KADANGODE PANCHAYATH MULTIPURPOSE CO-OPERATIVE SOCIETY LTD vs. THE COMMISSIONER OF INCOME TAX(APPEALS)

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WP(C)/20796/2023HC KeralaKLHC01045447202327 June 2023Author: HONOURABLE MR.JUSTICE C.S.DIAS5 pages
AI SummaryPartly Allowed

What did the High Court hold?

The High Court directed the third respondent (Commissioner of Income Tax (Appeals), National Faceless Appeal Centre) to consider and dispose of the stay petitions (Exts P5 and P6) in accordance with law and as expeditiously as possible, at any rate, within three months from the date of receipt of a certified copy of the judgment, after affording the petitioner an opportunity of being heard. The court further stipulated that if the third respondent proposes to pass a conditional order of stay, reasons for the same must be stated. Crucially, until orders are passed on the stay petitions, all further proceedings pursuant to the final order (Ext P1) and the notice (Ext P4) shall stand deferred. The High Court did not decide on the merits of the appeals themselves, focusing solely on the procedural aspect of directing the disposal of the stay petitions.

What were the facts?

The petitioner, Kadangode Panchayath Multipurpose Co-operative Society Ltd., filed a writ petition before the High Court of Kerala seeking a direction to the additional third respondent (Commissioner of Income Tax (Appeals), National Faceless Appeal Centre) to consider and dispose of its pending appeals and stay petitions. The petitioner had filed appeals (Exts P2 and P3) against a final order (Ext P1) passed by the first respondent, and subsequently filed stay petitions (Exts P5 and P6) in light of a notice (Ext P4) from the second respondent (Income Tax Officer). The petitioner apprehended enforcement of the final order during the pendency of the stay petitions. The appeals were initially filed before the first respondent but were transferred to the third respondent due to migration.

What were the issues?

1. Whether the High Court should direct the third respondent to consider and dispose of the pending appeals and stay petitions filed by the petitioner? (Question of procedure). Assessee's Contention: The petitioner argued that they have filed appeals and stay petitions against the final order and notice from the Income Tax Officer, and they apprehend enforcement of the order during the pendency of the stay petitions. They seek a direction for expeditious disposal. Revenue's Contention: The revenue, through counsel, submitted that the appeals and stay petitions, though initially filed before the first respondent, have been transferred to the third respondent due to migration and are pending consideration before the third respondent.

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances
1 WP(C) No.20796 of 2023 IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR.JUSTICE C.S.DIAS TUESDAY, THE 27TH DAY OF JUNE 2023 / 6TH ASHADHA, 1945 WP(C) NO. 20796 OF 2023 PETITIONER/S: KADANGODE PANCHAYATH MULTIPURPOSE CO-OPERATIVE SOCIETY LTD NO.R1121, REPRESENTED BY ITS SECRETARY, KADANGODE, CHIRAMANAGAD P.O, THRISSUR DISTRICT, PIN - 680604 BY ADVS. ARUN KUMAR.P THIYYANNOOR RAMAKRISHNAN AMBIKA RADHAKRISHNAN KAVYA SURESH RESPONDENT/S: 1 THE COMMISSIONER OF INCOME TAX(APPEALS) I.S PRESS ROAD, KOCHI, PIN - 682018 2 INCOME TAX OFFICER WARD 1& TPS, GURUVAYOOR CITY PLAZA, INCOME TAX OFFICE, WEST NADA, GURUVAYOOR , THRISSUR DISTRICT, PIN - 680101 3 COMMISSIONER OF INCOME TAX (APPEALS) NATIONAL FACELESS APPEAL CENTRE, 245-A, NORTH BLOCK, NEW DELHI - 110001. (ADDITIONAL THIRD RESPONDENT IS IMPLEADED AS PER ORDER DATED 27.6.2023 IN IA 1/2023) SRI.JOSE JOSEPH THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 27.06.2023, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: 2 WP(C) No.20796 of 2023 C.S DIAS,J. --------------------------- WP(C) No.20796 of 2023 ----------------------------- Dated this the 27th day of June, 2023 .

JUDGMENT The writ petition is filed to direct the additional third respondent to consider and dispose of Exts P2 and P3 appeals along with Exts P5 and P6 stay petitions.

2.

The petitioner’s case is that, aggrieved by Ext P1 final order, the petitioner has preferred Exts P2 and P3 appeals before the first respondent on 18.10.2022 and 7.2.2022, respectively. The petitioner thereafter preferred Exts P5 and P6 stay petitions in the above appeals in view of Ext P4 notice issued by the second respondent. The petitioner apprehends that during the pendency of Exts P5 and P6, the respondents may enforce Ext P1 final order through Ext P4 notice. Hence, the writ petition.

3.

Heard; Sri.Arun Kumar, the learned counsel appearing for the petitioner and Sri.Jose Joseph, the learned counsel appearing for the respondents.

4.

Sri.Jose Joseph, on instructions, submitted that even though the appeals were preferred before the first respondent, in view of the migration, the same have been transferred to the third respondent. Hence, the appeals and stay petitions are now pending consideration before the third respondent.

5.

Having considered the pleadings and materials on record and taking note of the fact that Exts P2 and P3 appeals and Exts P5 and P6 stay petitions submitted by the petitioner is pending consideration before the third respondent, I deem it appropriate to order the writ petition as follows: (i) The third respondent is directed to consider and dispose of Exts P5 and P6 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 third respondent proposes to pass a conditional order of stay, he shall state reasons for the same. (iii) Until such time orders are passed on Exts P5 and P6 stay petitions, all further proceedings pursuant to Exts P1 and P4 shall stand deferred. sks/27.6.2023 C.S.DIAS, JUDGE

Appendix — schedule of exhibits
APPENDIX OF WP(C) 20796/2023 PETITIONER EXHIBITS Exhibit P1 TRUE COPY OF THE FINAL ORDER PASSED BY THE 2ND RESPONDENT U/S 143(3) OF THE ACT DATED 12-04-2021 Exhibit P2 TRUE COPY OF THE APPEAL PREFERRED BY THE PETITIONER U/S 246A OF THE INCOME TAX ACT CHALLENGING THE PENALTY IMPOSED BEFORE THE 1ST RESPONDENT WITH E-FILING ACKNOWLEDGEMENT NO. 730224880181022 DATED 18-10-2022 Exhibit P3 TRUE COPY OF THE APPEAL PREFERRED BY THE PETITIONER U/S 246A OF THE INCOME TAX ACT CHALLENGING THE DISALLOWANCE OF DEDUCTION UNDER SECTION 80P, BEFORE THE 1ST RESPONDENT WITH E-FILING ACKNOWLEDGEMENT NO. 134698110070222 DATED 07.02.2022 Exhibit P4 TRUE COPY OF THE NOTICE DATED 19.06.2023 ISSUED BY THE 2ND RESPONDENT TO THE PETITIONER SOCIETY Exhibit P5 TRUE COPY OF THE STAY PETITION FILED BY THE PETITIONER IN EXT.P2 APPEAL, Exhibit P6 TRUE COPY OF THE STAY PETITION FILED BY THE PETITIONER IN EXT.P3 APPEAL, BEARING ACKNOWLEDGEMENT NO. 273915801220623

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