M/S. VICEROY EXPORTS (INDIA) PVT. LTD. vs. THE ADDITIONAL/JOINT/DEPUTY/ASSISTANT COMMISSIONER OF INCOME TAX/ INCOME TAX OFFICER

WP(C)/38792/2022HC KeralaKLHC01083834202230 November 2022Author: HONOURABLE MR. JUSTICE GOPINATH P.4 pages

AI SummaryRemanded

What did the High Court hold?

The High Court of Kerala, while acknowledging the petitioner's grievance regarding the assessment orders and the pending similar issue, disposed of the writ petition. The Court noted that the petitioner had already availed the statutory remedy by filing appeals against the assessment orders before the National Faceless Appeal Centre (NFAC). Therefore, the Court directed that further proceedings for the recovery of any amounts due under the assessment orders should be kept in abeyance until a decision is taken by the NFAC on the stay petitions filed by the petitioner in their appeals. The petitioner was also permitted to raise all their contentions before the Appellate Authority. No specific finding was made on the validity of the assessment orders themselves, as the matter was deferred to the appellate process.

What were the facts?

The petitioner, M/s. Viceroy Exports (India) Pvt. Ltd., approached the High Court of Kerala aggrieved by recovery proceedings, including garnishee proceedings, initiated to recover amounts due under assessment orders for assessment years 2015-16, 2016-17, and 2017-18. The petitioner contended that the assessment orders were invalid due to not being validly signed and cited a similar pending case. The respondent-Department noted that the petitioner had already filed statutory appeals against these assessment orders before the National Faceless Appeal Centre (NFAC), which were pending. The Department suggested that recovery proceedings could be stayed until the stay petitions filed with the appellate authority were decided.

What were the issues?

1. Whether the assessment orders for assessment years 2015-16, 2016-17, and 2017-18 are invalid due to not being validly signed, as a question of law? Assessee's Contentions: The petitioner argued that the assessment orders were invalid because they were not validly signed. They also pointed out that a similar issue was pending before the High Court in another writ petition (W.P.(C). No.31553 of 2022). Revenue's Contentions: The respondent-Department stated that the petitioner had already filed statutory appeals (Exts.P4, P5, and P6) against the assessment orders (Exts.P1, P2, and P3) before the National Faceless Appeal Centre (NFAC), and these appeals were pending. The Department suggested that further recovery proceedings could be kept in abeyance until the stay petitions filed by the petitioner were considered and decided by the appellate authority.

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 30TH DAY OF NOVEMBER 2022 / 9TH AGRAHAYANA, 1944 WP(C) NO. 38792 OF 2022 PETITIONER/S: M/S. VICEROY EXPORTS (INDIA) PVT. LTD. HAVING ITS REGISTERED ADDRESS AT 55/56, AT BAKIR ABDUL HUSSAIN MANSION, THIRD LINE, NORTH BEACH ROAD, CHENNAI, REPRESENTED BY ITS MANAGING DIRECTOR, PIN - 600041 BY ADVS. M.S.AMAL DHARSAN NOEL JACOB RESPONDENT/S: 1 THE ADDITIONAL/JOINT/DEPUTY/ASSISTANT COMMISSIONER OF INCOME TAX/ INCOME TAX OFFICER NATIONAL FACELESS ASSESSMENT CENTRE, DELHI , PIN - 680001 2 THE PRINCIPAL CHIEF COMMISSIONER OF INCOME-TAX, NATIONAL FACELESS APPELLATE CENTRE (NFAC) ROOM NO. 245-A, NORTH BLOCK, NEW DELHI , PIN - 110001 3 THE INCOME TAX OFFICER CORPORATE WARD 3(3) CHE, ROOM NO:413, FOURTH FLOOR, CHENNAI - WANAPARTHY BLOCK NO. 121, MAHATMA GANDHI ROAD, NUMGAMBAKKAM, CHENNAI, TAMIL NADU , PIN - 600034 4 THE KOTAK MAHINDRA BANK LTD. VALLANATT, MG ROAD, ERNAKULAM, REPRESENTED BY ITS BRANCH MANAGER, PIN - 682035 5 THE BRANCH MANAGER THE KOTAK MAHINDRA BANK LTD., VALLANATT, MG ROAD, ERNAKULAM , PIN - 682035 ADV. JOSE JOSEPH (SC) THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 30.11.2022, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C) NO. 38792 OF 2022 2

JUDGMENT

Petitioner has approached this Court being aggrieved by the fact that, proceedings [including the garnishee proceedings] have been initiated against the petitioner to recover amounts due under Exts.P1, P2 and P3 orders of assessment under the Income Tax Act, 1961 for the assessment years 2015-16, 2016-17 and 2017-18. 2. Learned counsel appearing for the petitioner submitted that the assessment orders are themselves invalid as they have not been validly signed. It is submitted that similar issue is pending consideration before this Court in W.P.(C). No.31553 of 2022. 3. Learned counsel appearing for the respondent- Department submits that the petitioner has already filed Exts.P4, P5 and P6 appeals against Exts.P1, P2 and P3 orders of assessment and that the same is pending consideration before the National Faceless Appeal Centre (the 2nd respondent). It is submitted that further proceedings can be kept in abeyance till stay petitions are considered and decided by the Appellate authority.

Having heard the learned counsel appearing for the petitioner and the learned counsel appearing for the WP(C) NO. 38792 OF 2022 3 respondent-Department, I am of the opinion that since the petitioner has already filed statutory appeals against Exts.P1, P2 and P3 orders of assessment, this writ petition can be disposed of, directing that further proceedings for recovery of any amounts due under Exts.P1, P2 and P3 orders of assessment shall be kept in abeyance till a decision is taken on the stay petitions stated to have been filed in Exts.P4, P5 and P6 appeals by the National Faceless Appeal Centre. It is open to the petitioner to raise all contentions before the Appellate Authority.

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

WP(C) NO. 38792 OF 2022 4

Appendix — schedule of exhibits

APPENDIX OF WP(C) 38792/2022 PETITIONER EXHIBITS Exhibit P1 TRUE COPY OF THE ASSESSMENT ORDER DATED 27.03.2022 FOR THE ASSESSMENT YEAR 2015-16 Exhibit P2 TRUE COPY OF THE ASSESSMENT ORDER DATED 29.03.2022 FOR THE ASSESSMENT YEAR 2016-17 Exhibit P3 TRUE COPY OF THE ASSESSMENT ORDER DATED 27.03.2022 FOR THE ASSESSMENT YEAR 2017-18 Exhibit P4 TRUE COPY OF THE APPEAL FILED FOR THE ASSESSMENT YEAR 2015-16 Exhibit P5 TRUE COPY OF THE APPEAL FILED FOR THE ASSESSMENT YEAR 2016-17 Exhibit P6 TRUE COPY OF THE APPEAL FILED FOR THE ASSESSMENT YEAR 2017-18 Exhibit P7 TRUE COPY OF THE LETTER DATED 09/11/2022 ISSUED TO THE 4TH RESPONDENT BANK Exhibit P8 TRUE COPY OF THE COMMUNICATION DATED 16/11/2022 ISSUED BY THE 4TH RESPONDENT Exhibit P9 TRUE COPY OF THE INTERIM ORDER DATED 12/10/2022 IN W.P(C) NO. 3553/2022

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