VARAPPILLYKUDIABDULRAHIMANSHOUKATHALI, vs. THE ADDITIONAL/JOINT/DEPUTY/ASSISTANT COMMISSIONER OF INCOME TAX/INCOME TAX OFFICER

WP(C)/33985/2022HC KeralaKLHC01072544202214 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 by directing the 3rd respondent (Commissioner of Income Tax (Appeals)) to consider and pass orders on the petitioner's appeal (Ext.P7) within three months from the date of receipt of a certified copy of the judgment. This decision was made after affording the petitioner an opportunity of being heard. The Court further directed that all further proceedings for recovery of any amount due from the petitioner under the assessment order (Ext.P6) shall be kept in abeyance until orders are passed in the appeal. This stay is conditional upon the petitioner remitting the first installment payable in terms of the impugned order (Ext.P15) within two weeks from the date of the judgment. The Court did not decide on the merits of the assessment or the grounds of appeal, focusing instead on procedural fairness and expediting the appellate process.

What were the facts?

The petitioner, Varappillykudiabdulrahimanshoukathali, filed a writ petition before the High Court of Kerala challenging an order (Ext.P15) passed by the 3rd respondent, the Commissioner of Income Tax (Appeals), National Faceless Appeal Scheme. This order granted a stay of recovery proceedings related to an assessment order (Ext.P6) on the condition that the petitioner remits Rs.36,00,000/- in six monthly installments starting from October 2022. The petitioner contended that the impugned order was unsustainable as no opportunity of hearing was provided. However, the petitioner expressed willingness to pay the first installment and requested the appeal to be disposed of, asserting the assessment was erroneous and likely to succeed. The respondent department had no serious objection to directing the disposal of the appeal.

What were the issues?

1. Whether the order passed by the 3rd respondent (Commissioner of Income Tax (Appeals)) granting stay of recovery proceedings, subject to payment of Rs.36,00,000/- in installments, is sustainable in law, considering the petitioner was not granted an opportunity of hearing? (Question of law and fact, relating to principles of natural justice and procedural fairness). Assessee's Contentions: - The impugned order (Ext.P15) is unsustainable in law because the petitioner was not granted an opportunity of hearing by the 3rd respondent. - The assessment itself is highly erroneous, and the petitioner has a strong chance of success in the appeal. - The petitioner is willing to pay the first installment as directed and requests the appeal to be disposed of. Revenue's Contentions: - The learned standing counsel appearing for the respondent department had no serious objection in directing the appeal itself to be disposed of.

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE GOPINATH P. MONDAY, THE 14TH DAY OF NOVEMBER 2022 / 23RD KARTHIKA, 1944 WP(C) NO. 33985 OF 2022 PETITIONER: VARAPPILLYKUDIABDULRAHIMANSHOUKATHALI, AGED 50 YEARS S/O ABDUL RAHIMAN RESIDING AT VARAPPILLYKUDI HOUSE, KARUKADOMP.O., VENDUVAZHY, KOTHAMANGALAM-686691, ERNAKULAM DISTRICT, KERALA., PIN - 686691 BY ADVS. ABRAHAM JOSEPH MARKOS V.ABRAHAM MARKOS ISAAC THOMAS P.G.CHANDAPILLAI ABRAHAM ALEXANDER JOSEPH MARKOS JOHN VITHAYATHIL RESPONDENTS: 1 THE ADDITIONAL/JOINT/DEPUTY/ASSISTANT COMMISSIONER OF INCOME TAX/INCOME TAX OFFICER NATIONAL E-ASSESSMENT CENTRE, NEW DELHI-110001, PIN - 110001 2 THE INCOME TAX OFFICER WARD-1,TEMPLE ROAD THODUPUZHA -685584., PIN - 685584 3 THE COMMISSIONER OF INCOME TAX (APPEALS) THE COMMISSIONER OF INCOME TAX (APPEALS), NATIONAL FACELESS APPEAL SCHEME, NEW DELHI-110001, PIN - 110001 4 THE PRINCIPAL CHIEF COMMISSIONER OF INCOME TAX NATIONAL E-ASSESSMENT CENTRE, NEW DELHI-110001., PIN - 110001 BY ADV CHRISTOPHER ABRAHAM THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 14.11.2022, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

JUDGMENT Dated this the 14th day of November, 2022 The petitioner has approached this Court being aggrieved by Ext.P15 order issued by the 3rd respondent granting stay of proceedings for recovery of amounts due under Ext.P6 order of assessment on condition that the petitioner remits a total sum of Rs.36,00,000/- in six monthly instalments from the month of October 2022. 2. The learned senior counsel appearing for the petitioner states that the impugned order is unsustainable in law as no opportunity of hearing was granted to the petitioner by the 3rd respondent. It is submitted that notwithstanding the above, without standing on any technicalities, the petitioner may be permitted to pay the first instalment as directed in the impugned order and the appeal itself may be directed to be disposed of. It is submitted that the assessment itself is highly erroneous and there is every chance of success in the appeal. The learned standing counsel appearing for the respondent department has no serious objection in directing the appeal itself to be disposed of.

Having heard the learned Senior counsel appearing for the petitioner and the learned standing counsel appearing for the respondent department, this writ petition will stand disposed of directing the 3rd respondent to consider and pass orders on Ext.P7 appeal after affording to the petitioner an opportunity of being heard within a period of three months from the date of receipt of a certified copy of this judgment. It is directed that all further proceedings for recovery of any amount due from the petitioner under Ext.P6 order of assessment shall be kept in abeyance till orders are passed in the appeal, as directed above, on condition that the petitioner remits the first instalment payable in terms of Ext.P15 order within a period of two weeks from today. This writ petition will stand disposed of as above. GOPINATH P. JUDGE RMV

Appendix — schedule of exhibits

APPENDIX OF WP(C) 33985/2022 PETITIONER EXHIBITS Exhibit P1 TRUE COPY OF THE INCOME TAX RETURN ACKNOWLEDGMENT DATED 25.03.2015 AND COMPUTATION OF INCOME. Exhibit P2 TRUE COPY OF THE AUDIT REPORT DATED 30.09.2014. Exhibit P3 TRUE COPY OF THE SHOW CAUSE NOTICE DATED 17.03.2022 ISSUED U/S 144. Exhibit P4 TRUE COPY OF THE JUDGMENT DATED 22.11.2021 OF THIS HON'BLE COURT IN W.P. (C) NO.21524 OF 2021. Exhibit P5 TRUE COPY OF THE JUDGMENT DATED 15.03.2022 OF THIS HON'BLE COURT IN W.P. NO.11540 OF 2021 Exhibit P6 TRUE COPY OF THE ASSESSMENT ORDER DATED 30.03.2022 WITH COMPUTATION SHEET AND NOTICE OF DEMAND ISSUED BY THE LST RESPONDENT. Exhibit P7 TRUE COPY OF THE APPEAL DATED 27.04.2022 FILED BEFORE THE 3RD RESPONDENT. Exhibit P8 TRUE COPY OF THE PETITION FOR STAY DATED 27.04.2022 FILED BY THE PETITIONER BEFORE THE 3RD RESPONDENT Exhibit P9 TRUE COPY OF THE JUDGMENT DATED 24.06.2022 OF THIS HON'BLE COURT IN W.P.(C) NO. 20533/2022. Exhibit P10 TRUE COPY OF THE NOTICE DATED 04.08.2022 ISSUED BY THE 3RD RESPONDENT UNDER SECTION 250 OF THE INCOME TAX ACT 1961. Exhibit P11 TRUE COPY OF THE WRITTEN SUBMISSIONS DATED 12.08.2022 FILED BY THE PETITIONER BEFORE THE 3RD RESPONDENT. Exhibit P12 TRUE COPY OF THE ADDITIONAL RESPONSE DATED 13.8.2022 WITHOUT ANNEXURES Exhibit P13 TRUE COPY OF THE COMMUNICATION DATED 25.08.2022 ISSUED BY THE 3RD RESPONDENT. Exhibit P14 TRUE COPY OF THE RESPONSE DATED 26.08.2022 ALONG WITH ANNEXURES. Exhibit P15 TRUE COPY OF THE ORDER DATED 27.09.2022 PASSED BY THE 3RD RESPONDENT Exhibit P16 TRUE COPY OF THE NEW FACELESS APPEAL SCHEME, 2021 AS NOTIFIED ON 28.12.2021. Exhibit P17 TRUE COPY OF THE COMMUNICATION DATED 27.09.2022 FROM THE RESPONDENTS Exhibit P18 TRUE COPY OF THE UPDATED PERSONAL DETAILS OF THE PETITIONER IN THE INCOME TAX PORTAL. RESPONDENTS' EXHIBITS:NIL TRUE COPY P.A.TO JUDGE

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