THIRUVANGADAN SOMANATHAN vs. INCOME TAX OFFICER

WP(C)/42928/2022HC KeralaKLHC01093215202204 January 2023Bench: HONOURABLE MR. JUSTICE GOPINATH P.4 pages

AI SummaryRemanded

What did the High Court hold?

The High Court disposed of the writ petition by directing that if the petitioner files a stay petition within two weeks from the date of the order, seeking a stay of the demands arising from the assessment order (Ext.P1), then the demands shall be kept in abeyance until a decision is taken on the stay petition. The Court also provided a mechanism for the petitioner to file the stay petition before the jurisdictional assessing authority if he faced difficulties uploading it to the National Faceless Appeal Centre, with the assessing authority facilitating its submission to the National Faceless Appeal Centre. The stay petition is to be considered and disposed of without undue delay after affording the petitioner an opportunity of hearing. The Court did not decide the merits of the assessment or the appeal.

What were the facts?

The petitioner, Thiruvangadan Somanathan, proprietor of Sangeeth Radios, received an order of assessment (Ext.P1) for assessment year 2015-16. He filed an appeal (Ext.P3) before the National Faceless Appeal Centre, which was pending. Meanwhile, he received a demand notice (Ext.P2) for recovery of amounts due under the assessment order. The petitioner sought suspension of these demands until his appeal was decided. The respondent department stated that no stay petition had been filed by the petitioner. The High Court considered the matter.

What were the issues?

1. Whether the demands against the petitioner, arising from the order of assessment for assessment year 2015-16, should be suspended until a decision is taken on the pending appeal before the National Faceless Appeal Centre? (Question of law and fact, concerning the Income Tax Act, 1961). Assessee's contention: The petitioner argued that the demands should be suspended until a decision is taken on his appeal (Ext.P3). Revenue's contention: The respondent department submitted that the petitioner had not filed any stay petition in his appeal. They further stated that if the petitioner files a stay application within two weeks, the demands could be kept in abeyance until a decision on the stay petition. They also provided an alternative for filing the stay petition before the jurisdictional assessing officer if uploading to the National Faceless Appeal Centre was difficult.

Which sections of the Income-tax Act were involved?

None explicitly mentioned in the provided text, beyond general reference to the Income Tax Act, 1961.

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE GOPINATH P. WEDNESDAY, THE 4TH DAY OF JANUARY 2023 / 14TH POUSHA, 1944 WP(C) NO. 42928 OF 2022 PETITIONER/S: THIRUVANGADAN SOMANATHAN AGED 69 YEARS S/O. KRISHNAN, PROPRIETOR, SANGEETH RADIOS, THALASSERY, MANANTHAVADY.P.O., MANANTHAVADY., PIN - 670645 BY ADV G.KEERTHIVAS RESPONDENT/S: 1 INCOME TAX OFFICER NATIONAL FACELESS ASSESSMENT CENTRE, MAYUR BHAWAN, CONNAUGHT LANE, NEW DELHI -110 001., PIN - 110001 2 NATIONAL FACELESS ASSESSMENT CENTRE , MAYUR BHAWAN, CONNAUGHT LANE, NEW DELHI -110 001, REPRESENTED BY THE ASSISTANT COMMISSIONER OF INCOME TAX., PIN - 110001 3 NATIONAL FACELESS APPEAL CENTRE C-BLOCK, SPM CIVIC CENTRE, NEW DELHI-110 001, REPRESENTED BY COMMISSIONER OF INCOME TAX(APPEAL), PIN - 110001 BY ADV JOSE JOSEPH, SC, INCOME TAX DEPARTMENT, KERALA ADV. CHRISTOPHER ABRAHAM (SC) THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 04.01.2023, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

WP(C) NO. 42928 OF 2022 2 JUDGMENT

Petitioner suffered Ext.P1 order of assessment under the provisions of the Income Tax Act, 1961, in respect of assessment year 2015-16. Petitioner has preferred Ext.P3 appeal before the National Faceless Appeal Centre and the same is stated to be pending. The petitioner has been served with Ext.P2 demand notice proposing to recover amounts due under Ext.P1 order of assessment.

Learned counsel appearing for the petitioner submits that the demands against the petitioner may be suspended till a decision is taken on Ext.P3 appeal.

Learned counsel appearing for the respondent department submits that the petitioner has not preferred any stay petition in Ext.P3 appeal and if the petitioner prefers an application for stay, within a period of two weeks from today, the demands against the petitioner can be kept in abeyance till a decision is taken on the stay petition to be filed by the petitioner. It is submitted that if the petitioner is unable to upload the stay petition, petitioner may file such stay petition before the jurisdictional assessing officer, who shall facilitate uploading of the stay petition to the National Faceless Appeal Centre.

WP(C) NO. 42928 OF 2022 3

Having regard to the facts and circumstances of the case, the writ petition will stand disposed of, directing that if the petitioner files a stay petition in Ext.P3 appeal, seeking stay of the demands in terms of Ext.P1 order of assessment, within a period of two weeks from today, the demands against the petitioner in terms of Ext.P1 order of assessment shall be kept in abeyance till a decision is taken on the stay petition to be filed by the petitioner. If the petitioner faces any difficulty in filing such a stay petition before the National Faceless Appeal Centre, the petitioner shall be permitted to file the stay petition before the jurisdictional assessing authority, who shall facilitate uploading of the stay petition for consideration of the National Faceless Appeal Centre. The stay petition shall be considered and disposed of, after affording an opportunity of hearing to the petitioner, without much delay.

The writ petition is disposed of as above. Sd/- GOPINATH P. JUDGE ajt

WP(C) NO. 42928 OF 2022 4 APPENDIX OF WP(C) 42928/2022 PETITIONER EXHIBITS Exhibit p1 TRUE COPY OF THE ASSESSMENT ORDER DATED 19.3.2022 ISSUED BY THE 1ST RESPONDENT HEREIN AGAINST THE PETITIONER Exhibit p2 TRUE COPY OF THE DEMAND NOTICE DATED 19.3.2022 FOR THE ASSESSMENT YEAR 2015-16 UNDER SECTION 156 OF THE INCOME TAX ACT, 1961 ISSUED BY THE 1ST RESPONDENT HEREIN AGAINST THE PETITIONER Exhibit p3 TRUE COPY OF THE APPEAL FILED BY THE PETITIONER BEFORE THE 3RD RESPONDENT HEREIN DATED 13.4.2022 Exhibit p4 TRUE COPY OF THE ACKNOWLEDGEMENT RECEIPT DATED 13.4.2022 IS PRODUCED

Recent GST High Court judgments

Search GST case law →