MALIAKAL VARKEY THOMAS vs. PRINCIPAL CHIEF COMMISSIONER OF INCOME-TAX (NFAC), DELHI

PDF · subscribers
WP(C)/1991/2022HC KeralaKLHC01004561202220 January 2022Author: HONOURABLE MR. JUSTICE SHAJI P.CHALY4 pages
AI SummaryPartly Allowed

What did the High Court hold?

The High Court disposed of the writ petition by directing the competent authority (the first respondent) to dispose of the stay petition (Exhibit P5) in accordance with law within one month from the date of receipt of a copy of the judgment. The Court also clarified that pending the adjudication of the stay petition, recovery proceedings, if any, consequent to the demand letter (Exhibit P6) shall be kept in abeyance until a decision is taken by the competent authority. The core principle applied is the court's power to direct expeditious disposal of statutory applications and to grant interim relief by staying coercive measures pending such disposal, ensuring that the assessee's rights are protected while the statutory authorities decide the matter.

What were the facts?

The petitioner, Maliakal Varkey Thomas, filed a writ petition before the High Court of Kerala seeking a writ of mandamus. The petitioner requested that coercive proceedings pursuant to an assessment order (Exhibit P1) and a demand communique (Exhibit P6) be kept in abeyance. This was pending the disposal of a stay application (Exhibit P5) by the first respondent. The petitioner also sought a direction for the first respondent to consider and pass orders on the stay application within a defined timeframe, after granting a personal hearing. The assessment year in question is 2014-2015. The appeal and stay application were pending before the statutory authority.

What were the issues?

1. Whether the petitioner is entitled to a writ of mandamus directing the respondents to keep coercive proceedings in abeyance pending disposal of the stay application, and to restrain recovery proceedings pursuant to the assessment order and demand communique for the assessment year 2014-2015? (Question of law and fact, concerning the powers of the High Court under Article 226 of the Constitution of India and the Income Tax Act, 1961). Assessee's Contention: The petitioner argued that coercive proceedings should be kept in abeyance pending the disposal of the stay application by the first respondent. The petitioner also sought a direction for the first respondent to consider the stay application within a specified time frame and to grant a personal hearing. Revenue's Contention: The judgment records that the learned Standing Counsel for the Income Tax Department, Sri. Jose Joseph, appeared. However, no specific arguments or contentions were recorded for the revenue 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 SHAJI P.CHALY THURSDAY, THE 20TH DAY OF JANUARY 2022 / 30TH POUSHA, 1943 WP(C) NO. 1991 OF 2022 PETITIONER: MALIAKAL VARKEY THOMAS AGED 65 YEARS FLAT NO 15B, M TOWER, MB HIGHTS, THAIKKATTUKARA PO, COMPANIPADI, KOCHI,PIN - 682106 BY ADVS. NIDHI JACOB SUKUMAR NAINAN OOMMEN SHERRY SAMUEL OOMMEN NITISH SATHESH SHENOY RESPONDENTS: 1 PRINCIPAL CHIEF COMMISSIONER OF INCOME-TAX (NFAC), DELHI, CR BUILDING, IP ESTATE, NEW DELHI, PIN - 110002 2 THE COMMISSIONER OF INCOME-TAX (APPEALS UNIT)-2 POORNIMA BUILDINGS, MANORAMA JUNCTION PANAMPILLY NAGAR, PIN - 682036 3 THE ASSISTANT COMMISSIONER OF INCOME-TAX NON-CORPORATE CIRCLE 1(1), CR BUILDING, 3RD FLOOR, IS PRESS ROAD KOCHI, PIN - 682018 4 4. THE DEPUTY COMMISSIONER OF INCOME-TAX CORPORATE CIRCLE 1(1) IS PRESS ROAD, KOCHI, PIN - 682018 SRI.JOSE JOSEPH,STANDING COUNSEL THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 20.01.2022, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: W.P(C).1991/2022 2 J U D G M E N T Dated this the 20th day of January, 2022 This writ petition is filed by the petitioner seeking the following reliefs: "i. To issue a writ of mandamus or any other appropriate writ, order or direction, to the 3rd and 4th Respondents, to keep in abeyance coercive proceedings pursuant to Exhibit P1 assessment order and Exhibit P6 communique, pending disposal of the Exhibits P5 stay application by the 1st Respondent; ii. To issue a writ of mandamus or any other appropriate writ, order or direction to the 1st Respondent to consider and pass appropriate orders on Exhibit P5 stay application within a defined time-frame, after granting the Petitioner an opportunity of personal hearing." 2. The relief sought for by the petitioner is against Exhibit P6 letter issued by the Income Tax Department demanding payment of dues as per Exhibit P1 order of assessment, while Exhibit P2 appeal and Exhibit P5 stay application is pending consideration before the statutory authority for the assessment year 2014-2015. W.P(C).1991/2022 3 3. Even though various contentions are raised, the sole relief sought for by learned counsel for petitioner is consideration of stay petition within a time frame and an order restraining the Department from proceeding for recovery of the amount, for the assessment year 2014-2015. Having heard learned counsel for the petitioner Sri. Sherry Samuel Oommen and learned Standing Counsel for Income Tax Department Sri.Jose Joseph, this writ petition is disposed of directing the competent authority to dispose of Exhibit P5 stay petition, in accordance with law, within a month from the date of receipt of a copy

of this judgment. I also make it clear that pending adjudication of the stay petition, recovery proceedings, if any, consequent to Exhibit P6 demand letter shall be kept in abeyance, till such time a decision is taken by the competent authority, as directed. Shaji P. Chaly,

Judge sou.

W.P(C).1991/2022 4 APPENDIX OF WP(C) 1991/2022 PETITIONER EXHIBITS EXHIBIT P1OF THE ASSESSMENT ORDER DATED 21.12.2016 PASSED BY THE 3RD RESPONDENT FOR AY 2014-15 EXHIBIT P2OF THE APPEAL FILED BY THE PETITIONER ON 31.01.2017 EXHIBIT P3OF THE OFFICE ORDER NO 3 DATED 29.12.2021 SETTING UP THE NATIONAL FACELESS APPEAL CENTRE UNDER THE NATIONAL FACELESS APPEAL SCHEME, 2021 EXHIBIT P4OF THE APPLICATION SEEKING STAY OF DEMAND DATED 13.01.2022 FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT EXHIBIT P5OF THE STAY APPLICATION SUBMITTED BEFORE THE 1ST RESPONDENT VIDE E-MAIL DATED 13.01.2022 EXHIBIT P6OF THE LETTER DATED 20.12.2021 ISSUED BY THE 4TH RESPONDENT WITH RESPECT TO PENDING DEMANDS EXHIBIT P7OF THE REPLY FILED BY THE PETITIONER DATED 24.12.2021 EXHIBIT P8OF THE ORDER DATED 01.03.2016 OF THIS HON’BLE COURT IN WPC 7885 OF 2016

Recent GST High Court judgments

Search GST case law →