DR. A.C VELAYUDHAN vs. THE ASSISTANT COMMISSIONER OF INCOME TAX

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WP(C)/35025/2022HC KeralaKLHC01074866202203 November 2022Author: HONOURABLE MR. JUSTICE BECHU KURIAN THOMAS6 pages
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What did the High Court hold?

The High Court of Kerala, acknowledging the significant delay of approximately six years in the disposal of the petitioner's appeals before the Commissioner of Income Tax (Appeals) and considering the impact of the Covid-19 pandemic on the proceedings, held that the interests of justice demand a time-bound disposal of these appeals. The Court directed the 5th respondent (Commissioner of Income Tax (Appeals)-III) to consider and dispose of the appeals (Ext.P5, Ext.P5(a), Ext.P5(b), and Ext.P5(c)) expeditiously, within a period of six months from the date of the order, after affording the petitioner an opportunity of hearing. Furthermore, all coercive recovery proceedings initiated pursuant to Ext.P8 were directed to be kept in abeyance until the appeals are disposed of. No specific issue was left undecided; the court focused on procedural relief.

What were the facts?

The petitioner, Dr. A.C. Velayudhan, is aggrieved by assessment orders for assessment years 2013-14 and 2014-15, a modified assessment order, and a penalty order under Section 271E of the Income Tax Act, 1961. He filed appeals (Ext.P5 series) before the Commissioner of Income Tax (Appeals)-III (5th respondent). While the High Court of Kerala had previously directed the disposal of stay petitions and stayed recovery proceedings on 06.10.2017, the appeals were not disposed of as the petitioner could not appear on the hearing date of 17.03.2020. Subsequently, recovery proceedings were initiated again. The petitioner filed the present writ petition challenging these recovery proceedings.

What were the issues?

1. Whether the High Court should intervene and direct the disposal of pending appeals before the Commissioner of Income Tax (Appeals) when they have been pending for an extended period, and recovery proceedings have been initiated. Assessee's contention: The assessee argued that the appeals have been pending for approximately six years, and the delay in disposal, exacerbated by the Covid-19 pandemic, necessitates intervention. The initiation of recovery proceedings while appeals are pending further justifies the writ petition. Revenue's contention: The judgment records that the learned Standing Counsel for the Income Tax Department was heard, but their specific contentions are not detailed in the provided text.

Which sections of the Income-tax Act were involved?

Section 271E

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 THURSDAY, THE 3RD DAY OF NOVEMBER 2022 / 12TH KARTHIKA, 1944 WP(C) NO. 35025 OF 2022 PETITIONER : DR. A.C VELAYUDHAN, AGED 71 YEARS, 32/305/1, PALLATH LANE WEST, SITHARAM MILL ROAD, PUNKUNNAM, THRISSUR, PIN – 680 002 BY ADV DIVYA RAVINDRAN RESPONDENTS : 1 THE ASSISTANT COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE, AAYAKAR BHAVAN, SAKTHAN THAMPURAN NAGAR, MUNICIPAL OFFICE ROAD, THRISSUR, KERALA, PIN – 680 001 2 THE DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE, AAYAKAR BHAVAN, SAKTHAN THAMPURAN NAGAR, MUNICIPAL OFFICE ROAD, THRISSUR, KERALA, PIN – 680 001 3 THE JOINT COMMISSIONER OF INCOME TAX, CENTRAL RANGE, ALPHA LIZA BUILDING, OPP. SRV SCHOOL ROAD, KOCHI, PIN – 682 011 4 THE TAX RECOVERY OFFICER, CENTRAL CIRCLE, 5TH FLOOR, KANDAMKULATHY TOWERS, MG ROAD, KOCHI, PIN – 682 011 WP(C) NO. 35025 OF 2022 2 5 THE COMMISSIONER OF INCOME TAX (APPEALS)-III POORNIMA BUILDING, PANAMAPILLY NAGAR KOCHI, PIN – 682 036 BY SRI.JOSE JOSEPH, SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 03.11.2022, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C) NO. 35025 OF 2022 3 BECHU KURIAN THOMAS, J. -------------------------------- W.P.(C).No.35025 of 2022 --------------------------------- Dated this the 3rd day of November, 2022

JUDGMENT Aggrieved by the orders of assessment for the years 2013-14 and 2014-15 and the order of penalty issued under Section 271E of the Income Tax Act, 1961, apart from a modified order of assessment, petitioner has preferred appeals as Ext.P5, Ext.P5(a), Ext.P5(b) and Ext.P5(c) before the 5th respondent.

2.

In the meantime, on 06.10.2017, this Court directed the stay petitions filed in the appeals to be considered and disposed of and also stayed the recovery proceedings pursuant to the said notices. However, since the appeals itself were posted for hearing on 17.03.2020 and the petitioner could not appear on that day the appeals were not disposed. Thereafter, proceedings for recovery have been initiated as per Ext.P8. Petitioner challenges the proceedings initiated to recover the amounts due under the assessment orders and the order of penalty.

3.

I have heard the learned counsel for the petitioner as well as the learned Standing Counsel for the Income Tax Department.

4.

The appeals filed by the petitioner as Ext.P5 series have been pending consideration before the 5th respondent for the last almost six

WP(C) NO. 35025 OF 2022 4 years. Taking into reckoning the long lapse of period and also the fact that the Covid - 19 Pandemic had affected the consideration of the appeals for the last two years, I am of the view that interests of justice demands that the appeals filed by the petitioner itself be disposed of in a time bound manner. Accordingly, I direct the 5th respondent to consider and dispose of Ext.P5, Ext.P5(a), Ext.P5(b) and Ext.P5(c) appeals, as expeditiously as possible, at any rate, within a period of six months from today, after granting an opportunity of hearing to the petitioner. It is further directed that all coercive proceedings pursuant to Ext.P8 shall be kept in abeyance till the appeals are disposed of. The writ petition is disposed of as above. BECHU KURIAN THOMAS, JUDGE RKM

WP(C) NO. 35025 OF 2022 5

Appendix — schedule of exhibits
APPENDIX OF WP(C) 35025/2022 PETITIONER'S EXHIBITS : Exhibit P1 THE TRUE COPY OF THE ASSESSMENT ORDER UNDER SECTION 143(3) DATED 28.03.2016 FOR THE AY 2013-14 ISSUED BY THE 1ST RESPONDENT. Exhibit P2 THE TRUE COPY OF THE ORDER UNDER SECTION 143(3) R.W.S 263 DATED 24.5.2017 FOR AY 2013-14 ISSUED BY THE 2ND RESPONDENT. Exhibit P3 THE TREU COPY OF THE PENALTY ORDER ISSUED BY THE 3RD RESPONDENT UNDER SECTION 271E FOR AY 2013-14 DATED 7.11.2016 Exhibit P4 THE TRUE COPY OF THE ASSESSMENT ORDER PASSED UNDER SECTION 143(3) DATED 29.12.2016, ISSUED BY THE 1ST RESPONDENT FOR AY 2014-15. Exhibit P5 TRUE COPY OF THE FORM 35 FILED BY THE PETITIONER AGAINST EXT PL ASSESSMENT ORDER FOR AY 2013-14 DATED 15.06.2016 Exhibit P5(a) TRUE COPY OF THE FORM 35 FILED BY THE PETITIONER AGAINST EXT P2 ASSESSMENT ORDER FOR AY 2013-14 DATED 29.06.2017 Exhibit P5(b) TRUE COPY OF THE FORM 35 FILED BY THE PETITIONER AGAINST EXT P3 PENALTY ORDER FOR AY 2013-14 DATED 3.12.2016. Exhibit P5(c) TRUE COPY OF THE FORM 35 FILED BY THE PETITIONER AGAINST EXT P4 ASSESSMENT ORDER FOR AY 2014-15 DATED 28.01.2017. Exhibit P6 THE TINE COPY OF THE JUDGMENT IN W.P (C) NO. 31888/2017 DATED 6.10.2017 RENDERED BY THIS HONBLE COURT. WP(C) NO. 35025 OF 2022 6 Exhibit P7 THE TRUE COPY OF THE HEARING NOTICE ISSUED BY THE 5TH RESPONDENT FOR AY 2013-14 DATED 13.02.2020 Exhibit P8 THE TRUE COPY OF THE RECOVERY NOTICE DATED 19.10.2022, ISSUED BY THE 4TH RESPONDENT.

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