Income Tax Act. The petitioner has filed the appeal along with Ext.P3 stay petition. The petitioner prays for appropriate direction to the appellate authority to consider and dispose of Ext.P3 expeditiously.

2.

The case of petitioner is that either the mere filing of appeal or mere pendency of appeal does not amount to grantin

The order continues below.

Read the full judgment

A free account opens 10 full judgments a month. Re-reading one you have already opened does not count again.

Create a free accountSign in

See plans and prices

The summary, the parties, the sections and the citations above are open to everyone and always will be. Only the text of the order and the PDF are metered.

More judgments on Section 153A

All 18,560 judgments and leading authorities on Section 153A →

Recent GST High Court judgments

Search GST case law →