UMMAR ASHRAF M. A vs. THE COMMISSIONER OF INCOME TAX (APPEALS)

WP(C)/21732/2022HC KeralaKLHC01044788202204 July 2022Author: HONOURABLE MR. JUSTICE GOPINATH P.3 pages

AI SummaryRemanded

What did the High Court hold?

The High Court disposed of the writ petition based on the submissions made by the learned Standing Counsel for the Department. The Court directed the competent respondent to provide a link to enable the petitioner to upload stay petitions in connection with the pending appeals (Exts.P3 and P7) within 10 days of receiving a certified copy of the judgment. Furthermore, if the petitioner files the stay petitions within one week of receiving the link, recovery proceedings to enforce any demand arising from the assessment orders and demand notices shall be kept in abeyance until a decision is taken on the stay petitions. The Court did not decide on the merits of the appeals themselves, focusing solely on the procedural aspect of enabling the petitioner to file stay applications and granting interim relief.

What were the facts?

The petitioner, Ummar Ashraf M.A., filed a writ petition before the High Court of Kerala at Ernakulam, apprehending recovery proceedings. These proceedings were based on assessment orders (Exts.P1 & P5) and demand notices (Exts.P2, P6, and P9). The petitioner had filed statutory appeals (Exts.P3 and P7) against the assessment orders, which were pending. The petitioner sought relief from the court to prevent recovery actions while these appeals were being adjudicated. The Department, represented by the Standing Counsel, acknowledged the petitioner's situation and offered a solution.

What were the issues?

1. Whether the petitioner is entitled to protection from recovery proceedings while statutory appeals are pending before the appellate authority, and if so, what is the nature of such protection? (Question of law and fact, concerning the Income Tax Act and principles of natural justice). Contentions: Assessee: The petitioner is apprehending recovery proceedings and has filed statutory appeals. Relief is sought to prevent coercive action until the appeals are decided. Revenue: The petitioner had the option to file stay petitions along with the appeals before the 1st respondent (Commissioner of Income Tax (Appeals)) but failed to do so. However, as a matter of indulgence, a link can be provided for uploading stay petitions.

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances

W.P.(C)No.21732/2022 1 IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE GOPINATH P. MONDAY, THE 4TH DAY OF JULY 2022 / 13TH ASHADHA, 1944 WP(C) NO. 21732 OF 2022 PETITIONER: UMMAR ASHRAF M. A AGED 61 YEARS MUKKUNNATH ARAKKAL HOUSE, KOKKOR P.O, MALAPPURAM DISTRICT, PIN-678591, PIN - 678591 BY ADVS. C.A.JOJO JIMMI JOSE RESPONDENTS: 1 THE COMMISSIONER OF INCOME TAX (APPEALS) THE COMMISSIONER OF INCOME TAX (APPEALS), NATIONAL FACELESS ASSESSMENT CENTRE, NORTH BLOCK, NEW DELHI-110001, PIN - 110001 2 THE INCOME TAX OFFICER NATIONAL FACELESS ASSESSMENT CENTRE, NORTH BLOCK, NEW DELHI-110001. 3 THE COMMISSIONER OF INCOME TAX (APPEALS OFFICE OF THE COMMISSIONER OF INCOME TAX, AAYAKAR BHAVAN MANANCHIRA, KOZHIKODE-673001. 4 THE INCOME TAX OFFICER WARD 2, TARIFF BAZAR, TOWN HALL ROAD, TIRUR MALAPPURAM DISTRICT, PIN-676101. BY ADVS. CHRISTOPHER ABRAHAM, INCOME TAX DEPARTMENT THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 04.07.2022, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: W.P.(C)No.21732/2022 2

JUDGMENT The petitioner has approached this court apprehending recovery proceedings in respect of Exts.P1 & P5 assessment orders and Exs.P2, P6 and P9 demand notices at a time when statutory appeals, Exts.P3 and P7 are pending against Exts.P1 & P5. 2. The learned Standing counsel appearing for the Department would submit that the petitioner had an option for filing stay petitions along with appeals before the 1st respondent. The petitioner has failed to do so. It is submitted that as a matter of indulgence a link can be provided for uploading the stay petitions. Taking note of the submission of the learned Standing Counsel this writ petition will stand disposed of directing the competent among respondents to provide a link to enable the petitioner to upload stay petitions in Exts.P3 and P7 appeals. This will be done within a period of 10 days from the date of receipt of a certified copy of this judgment. If the petitioner files the stay petitions within one week from the date of receipt of the link from the respondent Department, recovery proceedings to enforce any demand arising out of Exts.P1 & P5 assessment orders and Exs.P2, P6 and P9 demand notices shall be kept in abeyance till a decision is taken on the stay petitions to be filed by the petitioner. GOPINATH P. JUDGE acd

W.P.(C)No.21732/2022 3

Appendix — schedule of exhibits

APPENDIX OF WP(C) 21732/2022 PETITIONER EXHIBITS Exhibit P1 A TRUE COPY OF THE ASSESSMENT ORDER DATED 24.03.2022 ISSUED BY THE 2ND RESPONDENT Exhibit P2 A TRUE COPY OF THE DEMAND NOTICE U/S 156 FOR AN AMOUNT OF RS.8,65,09,157/- DATED 24.03.2022 ISSUED BY THE 2ND RESPONDENT Exhibit P3 A TRUE COPY OF THE APPEAL DATED 25.04.2022 BEFORE THE 1ST RESPONDENT Exhibit P4 A TRUE COPY OF THE STAY PETITION DATED 25.04.2022 BEFORE THE 3RD RESPONDENT Exhibit P5 A TRUE COPY OF THE ASSESSMENT ORDER DATED 21.03.2022 ISSUED BY THE 2ND RESPONDENT Exhibit P6 A TRUE COPY OF THE STAY PETITION DATED 11.05.2022 BEFORE THE 1ST RESPONDENT Exhibit P7 A TRUE COPY OF THE APPEAL FOR AY 2016-17 DATED 25.04.2022 BEFORE THE 1ST RESPONDENT Exhibit P8 A TRUE COPY OF THE STAY PETITION DATED 25.04.2022 BEFORE THE 4TH RESPONDENT Exhibit P9 A TRUE COPY OF THE NOTICE U/S 221(1) DATED 24.06.2022 ISSUED BY THE 4TH RESPONDENT Exhibit P10 A TRUE COPY OF THE TAX PAID COUNTERFOIL DATED 04.04.2022

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