MAHESWARI TEXTILES vs. INCOME TAX OFFICER

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WP(C)/39859/2022HC KeralaKLHC01086368202215 December 2022Author: HONOURABLE MR. JUSTICE GOPINATH P.4 pages
AI SummaryRemanded

What did the High Court hold?

The High Court disposed of the writ petition by directing that if the petitioner files a stay petition either through the e-filing portal of the National Faceless Appeal Centre or before the jurisdictional Assessing Officer, any proceedings for recovery of amounts under the assessment order (Ext.P1) shall be kept in abeyance until a decision is taken on the stay petition. This benefit is contingent upon the stay petition being filed within ten days from the date of the order. The Court did not decide on the merits of the appeal or the stay petition itself, but provided a procedural direction to facilitate the consideration of the stay application.

What were the facts?

The petitioner, Maheswari Textiles, received an order of assessment (Ext.P1) for assessment year 2017-18. Aggrieved, they filed an appeal (Ext.P2) before the National Faceless Appeal Centre. No stay application was filed. The petitioner approached the High Court of Kerala, aggrieved by a demand notice (Ext.P3) issued pending the appeal. The respondent department indicated that the e-filing portal was open for filing a stay petition, or it could be filed before the jurisdictional Assessing Officer for transfer to the National Faceless Appeal Centre.

What were the issues?

1. Whether the petitioner is entitled to have recovery proceedings stayed pending the decision on their appeal before the National Faceless Appeal Centre, considering the issuance of a demand notice during the pendency of the appeal. Assessee's Contention: The petitioner argued that recovery proceedings should be kept in abeyance until a decision is taken on their stay petition, which they intended to file as per the suggestions of the revenue. Revenue's Contention: The revenue submitted that the e-filing portal was open for the petitioner to file a stay petition, and if unable to do so, they could file it before the jurisdictional Assessing Officer for onward transmission to the National Faceless Appeal Centre.

Which sections of the Income-tax Act were involved?

None explicitly mentioned in the provided text

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. THURSDAY, THE 15TH DAY OF DECEMBER 2022 / 24TH AGRAHAYANA, 1944 WP(C) NO. 39859 OF 2022 PETITIONER/S: MAHESWARI TEXTILES MAHESWARI BUILDING, MULLACKAL ALLEPPEY, KERALA REPRESENTED BY ITS MANAGING PARTNER, SRI. NAGARAJA REDDIAR, PIN - 688011 BY ADVS. ANIL D. NAIR TELMA RAJU EDATHARA VINEETA KRISHNAN P.K.BIJU ANJANA A. RESPONDENT/S: 1 INCOME TAX OFFICER ASSESSMENT UNIT NATIONAL FACELESS ASSESSMENT CENTRE, NEW DELHI, PIN - 110001 2 THE COMMISSIONER OF INCOME TAX (APPEALS) NATIONAL FACELESS APPEAL CENTRE NEW DELHI, PIN - 110001 3 INCOME TAX OFFICER WARD -1 & TPS ALAPPUZHA KERALA, PIN - 688001 ADV. JOSE JOSEPH (SC) THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 15.12.2022, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C) NO. 39859 OF 2022 2

JUDGMENT

Petitioner suffered Ext.P1 order of assessment under the provisions of the Income Tax Act, 1961, for the assessment year 2017-18. Being aggrieved by Ext.P1 order of assessment, petitioner has filed Ext.P2 appeal before the National Faceless Appeal Centre (the 2nd respondent) . However, the petitioner has not filed any stay application. The petitioner has approached this Court, being aggrieved by the fact that pending consideration of the appeal by the National Faceless Appeal Centre, Ext.P3 demand notice has been issued to the petitioner.

2.

Learned counsel appearing for the respondent Department submits that, as per the instructions received by him, the e-filing portal is now opened and the petitioner can very well file a stay petition in Ext.P2 appeal. It is submitted that if the petitioner is unable to upload a stay petition, the petitioner can file a stay petition before the juri ictional Assessing Officer, who shall transfer the stay petition to the National Faceless Appeal Centre, for determination.

3.

Learned counsel appearing for the petitioner submits that the petitioner will file a stay petition in the WP(C) NO. 39859 OF 2022 3 manner suggested by the learned Standing Counsel and the proceedings for recovery of any amount due under Ext.P1 may be kept in abeyance till a decision is taken on the stay petition to be filed by the petitioner.

4.

Having heard the learned counsel appearing for the petitioner and the learned Standing Counsel appearing for the respondent Department, this writ petition will stand disposed of, directing that if the petitioner files a stay petition either before the National Faceless Appeal Centre through e-filing portal or before the juri ictional Assessing Officer, any proceedings for recovery of amounts under Ext.P1 order of assessment shall be kept in abeyance till a decision is taken on the stay petition to be filed by the petitioner. This benefit shall be available to the petitioner only if the stay petition is filed within ten days from today.

The writ petition will stand disposed of as above. GOPINATH P. JUDGE ajt

WP(C) NO. 39859 OF 2022 4

Appendix — schedule of exhibits
APPENDIX OF WP(C) 39859/2022 PETITIONER EXHIBITS Exhibit P1 TRUE COPY OF THE ASSESSMENT ORDER DATED 29- 03-2022 ISSUED BY THE 1ST RESPONDENT FOR THE A.Y. 2017-18. Exhibit P2 TRUE COPY OF THE APPEAL FILED BEFORE THE 2ND RESPONDENT DATED 16-04-2022. Exhibit P3 TRUE COPY OF THE DEMAND NOTICE DATED 13.10.2022 FOR THE A.Y. 2017-18 ISSUED BY THE 3RD RESPONDENT.

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