THE DISTRICT LOTTERY OFFICER vs. THE ASSISTANT COMMISSIONER OF INCOME TAX(TDS)

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WP(C)/9723/2021HC KeralaKLHC01026544202109 April 2021Author: HONOURABLE MR. JUSTICE A.M.BADAR6 pages
AI SummaryRemanded

What did the High Court hold?

The High Court disposed of both writ petitions with specific directions. The Court directed the 2nd respondent, the Commissioner of Income Tax (Appeals), to decide the stay petitions (Ext.P6) filed in the pending appeals (Ext.P3) within a period of two months from the date of communication of the judgment. The Court also directed that the recovery proceedings pursuant to the penalty orders (Ext.P2) shall be kept in abeyance by the respondents until the disposal of the stay petitions. The Standing Counsel for the respondents was tasked with communicating the judgment to the 2nd respondent for compliance, and the petitioners were directed to cooperate with the 2nd respondent in the disposal of the stay petitions within the prescribed timeframe. No issue was expressly left undecided; the court provided a procedural resolution.

What were the facts?

The petitioners, the District Lottery Officer, filed two writ petitions (WP(C) Nos. 9719 & 9723 of 2021) before the High Court of Kerala. They challenged orders imposing penalties (Ext.P2) and sought a stay on recovery proceedings initiated by the respondents, the Assistant Commissioner of Income Tax (TDS) and the Commissioner of Income Tax (Appeals). The petitioners had filed statutory appeals (Ext.P3) along with stay petitions (Ext.P6) before the Commissioner of Income Tax (Appeals), which were pending. The respondents had issued letters intimating coercive action for recovery of the assessed amounts while the appeals were pending. The core issue was the petitioners' request to stay recovery until their appeals were decided.

What were the issues?

1. Whether the High Court should intervene by way of writ jurisdiction to stay recovery proceedings pending statutory appeals before the Commissioner of Income Tax (Appeals)? Assessee's (Petitioner's) Contention: The petitioners argued that penalty orders had been passed, and statutory appeals were filed along with stay petitions. However, the revenue was issuing letters intimating coercive action for recovery of the assessed amounts. They sought a stay on these recovery proceedings until the disposal of their appeals. Revenue's (Respondent's) Contention: The learned Standing Counsel for the respondents submitted that the writ petitions could be disposed of by directing the Commissioner of Income Tax (Appeals) to decide the stay petitions in a time-bound manner.

AI-generated summary — verify with the full judgment below

Heard together (2 matters)

WP(C).No.9719 OF 2021
WP(C).9723/2021

Read from the judgment's own cause title. This page is filed under one of them.

Cause title — parties, addresses and appearances
WP(C) Nos.9719 & 9723 of 2021 1 IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE A.M.BADAR FRIDAY, THE 09TH DAY OF APRIL 2021 / 19TH CHAITHRA, 1943 WP(C).No.9719 OF 2021(L) PETITIONER/S: THE DISTRICT LOTTERY OFFICER DISTRICT LOTTERY OFFICE, 7TH FLOOR, REVENUE TOWER, PARK AVENUE, ERNAKULAM - 682 011. BY GOVERNMENT PLEADER RESPONDENT/S: 1 THE ASSISTANT COMMISSIONER OF INCOME TAX (TDS) TAX BUILDING, I.S.PRESS ROAD, KOCHI - 682 018, ERNAKULAM. 2 THE COMMISSIONER OF INCOME TAX (APPEALS) TAX BUILDING, I.S.PRESS ROAD, KOCHI - 682018, ERNAKULAM. SRI CHRISTOPHER ABRAHAM, STANDING COUNSEL THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 09.04.2021, ALONG WITH WP(C).9723/2021(M), THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE A.M.BADAR FRIDAY, THE 09TH DAY OF APRIL 2021 / 19TH CHAITHRA, 1943 WP(C).No.9723 OF 2021(M) PETITIONER/S: THE DISTRICT LOTTERY OFFICER DISTRICT LOTTERY OFFICE, 7TH FLOOR, REVENUE TOWER, PARK AVENUE, ERNAKULAM - 682 011. BY GOVERNMENT PLEADER RESPONDENT/S: 1 THE ASSISTANT COMMISSIONER OF INCOME TAX(TDS) TAX BUILDING, I.S.PRESS ROAD, KOCHI - 682 018, ERNAKULAM. 2 THE COMMISSIONER OF INCOME TAX (APPEALS) TAX BUILDING, I.S.PRESS ROAD, KOCHI - 682 018, ERNAKULAM. SRI. CHRISTOPHER ABRAHAM, STANDING COUNSEL THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 09.04.2021, ALONG WITH WP(C).9719/2021(L), THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C) Nos.9719 & 9723 of 2021 3

JUDGMENT [ WP(C).9719/2021, WP(C).9723/2021 ] Dated this the 9th day of April 2021

Heard both sides.

2.

Both these petitions are being disposed of by this common judgment as the facts and points involved are identical.

3.

Learned Government pleader appearing for the petitioners in both these petitions submitted that challenging the orders at Ext.P2 imposing penalty, the petitioners have preferred statutory appeals at Ext.P3 along with the stay petitions at Ext.P6 in both these writ petitions and these appeals are pending before the 2nd respondent. During pendency of the appeals, respondents have issued letters intimating coercive action for recovery of the amount assessed by orders at Ext.P2. It is further submitted that till disposal of the appeals, the recovery proceedings be stayed.

4.

Learned Standing Counsel appearing for the respondents in both these petitions submits that the writ petitions can be disposed by directing the 2nd respondent to decide the stay petitions in a time bound manner.

5.

In the light of these facts and circumstances of the instant case and also keeping in mind the submissions advanced by the parties, both these petitions are disposed of with the WP(C) Nos.9719 & 9723 of 2021 4 following directions:-

The 2nd respondent is directed to decide the stay petitions at Ext.P6 in pending appeals at Ext.P3 within a period of two months from the date of communication of this judgment. The learned Standing Counsel appearing for the respondents to communicate this judgment to the 2nd respondent for compliance. The petitioner to cooperate with the 2nd respondent in disposal of the stay petitions at Ext.P6 in the time frame prescribed by this Court. Till disposal of the stay petitions, the recovery in pursuant to the orders at Ext.P2 shall be kept in abeyance by the respondents. A.M.BADAR ajt JUDGE

WP(C) Nos.9719 & 9723 of 2021 5

Appendix — schedule of exhibits
APPENDIX OF WP(C) 9719/2021 PETITIONER'S/S EXHIBITS: EXHIBIT P1 TRUE COPY OF NOTICE F.NO.ACIT(TDS)/KOCHI/DIST.LOTTERY/2014- 15/CHND00204B. EXHIBIT P2 TRUE COPY OF THE ORDER IMPOSING PENALTY. EXHIBIT P3 TRUE COPY OF THE MEMORANDUM OF APPEAL FILED BEFORE THE SECOND RESPONDENT FOR THE ASSESSMENT YEAR 2015-2016. EXHIBIT P4 TRUE COPY OF THE LETTER INTIMATING COERCIVE STEPS. EXHIBIT P5 REPLY SUBMITTED BY THE PETITIONER BEFORE THE 1ST RESPONDENT TO EXHIBIT P4. EXHIBIT P6 A TRUE COPY OF THE STAY PETITION ALONG WITH A COVERING LETTER. EXHIBIT P7 A TRUE COPY OF THE LETTER FORWARDED TO COMMISSIONER OF INCOME TAX (APPEALS). WP(C) Nos.9719 & 9723 of 2021 6 APPENDIX OF WP(C) 9723/2021 PETITIONER'S/S EXHIBITS: EXHIBIT P1 TRUE COPY OF NOTICE F.NO.ACIT(TDS)/KOCHI/DIST.LOTTERY/2015- 16/CHND00204B. EXHIBIT P2 TRUE COPY OF THE ORDER IMPOSING PENALTY. EXHIBIT P3 TRUE COP OF THE MEMORANDUM OF APPEAL FILED BEFORE THE SECOND RESPONDENT FOR THE ASSESSMENT YEAR 2016-2017. EXHIBIT P4 TRUE COPY OF THE LETTER INTIMATING COERCIVE STEPS. EXHIBIT P5 REPLY SUBMITTED BY THE PETITIONER BEFORE THE 1ST RESPONDENT TO EXHIBIT P4. EXHIBIT P6 A TRUE COPY OF THE STAY PETITION ALONG WITH A COVERING LETTER. EXHIBIT P7 A TRUE COPY OF THE LETTER FORWARDED TO COMMISSIONER OF INCOME TAX (APPEALS).

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