SANOOF MULANTHALA vs. ASSISTANT COMMISSIONER OF INCOME TAX

WP(C)/26158/2023HC KeralaKLHC01057382202309 August 2023Author: HONOURABLE MR.JUSTICE C.S.DIAS6 pages

AI SummaryPartly Allowed

What did the High Court hold?

The High Court directed the Commissioner of Income Tax (Appeals) (second respondent) to consider and dispose of the stay petitions (Exts P11 to P15) expeditiously, in accordance with law, and within a period of three months from the date of receipt of a certified copy of the judgment. The petitioner was to be afforded an opportunity of being heard. The court further stipulated that if any conditional interim order of stay was proposed, the appellate authority must state reasons for it. Crucially, all further proceedings pursuant to the assessment orders (Exts P1 to P5) and the garnishee notice (Ext P16) were ordered to be deferred until orders were passed on the stay petitions. The principle established is that appellate authorities should dispose of stay applications promptly, especially when there is a risk of coercive action, and such proceedings should be deferred pending the decision on stay.

What were the facts?

The petitioner, Sanoof Mulanthala, filed a writ petition before the High Court of Kerala seeking a direction to the Commissioner of Income Tax (Appeals) (second respondent) to expeditiously consider and dispose of stay petitions (Exts P11 to P15). The petitioner had filed appeals (Exts P6 to P10) against assessment orders (Exts P1 to P5) passed by the Assistant Commissioner of Income Tax (first respondent). These appeals and stay petitions were filed on April 20, 2023, and April 27, 2023, respectively. During the pendency of these, a garnishee notice (Ext P16) was issued by the Branch Manager of Federal Bank Limited (third respondent), leading the petitioner to apprehend enforcement of the assessment orders. The petitioner sought to defer further proceedings until the stay petitions were decided.

What were the issues?

1. Whether the High Court should direct the Commissioner of Income Tax (Appeals) to expeditiously consider and dispose of the pending stay petitions filed by the petitioner. The petitioner argued that the stay petitions were filed along with appeals against assessment orders and that the issuance of a garnishee notice created an apprehension of immediate enforcement, necessitating urgent disposal of the stay applications. The revenue, represented by the Assistant Commissioner of Income Tax, did not record specific arguments against the expeditious disposal of stay petitions in the judgment. The court's primary focus was on the pending stay petitions before the appellate authority.

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances

1 WP(C) No.26158 of 2023 IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR.JUSTICE C.S.DIAS WEDNESDAY, THE 9TH DAY OF AUGUST 2023 / 18TH SRAVANA, 1945 WP(C) NO. 26158 OF 2023 PETITIONER/S: SANOOF MULANTHALA MULANTHALA HOUSE, ALATHIYUR P.O, TIRUR TALUK MALAPPURAM DISTRICT, KERALA, PIN - 676102 BY ADVS. ANIL D. NAIR TELMA RAJU AADITYA NAIR RESPONDENT/S: 1 ASSISTANT COMMISSIONER OF INCOME TAX OFFICE OF THE ASSISTANT COMMISSIONER OF INCOME TAX CENTRAL CIRCLE-1, AAYAKAR BHAVAN, NORTH BLOCK NEW ANNEXE BUILDING, MANANCHIRA, KOZHIKODE, KERALA, PIN - 673001 2 COMMISSIONER OF INCOME TAX (APPEALS)-III POORNIMA BUILDING, MANORAMA JUNCTION, PANAMPILLY NAGAR, KOCHI, PIN - 682036 3 THE BRANCH MANAGER FEDERAL BANK LIMITED 21/119, PURATHOOR ROAD ,ALATHUR P.O, MALAPPURAM DISTRICT MALAPPURAM, PIN - 676102 OTHER PRESENT: Sri Jose joseph THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 09.08.2023, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: 2 WP(C) No.26158 of 2023 C.S DIAS,J. --------------------------- WP(C) No.26158 of 2023 ----------------------------- Dated this the 9th day of August, 2023 .

JUDGMENT The writ petition is filed to direct the second respondent to consider and dispose of Exts P11 to P15 stay petitions, expeditiously.

The petitioner’s case is that, aggrieved by Exts P1 to P5 assessment orders, the petitioner has preferred Exts P6 to P10 appeals before the second respondent on 20.4.2023. Along with the appeals, the petitioner also preferred Exts P11 to P15 stay petitions on 27.4.2023. During the pendency of Exts P6 to P15, the third respondent has issued Ext P16 garnishee notice. The petitioner apprehends that the respondents may enforce Exts P1 to P5 through Ext P16.

Hence the writ petition.

Heard; Sri.Anil D Nair, the learned counsel appearing for the petitioner and Sri.Jose Joseph, the learned counsel appearing for the respondents.

Having considered the pleadings and materials on record and taking note of the fact that Exts P11 to P15 stay petitions are pending consideration before the second respondent, I deem it appropriate to direct the second respondent to consider and dispose of the same immediately. Resultantly, I order the writ petition as follows: (i) The second respondent is directed to consider and dispose of Exts P11 to P15 stay petitions, in accordance with law and as expeditiously as possible, at any rate, within a period of three months from the date of receipt of a certified copy of the judgment, after affording the petitioner an opportunity of being heard.

(ii) If the second respondent proposes to pass any conditional interim order of stay, he shall state reasons for the same. (iii) Until such time orders are passed on Exts P11 to P15 stay petitions, all further proceedings pursuant to Exts P1 to P5 and P16 shall stand deferred. sks/9.8.2023 C.S.DIAS, JUDGE

Appendix — schedule of exhibits

APPENDIX OF WP(C) 26158/2023 PETITIONER EXHIBITS Exhibit P1 TRUE COPY OF THE ASSESSMENT ORDER FOR THE YEAR 2014-15 DATED 25.03.2023 ISSUED BY THE 1ST RESPONDENT Exhibit P2 TRUE COPY OF THE ASSESSMENT ORDER FOR THE YEAR 2015-16 DATED 25.03.2023 ISSUED BY THE 1ST RESPONDENT Exhibit P3 TRUE COPY OF ASSESSMENT ORDER FOR THE YEAR 2017-18 DATED 25.03.2023 ISSUED BY THE 1ST RESPONDENT Exhibit P4 TRUE COPY OF ASSESSMENT ORDER FOR THE YEAR 2018-19 DATED 25.03.2023 ISSUED BY THE 1ST RESPONDENT Exhibit P5 TRUE COPY OF THE ASSESSMENT ORDER DATED 26.3.2023 FOR THE ASSESSMENT YEAR 2019-20 Exhibit P6 TRUE COPY OF THE APPEAL FOR THE ASSESSMENT YEAR 2014-15 FILED BEFORE THE 2ND RESPONDENT BY THE PETITIONER DATED 20.04.2023 Exhibit P7 TRUE COPY OF THE APPEAL FOR THE ASSESSMENT YEAR 2015-16 FILED BEFORE THE 2ND RESPONDENT BY THE PETITIONER DATED 20.04.2023 Exhibit P8 TRUE COPY OF THE APPEAL FOR THE ASSESSMENT YEAR 2017-18 FILED BEFORE THE 2ND RESPONDENT BY THE PETITIONER DATED 20.04.2023 Exhibit P9 TRUE COPY OF THE APPEAL FOR THE ASSESSMENT YEAR 2018-19 FILED BEFORE THE 2ND RESPONDENT BY THE PETITIONER DATED 20.04.2023 Exhibit P10 TRUE COPY OF THE APPEAL FOR THE ASSESSMENT YEAR 2019-20 FILED BEFORE THE 2ND RESPONDENT BY THE PETITIONER DATED 20.04.2023 6 WP(C) No.26158 of 2023 Exhibit P11 TRUE COPY OF STAY PETITION FOR THE ASSESSMENT YEAR 2014-15 FILED BEFORE THE 2ND RESPONDENT DATED 27.04.2023 Exhibit P12 TRUE COPY OF STAY PETITION FOR THE ASSESSMENT YEAR 2015-16 FILED BEFORE THE 2ND RESPONDENT DATED 27.04.2023 Exhibit P13 TRUE COPY OF THE STAY PETITION FOR THE ASSESSMENT YEAR 2017-18 FILED BEFORE THE 2ND RESPONDENT DATED 27.04.2023 Exhibit P14 TRUE COPY OF THE STAY PETITION FOR THE ASSESSMENT YEAR 2018-19 FILED BEFORE THE 2ND RESPONDENT DATED 27.04.2023 Exhibit P15 TRUE COPY OF THE STAY PETITION FOR THE ASSESSMENT YEAR 2019-20 FILED BEFORE THE 2ND RESPONDENT DATED 27.04.2023 Exhibit P16 TRUE COPY OF THE NOTICE DATED 13.7.2023 ISSUED BY THE 1ST RESPONDENT TO THE 3RD RESPONDENT

Recent GST High Court judgments

Search GST case law →