SALEEM MELEPPATTU VALAPPIL vs. THE ADDITIONAL/JOINT/DEPUTY/ASST. COMMISSIONER OF INCOME TAX/INCOME TAX OFICER

WP(C)/349/2023HC KeralaKLHC01000889202306 January 2023Author: HONOURABLE MR. JUSTICE GOPINATH P.4 pages

AI SummaryRemanded

What did the High Court hold?

The High Court of Kerala disposed of the writ petition by directing the 2nd respondent (National Faceless Appeal Centre) to consider and pass orders on the stay petition (Ext.P3) filed in the appeal (Ext.P2) after providing an opportunity of hearing to the petitioner, without undue delay. Crucially, the court held that until such time as orders are passed on the stay petition, any steps for recovery of amounts due under the assessment order (Ext.P1) shall be kept in abeyance. The principle derived is that appellate authorities should expedite decisions on stay petitions, and recovery should be deferred pending such decisions to protect the assessee's interests.

What were the facts?

The petitioner, Saleem Melepattu Valappil, is challenging an order of assessment for the assessment year 2020-2021. He has filed an appeal and a stay petition before the National Faceless Appeal Centre, Delhi. The petitioner apprehends recovery actions for the amounts due under the assessment order while the stay petition is pending. The petitioner sought a direction to keep recovery steps in abeyance until a decision is made on his stay petition.

What were the issues?

1. Whether recovery steps for amounts due under the assessment order should be kept in abeyance pending the decision on the stay petition? (Question of mixed law and fact, concerning the powers of the appellate authority and the principles of natural justice). Assessee's contention: The petitioner argued that recovery steps should be stayed until the appellate authority decides the stay petition to prevent irreparable loss. Revenue's contention: The revenue did not record any specific contention against the stay of recovery proceedings in the judgment.

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE GOPINATH P. FRIDAY, THE 6TH DAY OF JANUARY 2023 / 16TH POUSHA, 1944 WP(C) NO. 349 OF 2023 PETITIONER: SALEEM MELEPPATTU VALAPPIL AGED 40 YEARS MELEPPATTU VALAPPIL HOUSE, PERUMANNUR P.O., ESTATE ROAD, PALAKKAD , PIN - 679536 BY ADVS. HARISANKAR V. MENON MEERA V.MENON R.SREEJITH K.KRISHNA RESPONDENTS: 1 THE ADDITIONAL/JOINT/DEPUTY/ASST. COMMISSIONER OF INCOME TAX/INCOME TAX OFICER NATIONAL FACELESS ASSESSMENT CENTRE DELHI , PIN - 110001 2 NATIONAL FACELESS APPEAL CENETRE NATIONAL FACELESS APPEAL CENTRE, DELHI , REPRESENTED BY THE COMMISSIONER OF INCOME TAX (APPEALS). , PIN - 110001 OTHER PRESENT: ADV. JOSE JOSEPH (SC) THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 06.01.2023, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

..2.. JUDGMENT Dated this the 6th day of January, 2023 The petitioner suffered Ext.P1 order of assessment for the assessment year 2020 – 2021 under the provisions of the Income Tax Act,1961. The petitioner has preferred Ext.P2 appeal along with Ext.P3 stay petition before the 2nd respondent. The petitioner apprehends that the steps may be taken to recover amounts due under Ext.P1 order of assessment pending disposal of the stay petition.

The learned counsel appearing for the petitioner submits that a direction may be issued that any steps to recover amounts due under Ext.P1 order of assessment shall be kept in abeyance, till a decision is taken on Ext.P3 stay petition by the Appellate Authority.

Heard the learned Standing Counsel for the Income Tax Department also.

Having regard to the limited nature of reliefs sought for in the Writ Petition, this Writ Petition will stand disposed of ..3.. directing the 2nd respondent to consider and pass orders on Ext.P3 stay petition filed in Ext.P2 appeal after affording an opportunity of hearing to the petitioner without much delay. Till such time as orders are passed on Ext.P3 stay petition, any steps for recovery of amounts due under Ext.P1 order of assessment shall be kept in abeyance. The Writ Petition is disposed of as above. GOPINATH P. JUDGE RMV ..4..

Appendix — schedule of exhibits

APPENDIX OF WP(C) 349/2023 PETITIONER EXHIBITS Exhibit P1 COPY OF ASSESSMENT IORDER ISSUED BY THE 1ST RESPONDENT FOR THE YEAR 2021-21 DTD. 19-09-2022 Exhibit P2 COPY OF APPEAL FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT DTD. 05-12-2022 Exhibit P3 COPY OF STAY PETITION FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT DTD. 28-12-2022 RESPONDENTS' EXHIBITS:NIL TRUE COPY P.A.TO JUDGE

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