M/S. DILIP H SAMPAT vs. THE INCOME TAX OFFICER

WP(C)/21484/2022HC KeralaKLHC01044214202201 July 2022Author: HONOURABLE MR. JUSTICE GOPINATH P.3 pages

AI SummaryRemanded

What did the High Court hold?

The High Court disposed of the writ petition by directing the 3rd respondent (Commissioner of Income Tax (Appeals)) to consider and pass orders on the stay application (Ext.P4) filed by the petitioner. This consideration must be after affording an opportunity of hearing to the petitioner. Crucially, the Court ordered that until such time as orders are passed on Ext.P4, proceedings for the recovery of any amount due under the assessment order (Ext.P1) shall be kept in abeyance. The Court did not decide on the merits of the appeal or the stay application itself, but rather on the procedural aspect of ensuring the stay application is heard and decided promptly, with a temporary halt to recovery.

What were the facts?

The petitioner, M/s. Dilip H Sampat, received an order of assessment (Ext.P1) under the Income Tax Act. The petitioner filed an appeal (Ext.P3) and a stay application (Ext.P4) before the 3rd respondent, the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre. The petitioner apprehended recovery proceedings for the amounts assessed in Ext.P1 while the stay application was pending. The writ petition was filed before the High Court of Kerala seeking a direction for the timely consideration of the stay application.

What were the issues?

1. Whether the High Court should direct the 3rd respondent to consider and pass orders on the stay application (Ext.P4) filed by the petitioner, pending the appeal (Ext.P3) against the assessment order (Ext.P1)? Assessee's contention: The petitioner argued that recovery proceedings for the assessed amount should be kept in abeyance until the 3rd respondent decides on the stay application. The petitioner apprehended immediate recovery actions. Revenue's contention: The learned standing counsel for the respondents appeared before the court.

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. FRIDAY, THE 1ST DAY OF JULY 2022 / 10TH ASHADHA, 1944 WP(C) NO. 21484 OF 2022 PETITIONER/S: M/S. DILIP H SAMPAT 12/171, BIG BAZAR, KOZHIKODE - 673 001. REPRESENTED BY ITS PARTNER DILIP H.SAMPAT BY ADVS. T.M.SREEDHARAN (SR.) V.P.NARAYANAN ALAN PRIYADARSHI DEV RESPONDENT/S: 1 THE INCOME TAX OFFICER WARD 1 (1), AAYAKAR BHAVAN, NORTH BLOCK, NEW ANNEX BUILDING, MANANCHIRA, KOZHIKODE - 673 001. 2 ADDITIONAL /JOINT/DEPUTY/ASSISTANT COMMISSIONER OF INCOME TAX, INCOME TAX OFFICER, NATIONAL E-ASSESSMENT CENTRE, INCOME TAX DEPARTMENT, MINISTRY OF FINANCE, ROOM NO.401, 2ND FLOOR, E-RAMP, JAWAHARLAL STADIUM, DELHI 110 003. - 3 THE COMMISSIONER OF INCOME TAX(APPEALS) NATIONAL FACELESS APPEAL CENTRE, INCOME TAX DEPARTMENT, MINISTRY OF FINANCE, JAWAHARLAL STADIUM, DELHI - 110 003. SRI. CHRISTOPHER ABRAHAM - SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 01.07.2022, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C) NO. 21484 OF 2022 2

JUDGMENT

Petitioner suffered Ext.P1 order of assessment under the Income Tax Act. Petitioner has preferred Ext.P3 appeal along with Ext.P4 application for stay before the 3rd respondent. Petitioner apprehends proceedings for recovery of amounts, assessed in terms of Ext.P1, pending consideration of the stay application by the 3rd respondent.

Having regard to the facts and circumstances of the case and after having heard the learned standing Counsel appearing for the respondents, the writ petition is disposed of, directing the 3rd respondent to consider and pass orders on Ext.P4 application for stay, after affording an opportunity of hearing to the petitioner. Till such time orders are passed on Ext.P4, proceedings of recovery of any amount due under Ext.P1 shall he kept in abeyance.

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

WP(C) NO. 21484 OF 2022 3 APPENDIX OF WP(C) 21484/2022 PETITIONER EXHIBITS Exhibit P1OF THE ASSESSMENT ORDER DATED 26.03.2022 U/S 147 R.W.S.144B OF THE INCOME TAX ACT, ALONG WITH DEMAND NOTICE, FOR THE ASSESSMENT YEAR 2013-14 Exhibit P2OF THE NOTICE ISSUED BY THE 1ST RESPONDENT DATED 13.06.2022 Exhibit P3OF THE MEMORANDUM OF APPEAL FOR THE ASSESSMENT YEAR 2013-14 Exhibit P4OF THE STAY PETITION FOR THE ASSESSMENT YEAR 2013-14

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