THE DISTRICT LOTTERY OFFICER vs. THE ASSISTANT COMMISSIONER OF INCOME TAX (TDS)

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WP(C)/8999/2021HC KeralaKLHC01022759202108 April 2021Author: HONOURABLE MR. JUSTICE A.M.BADAR4 pages
AI SummaryRemanded

What did the High Court hold?

The High Court disposed of the writ petition with directions. The Court directed the Commissioner of Income Tax (Appeals) to decide the stay petition (Ext.P6) filed by the petitioner within two months from the date of communication of the judgment, following due process. The petitioner was directed to cooperate in the expeditious disposal of the stay petition. Crucially, the Court ordered that until the stay petition is decided, proceedings for recovery initiated pursuant to the assessment order (Ext.P3) shall be kept in abeyance. The petitioner was also instructed to furnish a copy of the judgment to the concerned respondent for compliance. No specific finding was made on the merits of the appeal itself, as the focus was on the procedural aspect of the stay petition.

What were the facts?

The petitioner, the District Lottery Officer, challenged orders under Section 201(1) and 201(1A) of the Income Tax Act, 1961, by filing a statutory appeal (Ext.P4) and a stay petition (Ext.P6) before the Commissioner of Income Tax (Appeals). Despite the pendency of these, the respondents initiated coercive steps for recovery of the amount due under the assessment order (Ext.P3). The petitioner sought a stay on recovery proceedings until the appeal was decided. The respondents suggested directing the Commissioner of Income Tax (Appeals) to dispose of the stay petition expeditiously.

What were the issues?

1. Whether coercive steps for recovery of tax liability should be stayed pending the disposal of a statutory appeal and stay petition before the Commissioner of Income Tax (Appeals)? (Question of mixed law and fact, concerning the powers of the appellate authority and the principles of natural justice). Assessee's Contention (Petitioner): The petitioner argued that coercive steps for recovery were initiated while their statutory appeal and stay petition were pending. They contended that such recovery proceedings should be stayed until the appeal is disposed of to prevent irreparable harm. Revenue's Contention (Respondents): The respondents submitted that the writ petition could be disposed of by directing the Commissioner of Income Tax (Appeals) to dispose of the stay petition expeditiously, as it was pending before that authority.

Which sections of the Income-tax Act were involved?

Section 201(1),Section 201(1A)

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE A.M.BADAR THUR AY, THE 08TH DAY OF APRIL 2021 / 18TH CHAITHRA, 1943 WP(C).No.8999 OF 2021(Y) PETITIONER/S: THE DISTRICT LOTTERY OFFICER DISTRICT LOTTERY OFFICE, 3RD FLOOR, KSRTC BUS TERMINAL COMPLEX, THAMPANOOR, THIRUVANANTHAPURAM-695 001 BY GOVERNMENT PLEADER RESPONDENT/S: 1 THE ASSISTANT COMMISSIONER OF INCOME TAX (TDS) IIIRD FLOOR, AAYAKAR BHAVAN, KOWDIAR, THIRUVANANTHAPURAM-695 003 2 THE COMMISSIONER OF INCOME TAX (APPEALS), AAYAKAR BHAVAN, KOWDIAR, THIRUVANANTHAPURAM-695 003 : SRI CHRISTOPHER ABRAHAM, STANDING COUNSEL THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 08.04.2021, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

WP(C).No.8999 OF 2021 2 JUDGMENT Dated this the 8th day of April 2021 Heard both sides.

2.

Learned Government Pleader appearing for the petitioner submits that the orders under section 201(1) and 201(1A) of the Income Tax Act 1961, determining the tax liability are challenged by the petitioner by filing statutory appeal (Ext.P4) accompanied by the Stay petition at Ext.P6. However, during pendency of the appeal as well as stay petition, the respondents have issued a letter at Ext.P5 intimating initiation of coercive steps for recovery of the amount due under the order at Ext.P3. Hence, according to the learned Government Pleader, till disposal of the appeal, the proceedings for recovery of the amount needs to be stayed.

3.

Learned Standing Counsel appearing for the respondents submits that as the said petition is pending before the 2nd respondent, the petition can be disposed of with a direction to the 2nd respondent to dispose of the stay petition expeditiously.

4.

In the light of the facts and circumstances of the instant case, the writ petition is disposed of with the following directions:-

The 2nd respondent is directed to decide the stay petition at Ext.P6 filed in the statutory appeal at Ext.P4 by the petitioner, after

WP(C).No.8999 OF 2021 3 following the due process of law within a period of two months from the date of communication of this judgment. The petitioner to cooperate with the 2nd respondent in disposal of the stay petition expeditiously. Till disposal of the stay petition at Ext.P6, proceedings for recovery initiated in pursuant to the Ext.P3 assessment order shall be kept in abeyance. The petitioner to furnish copy of this judgment to the concerned respondent for compliance. A.M.BADAR ajt JUDGE

WP(C).No.8999 OF 2021 4

Appendix — schedule of exhibits
APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1 A TRUE COPY OF THE PROPOSAL NO.ACIT(TDS)/TVM/TVDDOO245A/201/2020-21 EXHIBIT P2 TRUE COPY OF REPLY TO EXHIBIT P1 BEFORE THE FIRST RESPONDENT EXHIBIT P3 A TRUE COPY OF THE PROCEEDINGS IMPOSING PENALTY NO.ACIT(TDS)/TVM/TVDDOO245A/201/2020-21 EXHIBIT P4 TRUE COPY OF THE MEMORANDUM OF APPEAL FLED BEFORE THE SECOND RESPONDENT FOR THE ASSESSMENT YEAR 2014-2015 EXHIBIT P5 TRUE COPY OF THE LETTER INTIMATING COERCIVE STEPS EXHIBIT P6 A TRUE COPY OF THE STAY PETITION ALONG WITH A COVERING LETTER

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