M/S KERALA KERA KARSHAKA SAHAKARANA FEDERATION LTD vs. THE ADDITIONAL/JOINT/DEPUTY/ASSISTANT COMMISSIONER OF INCOME TAX

WP(C)/9116/2021HC KeralaKLHC01024023202120 April 2021Author: HONOURABLE MR. JUSTICE T.R.RAVI3 pages

AI SummaryRemanded

What did the High Court hold?

The High Court admitted the writ petition and directed the respondents to hear and dispose of the stay application (Ext.P3) within two months from the date of receipt of a copy of the judgment. The Court further ordered that the recovery proceedings initiated pursuant to the assessment order (Ext.P1) would be kept in abeyance until the disposal of the stay application (Ext.P3). The Court did not decide on the merits of the assessment order or the appeal. The operative direction was to expedite the disposal of the stay petition and to provide interim relief by staying recovery.

What were the facts?

The petitioner, M/s Kerala Kera Karshaka Sahakarana Federation Ltd, is an assessee. The petitioner received an Assessment Order (Ext.P1). In response, the petitioner filed an appeal (Ext.P2) and a stay petition (Ext.P3) before the National Faceless Appeal Centre. The petitioner's grievance is that these appeals and stay petitions have not been disposed of, and the revenue is proceeding with recovery based on the assessment order. The writ petition was filed seeking a direction for the disposal of the stay petition and to keep recovery in abeyance.

What were the issues?

1. Whether the respondents are proceeding with recovery despite the pendency of the appeal and stay petition filed by the assessee? (Mixed question of law and fact) The assessee contended that their appeal and stay petition have not been disposed of, and recovery proceedings are being initiated. The assessee sought a direction for the disposal of the stay petition and a stay on recovery until the disposal of the stay petition. The revenue, through its Standing Counsel, took notice. No specific arguments were recorded for the revenue regarding the merits of the case or the delay in disposal.

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE T.R.RAVI TUE AY, THE 20TH DAY OF APRIL 2021 / 30TH CHAITHRA, 1943 WP(C).No.9116 OF 2021(L) PETITIONER: M/S KERALA KERA KARSHAKA SAHAKARANA FEDERATION LTD KERA TOWER, KERA FED, KERA WATER WORKS COMPOUND, VELLAYAMBALAM, THIRUVANANTHAPURAM-695 033, REPRESENTED BY ITS MANAGING DIRECTOR, SHRI.N.RAVI KUMAR. BY ADVS. SRI.T.M.SREEDHARAN (SR.) SRI.V.P.NARAYANAN SMT.NISHA JOHN SRI.ALAN PRIYADARSHI DEV RESPONDENTS: 1 THE ADDITIONAL/JOINT/DEPUTY/ASSISTANT COMMISSIONER OF INCOME TAX NATIONAL E-ASSESSMENT CENTRE, NEW DELHI-110 001. 2 THE COMMISSIONER OF INCOME TAX(APPEALS), NATIONAL FACELESS APPEAL CENTRE, NEW DELHI-110 001. BY ADV. CHRISTOPHER ABRAHAM, SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 20.04.2021, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

WP(C).No.9116 OF 2021(L) 2 JUDGMENT Dated this the 20th day of April 2021 Admit. The Standing Counsel for the Income Tax takes notice for the respondents. The petitioner is an assessee and has been issued with Ext.P1 Assessment Order. The petitioner has challenged the Assessment Order by filing Ext.P2 appeal along with Ext.P3 petition seeking stay of recovery.

The grievance of the petitioner is that Exts.P2 and P3 have not been disposed of so far and that the respondents are proceeding for recovery. In the nature of the limited prayer made in the writ petition, the writ petition is disposed of directing the respondents to hear and dispose of Ext.P3 application for stay within a period of two months from the date of receipt of a copy of this judgment. The recovery commenced due under Ext.P1 assessment will be kept in abeyance till the disposal of Ext.P3. The writ petition is disposed of as above. T.R.RAVI JUDGE SKP/20-4

WP(C).No.9116 OF 2021(L) 3

Appendix — schedule of exhibits

APPENDIX PETITIONER'S EXHIBITS: EXHIBIT P1 TRUE COPY OF THE ASSESSMENT ORDER DATED 09.03.2021 ALONG WITH COMPUTATION OF INCOME AND DEMAND NOTICE FOR THE ASSESSMENT YEAR 2018-19 ISSUED BY THE 1ST RESPONDENT. EXHIBIT P2 TRUE COPY OF THE MEMORANDUM OF APPEAL E FILED BY THE PETITIONER ALONG WITH GROUNDS OF APPEAL ON 15.03.2021 BEFORE THE 2ND RESPONDENT. EXHIBIT P3 TRUE COPY OF THE STAY PETITION FILED BY THE PETITIONER ON 15.03.2021 BEFORE THE 2ND RESPONDENT. EXHIBIT P4 TRUE COPY OF THE JUDGMENT DATED 01.11.2019 IN WPC NO.29306 OF 2019 OF THIS HON'BLE COURT. RESPONDENTS EXHIBITS:NIL TRUE COPY P.A. TO JUDGE

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