REJI KRISHNAN vs. THE CENTRAL BOARD OF DIRECT TAXES

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WP(C)/25669/2022HC KeralaKLHC01054167202210 August 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 3rd respondent (National Faceless Appeal Centre) to provide a link to enable the petitioner to upload a stay petition in connection with Ext.P3 appeal. This action is to be completed within ten days of receiving a certified copy of the judgment. The Court further directed that if the petitioner files a stay petition within two weeks of the link being provided, all recovery proceedings concerning Ext.P2 shall be kept in abeyance until a decision is taken on the stay petition. The Court did not decide on the merits of the stay petition itself, but rather facilitated its filing and ensured a temporary halt to recovery.

What were the facts?

The petitioner, Reji Krishnan, filed an appeal (Ext.P3) against an assessment order (Ext.P2) before the National Faceless Appeal Centre. The petitioner approached the High Court of Kerala aggrieved by recovery proceedings initiated while the appeal was pending. The respondent department stated that while the appeal was filed before the National Faceless Appeal Centre, the stay petition was filed before the Commissioner of Income Tax (Appeals), who lacked the competence to decide it in this context. The petitioner's counsel then requested a link to file a stay petition before the National Faceless Appeal Centre and for recovery proceedings to be stayed until a decision on the stay petition.

What were the issues?

1. Whether the Commissioner of Income Tax (Appeals) is competent to decide a stay petition when the appeal has been filed before the National Faceless Appeal Centre? (Question of law and procedure) The petitioner argued that recovery proceedings were being initiated pending appeal and sought a mechanism to file a stay petition before the correct authority. The respondent department contended that the stay petition was filed before an incorrect authority (Commissioner of Income Tax (Appeals)) as the appeal was before the National Faceless Appeal Centre. The department did not explicitly argue on the merits of a stay but on the procedural correctness of filing the stay petition.

AI-generated summary — verify with the full judgment below

Heard together (2 matters)

W.P(C) .25669/22
TC4/14

Read from the judgment's own cause title. This page is filed under one of them.

Cause title — parties, addresses and appearances
W.P(C) .25669/22 1 IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE GOPINATH P. WEDNESDAY, THE 10TH DAY OF AUGUST 2022 / 19TH SRAVANA, 1944 WP(C) NO. 25669 OF 2022 PETITIONER/S: REJI KRISHNAN AGED 48 YEARS TC4/1458(1, KRISHNAKRIPA, CVRA C-9, KURAVANKONAM, KOWADIAR P.O, TRIVANDRUM, PIN - 695003 BY ADVS. K.P.PRADEEP SANAND RAMAKRISHNAN HAREESH M.R. T.T.BIJU T.THASMI M.J.ANOOPA SANU S MALAKEEL RESPONDENT/S: 1 THE CENTRAL BOARD OF DIRECT TAXES DEPARTMENT OF REVENUE, MINISTRY OF FINANCE GOVERNMENT OF INDIA, NORTH BLOCK NEW DELHI, REPRESENTED BY ITS CHAIRMAN , PIN - 110001 2 ADDITIONAL COMMISSIONER OF INCOME TAX NATIONAL E-ASSESSMENT CENTRE, DELHI ROOM NO. 401, 2ND FLOOR, E-RAMP, JAWAHARLAL NEHRU STADIUM, DELHI, PIN - 110003 3 COMMISSIONER OF INCOME TAX (APPEALS) NATIONAL FACELESS APPEAL CENTRE (NFAC), DELHI, ROOM NO. 401, 2ND FLOOR, E-RAMP, JAWAHARLAL NEHRU STADIUM, DELHI, PIN - 110003 4 COMMISSIONER OF INCOME TAX (APPEALS) THIRUVANANTHAPURAM, AAYAKAR BHAVAN INCOME TAX OFFICE, KOWADIAR THIRUVANANTHAPURAM , PIN – 695003 SMT. THUSHARA JAMES, SR. GP THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 10.08.2022, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: W.P(C) .25669/22 2

JUDGMENT Petitioner filed Ext.P3 appeal challenging Ext.P2 order of assessment before the National Faceless Appeal Centre. The petitioner has approached this Court being aggrieved by the fact that, pending consideration of the appeal filed by the petitioner, proceedings are being initiated to recover the amount due under Ext.P2 order of assessment.

2.

The learned counsel appearing for the respondent department states that the petitioner has filed the appeal before the National Faceless Appeal Centre. However, the petition seeking stay of proceedings has been filed before the Commissioner of Income Tax (Appeals), who is not competent to decide the stay petition as the appeal is filed before the National Faceless Appeal Centre.

3.

Faced with this situation, the learned counsel for the petitioner says that if a link is provided to file a stay petition before the National Faceless Appeal Centre, the petitioner will file such stay petition and a direction may be issued to keep recovery proceedings in abeyance till a decision is taken on the stay petition to be filed by the petitioner. Having regard to the facts and circumstances of the case, the writ petition is disposed of directing the 3rd respondent to provide a link to enable the petitioner to upload a stay petition in Ext.P3 appeal filed by the petitioner. This shall be done within a period of ten days from the date of receipt of a certified copy of this judgment. If the petitioner files a stay petition within two

W.P(C) .25669/22 3 weeks from the date of which a link is provided to the petitioner, further proceedings to recover any amount due under Ext.P2 shall be kept in abeyance till a decision is taken on the stay petition to be filed by the petitioner. The writ petition is disposed of as above. GOPINATH P. JUDGE okb/10.8 //// P.S. to Judge

W.P(C) .25669/22 4

Appendix — schedule of exhibits
APPENDIX OF WP(C) 25669/2022 PETITIONER EXHIBITS Exhibit P1 TRUE COPY OF THE RETURN OF INCOME DATED 25- 10-2018 FOR THE ASSESSMENT YEAR 2018-19 IN PAN AEUPK8336B FILED BY THE PETITIONER Exhibit P2 TRUE COPY OF THE ASSESSMENT ORDER NO ITBA/AST/S/143(3)/2020-21/1031323034(1) DATED 08-03-2021 ISSUED FOR THE YEAR 2018-19 BY THE 2ND RESPONDENT TO THE PETITIONER Exhibit P3 TRUE COPY OF THE APPEAL DATED 24-03-2021 FILED FOR THE YEAR 2018-19 BEFORE THE 3RD RESPONDENT BY THE PETITIONER Exhibit P4 TRUE COPY OF THE DEMAND NOTICE NO ITBA/AST/S/156/2020-21/1031323098(1) DATED 08-03-2021 ISSUED FOR THE YEAR 2018-19 BY THE ASSESSING AUTHORITY Exhibit P5 TRUE COPY OF THE STAY APPLICATION FILED ON 25-07-2022 BEFORE THE 4THRESPONDENT IN EXT P3 APPEAL

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