M/S. SHWAS HOMES PVT. LTD. vs. THE ASSISTANT COMMISSIONER OF INCOME TAX

WP(C)/15025/2023HC KeralaKLHC01032580202305 May 2023Author: HONOURABLE MR.JUSTICE MOHAMMED NIAS C.P.4 pages

AI SummaryPartly Allowed

What did the High Court hold?

The High Court found the assessee's request to be reasonable. Consequently, the Court directed the third respondent (Income Tax Appellate Tribunal) to pass orders on the stay application (Ext.P5) and the delay petition (Ext.P4) within a period of six weeks from the date of receipt of a copy of the judgment. Furthermore, the Court ordered that all further proceedings pursuant to the assessment order (Ext.P1) would be kept in abeyance until such orders are passed by the ITAT. The writ petition was disposed of with these directions. The judgment did not decide the merits of the appeal or the stay petition itself, only directing the ITAT to consider them.

What were the facts?

The petitioner, M/s. Shwas Homes Pvt. Ltd., filed a writ petition before the High Court of Kerala challenging an assessment order (Ext.P1). The petitioner had also filed an appeal (Ext.P3) and a stay petition (Ext.P5) along with a delay condonation petition (Ext.P4) before the Income Tax Appellate Tribunal (ITAT), the third respondent. The petitioner's grievance was that coercive steps were being taken pursuant to the assessment order while the statutory appeal and stay petition were pending. The writ petition sought a direction for the ITAT to pass orders on the stay and delay petitions within a specified time.

What were the issues?

1. Whether the High Court should direct the ITAT to pass orders on the stay and delay condonation petitions filed by the assessee within a stipulated time frame, considering the pendency of coercive recovery proceedings by the revenue. Assessee's Contention: The assessee argued that coercive steps were being pursued by the revenue during the pendency of their statutory appeal and stay petition before the ITAT, necessitating judicial intervention to direct the ITAT to expedite the decision on the stay and delay petitions. The assessee sought a reasonable time limit for the ITAT's decision. Revenue's Contention: The judgment does not record any specific contentions from the revenue regarding the issues raised by the assessee in the writ petition. The court heard learned counsel on either side, implying the revenue was represented, but their arguments on the merits of the stay/delay petitions or the court's jurisdiction to direct the ITAT are not detailed.

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR.JUSTICE MOHAMMED NIAS C.P. FRIDAY, THE 5TH DAY OF MAY 2023 / 15TH VAISAKHA, 1945 WP(C) NO. 15025 OF 2023 PETITIONER/S: M/S. SHWAS HOMES PVT. LTD. GROUND FLOOR, SHWAS MYSTIC HEIGHTS, KANIYAMPUZHA ROAD, EROOR P.O., ERNAKULAM , REPRESENTED BY ITS DIRECTOR, SREENI PARAMESWARAN, PIN - 682306 BY ADVS. HARISANKAR V. MENON MEERA V.MENON R.SREEJITH K.KRISHNA PARVATHY MENON RESPONDENT/S: 1 THE ASSISTANT COMMISSIONER OF INCOME TAX INCOME TAX DEPARTMENT, CORPORATE CIRCLE 2 (1), 3RD FLOOR, I.S. PRESS ROAD, ERNAKULAM, KOCHI, PIN - 682018 2 NATIONAL FACELESS APPEAL CENTRE DELHI, REPRESENTED BY THE COMMISSIONER OF INCOME TAX (APPEALS, PIN - 110001 3 INCOME TAX APPELLATE TRIBUNAL BLOCK C-I & C-II, KENDRIYA BHAVAN, KAKKANAD, KOCHI, REPRESENTED BY ITS SECRETARY, PIN - 682037 OTHER PRESENT: GP RASHMITA RAMACHANDRAN THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 05.05.2023, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C) NO. 15025 OF 2023 2

JUDGMENT The petitioner, challenging Ext.P1 assessment order has filed Ext.P3 appeal and Ext.P5 stay petition and Ext.P4 delay petition before the 3rd respondent contending that coercive steps pursuant to Ext.P1 assessment order is being taken during the pendency of the statutory appeal and the stay petition, this writ petition is filed seeking a direction to the 3rd respondent to pass orders on Ext.P5 stay petition and Ext.P4 delay petition within a time limit.

Having regard to the facts and circumstances of the case and hearing the learned counsel on either side, I find the request to be reasonable.

Accordingly, there will be a direction to the 3rd respondent to pass orders on Ext.P5

WP(C) NO.

15025

OF 2023

3 stay application and Ext.P4 delay petition within a period of six weeks from the date of receipt of a copy of this judgment. Till such orders are passed, all further proceedings pursuant to Ext.P1 will be kept in abeyance. Writ petition is disposed as above. MOHAMMED NIAS C.P. JUDGE N WP(C) NO.

15025

OF 2023

Appendix — schedule of exhibits

APPENDIX OF WP(C) 15025/2023 PETITIONER EXHIBITS Exhibit P1 COPY OF ASSESSMENT ORDER ISSUED BY THE 1ST RESPONDENT FOR THE YEAR 2014-15 DTD. 04-12- 2019 Exhibit P2 COPY OF APPELLATE ORDER ISSUED BY THE 2ND RESPONDENT DTD. 23-08-2022 Exhibit P3 COPY OF APPEAL FILED BY THEPETITIONER BEFORE THE 3RD RESPONDENT DTD. 01-02-2023 Exhibit P4 COPY OF DELAY PETITION FILED BY THE PETITIONER BEFORE THE 3RD RESPOPNDENT DTD,. 23-02-2023 Exhibit P5 COPY OF STAY PETITION FILED BY THE PETITIONER BEFORE THE 3RD RESPONDENT DTD. 01-02-2023 Exhibit P6 COPY OF JUDGMENT IN WPC NO. 18091/22 OF THIS HON'BLE COURT DTD. 06-06-2022

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