SHAH FIROZ MOHAMED vs. COMMISSIONER OF INCOME TAX(APPEALS)

WP(C)/16910/2022HC KeralaKLHC01034233202225 May 2022Author: HONOURABLE MR. JUSTICE BECHU KURIAN THOMAS4 pages

AI SummaryPartly Allowed

What did the High Court hold?

The High Court of Kerala held that the petitioner should be given an opportunity to pursue his stay petition before the Appellate Authority. Recognizing the procedural difficulty encountered by the petitioner in uploading the stay petition, the Court directed that if the petitioner files a stay petition within 10 days from the date of the order before the second respondent (Income Tax Officer), it shall be forwarded to the first respondent (Commissioner of Income Tax (Appeals)). The first respondent is then mandated to consider the stay petition expeditiously, within one month of its receipt. Furthermore, the Court ordered that all coercive proceedings initiated against the petitioner pursuant to the assessment order shall be kept in abeyance until a decision is taken on the stay petition. The issue of the merits of the stay petition itself was not decided.

What were the facts?

The petitioner, Shah Firoz Mohamed, is challenging an order of assessment for the assessment year 2013-14. He had filed an appeal before the Commissioner of Income Tax (Appeals), the first respondent. However, the petitioner was unable to upload a stay petition due to the absence of a link for doing so. Subsequently, the Income Tax Officer, the second respondent, issued an order directing the petitioner to deposit 20% of the total amount involved in the appeal for the consideration of his stay petition. The petitioner filed a writ petition before the High Court of Kerala seeking an opportunity to pursue his stay petition.

What were the issues?

1. Whether the petitioner should be granted an opportunity to file and pursue a stay petition before the Appellate Authority, given the technical difficulty in uploading it. The assessee (petitioner) contended that he was unable to file a stay petition due to the absence of a functional link on the portal. He sought an opportunity to present his case for a stay before the appellate authority. The revenue (respondents) did not record any specific arguments in the judgment regarding this issue. The core of the dispute revolves around the procedural impediment faced by the assessee in seeking a stay against the assessment order.

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 WEDNESDAY, THE 25TH DAY OF MAY 2022 / 4TH JYAISHTA, 1944 WP(C) NO. 16910 OF 2022 PETITIONER: SHAH FIROZ MOHAMED VALIYAVALPPIL HOUSE, CHAMMANOOR, PUNNAYOORKULAM, PIN - 679 561. BY ADVS. SRI.SUNNY XAVIER SMT.C.P.PRETTY RESPONDENTS: 1 COMMISSIONER OF INCOME TAX(APPEALS) INCOME TAX DEPARTMENT, GOVT. OF INDIA, NATIONAL FACELESS ASSESSMENT CENTRE, NEW DELHI, PIN - 110 001. 2 INCOME TAX OFFICER OFFICE OF THE INCOME TAX, WARD 1 & TPS, CITY PALZA, WEST NADA, GURUVAYOOR, PIN - 680 101. SRI.JOSE JOSEPH, SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 25.05.2022, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: W.P.(C) No.16910/22 -:2:- BECHU KURIAN THOMAS, J. --------------------------------- W.P.(C) No.16910 of 2022 --------------------------------- Dated this the 25th day of May, 2022

JUDGMENT Petitioner challenges the order directing him to deposit 20% of the total amount involved in the appeal, against an order of assessment for the year 2013-14. Though the petitioner has preferred an appeal before the first respondent against Ext.P1 order of assessment, due to absence of a link to upload stay petition, petitioner is unable to do so. However, the assessing officer has issued Ext.P6 directing the petitioner to pay 20% of the total amount involved in the appeal for considering the stay petition.

Since the appeal is pending consideration before the first respondent and due to the absence of a link to upload stay petition after filing the appeal, it is essential that petitioner be given an opportunity to pursue the stay petition before the Appellate Authority.

Accordingly, if the petitioner prefers a stay petition within 10 days from today before the second respondent in the pending appeal, the same shall be forwarded by the second respondent to the first respondent and thereafter the first respondent shall consider the stay petition, as expeditiously as possible, at any rate, within a period of one month from the date of receipt of the stay petition by the first respondent. If the petitioner files the stay petition before the second respondent within the time stipulated above, all coercive proceedings initiated against the petitioner pursuant to Ext.P1 shall be kept in abeyance till a decision is taken on the stay petition. The writ petition is disposed of as above. BECHU KURIAN THOMAS JUDGE vps

Appendix — schedule of exhibits

APPENDIX OF WP(C) 16910/2022 PETITIONER EXHIBITS EXHIBIT P1 A COPY OF THE ASSESSMENT ORDER DATED 24/03/2022. EXHIBIT P2 A COPY OF THE APPEAL TO THE 1ST RESPONDENT. EXHIBIT P3 A COPY OF THE NOTICE DATED 17/02/2022. EXHIBIT P4 A COPY OF THE BANK STATEMENT WITH DATE OF OPENING OF ACCOUNT. EXHIBIT P5 A COPY OF THE STAY PETITION. EXHIBIT P6 A COPY OF THE ORDER DATED 03/05/2022.

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