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

WP(C)/21676/2019HC KeralaKLHC01055432201908 August 2019Author: HONOURABLE MR.JUSTICE S.V.BHATTI4 pages
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What were the facts?

The petitioner, M/s. Safe Development Alms Trust, is challenging an assessment order passed under Section 143(3) read with Section 153A of the Income Tax Act. The petitioner filed an appeal against this order and simultaneously filed a stay petition. The present writ petition was filed before the High Court of Kerala seeking a direction to the appellate authority (Commissioner of Income Tax (Appeals)) to consider and dispose of the stay petition expeditiously. The petitioner argued that the delay in deciding the stay petition could lead to coercive recovery steps by the assessing officer, rendering the appeal ineffective. The High Court perused the relevant documents and found a case made out for issuing directions.

What did the High Court hold?

The High Court, having perused the assessment order, the appeal, and the stay petition, was satisfied that a case was made out for issuing necessary directions to the second respondent (appellate authority). The Court directed the appellate authority 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 found this course of action appropriate given the limited prayer and grounds raised in the writ petition.

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 petitioner? (Question of procedure/administrative direction) 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 could result in the assessing officer initiating recovery proceedings for the disputed tax amount. - Such recovery actions before the disposal of the stay petition would render the statutory appeal either academic or ineffective. - The law provides for expeditious passing of orders on stay petitions to protect the interests of the appellant pending appeal. Revenue's Contentions: - No specific contentions from the revenue are recorded in the judgment.

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.21676 OF 2019(H) PETITIONER: M/S.SAFE DEVELOPMENT ALMS TRUST 1,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 ASSISTANT COMMISSIONER OF INCOME TAX CENTRAL CIRCLE, THRISSUR-680 001. 2 COMMISSIONER OF INCOME TAX (APPEALS) PANAMPILLY NAGAR, ERNAKULAM-682 036. 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.21676 OF 2019(H) 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 gra

The order continues below.

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