PADINJAREKARA AGENCIES PVT.LTD. vs. ASST.COMMISSIONER OF INCOME TAX

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WP(C)/32697/2008HC KeralaKLHC01074908200821 November 2012Author: HONOURABLE MR.JUSTICE ANTONY DOMINIC3 pages
AI SummaryPartly Allowed

What did the High Court hold?

The High Court directed that the recovery of amounts pursuant to the assessment order shall stand stayed until orders are passed by the Appellate Authority on the appeal filed by the petitioner. The court reasoned that since the appeal is pending and orders are awaited, it is appropriate to grant a stay on recovery to protect the petitioner's interests pending the appellate decision. The writ petition was disposed of with this direction. No other issues were decided on merits.

What were the facts?

The petitioner, Padinjarekara Agencies Pvt. Ltd., filed a writ petition challenging a notice issued under Section 148 of the Income Tax Act. The High Court of Kerala, by an order dated November 7, 2008, permitted the respondents to proceed with the assessment based on the impugned notice but stayed the recovery of any amounts due. The petitioner's counsel submitted that the assessment has since been completed, and an appeal has been filed against the assessment order before the Commissioner of Appeals. The appeal was heard on April 7, 2010, and orders are awaited.

What were the issues?

1. Whether the recovery of amounts pursuant to the assessment order, which was passed following a notice under Section 148 of the Income Tax Act, should be stayed until the appeal filed by the petitioner before the Commissioner of Appeals is decided. The petitioner seeks a stay on recovery, while the revenue's position on this specific issue is not explicitly recorded in the judgment. The issue turns on the court's discretion to grant interim relief in writ proceedings concerning tax assessments and appeals.

Which sections of the Income-tax Act were involved?

Section 148

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 ANTONY DOMINIC WEDNESDAY, THE 21ST DAY OF NOVEMBER 2012/30TH KARTHIKA 1934 WP(C).No. 32697 of 2008 (P) --------------------------- PETITIONER: ----------- PADINJAREKARA AGENCIES PVT.LTD., KOTTAYAM REPRESENTED BY ITS MANAGING DIRECTOR MR.P.C.ABRAHAM. BY ADVS.SRI.P.BALAKRISHNAN (E) SRI.RAMESH CHERIAN JOHN RESPONDENTS: ----------- 1. THE ASSISTANT COMMISSIONER OF INCOME TAX CIRCLE-1, KOTTAYAM. 2. ADDITIONAL COMMISSIONER OF INCOME TAX KOTTAYAM RANGE, KOTTAYAM. RR BY ADV. SRI.JOSE JOSEPH, SC, FOR INCOME TAX THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 21-11-2012, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C).No. 32697 of 2008 (P) APPENDIX PETITIONER'S EXHIBITS: P1: TRUE COPY OF THE COMPUTATION STATEMENT AND ACKNOWLEDGMENT FORM NO.1 OF RETURN BY THE RESPONDENT. P2: TRUE COPY OF THE ANNUAL ACCOUNTS FOR ASST. YEAR 2005-06. P3: TRUE COPY OF THE INTIMATION U/S 143(1) P3(A):TRUE COPY OF THE CERTIFICATE DATED 16.9.2008 ISSUED BY THE VILLAGE OFFICER, KUMARAKOM CERTIFYING that THE LAND SOLD BY THE PETITIONER IS AGRICULTURE LAND. P4: TRUE COOPY OF THE NOTICE U/S. 148. P5: TRUE COPY OF THE LETTER DISCLOSING THE REASONS RECORDED DATED 18.7.2007. P6: TRUE COPY OF THE COMPUTATION OF PROFIT ON SALE OF ASSETS OF RS.4,52,90,618/- P7: TRUE COPY OF THE OBJECTION DATED 10.9.2007 FILED BY THE PETITIONER. P7(A): TRUE COPY OF THE OBJECTION DATED 10.9.2008 FILED BY THE PETITIONER. P8: TRUE COPY OF THE ORDER DATED 1.7.2008. P9: TRUE COPY OF THE LETTER DATED 9.7.2008 P10: TRUE COPY OF THE LETTER DATED 21.8.2008 ISSUED BY THE 1ST RESPONDENT. P11: TRUE COPY OF THE LETTER DATED 27-8-29/08 ISSUED BY THE PETITIONER. P12: TRUE COPY OF THE PETITION DAETD 22.9.2008 FILED BY THE PETITIONER P13: TRUE COPY OF THE DIRECTION DATED 23.10.2008 ISSUED BY THE 2ND RESPONDENT. RESPONDENTS' EXHIBITS: NIL //TRUE COPY// PA TO JUDGE Scl. ANTONY DOMINIC,J -------------------------------- W.P.(C)No.32697 of 2008 ------------------------------------- Dated this the 21st day of November, 2012

JUDGMENT The writ petition was filed challenging Ext.P4 notice under Section 148 of the Income Tax Act. By order dated 07.11.2008, this Court gave liberty to respondents to proceed with the assessment on the basis of the impugned notice and conclude it.

However, it was ordered that the amounts due thereunder shall not be recovered. Counsel for the petitioner states that in pursuance to the said order, assessment was completed and that the petitioner filed an appeal against the assessment order. It is also stated that the 1st Appellate Authority, the Commissioner of Appeals heard the appeal on 07.04.2010 and that orders are awaited.

In the light of the submissions thus made, I direct that the recovery pursuant to assessment order will stand stayed till orders are passed by the Appellate Authority on the appeal filed by the petitioner against the assessment order passed in pursuant to Ext.P4 notice.

Writ petition is disposed of as above. ANTONY DOMINIC, JUDGE ln

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