M/S DELTA PLYWOODS AND BOARDS vs. THE ASSISTANT COMMISSIONER OF INCOME TAX

WP(C)/3282/2020HC KeralaKLHC01009322202006 February 2020Bench: HONOURABLE MR. JUSTICE ALEXANDER THOMAS4 pages

AI SummaryRemanded

What did the High Court hold?

The High Court of Kerala, in the interest of justice, directed the Commissioner of Income Tax (Appeals) (2nd respondent) to take up the stay application (Ext.P3) filed in the appeal (Ext.P2). The Commissioner was instructed to afford a reasonable opportunity of being heard to the petitioner and pass orders on the stay application 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 application, further coercive steps for the enforcement of the impugned assessment order were ordered to be kept in abeyance. The issue of the merits of the assessment order or the stay application itself was not decided.

What were the facts?

The petitioner, M/s Delta Plywoods and Boards, filed an appeal (Ext.P2) along with a stay petition (Ext.P3) against an assessment order (Ext.P1). The petitioner's primary concern was that the assessing authority initiated coercive recovery proceedings for disputed amounts while the stay petition was pending. The petitioner is represented by Managing Partner Jose Chako. The respondents are the Assistant Commissioner of Income Tax, Circle-1, Aluva Range, and the Commissioner of Income Tax (Appeals). The case was heard on February 6, 2020.

What were the issues?

1. Whether coercive recovery proceedings can be initiated against the petitioner during the pendency of their stay petition before the Commissioner of Income Tax (Appeals)? (Question of law and fact) The petitioner argued that coercive recovery actions were being pursued despite the pending stay application, causing them grievance. The revenue's contentions were not recorded 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 THURSDAY, THE 06TH DAY OF FEBRUARY 2020 / 17TH MAGHA, 1947 WP(C).No.3282 OF 2020(I) PETITIONER: M/S DELTA PLYWOODS AND BOARDS DELTA BUILDING, A.M.ROAD, IRINGOLE P.O., PERUMBAVOOR, ERNAKULAM-683 548, REPRESENTED BY MANAGING PARTNER JOSE CHAKO. BY ADVS. SRI.T.M.SREEDHARAN (SENIOR.) SMT.NISHA JOHN SRI.V.P.NARAYANAN RESPONDENTS: 1 THE ASSISTANT COMMISSIONER OF INCOME TAX CIRCLE-1, ALUVA RANGE, R.S.ROAD, ALUVA-683 101. 2 THE COMMISSIONER OF INCOME TAX (APPEALS), 28/243, “POORNIMA”, PANAMPILLY NAGAR, COCHIN-682 036. OTHER PRESENT: SRI.CHRISTOPHER ABRAHAM, SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 06.02.2020, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

W.P.(C)No.3282/2020 2 ALEXANDER THOMAS, J. ------------------------------------------- W.P.(C)No.3282 of 2020 ---------------------------------------------- Dated this the 6th day of February, 2020 JUDGMENT Against Ext.P1 assessment order, the petitioner has filed Ext.P2 appeal along with Ext.P-3 stay petition. The petitioner's grievance is that during the pendency of the stay petition, 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.Christopher Abraham, learned Standing 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 Ext.P-3 stay application filed in Ext.P-2 appeal and after affording reasonable opportunity of being heard to the petitioner through their authorised representative/ counsel, if any, shall pass orders on the stay application 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

W.P.(C)No.3282/2020 3 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. Sd/- ALEXANDER THOMAS, JUDGE. acd

W.P.(C)No.3282/2020 4 APPENDIX PETITIONER'S EXHIBITS: EXHIBIT P1 TRUE COPY OF THE ASSESSMENT ORDER DATED 25.12.2019 PASSED BY THE 1ST RESPONDENT FOR AY-2017-18 ALONG WITH DEMAND NOTICE AND COMPUTATION OF INCOME. EXHIBIT P2 TRUE COPY OF THE MEMORANDUM OF APPEAL E- FILED ON 14.01.2020 FOR AY-2017-18 FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT. EXHIBIT P3 TRUE COPY OF THE STAY PETITION DATED 09.01.2020 FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT AY-2017-18. RESPONDENTS' EXHIBITS: NIL. True Copy P.S to Judge acd

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