KOTTAKKAL WOOD COMPLEX vs. THE DEPUTY COMMISSIONER OF INCOME TAX

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WP(C)/21828/2011HC KeralaKLHC01064668201126 August 2011Author: HONOURABLE MR.JUSTICE T.R.RAMACHANDRAN NAIR5 pages
AI SummaryPartly Allowed

What did the High Court hold?

The High Court directed the Income Tax Appellate Tribunal (2nd respondent) to decide on the stay petitions filed by the petitioner (Exhibits P4 to P4(f) series) within three weeks from the date of receipt of a copy of the judgment. The Court ordered that until such a decision is taken by the ITAT, all proceedings against the petitioner would be kept in abeyance. The reasoning was based on the petitioner's plea for a timely decision on their stay applications, especially in light of alleged coercive steps by the Revenue. The ratio decidendi is that courts can direct quasi-judicial authorities to dispose of pending applications within a reasonable time to prevent undue hardship to assessees, particularly when stay petitions are involved and coercive actions are apprehended. The operative direction is to dispose of the stay petitions within three weeks and to keep proceedings in abeyance until then.

What were the facts?

The petitioner, Kottakkal Wood Complex, is an assessee under the Income Tax Act, 1961. Following a search under Section 132 of the Act, assessment orders for Assessment Years (AY) 2002-03 to 2008-09 were issued by the Deputy Commissioner of Income Tax (Exhibit P1 series). The Commissioner of Income Tax (Appeals) upheld these orders (Exhibit P2 series). The petitioner then filed statutory appeals before the Income Tax Appellate Tribunal (ITAT) along with stay petitions (Exhibit P3 and P4 series). The petitioner approached the High Court of Kerala seeking a direction for the ITAT to dispose of the pending stay petitions, alleging coercive steps by the Department. The assessment orders were dated December 9, 2009, and the appellate orders were dated November 12, 2010.

What were the issues?

1. Whether the ITAT should be directed to dispose of the pending stay petitions filed by the assessee within a stipulated time frame, considering the alleged coercive steps by the Revenue? The assessee contended that the Department was taking coercive steps and sought a direction for the expeditious disposal of their stay petitions before the ITAT. The assessee relied on the fact that appeals and stay petitions were filed against the orders of the Commissioner of Income Tax (Appeals) for AY 2002-03 to 2008-09. The Revenue, represented by the Standing Counsel, was heard. No specific arguments or reliance on any authorities were recorded for the Revenue in the judgment.

Which sections of the Income-tax Act were involved?

Section 132

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 T.R.RAMACHANDRAN NAIR FRIDAY, THE 26TH AUGUST 2011 / 4TH BHADRA 1933 WP(C).No. 21828 of 2011(C) -------------------------- PETITIONER: ----------------- KOTTAKKAL WOOD COMPLEX, MAIN ROAD, KOTTAKKAL-676 503, REPRESENTED BY ITS MANAGING PARTNER, SRI. A.MOHAMMED. BY ADV. SRI.ANIL D. NAIR SRI.J.R.PREM NAVAZ SMT.NIVEDITA A.KAMATH RESPONDENT(S): --------------- 1. DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE 2, CALICUT-673 001. 2. INCOME TAX APPELLATE TRIBUNAL, COCHIN BENCH, ERNAKULAM-682 021. 3. INCOME TAX OFFICER, WARD-1, TIRUR-676 501. BY STANDING COUNSEL SHRI JOSE JOSEPH THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 26/08/2011, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: W.P.(C)No.21828/11 2 APPENDIX IN W.P.(C)No.21828/11 PETITIONER'S EXTS: EXHIBIT.P1 : TRUE COPY OF THE ASSESSMENT ORDER FOR THE YEAR 2002-03, DATED 09.12.2009 ISSUED TO THE PETITIONER BY THE 1ST RESPONDENT EXHIBIT.P1( A ) : TRUE COPY OF THE ASSESSMENT ORDER FOR THE YEAR 2003-04, DATED 09.12.2009 ISSUED TO THE PETITIONER BY THE 1ST RESPONDENT EXHIBIT.P1( B ) : TRUE COPY OF THE ASSESSMENT ORDER FOR THE YEAR 2004-05, DATED 09.12.2009 ISSUED TO THE PETITIONER BY THE 1ST RESPONDENT EXHIBIT.P1( C ) : TRUE COPY OF THE ASSESSMENT ORDER FOR THE YEAR 2005-06, DATED 09.12.2009 ISSUED TO THE PETITIONER BY THE 1ST RESPONDENT EXHIBIT.P1( D ) : TRUE COPY OF THE ASSESSMENT ORDER FOR THE YEAR 2006-07, DATED 09.12.2009 ISSUED TO THE PETITIONER BY THE 1ST RESPONDENT EXHIBIT.P1( E ) : TRUE COPY OF THE ASSESSMENT ORDER FOR THE YEAR 2007-08, DATED 09.12.2009 ISSUED TO THE PETITIONER BY THE 1ST RESPONDENT EXHIBIT.P1( F ) : TRUE COPY OF THE ASSESSMENT ORDER FOR THE YEAR 2008-09, DATED 09.12.2009 ISSUED TO THE PETITIONER BY THE 1ST RESPONDENT EXHIBIT.P2 : TRUE COPY OF THE ORDERS FOR THE YEAR 2002-03, DATED 12.11.2010 ISSUED BY THE COMMISSIONER OF INCOME TAX (APPEALS)-I, KOCHI TO THE PETITIONER EXHIBIT.P2( A ) : TRUE COPY OF THE ORDERS FOR THE YEAR 2003-04, DATED 12.11.2010 ISSUED BY THE COMMISSIONER OF INCOME TAX (APPEALS)-I, KOCHI. EXHIBIT.P2( B ) : TRUE COPY OF THE ORDERS FOR THE YEAR 2004-05, DATED 12.11.2010 ISSUED BY THE COMMISSIONER OF INCOME TAX (APPEALS)-I, KOCHI. EXHIBIT.P2( C ) : TRUE COPY OF THE ORDERS FOR THE YEAR 2005-06, DATED 12.11.2010 ISSUED BY THE COMMISSIONER OF INCOME TAX (APPEALS)-I, KOCHI. W.P.(C)No.21828/11 3 EXHIBIT.P2( D ) : TRUE COPY OF THE ORDERS FOR THE YEAR 2006-07, DATED 12.11.2010 ISSUED BY THE COMMISSIONER OF INCOME TAX (APPEALS)-I, KOCHI. EXHIBIT.P2( E ) : TRUE COPY OF THE ORDERS FOR THE YEAR 2007-08, DATED 12.11.2010 ISSUED BY THE COMMISSIONER OF INCOME TAX (APPEALS)-I, KOCHI. EXHIBIT.P2( F ) : TRUE COPY OF THE ORDERS FOR THE YEAR 2008-09, DATED 12.11.2010 ISSUED BY THE COMMISSIONER OF INCOME TAX (APPEALS)-I, KOCHI. EXHIBIT.P3 : TRUE COPY OF THE APPEAL FOR THE A.Y. 2002-03 FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT EXHIBIT.P3( A ) : TRUE COPY OF THE APPEAL FOR THE A.Y. 2003-04 FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT EXHIBIT.P3( B ) : TRUE COPY OF THE APPEAL FOR THE A.Y. 2004-05 FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT EXHIBIT.P3( C ) : TRUE COPY OF THE APPEAL FOR THE A.Y. 2005-06 FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT EXHIBIT.P3( D ) TRUE COPY OF THE APPEAL FOR THE A.Y. 2006-07 FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT EXHIBIT.P3( E ) : TRUE COPY OF THE APPEAL FOR THE A.Y. 2007-08 FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT EXHIBIT.P3( F ) : TRUE COPY OF THE APPEAL FOR THE A.Y. 2008-09 FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT EXHIBIT.P4 : TRUE COPY OF THE STAY PETITION FOR THE A.Y. 2002-03 FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT EXHIBIT.P4( A ) : TRUE COPY OF THE STAY PETITION FOR THE A.Y. 2003-04 FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT EXHIBIT.P4( B ) : TRUE COPY OF THE STAY PETITION FOR THE A.Y. 2004-05 FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT W.P.(C)No.21828/11 4 EXHIBIT.P4( C ) : TRUE COPY OF THE STAY PETITION FOR THE A.Y. 2005-06 FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT EXHIBIT.P4( D ) : TRUE COPY OF THE STAY PETITION FOR THE A.Y. 2006-07 FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT EXHIBIT.P4( E ) : TRUE COPY OF THE STAY PETITION FOR THE A.Y. 2007-08 FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT EXHIBIT.P4( F ) : TRUE COPY OF THE STAY PETITION FOR THE A.Y. 2008-09 FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT EXHIBIT.P5 : TRUE COPY OF THE NOTICE DATED 28.07.2011 ISSUED BY THE 3RD RESPONDENT TO THE PETITIONER TRUE COPY P.A.TO JUDGE T.R. RAMACHANDRAN NAIR, J. ----------------------------------- W.P.(C). No.21828 OF 2011 --------------------------------- DATED THIS THE 26th DAY OF AUGUST, 2011

J U D G M E N T The petitioner is an assessee under the Income Tax Act, 1961. Pursuant to a search under section 132 of the Act, proceedings were initiated against the petitioner and copies of the assessment orders have been produced as Exhibits P1 to P1(f). Exhibits P2 to P2(f) are the orders passed by the Commissioner of Commercial Tax (Appeals-). Against the same the petitioner has filed statutory appeals before the Tribunal.

2.

It is submitted that the Department is taking coercive steps against the petitioner. The petitioner seeks for a direction to dispose of the stay petitions within a time frame.

3.

Heard the learned Standing Counsel for the Department.

4.

There will be a direction to the 2nd respondent to take a decision on the stay petitions filed by the petitioner, namely Exhibits P4 to P4(f) series within three weeks from the date of receipt of a copy of this judgment. Till such time the proceedings will be kept in abeyance. The Writ Petition is disposed of as above. T.R. RAMACHANDRAN NAIR, JUDGE.

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