VARUN RAJ PILLAI vs. THE ASSISTANT COMMISSIONER OF INCOME TAX

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WP(C)/26256/2020HC KeralaKLHC01065058202027 November 2020Author: HONOURABLE DR. JUSTICE A.K.JAYASANKARAN NAMBIAR5 pages
AI SummaryRemanded

What did the High Court hold?

The High Court disposed of the writ petition with specific directions. The 2nd respondent, the Commissioner of Income Tax (Appeals), was directed to consider and pass reasoned orders on the petitioner's stay petitions (Exts.P8(a) to P14(a)) within three months of receiving a copy of the judgment, after hearing the petitioner. Furthermore, recovery steps for the amounts confirmed by the assessment orders (Exts.P1 to P7) were to be kept in abeyance until the 2nd respondent passed orders on the stay petitions and communicated them to the petitioner. The petitioner was also directed to furnish a copy of the writ petition and the judgment to the 2nd respondent for further action. The court did not decide the merits of the assessment orders or the appeals.

What were the facts?

The petitioner, Varun Raj Pillai, filed a writ petition before the High Court of Kerala challenging assessment orders (Exts.P1 to P7) issued under the Income Tax Act. He had preferred appeals (Exts.P8 to P14) along with stay petitions (Exts.P8(a) to P14(a)) before the Commissioner of Income Tax (Appeals) - the 2nd respondent. The petitioner contended that recovery steps were being initiated by the respondents even before his stay petitions were considered. The petition was filed against the Assistant Commissioner of Income Tax (1st respondent), the Commissioner of Income Tax (Appeals) (2nd respondent), and the Tax Recovery Officer (Central) (3rd respondent).

What were the issues?

1. Whether the recovery steps initiated by the respondents are premature, given that the petitioner has filed appeals and stay petitions before the Commissioner of Income Tax (Appeals)? (Question of mixed law and fact, concerning the procedural fairness and the Income Tax Act provisions related to appeals and recovery). Assessee's Contention: The petitioner argued that recovery actions were being taken by the respondents despite the pendency of his stay petitions before the appellate authority, implying a violation of due process and the intended procedure under the Income Tax Act. Revenue's Contention: The judgment does not record any specific contentions made by the revenue.

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 A.K.JAYASANKARAN NAMBIAR FRIDAY, THE 27TH DAY OF NOVEMBER 2020 / 6TH AGRAHAYANA, 1942 WP(C).No.26256 OF 2020(F) PETITIONER/S: VARUN RAJ PILLAI AGED 32 YEARS S/O. M. K. RAJENDRAN PILLAI, RAJAVALSAM, PANANGADU, P. O. KULANADA, PANDALAM, PATHANAMTHITTA - 689501. BY ADVS. SRI.S.MUHAMMED HANEEFF SMT.DIVYA RAVINDRAN SRI.M.H.ASIF ALI RESPONDENT/S: 1 THE ASSISTANT COMMISSIONER OF INCOME TAX CENTER CIRCLE, AAYAKAR BHAVAN, KARBALA JUNCTION, KOLLAM - 691001. 2 THE COMMISSIONER OF INCOME TAX (APPEALS)-III 28/243, 'POORNIMA', PANAMPILLY NAGAR, COCHIN - 682036. 3 THE TAX RECOVERY OFFICER (CENTRAL) INCOME TAX DEPARTMENT, KOCHI - 682 018. OTHER PRESENT: SC: SRI.JOSE JOSEPH THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 27.11.2020, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C).No.26256 OF 2020(F) 2

JUDGMENT Against Exts.P1 to P7 assessment orders under the Income Tax Act, the petitioner has preferred Exts.P8 to P14 appeals together with Exts.P8(a) to P14(a) stay petitions before the 2nd respondent. It is the case of the petitioner that even prior to considering the stay petition, recovery steps are taken by the respondents against the petitioner for recovery of the amounts confirmed by P1 to P7 assessment orders.

2.

I have heard the learned counsel appearing for the petitioner and also the learned Government Pleader appearing for the respondents. On a consideration of the facts and circumstances of the case as also the submissions made across the Bar, I dispose the writ petition with the following directions:

1.

The 2nd respondent shall consider and pass reasoned orders on Exts.P8(a) to P14(a) stay petitions within a period of three months from the date of receipt of a copy of this judgment, after hearing the petitioner.

2.

Recovery steps for recovery of amounts confirmed against the petitioner by Exts.P1 to P7 assessment orders shall be kept in abeyance till such time as orders are passed by the 2nd respondent as directed above and communicated to the petitioner.

WP(C).No.26256 OF 2020(F) 3

3.

The petitioner shall produce a copy of the writ petition together with a copy of this judgment, before the 2nd respondent, for further action. A.K.JAYASANKARAN NAMBIAR

JUDGE WP(C).No.26256 OF 2020(F) 4

Appendix — schedule of exhibits
APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1 TRUE COPY OF THE ASSESSMENT ORDER DATED 18.03.2020 PASSED BY THE 1ST RESPONDENT FOR AY - 2012-13 ALONG WITH DEMAND NOTICE AND COMPUTATION STATEMENT. EXHIBIT P2 TRUE COPY OF THE ASSESSMENT ORDER DATED 18.03.2020 PASSED BY THE 1ST RESPONDENT FOR AY - 2013-14 ALONG WITH DEMAND NOTICE AND COMPUTATION STATEMENT. EXHIBIT P3 TRUE COPY OF THE ASSESSMENT ORDER DATED 18.03.2020 PASSED BY THE 1ST RESPONDENT FOR AY - 2014-15 ALONG WITH DEMAND NOTICE AND COMPUTATION STATEMENT. EXHIBIT P4 TRUE COPY OF THE ASSESSMENT ORDER DATED 18.03.2020 PASSED BY THE 1ST RESPONDENT FOR AY - 2015-16 ALONG WITH DEMAND NOTICE AND COMPUTATION STATEMENT. EXHIBIT P5 TRUE COPY OF THE ASSESSMENT ORDER DATED 18.03.2020 PASSED BY THE 1ST RESPONDENT FOR AY - 2016-17 ALONG WITH DEMAND NOTICE AND COMPUTATION STATEMENT. EXHIBIT P6 TRUE COPY OF THE ASSESSMENT ORDER DATED 18.03.2020 PASSED BY THE 1ST RESPONDENT FOR AY - 2017-18 ALONG WITH DEMAND NOTICE AND COMPUTATION STATEMENT. EXHIBIT P7 TRUE COPY OF THE ASSESSMENT ORDER DATED 18.03.2020 PASSED BY THE 1ST RESPONDENT FOR AY - 2018-19 ALONG WITH DEMAND NOTICE AND COMPUTATION STATEMENT. EXHIBIT P8 TRUE COPY OF THE MEMORANDUM OF APPEAL DATED 24.05.2020 FOR AY - 2012-13 FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT. EXHIBIT P8 (a) TRUE COPY OF THE STAY PETITION DATED 14.11.2020 FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT FOR AY - 2012-13. EXHIBIT P9 TRUE COPY OF THE MEMORANDUM OF APPEAL DATED 24.05.2020 FOR AY - 2013-14 FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT. EXHIBIT P9 (a) TRUE COPY OF THE STAY PETITION DATED WP(C).No.26256 OF 2020(F) 5 14.11.2020 FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT FOR AY - 2013-14. EXHIBIT P10 TRUE COPY OF THE MEMORANDUM OF APPEAL DATED 24.05.2020 FOR AY - 2014-15 FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT. EXHIBIT P10 (a) TRUE COPY OF THE STAY PETITION DATED 14.11.2020 FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT FOR AY - 2014-15. EXHIBIT P11 TRUE COPY OF THE MEMORANDUM OF APPEAL DATED 24.05.2020 FOR AY - 2015-16 FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT. EXHIBIT P11 (a) TRUE COPY OF THE STAY PETITION DATED 14.11.2020 FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT FOR AY - 2015-16. EXHIBIT P12 TRUE COPY OF THE MEMORANDUM OF APPEAL DATED 24.05.2020 FOR AY - 2016-17 FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT. EXHIBIT P12 (a) TRUE COPY OF THE STAY PETITION DATED 14.11.2020 FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT FOR AY - 2016-17. EXHIBIT P13 TRUE COPY OF THE MEMORANDUM OF APPEAL DATED 24.05.2020 FOR AY - 2017-18 FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT. EXHIBIT P13 (a) TRUE COPY OF THE STAY PETITION DATED 14.11.2020 FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT FOR AY - 2017-18. EXHIBIT P14 TRUE COPY OF THE MEMORANDUM OF APPEAL DATED 24.05.2020 FOR AY - 2018-19 FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT. EXHIBIT P14 (a) TRUE COPY OF THE STAY PETITION DATED 14.11.2020 FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT FOR AY - 2018-19.

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