MOHAMED JAZEEL P A vs. INCOME TAX OFFICER

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WP(C)/6631/2022HC KeralaKLHC01014483202202 March 2022Author: HONOURABLE MR. JUSTICE BECHU KURIAN THOMAS4 pages
AI SummaryRemanded

What did the High Court hold?

The High Court directed the 3rd respondent (National Faceless Appeal Center) to provide a link to the petitioner within four weeks from the date of receiving a copy of the judgment, enabling him to upload his stay petition. Upon receiving the link, the petitioner must upload the stay petition within two weeks. The 3rd respondent is then mandated to consider the stay petition expeditiously, within four weeks of its uploading. Crucially, all coercive recovery proceedings against the petitioner, pursuant to the assessment order (Ext.P1), are to be kept in abeyance until a decision is passed on the stay petition. The Court noted a pattern of assessees facing difficulties in filing stay petitions under the faceless appeal regime.

What were the facts?

The petitioner, Mohamed Jazeel P A, is an assessee for the assessment year 2017-18. An assessment order was passed against him, determining a total tax liability of Rs. 3,81,97,725/-. He filed an appeal before the Commissioner of Income Tax (Appeals), which was transferred to the National Faceless Appeal Center (NFAC) and is currently pending. Meanwhile, recovery proceedings were initiated, and Rs. 2,35,000/- has already been recovered. The petitioner's stay petition before the appellate authority remains undecided. The petitioner is unable to file his stay petition due to the National Faceless Appeal regime.

What were the issues?

1. Whether the petitioner can be provided with a mechanism to file his pending stay petition before the National Faceless Appeal Centre, given the difficulties arising from the faceless regime? (Question of procedure and access to justice) The petitioner's contention is that he is unable to upload his stay petition to the National Faceless Appeal Centre, a common issue observed by the Court in similar cases. The revenue's contentions are not recorded in the judgment.

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances
WP(C) NO. 6631 OF 2022 -1- IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE BECHU KURIAN THOMAS WEDNESDAY, THE 2ND DAY OF MARCH 2022 / 11TH PHALGUNA, 1943 WP(C) NO. 6631 OF 2022 PETITIONER: MOHAMED JAZEEL P A, 16/816 B, INDIRA JUNCTION, THOPPUMPADY,KOCHI, PIN - 682005 BY ADVS.P.J.ANILKUMAR (A-1768) K.N.SREEKUMARAN N.SANTHOSHKUMAR RESPONDENTS: 1 INCOME TAX OFFICER, NON CORP WARD 2(4) & TPS, INCOME TAX DEPARTMENT, P T JACOB ROAD,THOPPUMPADY, KOCHI, PIN - 682005 2 COMMISSIONER OF INCOME TAX (APPEALS), INCOME TAX DEPARTMENT,POORNIMA BUILDINGS, PANAMPILLYNAGAR, ERNAKULAM, PIN - 682036 3 NATIONAL FACELESS APPEAL CENTER REPRESENTED B Y PRINCIPAL CHIEF COMMISSIONER INCOME TAX DEPARTMENT, NEW DELHI, PIN - 110001 4 THE FEDERAL BANK LTD REPRESENTED BY CHIEF MANAGER FEDERAL TOWERS, ACCOUNTS DEPARTMENT,ALUVA,, PIN - 683101 5 THE FEDERAL BANK LTD, MATTANCHERY BRANCH REPRESNTED BY CHIEF MANAGER, PARVANA JN, MATTANCHERY, PIN - 682002 BY ADVS.JOSE JOSEPH, SC, INCOME TAX DEPARTMENT, KERALA SRI.V.JAYAPRADEEP, SC, FEDERAL BANK THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 02.03.2022, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C) NO. 6631 OF 2022 -2-

JUDGMENT Petitioner is an assessee under the Income Tax Act, 1962. For the assessment year 2017-18, an order of assessment was issued against the petitioner computing a total liability of Rs.3,81,97,725/-. Aggrieved by the said order, petitioner preferred an appeal before the 2nd respondent which has been transmitted to the 3rd respondent and is pending consideration. In the meantime, respondents have initiated recovery proceedings and has already recovered an amount of Rs.2,35,000/-. The stay petition filed by the petitioner before the 2nd respondent as Ext.P4 is pending consideration.

2.

This Court has been noticing in several cases, that, the assessees are unable to file stay petitions in pending appeals after coming into force of National Faceless Appeal regime. In fact this Court has even directed links to be provided to assessees to upload stay petitions. The petitioner in the present case also stands in a similar position and his stay petition cannot be uploaded before the National Faceless Appeal Centre.

3.

Having regard to the circumstances of the case, there will be a WP(C) NO. 6631 OF 2022 -3- direction to the 3rd respondent to provide a link to the petitioner within a period of four weeks from the date of receipt of a copy of this judgment, to upload the stay petition. On receipt of such a link, the petitioner shall upload the stay petition within a period of two weeks thereafter, and the 3rd respondent shall consider the said stay petition as expeditiously as possible and at any rate, within a period of four weeks from the date of uploading of the said stay petition. Till such consideration of the stay petition is carried out and orders passed thereon, all coercive proceedings against the petitioner pursuant to Ext.P1 order of assessment shall be kept in abeyance, from today. The writ petition is disposed of accordingly. BECHU KURIAN THOMAS JUDGE uu 02.03.2022

WP(C) NO. 6631 OF 2022 -4-

Appendix — schedule of exhibits
APPENDIX OF WP(C) 6631/2022 PETITIONER EXHIBITS Exhibit P1 TRUE COPY OF THE ORDER DATED 12..12..2019 OF THE 1ST RESPONDENT ALONG WITH COMPUTATION STATEMENT. Exhibit P2 . TRUE COPY OF THE APPEAL IN FORM 35 FILED ON 10..1..2020 THROUGH ONLINE PORTAL . Exhibit P3 TRUE COPY OF THE NOTICE ISSUED BY THE 1ST RESPONDENT U/S 226(3) OF THE INCOME TAX ACT, 1961 TO THE 4TH RESPONDENT BANK DATED 18..02..2022. Exhibit P4 TRUE COPY OF THE STAY PETITION FILED BY THE PETITIONER BEFORE THE SECOND RESPONDENT DATED 23..02..2022 Exhibit P5 TRUE COPY OF THE E-PROCEEDINGS RESPONSE ACKNOWLEDGEMENT FROM THE 3RD RESPONDENT DATED 23..02..2022

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