M/S.MANAPPURAM FOUNDATION, vs. THE ASSISTANT COMMISSIONER OF INCOME TAX,

WP(C)/7525/2019HC KeralaKLHC01019212201915 March 2019Bench: 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) - III, to decide the stay application (Ext.P2(a)) filed by the petitioner within a period of two months. Consequently, recovery proceedings pursuant to the impugned orders in the appeals were deferred until a decision is taken on the stay application. The High Court did not delve into the merits of the rectification order, the assessment order, or the grounds of appeal. The principle established is that a stay application filed before an appellate authority should be considered expeditiously, and in the interim, recovery can be deferred. The writ petition was disposed of with this specific direction.

What were the facts?

The petitioner, M/s. Manappuram Foundation, challenged a rectification order (Ext.P1) and an assessment order (Ext.P4). Against these orders, the petitioner filed appeals (Exts.P2 and P5) before the Commissioner of Income Tax (Appeals) - III, who is the second respondent. Along with the appeals, the petitioner also filed a stay application (Ext.P2(a)). The present writ petition was filed before the High Court of Kerala seeking a direction for the disposal of the stay application. The assessment year(s) and the specific amounts in dispute are not recorded in the judgment. The procedural history involves the issuance of the impugned orders, the filing of appeals and a stay application before the appellate authority, and the subsequent filing of the writ petition.

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? (Question of procedure) Assessee's Contention: The petitioner, M/s. Manappuram Foundation, sought a direction from the High Court to expedite the decision on their stay application (Ext.P2(a)) filed before the Commissioner of Income Tax (Appeals) - III (second respondent). The petitioner had already filed appeals against the rectification and assessment orders. Revenue's Contention: The judgment does not record any specific contentions or arguments made by the revenue (Assistant Commissioner of Income Tax, Exemption Circle, Kochi - first respondent) in response to the writ petition. The judgment focuses on providing a direction to the appellate authority.

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE A.MUHAMED MUSTAQUE FRIDAY ,THE 15TH DAY OF MARCH 2019 / 24TH PHALGUNA, 1940 WP(C).No. 7525 of 2019 PETITIONER: M/S.MANAPPURAM FOUNDATION, V/104, MANAPPURAM HOUSE, VALAPPAD, THRISSUR - 680 567. REPRESENTED BY SHRI.V.P.NANDAKUMAR, MANAGING TRUSTEE. BY ADVS. SRI.T.M.SREEDHARAN (SR.) SMT.DIVYA RAVINDRAN SMT.NISHA JOHN SRI.R.BHASKARA KRISHNAN SRI.V.P.NARAYANAN RESPONDENTS: 1 THE ASSISTANT COMMISSIONER OF INCOME TAX, EXEMPTION CIRCLE, SANJUAN TOWER, BEHIND C.R.BUILDING, KOCHI - 682 018. 2 THE COMMISSIONER OF INCOME TAX (APPEALS)-III, 28/243, POORNIMA, NEAR MANORAMA JUNCTION, PANAMPILLY NAGAR, KOCHI - 682 036. SMT THUSHARA JAMES-GP THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 15.03.2019, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

WP(C).No. 7525 of 2019 2 JUDGMENT The petitioner, as against Ext.P1 rectification order and Ext.P4 assessment order, filed Exts.P2 and P5 appeals before the 2nd respondent. The petitioner also filed Ext P2(a) stay application. In view of the above, there shall be a direction to the 2nd respondent to take a decision on Ext.P2(a) stay application within a period of two months. Till then, recovery proceedings pursuant to the impugned orders in the appeals shall be deferred. The writ petition is disposed of as above. SAS/15/03/2019 Sd/- //TRUE COPY// A.MUHAMED MUSTAQUE P.A. TO JUDGE JUDGE

WP(C).No. 7525 of 2019 3 APPENDIX PETITIONER'S EXHIBITS: EXHIBIT P1 TRUE COPY OF RECTIFICATION ORDER ISSUED U/S 154 FOR DATED 1/01/2019 ISSUED BY THE 1ST RESPONDENT FOR AY- 2016-17 ALONG WITH THE DEMAND NOTICE. EXHIBIT P2 TRUE COPY OF MEMORANDUM OF APPEAL DATED 28/1/2019 E-FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT FOR AY-2016-17. EXHIBIT P2 A TRUE COPY OF STAY PETITION DATED 28/1/2019 FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT. EXHIBIT P3 TRUE COPY OF APPLICATION U/S.220(6) DATED 25/1/2019 SUBMITTED BY THE PETITIONER BEFORE THE 1ST RESPONDENT FOR AY 2016-17. EXHIBIT P4 TRUE COPY OF ORIGINAL ASSESSMENT ORDER DATED 5/12/2018 ISSUED BY THE 1ST RESPONDENT FOR AY-2016-17 ALONG WITH DEMAND NOTICE. EXHIBIT P5 TRUE COPY OF APPEAL DATED 2/01/2019 E-FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT FOR AY-2016-17. EXHIBIT P6 TRUE COPY OF CIRCULAR OF THE CENTRAL BOARD OF DIRECTOR TAXES, VIDE F.NO.404/10/2009- ITCC DATED 1/12/2009.

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