M/S. SREEVALSOM JEWELLERS vs. THE ASSISTANT COMMISSIONER OF INCOME TAX

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WP(C)/26114/2020HC KeralaKLHC01064395202026 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 Court directed the Commissioner of Income Tax (Appeals) (the second respondent) to consider and pass reasoned orders on the stay petitions filed by the petitioner (Exts. P4(a) to P6(a)) within a period of three months from the date of receipt of a copy of the judgment, after providing a hearing to the petitioner. Furthermore, the Court ordered that recovery steps pursuant to the revenue recovery notices (Ext. P7 series) shall be kept in abeyance until the Commissioner of Income Tax (Appeals) passes orders on the stay applications and communicates these orders to the petitioner. The petitioner was directed to furnish a copy of the writ petition and the judgment to the second respondent for further action.

What were the facts?

The petitioner, M/s. Sreevalsom Jewellers, filed a writ petition before the High Court of Kerala challenging assessment orders (Exts. P1 to P3) passed under the Income Tax Act. The petitioner had also filed appeals (Exts. P4 to P6) along with stay petitions (Exts. P4(a) to P6(a)) before the Commissioner of Income Tax (Appeals), the second respondent. The petitioner contended that despite these appeals and stay petitions being pending, the respondents, including the Assistant Commissioner of Income Tax and the Tax Recovery Officer, were initiating recovery steps (Ext. P7 series of revenue recovery notices) for the amounts confirmed in the assessment orders. The petitioner sought intervention from the High Court to prevent these recovery actions.

What were the issues?

1. Whether the revenue recovery proceedings initiated against the petitioner are premature given that stay petitions are pending before the appellate authority? The assessee argued that the revenue recovery notices were issued and steps were being taken for recovery of amounts confirmed by the assessment orders even before the stay petitions filed along with the appeals were considered by the Commissioner of Income Tax (Appeals). The assessee contended that such actions were contrary to the principles of natural justice and the established procedure, as the appellate authority should have had the opportunity to decide on the stay applications before coercive recovery measures were employed. The revenue did not record any specific arguments in the judgment.

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 THURSDAY, THE 26TH DAY OF NOVEMBER 2020 / 5TH AGRAHAYANA, 1942 WP(C).No.26114 OF 2020(L) PETITIONER/S: M/S. SREEVALSOM JEWELLERS GROUND FLOOR, SREEVALSOM BUILDING, MC ROAD, PANDALAM, PATHANAMTHITTA-689 501 REP.BY ITS AUTHORIZED SIGNATORY-VARUN RAJ PILLAI BY ADVS. SRI.S.MUHAMMED HANEEFF SMT.DIVYA RAVINDRAN SRI.M.H.ASIF ALI SMT.SHAIMA VAHAB RESPONDENT/S: 1 THE ASSISTANT COMMISSIONER OF INCOME TAX CENTER CIRCLE, AAYAKARBHAVAN, KARBALA JUNCTION, KOLLAM-691 001 2 THE COMMISSIONER OF INCOME TAX (APPEAL)-III 28/243,'POORNIMA', PANAMPILLY NAGAR, COCHIN-682 036 3 THE TAX RECOVERY OFFICER CENTRAL, KOCHI-682 018 OTHER PRESENT: SC JOSE JOSEPH THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 26.11.2020, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C).No.26114 OF 2020(L) 2

JUDGMENT

Against Exts.P1 to P3 assessment orders under the Income Tax Act, the petitioner has preferred Exts. P4 to P6 appeals together with Exts.P4(a) to P6(a) stay petitions before the 2nd respondent. Ext.P7 series are the revenue recovery notices. It is the case of the petitioner that even prior to considering the stay petitions, recovery steps are taken by the respondents against the petitioner for recovery of the amounts confirmed by Exts.P1 to P3 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.P4(a) to P6(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 pursuant to Ext.P7 series of revenue recovery notices for recovery of amounts confirmed against the petitioner by Exts.P1 to P3 assessment orders shall be kept in abeyance till such time as orders are passed by the 2nd respondent in the stay application and communicate the WP(C).No.26114 OF 2020(L) 3 said orders to the petitioner as directed above and communicated to the petitioner.

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 SJ

WP(C).No.26114 OF 2020(L) 4

Appendix — schedule of exhibits
APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1 TRUE COPY OF THE ASSESSMENT ORDER DATED 18.3.2020 PASSED BY THE 1ST RESPONDENT FOR AY-2012-13 ALONG WITH DEMAND NOTICE EXHIBIT P2 TRUE COPY OF THE ASSESSMENT ORDER DATED 18.3.2020 PASSED BY THE 1ST RESPONDENT FOR AY-2013-14 EXHIBIT P3 TRUE COPY OF THE ASSESSMENT ORDER DATED 18.3.2020 PASSED BY THE 1ST RESPONDENT FOR AY-2014-15 EXHIBIT P4 TRUE COPY OF THE MEMORANDUM OF APPEAL DATED 24.5.2020 FOR AY-2012-13 FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT EXHIBIT P4 (A) TRUE COPY OF THE STAY PETITION DATED 14.11.2020 FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT FOR AY-2012-13 EXHIBIT P5 TRUE COPY OF THE MEMORANDUM OF APPEAL DATED 24.5.2020 FOR AY-2013-14 FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT EXHIBIT P5 (A) TRUE COPY OF THE STAY PETITION DATED 14.11.2020 FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT FOR AY-2013-14 EXHIBIT P6 TRUE COPY OF THE MEMORANDUM OF APPEAL DATED 24.5.2020 FOR AY-2014-15 FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT EXHIBIT P6 (A) TRUE COPY OF THE STAY PETITION DATED 14.11.2020 FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT FOR AY-2014-15 EXHIBIT P7 TRUE COPY OF THE REVENUE RECOVERY NOTICE ISSUED BY THE 3RD RESPONDENT DATED 12.10.2020 FOR AY-2012-13 EXHIBIT P7 (A) TRUE COPY OF THE REVENUE RECOVERY NOTICE ISSUED BY THE 3RD RESPONDENT DATED 12.10.2020 FOR AY-2013-14 WP(C).No.26114 OF 2020(L) 5 EXHIBIT P7 (B) TRUE COPY OF THE REVENUE RECOVERY NOTICE ISSUED BY THE 3RD RESPONDENT DATED 12.10.2020 FOR AY-2014-15

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