D.C. MILLS PVT .LTD vs. THE ASSISTANT COMMISSIONER OF INCOME TAX CIRCLE

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WP(C)/22855/2021HC KeralaKLHC01058471202126 October 2021Author: HONOURABLE MR.JUSTICE MURALI PURUSHOTHAMAN5 pages
AI SummaryRemanded

What did the High Court hold?

The High Court directed the 3rd respondent, the Commissioner of Income Tax Appeals, or the appropriate authority, to consider the stay petition (Ext.P15) filed by the petitioner within a period of one month from the date of receipt of a copy of the judgment. This consideration is to be done with notice to the petitioner. Furthermore, until orders are passed on the stay petition, there will be an interim stay of all further proceedings pursuant to the penalty order (Ext.P12) and another order (Ext.P14). The High Court did not decide the merits of the penalty order or the appeal.

What were the facts?

The petitioner, M/s. D.C. Mills Pvt. Ltd., has filed a writ petition before the High Court of Kerala challenging an order of penalty under Section 270A of the Income Tax Act, 1961, passed by the Assistant Commissioner of Income Tax, National Faceless Assessment Center (2nd respondent). The petitioner has filed an appeal against this penalty order before the Commissioner of Income Tax Appeals (3rd respondent) and has also filed a stay petition. The present writ petition seeks a direction for the expeditious consideration of the stay petition pending the disposal of the appeal.

What were the issues?

1. Whether the 3rd respondent (Commissioner of Income Tax Appeals) should consider the stay petition (Ext.P15) filed by the petitioner pending disposal of the appeal (Ext.P13)? The petitioner's contention is that the stay petition needs to be considered expeditiously. The revenue's contention is not recorded in the judgment.

Which sections of the Income-tax Act were involved?

Section 270A

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 MURALI PURUSHOTHAMAN TUESDAY, THE 26TH DAY OF OCTOBER 2021 / 4TH KARTHIKA, 1943 WP(C) NO. 22855 OF 2021 PETITIONER: M/S. D.C. MILLS PVT. LTD., REGD. OFFICE BUILDING NO.134/1, VALAVANADU, KALAVUR P. O., ALAPPUZHA DISTRICT, REPRESENTED BY ITS MANAGING DIRECTOR. BY ADV SRI. V.S. AFSAL KHAN RESPONDENTS: 1 THE ASSISTANT COMMISSIONER OF INCOME TAX CIRCLE, INCOME TAX DEPARTMENT, WARD 1 & TPS, ALAPPUZHA, PIN – 688 501. 2 THE ASSISTANT COMMISSIONER OF INCOME TAX, NATIONAL FACELESS ASSESSMENT CENTER, INCOME TAX DEPARTMENT, NEW DELHI, PIN - 110 034. 3 THE COMMISSIONER OF INCOME TAX APPEALS, KOTTAYAM, PINCODE - 686 001. 4 JURISDICTIONAL CHIEF COMMISSIONER OF INCOME TAX, INCOME TAX DEPARTMENT, ERNAKULAM, KOCHI - 682 018. SRI. JOSE JOSEPH, SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 26.10.2021, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C).No.22855 OF 2021 2

JUDGMENT Challenging Ext.P12 order of penalty under Section 270A of the Income Tax Act, 1961 passed by the 2nd respondent, the petitioner has preferred Ext.P13 appeal and Ext.P15 stay petition before the 3rd respondent. The limited prayer of the petitioner is for consideration of Ext.P15 stay petition pending disposal of Ext.P13 appeal preferred before the 3rd respondent.

2.

Heard the learned counsel for the petitioner and the learned Standing Counsel for the Income Tax Department.

3.

In the facts and circumstances of the case, there will be a direction to the 3rd respondent or the appropriate Authority to consider Ext.P15 stay petition with notice to the petitioner, within a period of one month from the date of receipt of a copy of the judgment. Till such orders are passed on Ext.P15 stay petition, there will be an interim

WP(C).No.22855 OF 2021 3 stay of all further proceedings pursuant to Exts.P12 and P14. The writ petition is disposed of with the above direction. MURALI PURUSHOTHAMAN JUDGE SPR

WP(C).No.22855 OF 2021 4

Appendix — schedule of exhibits
APPENDIX PETITIONER'S EXHIBITS:- EXHIBIT P1 TRUE COPY OF THE CERTIFICATE OF COIR AWARD 2007-2008. EXHIBIT P2 TRUE COPY OF THE CERTIFICATE OF COIR AWARD 2012-2013. EXHIBIT P3 TRUE COPY OF THE CERTIFICATE OF COIR AWARD 2013-2014. EXHIBIT P4 TRUE COPY OF THE EXTRACT OF POSSESSION CERTIFICATE OF THE STATE BANK OF INDIA DATED 10.06.2016. EXHIBIT P5 TRUE COPY OF THE RELEVANT PART OF THE ASSESSMENT ORDER DATED 26.12.2019 ISSUED BY THE 1ST RESPONDENT. EXHIBIT P6 TRUE COPY OF THE NOTICE DATED 26.12.2019 SERVED BY THE 1ST RESPONDENT ITS REGISTERED MAIL ID. EXHIBIT P7 TRUE COPY OF THE LETTER DATED 06.01.2021 ISSUED BY THE 1ST RESPONDENT. EXHIBIT P8 TRUE COPY OF THE REPLY DATED 22.01.2021 BY THE COMPANY. EXHIBIT P9 TRUE COPY OF THE RECTIFICATION ORDER DATED 13.04.2021. EXHIBIT P10 TRUE COPY OF THE SHOW CAUSE NOTICE DATED 03.05.2021 FOR PENALTY UNDER SECTION 270A OF THE INCOME TAX ACT, 1961 ISSUED BY THE 2ND RESPONDENT. EXHIBIT P11 TRUE COPY OF THE ORDER G.O.(RT) NO.459/2021/DMD DATED 07.06.2021. EXHIBIT P12 TRUE COPY OF THE ORDER DATED 07.08.2021 ISSUED BY THE 2ND RESPONDENT. EXHIBIT P13 TRUE COPY OF THE APPEAL MEMORANDUM FILED BY THE COMPANY BEFORE THE 3RD RESPONDENT DATED 02.09.2021. EXHIBIT P14 TRUE COPY OF THE LETTER NO.ITBA/COM/F/17/2021-22/1036218070(1) DATED 07.10.2021 ISSUED BY THE 1ST RESPONDENT. WP(C).No.22855 OF 2021 5 EXHIBIT P15 TRUE COPY OF THE STAY PETITION FILED BY THE COMPANY BEFORE THE 3RD RESPONDENT. RESPONDENT'S EXHIBITS:- NIL.

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