CHERIAN KOSHY, vs. ADDITIONAL/JOINT/DEPUTY/ASSISTANT COMMISSIONER OF INCOME TAX/INCOME TAX OFFICER,

WP(C)/5448/2024HC KeralaKLHC01081542202404 March 2024Bench: HONOURABLE MR. JUSTICE GOPINATH P.3 pages

AI SummaryPartly Allowed

What did the High Court hold?

The High Court of Kerala decided to grant a limited relief to the petitioner. The court directed that the demands arising from the assessment and penalty orders (Exts. P1 and P2) shall not be enforced until a decision is taken on the stay petitions (Exts. P5 and P6) filed by the petitioner before the 4th respondent (Commissioner of Income Tax (Appeals)). The court further directed the 4th respondent to endeavor to pass orders on the stay petitions within a period of two months from the date of receipt of a certified copy of the judgment. The court did not decide on the merits of the assessment or penalty orders, nor on the validity of the appeals. The ratio decidendi is that in cases where appeals and stay petitions are pending before the appellate authority, the enforcement of demands can be deferred pending the decision on the stay petitions, to ensure that the appellate process is not rendered infructuous.

What were the facts?

The petitioner, Cherian Koshy, aged 74 years, filed a writ petition before the High Court of Kerala. The petitioner had received orders of assessment and penalty (Exts. P1 and P2) under the Income Tax Act, 1961. He subsequently filed appeals (Exts. P3 and P4) along with stay petitions (Exts. P5 and P6) before the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (4th respondent). The sole relief sought in the writ petition was to prevent the enforcement of the demands arising from the assessment and penalty orders until a decision was made on the pending stay petitions.

What were the issues?

1. Whether the demands arising from the assessment and penalty orders (Exts. P1 and P2) should be enforced pending a decision on the stay petitions (Exts. P5 and P6) filed before the Commissioner of Income Tax (Appeals)? (Question of mixed law and fact, concerning the enforcement of tax demands under the Income Tax Act, 1961). Assessee's Contention: The petitioner argued that the demands should not be enforced until the stay petitions are decided. The petitioner relied on the pendency of appeals and stay petitions before the appellate authority. Revenue's Contention: The judgment records that the learned Standing Counsel appearing for the respondent Department was heard. No specific arguments or reliance on any authorities by the revenue are recorded in the judgment.

Which sections of the Income-tax Act were involved?

Income Tax Act, 1961

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 4TH DAY OF MARCH 2024 / 14TH PHALGUNA, 1945 WP(C) NO. 5448 OF 2024 PETITIONER/S: CHERIAN KOSHY, AGED 74 YEARS KOCHUMELATHIL HOUSE, POOMALA P O, SULTHAN BATHERY, WAYANAD, PIN - 673592 BY ADV S.ARUN RAJ RESPONDENT/S: 1 ADDITIONAL/JOINT/DEPUTY/ASSISTANT COMMISSIONER OF INCOME TAX/INCOME TAX OFFICER, NATIONAL FACELESS ASSESSMENT CENTRE, INCOME TAX DEPARTMENT, 2ND FLOOR, E- RAMP, JAWAHARLAL NEHRU STADIUM, NEW DELHI, PIN - 110003 2 INCOME TAX OFFICER, WARD-24 1 (4), 6TH FLOOR, PIRAMAL CHAMBER, LAL BAUG, PAREL, MUMBAI, PIN - 400012 3 INCOME TAX OFFICER, WARD-1, KALPETTA, INCOME TAX OFFICE, SULTHAN BATHERY ROAD, KALPETTA, WAYANAD, PIN - 673122 4 COMMISSIONER OF INCOME TAX (APPEALS), NATIONAL FACELESS APPEAL CENTRE, INCOME TAX DEPARTMENT, 2ND FLOOR, E- RAMP, JAWAHARLAL NEHRU STADIUM, NEW DELHI, PIN - 110003 5 THE PRINCIPAL COMMISSIONER OF INCOME TAX, AAYAKAR BHAVAN, NORTH BLOCK, MANANCHIRA, KOZHIKODE, PIN - 673001 BY ADVS. CHRISTOPHER ABRAHAM, INCOME TAX DEPARTMENT P.R.AJITH KUMAR SRI. JOSE JOSEPH, SC. THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 04.03.2024, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

W.P (C) No.5448/2024 -2- J U D G M E N T The petitioner has approached this court seeking a limited relief. The petitioner suffered Exts.P1 and P2 order of assessment and penalty under the provisions of the Income Tax Act, 1961. The petitioner has preferred Exts.P3 and P4 appeals along with Exts.P5 and P6 stay petitions. The only relief sought for by the petitioner is that the demands in Exts.P1 and P2 may not be enforced till a decision is taken on Exts.P5 and P6 stay petitions filed in Exts.P3 and P4 appeals pending before the 4th respondent. 2. Having heard the learned counsel for the petitioner and the learned Standing counsel appearing for the respondent Department, this writ petition will stand disposed of directing that till a decision is taken on Exts.P5 and P6 stay petitions pending before the 4th respondent in Exts.P3 and P4 appeals, the demands in Exts.P1 and P2 shall not be enforced. The 4th respondent shall endeavour to pass orders on Exts.P5 and P6 within a period of two months from the date of receipt of a certified copy of this judgment. Sd/- GOPINATH P. JUDGE AMG

W.P (C) No.5448/2024 -3- APPENDIX OF WP(C) 5448/2024 PETITIONER EXHIBITS Exhibit P1 A TRUE COPY OF THE ASSESSMENT ORDER DATED 24- 12-2019 UNDER SECTION 144 R.W.S 147 OF THE ACT FOR THE AY 2012-13 ALONG WITH THE DEMAND NOTICE ISSUED BY THE 2ND RESPONDENT Exhibit P2 A TRUE COPY OF THE PENALTY ORDER DATED 22-10- 2021 PASSED UNDER SECTION 271 (1) (C) OF THE ACT BY THE 1ST RESPONDENT FOR THE AY 2012-13 Exhibit P3 A TRUE COPY OF THE FIRST APPEAL E-FILED ON 13-12-2022 BY THE PETITIONER BEFORE THE 4TH RESPONDENT FOR THE AY 2012-13 CHALLENGING EXHIBIT P-1 ASSESSMENT ORDER Exhibit P4 A TRUE COPY OF THE FIRST APPEAL E-FILED ON 7- 3-2023 BY THE PETITIONER BEFORE THE 4TH RESPONDENT FOR THE AY 2012-13 ALONG WITH THE DELAY APPLICATION CHALLENGING EXHIBIT P-2 PENALTY ORDER Exhibit P5 A TRUE COPY OF THE STAY PETITION FOR THE AY 2012-13 E-FILED ON 17-5-2023 BEFORE THE 4TH RESPONDENT:- CIT (APPEALS), NATIONAL FACELESS APPEAL CENTRE, DELHI SEEKING STAY OF RECOVERY BASED ON EXHIBIT P-1 ASSESSMENT ORDER Exhibit P6 A TRUE COPY OF THE STAY PETITION FOR THE AY 2020-21 E-FILED ON 17-5-2023 BEFORE THE 4TH RESPONDENT:- CIT (APPEALS), NATIONAL FACELESS APPEAL CENTRE, DELHI SEEKING STAY OF RECOVERY BASED ON EXHIBIT P-2 PENALTY ORDER Exhibit P7 A TRUE COPY OF THE SCREEN SHOT TAKEN FROM THE ACCOUNT OF THE PETITIONER IN THE INCOME TAX WEB PORTAL Exhibit P8 A TRUE COPY OF THE NOTICE DATED 25-10-2022 ISSUED BY THE 3RD RESPONDENT FOR THE AY 2012- 13

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