VINU SELVARAJ vs. ASSISTANT COMMISSIONER OF INCOME TAX

WP(C)/5775/2020HC KeralaKLHC01015512202027 February 2020Author: HONOURABLE MR.JUSTICE S.V.BHATTI4 pages

AI SummaryPartly Allowed

What did the High Court hold?

The High Court found that a case was made out for issuing necessary directions to the 2nd respondent (appellate authority) to dispose of the stay petition (Ext.P3). The Court directed the appellate authority to consider and dispose of the stay application as early as possible, preferably within two months from the date of receipt of a copy of the judgment. Additionally, the respondents were directed not to take coercive steps or recover the amount determined in the orders under appeal for ten weeks from the date of the judgment. The Court did not decide on the merits of the appeal or the stay petition itself, focusing solely on the procedural aspect of expeditious disposal.

What were the facts?

The petitioner, Vinu Selvaraj, proprietor of M/s. Radhas Textiles, filed an appeal (Ext.P2) against an order of assessment (Ext.P1) under the Income Tax Act, 1961. Along with the appeal, the petitioner filed a stay petition (Ext.P3). The petitioner approached the High Court of Kerala seeking a direction to the appellate authority (2nd respondent, Commissioner of Income Tax (Appeals)) to expeditiously consider and dispose of the stay petition. The petitioner argued that the delay in deciding the stay petition could lead to recovery proceedings by the assessing officer, rendering the statutory appeal ineffective. The High Court perused the documents and found a case for issuing directions.

What were the issues?

1. Whether the High Court should direct the appellate authority to expeditiously consider and dispose of the stay petition filed by the assessee pending appeal? (Question of procedure and administrative efficiency). The assessee contended that the mere filing of an appeal or pendency of a stay petition does not automatically grant a stay. Delay in disposing of the stay petition could result in coercive recovery actions by the assessing officer, making the appeal infructuous. The assessee relied on the statutory provision for protecting the interest of an appellant pending appeal, implying the need for timely disposal of stay applications. The revenue's contentions are not recorded 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 S.V.BHATTI THURSDAY, THE 27TH DAY OF FEBRUARY 2020 / 8TH PHALGUNA, 1941 WP(C).No.5775 OF 2020(V) PETITIONER/S: VINU SELVARAJ PROPRIETOR OF M/S. RADHAS TEXTILES, CHOWKA ROAD, KOLLAM 691 305 BY ADVS. SRI.ANIL D. NAIR SMT. ARYA ANIL SHRI.GOKULRAJ L. SMT.SRI HARINI S.P. RESPONDENT/S: 1 ASSISTANT COMMISSIONER OF INCOME TAX CIRCLE, KOLLAM 691 001 2 COMMISSIONER OF INCOME TAX (APPEALS) THIRUVANANTHAPURAM 695 033 SC CHRISTOPHER ABRAHAM THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 27.02.2020, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C).No.5775 OF 2020(V) 2 JUDGMENT Dated this the 27th day of February 2020 The petitioner filed appeal in Ext.P2 aggrieved by the order of assessment in Ext.P1 made under Income Tax Act, 1961. The petitioner has filed the appeal with Ext.P3 stay petition. The petitioner prays for appropriate direction to the appellate authority to consider and dispose of Ext.P3 expeditiously. 2. The case of petitioner is that either the mere filing of appeal or pendency of appeal does not amount to granting stay by the appellate authority. The delay in considering and disposing of Ext.P3 results in the assessing officer taking steps for recovering the tax amount which is under challenge in Ext.P2. The assessing officer, if is successful in his effort the statutory appeal would become either academic or ineffective. It is further contended by the petitioner that in the manner the law provides for protecting the interest of appellant pending appeal, the order on stay petition WP(C).No.5775 OF 2020(V) 3 is passed expeditiously. Hence the writ petition. 3. Perused Exts.P1, P2, and P3. Prima facie I am satisfied that a case is made out for issuing necessary directions to 2nd respondent to dispose of stay petition in Ext.P3. Having regard to the limited prayer and the grounds referred to above, this Court is satisfied that the writ petition can be

disposed of by this order: (a) The appellate authority/2nd respondent considers and disposes of Ext.P3 application as early as possible, preferably within two months from the date of receipt of copy of this judgment. (b) The respondents are directed not to take coercive steps or recover the amount determined in the orders under appeal for ten weeks from today. S.V.BHATTI JUDGE JS

WP(C).No.5775 OF 2020(V) 4 APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1OF THE ASSESSMENT ORDER DATED 16-12-2019 EXHIBIT P2OF THE APPEAL FILED BEFORE THE 2ND RESPONDENT DT 20/1/2020 EXHIBIT P3OF THE STAY PETITION FILED BEFORE THE 2ND RESPONDENT DT 17/2/2020

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