M/S. POPULAR TRADERS vs. THE ASSISTANT COMMISSIONER OF INCOME TAX,

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WP(C)/2262/2020HC KeralaKLHC01006414202028 January 2020Author: HONOURABLE MR. JUSTICE ALEXANDER THOMAS4 pages
AI SummaryRemanded

What did the High Court hold?

The High Court of Kerala directed the 2nd respondent, the Commissioner of Income Tax (Appeals), to consider and pass orders on the stay application (Ext.P3) filed in the appeal (Ext.P2) without undue delay, preferably within six weeks from the date of production of a certified copy of the judgment. The Court further ordered that until orders are passed on the stay application, further coercive steps for the enforcement of the impugned order will be kept in abeyance. The principle is that recovery proceedings should be deferred pending a decision on a stay application to prevent prejudice to the assessee.

What were the facts?

The petitioner, M/s. Popular Traders, filed a writ petition before the High Court of Kerala challenging coercive recovery proceedings initiated by the Assistant Commissioner of Income Tax, Circle-1, Thiruvalla. The petitioner had filed an appeal (Ext.P2) and stay petitions (Ext.P3) against an order (Ext.P1). The grievance was that despite the pendency of these stay petitions, the assessing authority proceeded with recovery actions for the disputed amounts. The petition was filed seeking intervention to prevent such coercive measures during the pendency of the appeal and stay applications.

What were the issues?

1. Whether the assessing authority can initiate coercive recovery proceedings for disputed amounts during the pendency of stay petitions filed before the Commissioner of Income Tax (Appeals)? (Question of law and fact) The petitioner argued that coercive recovery should be held in abeyance until the stay petitions are decided. The revenue did not record any specific arguments in the judgment regarding the initiation of recovery proceedings during the pendency of stay applications.

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 ALEXANDER THOMAS TUESDAY, THE 28TH DAY OF JANUARY 2020 / 8TH MAGHA, 1941 WP(C).No.2262 OF 2020(G) PETITIONER: M/S. POPULAR TRADERS POPULAR TOWERS, VAKAYAR P.O., KONNI, PATHANAMTHITTA, REPRESENTED BY ITS MANAGING PARTNER, THOMAS DANIEL (AGED 63) BY ADVS. SRI.HARISANKAR V. MENON SMT.MEERA V.MENON SMT.K.KRISHNA RESPONDENTS: 1 THE ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE-1, THIRUVALLA-689 101. 2 THE COMMISSIONER OF INCOME TAX (APPEALS) DEPARTMENT OF INCOME TAX, KOTTAYAM-686 001. SMT.M.M.JASMINE, GOVT.PLEADER THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 28.01.2020, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: lWP(C).No.2262 OF 2020(G) 2 ALEXANDER THOMAS, J. -------------------------------------- W.P.(C).No. 2262 of 2020 ------------------------------------------------------ Dated this the 28th day of January, 2020

JUDGMENT Against Ext.P1 order, the petitioner has filed Ext.P2 appeal and Exts.P3 stay petitions. The petitioner's grievance is that during the pendency of the stay petitions, coercive recovery proceedings have been initiated by the assessing authority for recovery of the disputed amounts.

2.

Heard Sri.Harisankar V. Menon, the learned counsel appearing for the petitioner and Smt.M.M.Jasmin, the learned Government Pleader appearing for the respondents.

3.

After hearing both sides and after taking note of the facts and circumstances of the case, it is ordered in the interest of justice that the 2nd respondent shall take up the matters in Ext.P-3 stay application filed in Ext.P-2 appeal and after affording reasonable opportunity of being heard to the petitioner through their authorized representative/counsel, if any, shall pass orders on those

lWP(C).No.2262 OF 2020(G) 3 applications without much delay, preferably within a period of six weeks from the date of production of a certified copy of this judgment. Until orders are thus passed on the abovesaid delay condonation and stay application, further coercive steps for enforcement of the impugned order will be kept in abeyance. With these observations and directions, the above Writ Petition (Civil) stands finally disposed of. ALEXANDER THOMAS Nsd JUDGE

lWP(C).No.2262 OF 2020(G) 4

Appendix — schedule of exhibits
APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1 COPY OF ORDER ISSUED BY THE IST RESPONDENT FOR THE YEAR 2017-18 DATED 23.12.2019. EXHIBIT P2 COPY OF APPEAL FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT 2017-18 DATED 21.1.2020. EXHIBIT P3 COPY OF STAY PETITION FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT DATED 21.1.2020.

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