ANNA ALUMINIUM COMPANY (P) LIMI vs. THE DEPUTY COMMISSIONER OF INCOME TAX

WP(C)/5598/2020HC KeralaKLHC01014902202026 February 2020Author: HONOURABLE MR.JUSTICE S.V.BHATTI4 pages

AI SummaryPartly Allowed

What did the High Court hold?

The High Court, after perusing the assessment order, appeal, and stay petition, was prima facie satisfied that a case was made out for issuing necessary directions. The Court held that the appellate authority (2nd respondent) should consider and dispose of the stay petition (Ext.P5) as early as possible, preferably within eight weeks from the date of receiving 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, but rather on the procedural aspect of expeditious disposal.

What were the facts?

The petitioner, Anna Aluminium Company (P) Limited, is challenging an assessment order (Ext.P1) passed under Section 143(3) of the Income Tax Act. The company filed an appeal (Ext.P3) against this order, along with a stay petition (Ext.P5). The petitioner's grievance is that the appellate authority has not yet considered and disposed of the stay petition. They argue that the delay in deciding the stay petition allows the assessing officer to initiate recovery proceedings for the disputed tax amount, which could render the statutory appeal ineffective. The petitioner seeks a direction for the expeditious disposal of their stay petition.

What were the issues?

1. Whether the High Court should issue a direction to the appellate authority to expeditiously consider and dispose of the stay petition filed by the assessee pending appeal? (Question of procedure/mixed law and fact) Assessee's Contentions: - The mere filing of an appeal or the pendency of a stay petition does not automatically grant a stay on tax recovery. - Delay in disposing of the stay petition allows the assessing officer to take recovery steps, potentially making the appeal academic or ineffective. - The law mandates expeditious disposal of stay petitions to protect the interests of appellants. Revenue's Contentions: - No specific contentions from the revenue are recorded in the judgment regarding the stay petition or the need for expeditious disposal.

Which sections of the Income-tax Act were involved?

Section 143(3)

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 WEDNESDAY, THE 26TH DAY OF FEBRUARY 2020 / 7TH PHALGUNA, 1941 WP(C).No.5598 OF 2020(Y) PETITIONER: ANNA ALUMINIUM COMPANY (P) LIMITED KP 111 847,KIZHAKKAMBALAM, ALUVA, ERNAKULAM-683 562, REPRESENTED BY ITS MANAGING DIRECTOR, SRI. BOBY M.JACOB BY ADVS. SRI.N.MURALEEDHARAN NAIR SRI.ANTONY JONES RESPONDENTS: 1 THE DEPUTY COMMISSIONER OF INCOME TAX CORPORATE CIRCLE, 1 (1), 4TH FLOOR, CENTRAL REVENUE BUILDING,I.S PRESS ROAD, KOCHI-682 018 2 THE COMMISSIONER OF INCOME TAX (APPEALS) INCOME TAX DEPARTMENT, G-51, PARAPILLY LANE, MANORAMA JUNCTION, GIRINAGAR, PANAMPILLY NAGAR, KOCHI-682 036 SC JOSE JOSEPH THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 26.02.2020, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: 2 WP(C).No.5598 OF 2020(Y) JUDGMENT Dated this the 26th day of February 2020 The petitioner filed appeal in Ext.P3 aggrieved by the orders of assessment in Ext.P1 made under Section 143(3) of the Income Tax Act. The petitioner has filed the appeal with Ext.P5 stay petition. The petitioner prays for appropriate direction to the appellate authority to consider and dispose of Ext.P5 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 Ext.P5 stay petition results in the assessing officer taking steps for recovering the tax amount which is under challenge in Ext.P3. 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 orders on stay petition are passed expeditiously. Hence the writ petition. 3 WP(C).No.5598 OF 2020(Y) 3. Perused Exts. P1, P3 and P5. Prima facie I am satisfied that a case is made out for issuing necessary directions to the 2nd respondent to dispose of the stay petition in Ext.P5. 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.P5 stay petition as early as possible, preferably within eight weeks 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 hmh

4 WP(C).No.5598 OF 2020(Y) APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1OF THE ASSESSMENT ORDER PASSED BY 1ST RESPONDENT FOR THE YEAR 2017-18 DATED 23.12.2019 EXHIBIT P2OF THE DEMAND NOTICE DATED 23.12.2019 ISSUED BY 1ST RESPONDENT EXHIBIT P3OF THE APPEAL FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT DATED 14.01.2020 EXHIBIT P4OF THE LETTER ISSUED BY 1ST RESPONDENT DATED 12.02.2020 EXHIBIT P5OF THE STAY PETITION FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT DATED 17.02.2020 EXHIBIT P6OF THE LETTER ISSUED BY 1ST RESPONDENT DATED 19.02.2020 RESPONDENT'S/S EXHIBITS: NIL

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