MORNING STAR MEDICAL CENTRE, ADIMALY vs. THE ADDITIONAL/JOINT/DEPUTY/ASSISTANT COMMISSIONER OF INCOME TAX

Until the assessment year 2018-2019, petitioner was granted exemption under Section 11 of the Income Tax Act, 1961. However, for the assessment year 2018-2019, 1st respondent denied the exemption and issued an order of assessment as per Ext.P1. Challenging the said order, an appeal has been preferred before the National Faceless Appeal Centre as evident from Ext.P2. Since there was no threat

The grievance of the petitioner now brought to the notice of this Court is that, during the pendency of the appeal, respondents are proposing to initiate recovery proceedings and the same will cause great prejudice to the petitioner, unless the proceedings pending before the appellate authority are either completed in a time bound manner or an opportunity for preferring a stay petition before the appellate authority is obtained. As far as the latter is concerned, there is no opportunity for the petitioner to upload the stay petition after the commencement of the National Faceless Appeal Scheme.

In similar matters this Court had, taking note of the prejudice being caused to the assessees, have directed the National Faceless Appeal Centre to WP(C) NO. 5808 OF 2022 4 provide a link to the assessees to enable them to upload stay petitions in pending appeals.

Having heard the learned counsel for the petitioner as well as the learned Standing Counsel for the respondents, this Court is of the opinion that petitioner should also be given a similar relief.

Accordingly there will be a direction to respondents 3 to 5 to provide a link, to the petitioner to upload an application for stay, within a period of four weeks from the date of receipt of a copy of this judgment. Once a link is provided to the petitioner, the stay application as sought for must be uploaded within two weeks thereafter.

If such directions are complied with, the Competent Appellate Authority shall consider and dispose of the stay application, as expeditiously as possible, at any rate within a period of six weeks from the date of uploading of the application for stay.

Despite the uploading of stay application, the appellate authority will be at liberty to consider and pass appropriate orders on the appeal itself. Needless to mention that till the application for stay is considered as directed above, all coercive proceedings initiated pursuant to Ext.P1 shall be kept in abeyance. The writ petition is disposed of. BECHU KURIAN THOMAS JUDGE AMV/22/02//2022