JAYA MATHA PROVINCE OF CMC vs. THE COMMISSIONER OF INCOME-TAX

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WP(C)/12210/2022HC KeralaKLHC01024920202206 April 2022Author: HONOURABLE MR. JUSTICE BECHU KURIAN THOMAS5 pages
AI SummaryRemanded

What did the High Court hold?

The High Court disposed of the writ petition by directing expeditious consideration of the pending matters. The NFAC (3rd respondent) was directed to provide a link to the petitioner within four weeks to upload the stay petition in the pending appeal and thereafter consider the stay petition within three months of its uploading. The petitioner was also advised to approach the help desk for assistance in obtaining the link. Until the NFAC considers the stay petition, all coercive proceedings initiated against the petitioner pursuant to the assessment order (Ext.P5) were to be kept in abeyance. Additionally, the Assistant Commissioner of Income Tax (5th respondent) was directed to consider the rectification petition (Ext.P11) within three months of receiving a copy of the judgment, after granting an opportunity of hearing to the petitioner. The court did not decide on the merits of the assessment or the appeal.

What were the facts?

The petitioner, Jaya Matha Province of CMC, filed a writ petition before the High Court of Kerala challenging an assessment order for the assessment year 2018-19. The petitioner had preferred an appeal against this order before the National Faceless Appellate Authority (NFAC) and also filed a stay petition. The petitioner contended that no tax was liable, but the assessing authority had assessed tax without basis. While the appeal and a rectification petition were pending, the revenue initiated coercive steps to enforce the alleged tax liability, causing prejudice to the petitioner. The petitioner sought an earlier consideration of the stay petition, the appeal, and the rectification petition.

What were the issues?

1. Whether the High Court should direct the expeditious consideration of the stay petition pending before the National Faceless Appellate Authority (NFAC) and the rectification petition filed before the Assessing Authority, considering the alleged coercive steps being taken by the revenue while these matters are pending. (Mixed question of law and fact, concerning principles of natural justice and procedural fairness). Assessee's Contentions: - The petitioner argued that coercive steps were being initiated to enforce the tax liability while the appeal and rectification petition were pending, causing great prejudice. - The petitioner pleaded for an earlier consideration of the stay petition and the appeal before the NFAC, as well as an expeditious consideration of the rectification petition. Revenue's Contentions: - The judgment records that the learned Standing Counsel for the respondents was heard, but their specific contentions are not detailed in the provided text.

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances
WP(C) NO. 12210 OF 2022 1 IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE BECHU KURIAN THOMAS WEDNESDAY, THE 6TH DAY OF APRIL 2022 / 16TH CHAITHRA, 1944 WP(C) NO. 12210 OF 2022 PETITIONER/S: JAYA MATHA PROVINCE OF CMC HOLY FAMILY CARMELITE CONVENT CARMELITE PROVINCIAL HOUSE, PALA KOTTAYAM, REPRESENTED BY ITS PROVINCIAL SUPERIOR, SIGI KIZHAKKEVELLILAPPILLIL, PIN - 686575 BY ADVS. NITISH SATHESH SHENOY SHERRY SAMUEL OOMMEN RESPONDENT/S: 1 THE COMMISSIONER OF INCOME-TAX AYAKAR BHAVAN, KOWDIAR, THIRUVANANTHAPURAM, PIN - 695003 2 THE COMMISSIONER OF INCOME-TAX (EXEMPTIONS) SAN JUAN TOWERS, 2 ND FLOOR, BEHIND CR BUILDING OLD RAILWAY STATION ROAD, KOCHI - 682 018, PIN - 682018 3 THE COMMISSIONER OF INCOME-TAX (APPEALS) NFAC CR BUILDING, IP ESTATE, NEW DELHI, PIN - 110002 4 INCOME-TAX OFFICER NATIONAL E-ASSESSMENT CENTRE, DELHI, PIN - 110003 5 ASSISTANT COMMISSIONER OF INCOME TAX EXEMPTION CIRCLE, AAYKAR BHAWAN 1ST FLOOR, KOWDIAR PO, THIRUVANANTHAPURAM, PIN - 695003 OTHER PRESENT: CHRISTOPHER AB RAHAM SC FOR IT THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 06.04.2022, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C) NO. 12210 OF 2022 2 BECHU KURIAN THOMAS, J. ======================== W.P.(C) No.12210 of 2022 ------------------------------------------------ Dated this the 6th day of April, 2022

JUDGMENT Petitioner has preferred an appeal against Ext.P5 assessment order for the year 2018-19. Though the appeal is preferred before the National Faceless Appellate Authority, a stay petition has been filed as Ext.P9, which was sent by registered post followed by Ext.P10 stay application filed through e-mail.

2.

According to the petitioner, though no tax is liable to be paid by it, still the assessing authority assessed the petitioner to tax, without any basis. While the appeal is pending consideration, on noticing certain errors in the assessment order, petitioner has filed a rectification application before the Assessing Authority.

3.

Sri.Sherry Samuel Oommen, learned Counsel for the petitioner submitted that, while the appeal as well as the rectification petition are pending consideration, respondents have initiated steps to enforce the alleged tax liability upon the petitioner, causing great prejudice. The learned Counsel pleaded

WP(C) NO. 12210 OF 2022 3 for an earlier consideration of the stay petition as well as the appeal itself pending before the Appellate Authority apart from an expeditious consideration of the rectification petition.

4.

Having heard learned Counsel for the petitioner as well as Sri.Christopher Abraham, learned Standing Counsel on behalf of respondents, I am of the view that this writ petition can be disposed of directing an expeditious consideration of the stay petition preferred by the petitioner as well as the pending rectification petition.

5.

Accordingly, there will be a direction to the 3rd respondent National Faceless Appellate Centre to provide a link to the petitioner within four weeks from the date of receipt of a copy of this judgment to upload the stay petition in the pending appeal and thereafter to consider the stay petition within three months from the date of uploading of the said stay petition. Petitioner will also be at liberty to approach the help desk attached to the Office of the Principal Commissioner of Income Tax, Cochin to obtain the link to upload the stay petition. The said proceedings and uploading shall be completed as mentioned above, within four weeks from the date of receipt of a copy of this judgment. Till the 3rd respondent considers the WP(C) NO. 12210 OF 2022 4 stay petition, all coercive proceedings initiated against the petitioner, pursuant to Ext.P5 shall be kept in abeyance.

6.

As far as the rectification petition is concerned, copy of which is produced as Ext.P11, it is directed that the 5th respondent shall consider the rectification petition within a period of three months from the date of receipt of a copy of this judgment, after granting an opportunity of hearing to the petitioner. The writ petition is disposed of accordingly. BECHU KURIAN THOMAS

JUDGE jm/

WP(C) NO. 12210 OF 2022 5

Appendix — schedule of exhibits
APPENDIX OF WP(C) 12210/2022 PETITIONER EXHIBITS Exhibit1 A TRUE COPY OF THE PAN CARD OF THE PETITIONER Exhibit2 TRUE COPY OF THE ACKNOWLEDGMENT PAGE WHICH EVIDENCES THE FILING OF THE RETURN OF INCOME FOR FINANCIAL YEAR 2017-18 ON 11.10.2018 Exhibit3 A TRUE COPY OF THE ASSESSMENT ORDER UNDER SECTION 143(3) OF THE ACT FOR AY 2016-17 DATED 28.12.2018 Exhibit4 A TRUE COPY OF THE ORDER OF REGISTRATION IN FORM NO 10AC DATED 13.01.2022 Exhibit5 TRUE COPY OF THE ASSESSMENT ORDER DATED 03.04.2021 ISSUED UNDER SECTION 143(3) OF THE ACT READ WITH SECTION 143(3A) AND 143(3B) OF THE ACT ALONG WITH THE ACCOMPANYING NOTICE OF DEMAND Exhibit6 TRUE COPY OF THE LETTER DATED 22.08.1991 FILED BY THE PETITIONER BEFORE THE 1 ST RESPONDENT Exhibit7 TRUE COPY OF THE LETTER DATED 17.03.2022 RECEIVED BY THE PETITIONER FROM TAHSILDAR, MEENACHIL Exhibit8 TRUE COPY OF THE APPEAL FILED BY THE PETITIONER DATED 27.04.2021 Exhibit9 TRUE COPY OF THE APPLICATION SEEKING STAY OF DEMAND DATED 22.02.2022 FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT Exhibit10 A TRUE COPY OF THE E-MAIL DATED 16.03.2022 AND THE POSTAL TRACKING DETAILS OF CONSIGNMENT NUMBER EL483071900IN Exhibit11 TRUE COPY OF THE RECTIFICATION APPLICATION DATED 29.03.2022 PENDING CONSIDERATION BEFORE THE 5 TH RESPONDENT Exhibit12 A TRUE COPY OF THE LETTER DATED 23.12.2021 ISSUED BY THE 5 TH RESPONDENT Exhibit13 A TRUE COPY OF THE STAY ORDER DATED 22.02.2019 IN RESPECT OF ASSESSMENT YEAR 2016-17 Exhibit14 A TRUE COPY OF THE EARLY HEARING APPLICATION DATED 30.03.2022 Exhibit15 A TRUE COPY OF CIRCULAR DATED 29.12.2021 BEARING REFERENCE DETAILS F.NO.279/MISC/M- 102/2021-TTJ

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