AMRUTHESWARI JEWELLERS, vs. THE ADDITIONAL COMMISSIONER OF INCOME TAX ,

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WP(C)/20312/2022HC KeralaKLHC01041733202222 June 2022Author: HONOURABLE MR. JUSTICE GOPINATH P.3 pages
AI SummaryRemanded

What did the High Court hold?

The High Court directed the Commissioner of Income Tax (Appeals) to consider and pass orders on the stay petition filed by the petitioner within a period of two months from the date of receipt of a copy of the judgment. The Court further directed that the demand against the petitioner shall not be enforced until the stay petition is considered. The Court did not decide the merits of the assessment order or the appeal itself, focusing solely on the procedural aspect of the stay petition. The principle established is that a taxpayer filing an appeal and a stay petition should not face coercive recovery actions before their stay application is adjudicated within a reasonable timeframe.

What were the facts?

The petitioner, Amrutheswari Jewellers, is aggrieved by an assessment order for the assessment year 2014-15 and a demand notice dated December 14, 2021. The petitioner has filed an appeal before the Commissioner of Income Tax (Appeals) and a petition for stay of proceedings. The petitioner apprehends coercive action before their stay petition is considered and has therefore filed this writ petition. The respondents are various authorities within the Income Tax Department, including the Additional Commissioner, Assistant Commissioner, and Commissioners of Income Tax (Appeals).

What were the issues?

1. Whether the petitioner is entitled to a stay of coercive proceedings pending the disposal of their appeal before the Commissioner of Income Tax (Appeals)? (Question of law and fact) The petitioner argued that they have filed an appeal and a stay petition and apprehend coercive action before the stay petition is considered. They seek a direction for the expeditious disposal of the stay petition. The revenue did not record any specific arguments in the judgment.

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 GOPINATH P. WEDNESDAY, THE 22ND DAY OF JUNE 2022 / 1ST ASHADHA, 1944 WP(C) NO. 20312 OF 2022 PETITIONER/S: AMRUTHESWARI JEWELLERS, PREMIER JUNCTION, OCHIRA, ALAPPUZHA, KERALA 690 533, REPRESENTED BY ITS MANAGING PARTNER JAYANTHAKUMAR. BY ADVS. ARUN V.G. (K/795/2004) V.JAYA RAGI R.HARIKRISHNAN (KAMBISSERIL) NEERAJ NARAYAN RESPONDENT/S: 1 THE ADDITIONAL COMMISSIONER OF INCOME TAX , DEPARTMENT OF INCOME TAX, CENTRAL CIRCLE-I, ALAPPUZHA 688 001. 2 THE ASSISTANT COMMISSIONER OF INCOME TAX, DEPARTMENT OF INCOME TAX, CENTRAL CIRCLE, ALAPPUZHA 688 001. 3 THE COMMISSIONER OF INCOME TAX (APPEALS), NATIONAL FACELESS APPEAL CENTER DELHI 110 11. 4 THE COMMISSIONER INCOME TAX APPEAL , BAKER HILLS, KOTTAYAM 686 002. OTHER PRESENT: SRI. JOSE JOSEPH(SC) THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 22.06.2022, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: W.P(C).20312/22 2

JUDGMENT Aggrieved by Ext.P1 order of assessment relating to assessment year 2014-15 and Ext.P4 demand notice dated 14.12.2021, the petitioner has preferred an appeal before the 3rd respondent, the Commissioner of Income Tax (Appeals), a copy of which is produced as Ext.P2. A petition for stay of proceedings pursuant to the assessment order has also been filed as Ext.P5. Petitioner apprehends coercive proceedings before the petition for stay is considered. Hence this writ petition.

2.

Having considered the submissions of the counsel for the petitioner as well as the respondents, I am of the opinion that this writ petition itself can be disposed of with a direction.

3.

Accordingly, there will be a direction to the 3rd respondent Commissioner of Income Tax (Appeals), before whom Exts.P2 & P5 are pending, to consider and pass orders on Ext.P5 stay petition, within a period of two months from the date of receipt of a copy of this judgment. Till such time the demand against the petitioner shall not be enforced.

The writ petition is disposed of as above. GOPINATH P. JUDGE okb/23.6.22 //// P.S. to Judge

W.P(C).20312/22 3

Appendix — schedule of exhibits
APPENDIX OF WP(C) 20312/2022 PETITIONER EXHIBITS Exhibit P1 A TRUE COPY OF THE ASSESSMENT ORDER DATED 30.12.2019 ISSUED BY THE 1ST RESPONDENT UNDER SECTION 143(3) READ WITH 147 OF THE INCOME TAX ACT. Exhibit P2 A TRUE COPY OF THE MEMORANDUM OF APPEAL FILED BY THE PETITIONER ASSAILING THE EXT. P1 ASSESSMENT ORDER. Exhibit P3 A TRUE COPY OF THE ARGUMENT NOTE FILED BY THE PETITIONER DATED 05.07.2021 BEFORE THE 1ST RESPONDENT. Exhibit P4 A TRUE COPY OF THE NOTICE NO. ITBA/COM/F/17/2021-22/1037786581 DATED 14.12.2021. Exhibit P5 A TRUE COPY OF THE STAY PETITION DATED 17.01.2022 FILED BY THE PETITIONER BEFORE THE 4TH RESPONDENT.

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