THRISSUR DISTRICT CO-OPERATIVE SOCIETY LTD. vs. THE ADDITIONAL / JOINT / ASSISTANT COMMISSIONER OF INCOME TAX

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WP(C)/17757/2022HC KeralaKLHC01036236202201 June 2022Author: HONOURABLE MR. JUSTICE GOPINATH P.3 pages
AI SummaryRemanded

What did the High Court hold?

The High Court directed the 2nd respondent (Commissioner of Income Tax (Appeals)) to consider and pass orders on the stay petition (Ext.P3) within a period of two months from the date of receipt of a copy of the judgment. Until a decision is taken on the stay petition, all coercive proceedings against the petitioner concerning the assessment order (Ext.P1) shall be kept in abeyance. The Court did not decide on the merits of the assessment or the stay petition itself, but rather on the procedural aspect of ensuring the stay petition is considered promptly. The principle is that a taxpayer should not face coercive recovery before their application for a stay of demand is heard and decided.

What were the facts?

The petitioner, Thrissur District Co-operative Society Ltd., is aggrieved by an order of assessment for the assessment year 2016-17 (Ext.P1). The petitioner has filed an appeal before the Commissioner of Income Tax (Appeals) (2nd respondent) and a petition for stay of proceedings (Ext.P3). The petitioner apprehends coercive action before the stay petition is considered and has therefore filed this writ petition. The assessment order was passed by the Additional/Joint/Assistant Commissioner of Income Tax, National Faceless Assessment Centre, New Delhi (1st respondent).

What were the issues?

1. Whether the petitioner is entitled to a direction for the expeditious disposal of their stay petition pending before the appellate authority? (Question of procedure) The petitioner argued that they are facing coercive proceedings and have filed a stay petition, which needs to be considered before any such action is taken. The respondents did not record any specific arguments in the judgment. The core issue is the petitioner's apprehension of coercive steps before their stay application is adjudicated.

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 GOPINATH P. WEDNESDAY, THE 1ST DAY OF JUNE 2022 / 11TH JYAISHTA, 1944 WP(C) NO. 17757 OF 2022 PETITIONER/S: THRISSUR DISTRICT CO-OPERATIVE SOCIETY LTD. ACP OFFICE THRISSUR P. O., THRISSUR, KERALA - 680 001, REPRESENTED BY ITS SECRETARY SHEENA M. S. BY ADVS. ANIL D. NAIR TELMA RAJU P.K.BIJU EDATHARA VINEETA KRISHNAN RESPONDENT/S: 1 THE ADDITIONAL / JOINT / ASSISTANT COMMISSIONER OF INCOME TAX INCOME TAX OFFICER, NATIONAL FACELESS ASSESSMENT CENTRE NEW DELHI - 110001. 2 COMMISSIONER OF INCOME TAX (APPEALS) NATIONAL FACELESS APPEAL CENTRE, NEW DELHI - 110001. SRI. JOSE JOSEPH, SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 01.06.2022, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C) NO. 17757 OF 2022 2

JUDGMENT

Aggrieved by ExT.P1 order of assessment relating to assessment year 2016-17, petitioner has preferred an appeal before the 2nd respondent, a copy of which is produced as Ext.P2. A petition for stay of proceedings pursuant to the assessment order has also been filed as Ext.P3. Petitioner apprehends coercive proceedings even before the petition for stay is considered. Hence, this writ petition.

2.

Having considered the submissions of the counsel for the petitioner as well as the respondents, I am of the opinion that this writ petition itself can be disposed with a direction.

3.

Accordingly, there will be a direction to the 2nd respondent to consider and pass orders on Ext.P3 stay petition, within a period of two months from the date of receipt of a copy of this judgment. Till such a decision is taken, all coercive proceedings against the petitioner in respect of Ext.P1 shall be kept in abeyance.

The writ petition is disposed of as above. GOPINATH P. JUDGE ajt

WP(C) NO. 17757 OF 2022 3

Appendix — schedule of exhibits
APPENDIX OF WP(C) 17757/2022 PETITIONER EXHIBITS Exhibit P1 TRUE COPY OF ASSESSMENT ORDER DATED 26.03.2022 FOR THE ASSESSMENT YEAR 2016-17 ISSUED TO THE PETITIONER. Exhibit P2 TRUE COPY OF THE APPEAL FILED BEFORE THE 2ND RESPONDENT. Exhibit P3 TRUE COPY OF STAY PETITION FILED BEFORE THE 2ND RESPONDENT. Exhibit P4 TRUE COPY OF THE ACKNOWLEDGMENT RECEIPT ACKNOWLEDGING THE FILING OF THE APPEAL BEFORE THE 2ND RESPONDENT.

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