V-GUARD INDUSTRIES LIMITED vs. ASSISTANT COMMISSIONER OF INCOME TAX

WP(C)/8565/2022HC KeralaKLHC01018456202215 March 2022Author: HONOURABLE MR. JUSTICE BECHU KURIAN THOMAS4 pages

AI SummaryPartly Allowed

What did the High Court hold?

The High Court of Kerala, while acknowledging the pendency of the appeal and stay petition before the ITAT, found merit in the petitioner's apprehension of coercive proceedings. The Court directed the 4th respondent (Income Tax Appellate Tribunal, Kochi Bench) to consider and pass orders on the stay petition (Ext.P4) within a period of three months from the date of receipt of a copy of the judgment. Furthermore, the Court ordered that all coercive proceedings initiated against the petitioner shall be kept in abeyance until a decision is taken on the stay petition. The writ petition was disposed of with these directions. No specific issue regarding the merits of the assessment order or the stay petition was decided.

What were the facts?

The petitioner, V-Guard Industries Limited, is aggrieved by an assessment order for the assessment year 2016-17. They have filed a second appeal before the Income Tax Appellate Tribunal (ITAT), Kochi Bench, and simultaneously filed a stay petition. The petitioner apprehends coercive recovery proceedings before their stay petition is considered by the ITAT. Consequently, they have filed this writ petition before the High Court of Kerala seeking a direction for the expeditious disposal of the stay petition.

What were the issues?

1. Whether the High Court should entertain a writ petition when a statutory appeal and a stay petition are pending before the ITAT? Assessee's Contention: The petitioner argues that they are facing the threat of coercive recovery proceedings before their stay petition is adjudicated by the ITAT. This necessitates intervention by the High Court to prevent irreparable harm. They rely on the principle that extraordinary jurisdiction can be invoked to prevent injustice. The petitioner seeks a direction for the ITAT to consider and pass orders on their stay petition expeditiously. Revenue's Contention: The judgment does not record any specific contentions from the respondents (Assistant Commissioner of Income Tax, National Faceless Assessment Centre, Principal Commissioner of Income Tax, and ITAT).

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 BECHU KURIAN THOMAS TUESDAY, THE 15TH DAY OF MARCH 2022 / 24TH PHALGUNA, 1943 WP(C) NO. 8565 OF 2022 PETITIONER: V-GUARD INDUSTRIES LIMITED 42/962, VENNALA HIGH SCHOOL ROAD, VENNALA , KOCHI-682 028, REPRESENTED BY ITS MANAGING DIRECTOR, MR.MITHUN.K.CHITTILAPPILLY BY ADVS. ANIL D. NAIR TELMA RAJU EDATHARA VINEETA KRISHNAN ARAVIND SREEKUMAR RESPONDENTS: 1 ASSISTANT COMMISSIONER OF INCOME TAX CORPORATE CIRCLE 2 (1), KOCHI-682 018 2 ADDITIONAL/JOINT/DEPUTY/ASSISTANT COMMISSIONER OF INCOME TAX, NATIONAL FACELESS ASSESSMENT CENTRE, DELHI-110 002 3 PRINCIPAL COMMISIONER OF INCOME TAX, KOCHI-1, CENTRAL REVENUE BUILDING, I.S PRESS ROAD, KOCHI-682 018 4 THE INCOME TAX APPELLATE TRIBUNAL, KOCHI BENCH, 1ST FLOOR, BLOCK C-I & C-II, KENDRIYA BHAVAN, KAKKANAD, KERALA-682 037 OTHER PRESENT: SC-SRI.JOSE JOSEPH THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 15.03.2022, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C) NO. 8565 OF 2022 -:2:- BECHU KURIAN THOMAS, J. ----------------------------------------- W.P.(C) No. 8565 of 2022 ---------------------------------------- Dated this the 15th day of March, 2022

JUDGMENT Aggrieved by Ext.P1 order of assessment relating to assessment year 2016-17, petitioner has preferred a second appeal before the 4th respondent, a copy of which is produced as Ext.P3. A petition for stay of proceedings pursuant to the assessment order has also been filed as Ext.P4. Petitioner apprehends coercive proceedings to be effected even before the petition for stay is considered.

Hence this writ petition.

Having considered the submissions of the counsel for the petitioner as well as the respondents, I am of the opinion that this writ petition itself can be disposed of with a direction.

Accordingly, there will be a direction to the 4th respondent to consider and pass orders on Ext.P4 stay

WP(C) NO. 8565 OF 2022 petition, within a period of three months from the date of receipt of a copy of this judgment. Till such a decision is taken, all coercive proceedings initiated against the petitioner shall be kept in abeyance. The writ petition is disposed of as above. BECHU KURIAN THOMAS JUDGE AJM

WP(C) NO. 8565 OF 2022

Appendix — schedule of exhibits

APPENDIX OF WP(C) 8565/2022 PETITIONER’S EXHIBITS : Exhibit P1 TRUE COPY OF ORDER DATED 28.12.2018 ISSUED UNDER SEC.143 (3). Exhibit P2 TRUE COPY OF THE UNDER SECTION 263 DATED 22.3.2021. Exhibit P3 TRUE COPY OF THE APPEAL MEMORANDUM FILED BEFORE THE APPELLATE TRIBUNAL. Exhibit P4 TRUE COPY OF THE STAY PETITION FILED BEFORE THE APPELLATE TRIBUNAL. Exhibit P5 TRUE COPY OF LETTER DATED 15.02.2022 ALONG WITH THE ANNEXURES. RESPONDENT’S EXHIBITS : NIL AJM //TRUE COPY// PA TO JUDGE

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