M/S KERALA KERA KARSHAKA SAHAKARANA FEDERATION LTD., vs. THE DEPUTY COMMISSIONER OF INCOME TAX

WP(C)/2405/2020HC KeralaKLHC01006845202029 January 2020Bench: HONOURABLE MR. JUSTICE ALEXANDER THOMAS4 pages

AI SummaryRemanded

What did the High Court hold?

The High Court, in the interest of justice, directed the Commissioner of Income Tax (Appeals) to take up the stay applications (Exts.P3(a) & P4(a)) filed by the petitioner. The Commissioner was instructed to afford a reasonable opportunity of being heard to the petitioner and pass orders on these applications without much delay, preferably within two months from the date of production of a certified copy of the judgment. Until orders are passed on the stay applications, further coercive steps for the enforcement of the impugned order were to be kept in abeyance. The High Court did not decide the merits of the appeals or the stay applications themselves, but rather directed the expeditious disposal of the stay applications.

What were the facts?

The petitioner, M/s Kerala Kera Karshaka Sahakarana Federation Ltd., filed a writ petition before the High Court of Kerala. The petitioner's grievance was that coercive recovery proceedings were initiated by the assessing authority for recovery of disputed amounts, despite the pendency of stay petitions filed along with appeals against orders of the Deputy Commissioner of Income Tax (Exts.P1 & P2). The petitioner had filed appeals (Exts.P3 & P4) and stay petitions (Exts.P3(a) & P4(a)) before the Commissioner of Income Tax (Appeals). The petitioner sought intervention from the High Court to prevent recovery actions during the pendency of their stay applications.

What were the issues?

1. Whether coercive recovery proceedings can be initiated by the assessing authority during the pendency of stay petitions filed before the Commissioner of Income Tax (Appeals)? (Question of law and fact, relating to the procedural fairness and the powers of the assessing authority). Assessee's Contention: The petitioner argued that coercive recovery proceedings were prematurely initiated while their applications for stay were pending before the appellate authority, causing prejudice. Revenue's Contention: The judgment records that the learned standing counsel appeared for the respondents, but their specific contentions regarding the initiation of recovery proceedings are not detailed in the judgment.

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE ALEXANDER THOMAS WEDNESDAY, THE 29TH DAY OF JANUARY 2020 / 9TH MAGHA, 1941 WP(C).No.2405 OF 2020(A) PETITIONER: M/S KERALA KERA KARSHAKA SAHAKARANA FEDERATION LTD., KERA TOWER, KERA FED, KERA WATER WORKS COMPOUND, VELLAYAMBALAM, THIRUVANANTHAPURAM-695 033, REPRESENTED BY ITS MANAGING DIRECTOR, SHRI N RAVI KUMAR. BY ADVS. SRI.V.P.NARAYANAN SRI.T.M.SREEDHARAN (SR.) SMT.NISHA JOHN SMT.DIVYA RAVINDRAN SRI.R.BHASKARA KRISHNAN RESPONDENTS: 1 THE DEPUTY COMMISSIONER OF INCOME TAX CIRCLE-2(1) AYAKKAR BHAWAN, KOWDIAR P.O., THIRUVANANTHAPURAM-695 003. 2 THE COMMISSIONER OF INCOME TAX (APPEALS), AAYAKAR BHAWAN, KOWDIAR, THIRUVANANTHAPURAM-695 003. ADV. SRI.CHRISTOPHER ABRAHAM, SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 29.01.2020, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

WP(C).No.2405 OF 2020(A) 2 ALEXANDER THOMAS, J. =========================== W.P(C) No.2405 of 2020 =========================== Dated this the 29th day of January, 2020 JUDGMENT Against Exts.P1 & P2 orders, the petitioner has filed Exts.P3 & P4 appeals and Exts.P3(a) & P4(a) 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 Smt.Nisha John, learned counsel appearing for the petitioner and Sri.Jose Joseph, learned standing counsel 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 2 nd respondent shall take up the matters in Exts.P3(a) & P4(a) stay applications filed in Exts.P3 & P4 appeals and after affording reasonable opportunity of being heard to the petitioner through their authorised representative/counsel, if any, shall pass orders on those applications

WP(C).No.2405 OF 2020(A) 3 without much delay, preferably within a period of two months from the date of production of a certified copy of this judgment. Until orders are thus passed on the abovesaid stay applications, 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. Sd/- ALEXANDER THOMAS JUDGE vgd

WP(C).No.2405 OF 2020(A) 4 APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1 TRUE COPY OF THE ASSESSMENT ORDER DATED 27.12.2019 PASSED BY THE 1ST RESPONDENT FOR AY-2015-16 ALONG WITH DEMAND NOTICE COMPUTATION OF INCOME EXHIBIT P2 TRUE COPY OF THE ASSESSMENT ORDER DATED 27.12.2019 PASSED BY THE 1ST RESPONDENT FOR AY-2014-15 ALONG WITH DEMAND NOTICE COMPUTATION OF INCOME EXHIBIT P3 TRUE COPY OF THE MEMORANDUM OF APPEAL DATED 16.1.2020 FOR AY-2014-15 FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT EXHIBIT P3 (A) TRUE COPY OF THE STAY PETITION DATED 16.1.2020 FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT FOR AY-2014-15 EXHIBIT P4 TRUE COPY OF THE MEMORANDUM OF APPEAL DATED 16.1.2020 FOR AY-2015-16 FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT EXHIBIT P4 (A) TRUE COPY OF THE STAY PETITION DATED 16.1.2020 FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT FOR AY-2015-16 EXHIBIT P5 TRUE COPY OF THE APPLICATION DATED 16.1.2020 SUBMITTED BY THE PETITIONER U/S 220(6) BEFORE THE 1ST RESPONDENT FOR AY- 2014-15 EXHIBIT P6 TRUE COPY OF THE APPLICATION DATED 16.1.2020 SUBMITTED BY THE PETITIONER U/S 220(6) BEFORE THE 1ST RESPONDENT FOR AY- 2015-16

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