M/S CLASSIC ENTERPRISES vs. THE CENTRAL BOARD OF DIRECT TAXES

WP(C)/24578/2021HC KeralaKLHC01062223202109 November 2021Author: HONOURABLE MR. JUSTICE BECHU KURIAN THOMAS4 pages

AI SummaryDismissed

What did the High Court hold?

The High Court directed the Competent Authority of the National Faceless Appeal Centre to consider the stay petition filed by the petitioner within a period of 3 months from the date of receipt of a copy of the judgment. Until such orders are passed, all coercive proceedings initiated against the petitioner pursuant to the order of assessment (Ext.P1) shall be kept in abeyance. The Court noted that the appeal itself was pending and the primary concern was the stay petition. The judgment did not decide the merits of the assessment order or the appeal.

What were the facts?

The petitioner, M/s. Classic Enterprises, filed a writ petition before the High Court of Kerala challenging an order of assessment for the assessment year 2018-19. The petitioner had filed an appeal and a stay petition before the Commissioner of Income Tax (Appeals), Thiruvananthapuram. However, it was submitted that appeals are now to be considered by the National Faceless Appeal Centre. The Standing Counsel for the revenue confirmed that appeals filed before the local Commissioner are normally transmitted to the National Faceless Appeal Centre for consideration by the competent authority. The petitioner sought directions for the consideration of their stay petition.

What were the issues?

1. Whether the High Court should issue a direction for the consideration of the stay petition filed by the petitioner, given the change in appellate authority to the National Faceless Appeal Centre? Assessee's Contention: The petitioner, M/s. Classic Enterprises, argued that their appeal and stay petition were pending before the Commissioner of Income Tax (Appeals) and sought a direction for the consideration of their stay petition by the appropriate authority. Revenue's Contention: The Standing Counsel for the respondent revenue submitted that appeals filed before the local Commissioner are normally transmitted to the National Faceless Appeal Centre for consideration by the Competent Authority and therefore, directions could be issued for considering the stay petition by the competent authority.

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 BECHU KURIAN THOMAS TUESDAY, THE 9TH DAY OF NOVEMBER 2021 / 18TH KARTHIKA, 1943 WP(C) NO. 24578 OF 2021 PETITIONER: M/S CLASSIC ENTERPRISES I MULLASERY COMPOUND, KADAPPAKKADA, KOLLAM-691 008, REPRESENTED BY ITS MANAGING PARTNER, FAIZALKHAN MOHAMED SHAJAHAN MULLASSERI. BY ADVS. K.P.PRADEEP HAREESH M.R. RASMI NAIR T. T.T.BIJU T.THASMI M.J.ANOOPA RESPONDENTS: 1 THE CENTRAL BOARD OF DIRECT TAXES DEPARTMENT OF REVENUE, MINISTRY OF FINANCE GOVERNMENT OF INDIA, NORTH BLOCK NEW DELHI-110 001, REPRESENTED BY ITS CHAIRMAN 2 ADDITIONAL COMMISSIONER OF INCOME TAX, NATIONAL E-ASSESSMENT CENTRE, DELHI ROOM NO 401, 2ND FLOOR, E-RAMP, JAWAHARLAL NEHRU STADIUM, DELHI-110 003. 3 COMMISSIONER OF INCIME TAX (APPEALS) THIRUVANANTHAPURAM AAYAKAR BHAVAN INCOME TAX OFFICE, KOWADIAR, THIRUVANANTHAPURAM-695 003. THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 09.11.2021, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C) NO. 24578 OF 2021 2 BECHU KURIAN THOMAS, J ................................................ W.P.(C) NO.24578 OF 2021 …........................................ Dated this the 9th day of November, 2021

JUDGMENT Challenging Ext.P1 order of assessment for the assessment year 2018-19, petitioner preferred an appeal before the 3rd respondent and along with it a stay petition was also filed. Both are pending consideration.

However the appeal is now required to be considered by the Commissioner of Income Tax Appeals of the National Faceless Appeal Centre and not by the 3rd respondent. It is submitted by the learned Standing Counsel Adv.Christopher Abraham that, normally the appeals filed before the 3rd respondent are transmitted to the National Faceless Appeal Centre for consideration by the Competent Authority and therefore directions can be issued for considering the stay petition by the competent authority.

WP(C) NO. 24578 OF 2021 3

Accordingly, there will be a direction to the Competent Authority of the National Faceless Appeal Centre to consider the stay petition filed by the petitioner, copy of which is produced as Ext.P4, within a period of 3 months from the date of receipt of a copy of this judgment. Till such orders are passed as directed, all coercive proceedings initiated against the petitioner pursuant to Ext.P1 shall be kept in abeyance.

This writ petition is dismissed. BECHU KURIAN THOMAS JUDGE AJM

WP(C) NO. 24578 OF 2021 4

Appendix — schedule of exhibits

APPENDIX OF WP(C) 24578/2021 PETITIONER’S EXHIBITS : Exhibit P1 TRUE COPY OF THE ASSESSMENT ORDER NO ITBA/AST/S 143(3)/2020-21/1030656663(1) DATED 15.2.2021 ISSUED FOR THE YEAR 2018- 19. Exhibit P2 TRUE COPY OF THE APPEAL DATED 26.4.2021 FILED FOR THE YEAR 2018-19 BEFORE THE 3RD RESPONDENT. Exhibit P3 TRUE COPY OF THE DEMAND NOTICE NO ITBA/AST/S/156/2020-21/1030656739(1) DATED 15.2.2021 ISSUED FROM THE YEAR 2018-19 BY THE ASSESSING AUTHORITY. Exhibit P4 TRUE COPY OF THE STAY APPLICATION FILED ON 15.10.2021 BEFORE THE 3RD RESPONDENT IN EXT P2 APPEAL. RESPONDENT’S EXHIBITS : NIL AJM //TRUE COPY// PA TO JUDGE

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