M/S. THAZHAYIL NIDHI LTD. vs. INCOME TAX OFFICER (TDS)

WP(C)/37783/2022HC KeralaKLHC01081370202225 November 2022Author: HONOURABLE MR. JUSTICE GOPINATH P.4 pages

AI SummaryRemanded

What did the High Court hold?

The High Court of Kerala disposed of the writ petition by directing the National Faceless Appeal Centre (NFAC) to provide a link to the petitioner for uploading the stay petition in connection with their appeal (Ext.P2). This link was to be provided within ten days from the date of the order. Upon receiving the link, the petitioner was directed to file the stay petition within two weeks of receiving the link. The court further ordered that if the stay petition was filed within the stipulated time, further proceedings for the recovery of the amount due under the assessment order (Ext.P1) would be kept in abeyance until a decision was taken on the stay petition. The court did not decide on the merits of the stay petition itself, but rather on the procedural aspect of enabling its filing.

What were the facts?

The petitioner, M/s. Thazhayil Nidhi Ltd., is challenging an assessment order for the assessment year 2020-2021. The petitioner filed an appeal before the National Faceless Appeal Centre (NFAC). However, a stay petition was not filed along with the appeal. The petitioner subsequently sent a stay application via registered post. The revenue contended that the stay petition should have been filed concurrently with the appeal and that the later application might not be considered. The High Court of Kerala was approached through a writ petition to address this procedural issue.

What were the issues?

1. Whether the National Faceless Appeal Centre (NFAC) can consider a stay petition filed after the appeal, when it was not filed concurrently with the appeal, and if not, what is the appropriate procedural recourse for the assessee? (Mixed question of law and fact, concerning the procedural rules for filing appeals and stay petitions before the NFAC). Assessee's Contention: The petitioner sought a direction from the High Court to enable them to file the stay petition. The petitioner's counsel appeared before the court. Revenue's Contention: The learned counsel for the respondent department pointed out that the petitioner ought to have filed the stay petition along with the appeal (Ext.P2) and that the subsequent application (Ext.P3) might not be considered by the NFAC.

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE GOPINATH P. FRIDAY, THE 25TH DAY OF NOVEMBER 2022 / 4TH AGRAHAYANA, 1944 WP(C) NO. 37783 OF 2022 PETITIONER: M/S. THAZHAYIL NIDHI LTD. 6/4, THAZHAYIL BUILDING, ELANTHOOR, PATHANAMTHITTA , REPRESENTED BY GENOY JOHN, MANAGING DIRECTOR. , PIN - 689643 BY ADVS. HARISANKAR V. MENON MEERA V.MENON R.SREEJITH K.KRISHNA RESPONDENTS: 1 INCOME TAX OFFICER (TDS) ROOM NO. 308, 2ND, AAYAKAR BHAVAN, INCOME TAX OFFICE, BEACH ROAD, ALAPPUZHA , PIN - 688001 2 NATIONAL FACELESS APPEAL CENTRE NATIONAL FACELESS APPEAL CENTRE, DELHI , REPRESENTED BY THE COMMISSIONER OF INCOME TAX (APPEALS , PIN - 110001 ADV. CHRISTOPHER ABRAHAM (SC) THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 25.11.2022, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

..2.. JUDGMENT Dated this the 25th day of November, 2022 The petitioner suffered Ext.P1 order of assessment for the assessment year 2020-2021 under the provisions of the Income Tax Act, 1961. The petitioner has filed Ext.P2 appeal before the National Faceless Appeal Centre. However, while filing the appeal, the petitioner did not file any stay petition. He has, thereafter, sent Ext.P3 application for stay by registered post. The learned counsel for the respondent department points out that the petitioner ought to have filed the stay petition along with Ext.P2 appeal and Ext.P3 cannot be considered by the National Faceless Appeal Centre.

Having heard the learned counsel appearing for the petitioner and the learned counsel appearing for the respondent department, this writ petition is disposed of directing the National Faceless Appeal Centre to provide a link to the petitioner for uploading the stay petition in ..3.. Ext.P2 appeal. Such link shall be provided within ten days from today. On receipt of the link, the petitioner shall file a stay petition within a period of two weeks from the date of receipt of the link. If such stay petition is filed in Ext.P2 appeal, within the time specified above, further proceedings for recovery of amount due 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 writ petition is disposed of as above. GOPINATH P. JUDGE RMV ..4..

Appendix — schedule of exhibits

APPENDIX OF WP(C) 37783/2022 PETITIONER EXHIBITS Exhibit P1 COPY OF ASSESSMENT ORDER ISSUED BY THE 1ST RESPONDENT FOR THE YEAR 2020-21 DTD. 31-08-2022 Exhibit P2 COPY OF APPEAL FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT DTD. 29-09-2022 Exhibit P3 COPY OF STAY PETITION FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT DTD. 18-11-2022 Exhibit P4 COPY OF ORDER ISSUED BY THE 1ST RESPONDENT 16-11- 2022 RESPONDENTS' EXHIBITS:NIL TRUE COPY P.A.TO JUDGE

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