DR. THURUTHIYATH SUMA, vs. ADDITIONAL/JOINT/DEPUTY/ASSISTANT COMMISSIONER OF INCOME TAX/INCOME TAX OFFICER, NATIONAL FACELESS

WP(C)/25190/2024HC KeralaKLHC01122281202415 July 2024Bench: HONOURABLE MR. JUSTICE GOPINATH P.4 pages

AI SummaryPartly Allowed

What did the High Court hold?

The High Court disposed of the writ petition with a direction to the 3rd respondent, the Commissioner of Income Tax (Appeals). The Tribunal directed that the pending stay application (Ext.P8) be considered and disposed of after providing the petitioner with an opportunity of hearing. This decision was made within a period of two months from the date of receipt of a certified copy of the judgment. Crucially, the court ordered that any demand arising from the assessment order (Ext.P1) would be kept in abeyance until the stay application was decided. The court did not decide on the merits of the assessment order itself, focusing solely on the procedural aspect of the pending stay application.

What were the facts?

The petitioner, Dr. Thuruthiyad Ssuma, filed a writ petition before the High Court of Kerala challenging an order of assessment for the assessment year 2017-2018. The petitioner had filed an appeal against this assessment order before the Commissioner of Income Tax (Appeals), who is the 3rd respondent. Along with the appeal, the petitioner also filed an application for stay (Ext.P8) seeking to halt recovery proceedings until the appeal and stay application were decided. The writ petition's sole prayer was for a direction to the 3rd respondent to consider and pass orders on the stay application and to stay recovery until then. The respondents are various income tax authorities.

What were the issues?

1. Whether the High Court should entertain a writ petition when an appeal and a stay application are pending before the appellate authority? The petitioner argued that the writ petition was filed to seek a direction for the speedy disposal of the stay application pending before the Commissioner of Income Tax (Appeals) and to stay recovery proceedings until such disposal. The petitioner sought a procedural direction rather than a determination on the merits of the assessment. The respondents, represented by their Standing Counsel, did not appear to have made any specific arguments against the maintainability of the writ petition or the relief sought, as the court proceeded to dispose of the petition with a direction.

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE GOPINATH P. MONDAY, THE 15TH DAY OF JULY 2024 / 24TH ASHADHA, 1946 WP(C) NO. 25190 OF 2024 PETITIONER: DR. THURUTHIYATH SUMA, AGED 38 YEARS SREEVALSAM, KATTAYAD ROAD, SULTHAN BATHERY S.O, WAYANAD, KERALA, PIN – 673 592. BY ADV S.ARUN RAJ RESPONDENTS: 1 ADDITIONAL/JOINT/DEPUTY/ASSISTANT COMMISSIONER OF INCOME TAX/INCOME TAX OFFICER, NATIONAL FACELESS ASSESSMENT CENTRE, DELHI INCOME TAX DEPARTMENT, 2ND FLOOR, E-RAMP, JAWAHARLAL NEHRU STADIUM, NEW DELHI, PIN – 110 003. 2 INCOME TAX OFFICER, WARD-1, KALPETTA, SULTHAN BATHERY RAOD, KAINATTY, KALPETTA, WAYANAD, PIN – 673 122. 3 COMMISSIONER OF INCOME TAX (APPEALS), NATIONAL FACELESS APPEAL CENTRE, INCOME TAX DEPARTMENT, 2ND FLOOR, E- RAMP, JAWAHARLAL NEHRU STADIUM, NEW DELHI, PIN – 110 003. 4 THE PRINCIPAL COMMISSIONER OF INCOME TAX, AAYAKAR BHAVAN, NORTH BLOCK, MANANCHIRA, KOZHIKODE, PIN – 673 001. BY ADV. SRI. JOSE JOSEPH- SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 15.07.2024, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

WP(C) NO. 25190 OF 2024 2 JUDGMENT Challenging Ext.P1 order of assessment for the assessment year 2017-2018, the petitioner has filed an appeal (Ext.P2) before the 3rd respondent along with Ext.P8 application for stay. The only relief sought by the petitioner is for a direction to the 3rd respondent to consider and pass orders on Ext.P8 and to stay any proceedings for recovery of any amount determined under Ext.P1 till such time as orders are passed on the stay application. 2. Having considered the submissions of the learned counsel for the petitioner as well as the respondents, I am of the opinion that this writ petition itself can be disposed of with a direction. Accordingly, this writ petition will stand disposed of directing the 3rd respondent, before whom Ext.P8 application for stay is pending, to consider and pass orders on Ext.P8 after affording an opportunity of hearing to the petitioner within a period of two months from the date of

WP(C) NO. 25190 OF 2024 3 receipt of a certified copy of this judgment. Till such time as orders are passed on Ext.P8, any demand pursuant to Ext.P1 shall be kept in abeyance. Sd/- GOPINATH P. JUDGE ats

WP(C) NO. 25190 OF 2024 4 APPENDIX OF WP(C) 25190/2024 PETITIONER’S EXHIBITS Exhibit P1 A TRUE COPY OF THE ASSESSMENT ORDER DATED 20-3-2022 UNDER SECTION 147 R.W.S 144 AND 144B OF THE ACT FOR THE AY 2017-18 ALONG WITH THE DEMAND NOTICE ISSUED BY THE 1ST RESPONDENT Exhibit P2 A TRUE COPY OF THE APPEAL DATED 10-9-2022 FILED BEFORE THE 3RD RESPONDENT:- COMMISSIONER OF INCOME TAX (APPEALS), NFAC, DELHI Exhibit P3 A TRUE COPY OF THE JUDGMENT DATED 1-11-2022 IN WP (C) NO. 34783 OF 2022 PASSED BY THIS HONOURABLE COURT Exhibit P4 A TRUE COPY OF ORDER DATED 23-11-2023 PASSED BY THE CIT (APPEALS), NFAC, DELHI FOR THE AY 2017-18 Exhibit P5 A TRUE COPY OF THE SECOND APPEAL DATED 29-11-2023 FILED BY THE PETITIONER BEFORE THE INCOME TAX APPELLATE TRIBUNAL, COCHIN FOR THE AY 2017-18 Exhibit P6 A TRUE COPY OF THE JUDGMENT DATED 22-12-2023 IN WP (C) NO. 43545 OF 2023 PASSED BY THIS HONOURABLE COURT Exhibit P7 A TRUE COPY OF THE ORDER DATED 16-5-2024 PASSED BY THE INCOME TAX APPELLATE TRIBUNAL, COCHIN BENCH DISPOSING OFF EXHIBIT P-5 APPEAL Exhibit P8 A TRUE COPY OF THE STAY PETITION DATED 5-7-2024 E-FILED IN EXHIBIT P-2 APPEAL BEFORE THE 3RD RESPONDENT ON 5-7-2024

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