M/S. BIOWIN AGRO RESEARCH vs. THE INCOME TAX OFFICER

WP(C)/37319/2022HC KeralaKLHC01080350202223 November 2022Author: HONOURABLE MR. JUSTICE GOPINATH P.4 pages

AI SummaryRemanded

What did the High Court hold?

The High Court disposed of the writ petition with specific directions. The 2nd respondent (Income Tax Appellate Tribunal) was directed to consider and pass orders on Ext.P4 stay petition after providing the petitioner an opportunity of being heard. Crucially, the Court ordered that any steps initiated for the recovery of amounts due under Ext.P1 order of assessment shall be kept in abeyance until orders are passed on the stay petition. The core principle here is the preservation of the status quo pending the disposal of a stay application, ensuring that the assessee is not prejudiced by recovery actions before their plea for a stay is adjudicated.

What were the facts?

The petitioner, M/s. Biowin Agro Research, received an order of assessment (Ext.P1) for the assessment year 2018-2019. The petitioner subsequently filed an appeal (Ext.P3) along with a stay petition (Ext.P4) before the appellate authority. The petitioner apprehended that recovery proceedings might be initiated for the amounts due under the assessment order while the stay petition was pending. The Income Tax Officer (respondent 1) and the Income Tax Appellate Tribunal (respondent 2) are the other parties involved. The matter came before the High Court of Kerala at Ernakulam.

What were the issues?

1. Whether the High Court should direct the appellate authority to consider and pass orders on the stay petition filed by the petitioner. Assessee's Contention: The petitioner sought a direction from the High Court to expedite the consideration of their stay petition (Ext.P4) and to prevent recovery proceedings until a decision is made on the stay. Revenue's Contention: The learned standing counsel for the respondent department agreed to a direction for the appellate authority to consider and pass orders on the stay petition and stated that no recovery steps would be taken until such orders were passed.

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE GOPINATH P. WEDNE AY, THE 23RD DAY OF NOVEMBER 2022 / 2ND AGRAHAYANA, 1944 WP(C) NO. 37319 OF 2022 PETITIONER: M/S. BIOWIN AGRO RESEARCH VEMOM, MANANTHAVADY, WAYNAD, REPRESENTED BY ITS DIRECTOR, JOHN JOSEPH , PIN - 670645 BY ADVS. HARISANKAR V. MENON MEERA V.MENON R.SREEJITH K.KRISHNA RESPONDENTS: 1 THE INCOME TAX OFFICER EXEMPTION WARD, AAYAKAR BHAVAN, NORTH BLOCK MANANCHIRA KOZHIKODE , PIN - 673001 2 THE INCOME TAX APPELLATE TRIBUNAL 1ST FLOOR, BLOCK C-I & C-II, KENDRIYA BHAVAN, KAKKANAD, KOCHI, ERNAKULAM , PIN - 682037 OTHER PRESENT: 0 ADV. CHRISTOPHER ABRAHAM (SC) THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 23.11.2022, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

..2.. JUDGMENT Dated this the 23rd day of November, 2022 The petitioner suffered Ext.P1 order of assessment under the provisions of the Income Tax Act, 1961 for the assessment year 2018-2019. The petitioner filed Ext.P3 appeal along with Ext.P4 stay petition. The petitioner apprehends that pending consideration of the stay petition, the proceedings may be taken to recover amounts due under Ext.P1 order of assessment.

The learned standing counsel appearing for the respondent department states that the appellate authority may be directed to consider and pass orders on Ext.P4 stay petition and till such time the orders are passed, no steps will be taken to recover the amounts due under Ext.P1 order of assessment.

Having regard to the submissions made, this writ ..3.. petition will stand disposed of directing the 2nd respondent to consider and pass orders on Ext.P4 stay petition, after affording to the petitioner an opportunity of being heard. Till such time as orders are passed on Ext.P4 stay petition filed in Ext.P3 appeal, any steps initiated for recovery of the amounts due under Ext.P1 order of assessment shall be kept in abeyance. The writ petition is disposed of as above. GOPINATH P. JUDGE RMV ..4..

Appendix — schedule of exhibits

APPENDIX OF WP(C) 37319/2022 PETITIONER EXHIBITS Exhibit P1 COPY OF ASSESSMENT ORDER ISSUED BY THE 1ST RESPONENT FOR THE YEAR 2018-19 Exhibit P2 COPY OF ORDER ISSUED BY THE COMMISSIONER OF INCOME TAX APPEALS, NATIONAL FACELESS APPEAL CENTRE, DELHI DTD. 08-11-2021 Exhibit P3 COPY OF APPEAL FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT DTD. NIL Exhibit P4 COPY OFSTAY PETITION FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT DTD. 14-10-2022 RESPONDENTS' EXHIBITS:NIL TRUE COPY P.A.TO JUDGE

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