INDU SURESH KUMAR vs. THE COMMISSIONER IF INCOME TAX(APPELAS)

WP(C)/40109/2018HC KeralaKLHC01092927201810 December 2018Bench: HONOURABLE MR. JUSTICE DAMA SESHADRI NAIDU3 pages

AI SummaryRemanded

What did the High Court hold?

The High Court acknowledged that the petitioner had exercised her statutory remedy by filing an appeal and a stay petition on time. The Court found that procedural fairness dictated that the revenue authorities should wait before taking further coercive steps until the appellate authority had decided on the stay petition. Therefore, the Court disposed of the writ petition by directing the respondent authorities to defer coercive steps until the Commissioner of Income Tax (Appeals) considered the stay petition. The Court also expressed hope that the Commissioner would dispose of the stay petition expeditiously. The principle established is that coercive recovery actions should be deferred pending the decision on a stay petition filed in an appeal, to ensure procedural fairness.

What were the facts?

The petitioner, Indu Suresh Kumar, filed an appeal against an assessment order before the Commissioner of Income Tax (Appeals). She also filed a stay petition along with her appeal. The petitioner approached the High Court of Kerala through a writ petition, alleging that the revenue authorities were taking coercive steps before the appellate authority could decide on her stay petition. The petitioner sought a direction to defer coercive steps until the stay petition was considered.

What were the issues?

1. Whether the revenue authorities should defer coercive steps until the appellate authority decides on the stay petition filed by the assessee? (Question of procedure and fairness) Assessee's Contention: The petitioner argued that coercive steps were being taken prematurely, before the appellate authority had an opportunity to rule on her stay petition. She contended that procedural fairness required the authorities to wait for the appellate authority's decision on the stay application. Revenue's Contention: The judgment does not record any specific contentions made by the revenue authorities.

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE DAMA SESHADRI NAIDU MONDAY ,THE 10TH DAY OF DECEMBER 2018 / 19TH AGRAHAYANA, 1940 WP(C).No. 40109 of 2018 PETITIONER/S: INDU SURESH KUMAR AGED 46 YEARS S/O. SURESH KUMAR, K.P 12/100, HARITHA BHAVAN, THIRUVANANTHAPURAM BY ADVS. SRI.BABU S. NAIR SMT.SMITHA BABU RESPONDENT/S: 1 THE COMMISSIONER IF INCOME TAX(APPELAS) THIRUVANANTHAPURAM DISTRICT PIN 695 003 2 THE INCOME TAX OFFICER, WARD 1 (4) AYAKAR BHAVAN, KOWDIAR, THIRUVANANTHAPURAM DISTRICT , PIN 695 003 OTHER PRESENT: SRI CHRISTOPHER ABRAHAM, SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 10.12.2018, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: JUDGMENT The petitioner questioned the Ext.P1 assessment order before the first respondent. The petitioner has also filed a stay petition in the appeal. Ventilating her grievance that the authorities are taking coercive steps before

WPC No.40109 of 2018 2 the appellate authority could consider the stay petition, the petitioner has filed this writ petition. 2. Heard the learned counsel for the petitioner and the learned Government Pleader. 3. I reckon the petitioner has exercised on time her statutory remedy of filing an appeal. It appears that she has also filed a stay petition. Procedural fairness demands that the authorities may wait, before taking further steps, until the appellate authority decides on the stay petition. Therefore, I dispose of the writ petition directing the respondent authority to defer coercive steps until the first respondent considers the stay petition. I also hope that the first respondent will dispose of the stay petition expeditiously. Sd/- DAMA SESHADRI NAIDU JUDGE APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1 TRUE COPY OF THE ASSESSMENT ORDER OFR THE YEAR 2015-16 ISSUED BY THE 2ND RESPONDENT DATED 28-12-2017 EXHIBIT P2 TRUE COPY OF THE DEMAND NOTICE ISSUED TO THE PETITIONER BY THE 2ND RESPONDENT DATED 28- 12-2017

WPC No.40109 of 2018 3 EXHIBIT P3 TRUE COPY OF THE APPEAL FILED BY THE PETITIONER BEFORE THE FIRST RESPONDENT DATED 27-1-2018 EXHIBIT P3 A TRUE COPY OF THE ACKNOWLEDGMENT OF RECEIPT APPEAL BY THE FIRST RESPONDENT DATED, 28-1- 2018. EXHIBIT P4 TRUE COPY OF THE STAY PETITION FILED BY THE PETITIONER BEFORE THE FIRST RESPONDENT DATED, 17-4-2018. Css/

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