M/S. COVENANT STONES PRIVATE LIMITED,REPRESENTED BY ITS DIRECTOR, SRI. K.C. RAMACHANDRAN vs. COMMISSIONER OF INCOME TAX (APPEALS), CENTRAL CIRCLE, COCHIN

WP(C)/38390/2022HC KeralaKLHC01082904202221 December 2022Author: HONOURABLE MR. JUSTICE GOPINATH P.3 pages

AI SummaryPartly Allowed

What did the High Court hold?

The High Court disposed of the writ petition with a direction to the Commissioner of Income Tax (Appeals) to consider and pass orders on the stay petitions filed by the petitioner. This consideration must be done after affording the petitioner an opportunity of being heard, and the order should be passed within a period of 3 months from the date of receipt of a certified copy of the judgment. Crucially, the Court directed that until such time as orders are passed on the stay petitions, any steps for recovery of amounts due under the assessment orders shall be kept in abeyance. The Court did not decide on the merits of the assessment orders or the stay applications themselves, only on the procedural aspect of their consideration and the interim relief concerning recovery.

What were the facts?

The petitioner, M/s. Covenant Stones Private Limited, is aggrieved by assessment orders for assessment years 2014-15 to 2019-20. The petitioner filed appeals before the Commissioner of Income Tax (Appeals) along with stay applications. However, recovery proceedings were initiated based on these assessment orders, as evidenced by Ext.P2. The petitioner approached the High Court of Kerala seeking a direction to consider their stay petitions and to keep recovery proceedings in abeyance until orders are passed on these petitions.

What were the issues?

1. Whether the High Court should direct the Commissioner of Income Tax (Appeals) to consider and pass orders on the stay petitions filed by the petitioner against the assessment orders. 2. Whether recovery proceedings should be kept in abeyance until orders are passed on the stay petitions. Assessee's Contention: The petitioner argued that recovery proceedings were being initiated despite pending appeals and stay applications before the appellate authority. They sought a direction for the expeditious disposal of the stay petitions and a stay on recovery until then. Revenue's Contention: The judgment records that the learned Standing Counsel for the Department was heard. No specific arguments or reliance on authorities by the revenue are recorded.

Which sections of the Income-tax Act were involved?

None explicitly mentioned

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 GOPINATH P. WEDNESDAY, THE 21ST DAY OF DECEMBER 2022 / 30TH AGRAHAYANA, 1944 WP(C) NO. 38390 OF 2022 PETITIONER: M/S. COVENANT STONES PRIVATE LIMITED,REPRESENTED BY ITS DIRECTOR, SRI. K.C. RAMACHANDRAN AGED 78 YEARS M/S. COVENANT STONES PRIVATE LIMITED, HAVING ITS REGISTERED OFFICE AT SHOP NO. 237(416B), MUKHOLA, VATTIYURKAVU, NETTAYAM P.O, THIRUVANANTHAPURAM 695013, REPRESENTED BY ITS DIRECTOR, SRI. K.C. RAMACHANDRAN,AGED 78 YEARS, S/O. SRI. KRISHNAN KARTHA, RESIDING AT 43/738, TR/69/524, RAMYA, WELCOME ROAD, AYYAPPANKAVU, COCHIN 682018 , PIN - 695013 BY ADVS. ANIL XAVIER SMITHA S. RESPONDENTS: 1 COMMISSIONER OF INCOME TAX (APPEALS), CENTRAL CIRCLE, COCHIN POORNIMA BUILDING, MANORAMA JUNCTION, PANAMPILLY NAGAR, COCHIN 682036, PIN – 682036. 2 ASSISTANT COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE INCOME TAX OFFICE, PUBLIC LIBRARY BUILDING, SHASTRI ROAD, KOTTAYAM 686001, PIN - 686001 3 TAX RECOVERY OFFICER, TRO (CENTRAL) KANDOMKULATHY TOWERS, INCOME TAX OFFICE, OPP. MAHARAJA'S COLLEGE GROUND, MG ROAD, COCHIN 682011 , PIN - 682011 OTHER PRESENT: ADV. JOSE JOSEPH (SC) THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 21.12.2022, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: W.P (C) No.38390/2022 -2-

J U D G M E N T The petitioner suffered assessment orders for assessment years 2014-15 to 2019-20 under the provisions of Income Tax Act, 1961. Being aggrieved by those orders of assessments, the petitioner has preferred appeals before the 1st respondent along with applications for stay. The petitioner has approached this court being aggrieved by the fact that steps are taken to recover the amounts due under Exts.P1 series of assessment orders, as is evident from Ext.P2. 2. The learned counsel for the petitioner prays that a direction may be issued to consider and pass orders on the stay petitions filed in the appeal filed against the orders of assessment and till such time as orders are passed, the recovery proceedings may be kept in abeyance.

Having heard the learned counsel for the petitioner and the learned Standing counsel for the Department and having regard to the limited nature of the reliefs sought for by the petitioner, this writ petition will stand disposed of directing the 1st respondent to consider and pass orders on the stay petitions filed by the petitioner in appeals preferred against Ext.P1 series of assessment orders after affording an opportunity of being heard to the petitioner within a period of 3 months from the date of receipt of a certified copy of this judgment. Till such time as orders are passed on the stay petitions, any steps for recovery of amounts due under Ext.P1 series of assessment orders shall be kept in abeyance. GOPINATH P. JUDGE AMG

W.P (C) No.38390/2022 -3-

Appendix — schedule of exhibits

APPENDIX OF WP(C) 38390/2022 PETITIONER EXHIBITS Exhibit P1 TRUE COPY OF THE ASSESSMENT ORDER DATED 30/09/2021 FOR AY 2014-15 ISSUED BY THE 2ND RESPONDENT, ASSESSING OFFICER. Exhibit P1(a) TRUE COPY OF THE ASSESSMENT ORDER DATED 07/12/2021 FOR AY 2015-16 ISSUED BY THE 2ND RESPONDENT, ASSESSING OFFICER. Exhibit P1(b) TRUE COPY OF THE ASSESSMENT ORDER DATED 30/09/2021 FOR AY 2016-17 ISSUED BY THE 2ND RESPONDENT, ASSESSING OFFICER. Exhibit P1(c) TRUE COPY OF THE ASSESSMENT ORDER DATED 16/11/2021 FOR AY 2017-18 ISSUED BY THE 2ND RESPONDENT, ASSESSING OFFICER. Exhibit P1(d) TRUE COPY OF THE ASSESSMENT ORDER DATED 30/09/2021 FOR AY 2018-19 ISSUED BY THE 2ND RESPONDENT, ASSESSING OFFICER. ExhibitP1(e) TRUE COPY OF THE ASSESSMENT ORDER DATED 30/09/2021 FOR AY 2019-20, ISSUED BY THE 2ND RESPONDENT, ASSESSING OFFICER. Exhibit P2 TRUE COPY OF THE ATTACHMENT ORDER DATED 16/08/2022 FOR RECOVERY OF AMOUNT, ISSUED BY THE 3RD RESPONDENT, ASSESSING OFFICER. Exhibit P3 TRUE COPY OF THE CBDT INSTRUCTION NO. 1914 DATED 02/12/1993.

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