THIRUVANGADAN SOMANATHAN vs. INCOME TAX OFFICER

WP(C)/42930/2022HC KeralaKLHC01093219202204 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 in his appeal before the National Faceless Appeal Centre, seeking a stay of the demands arising from the assessment order, within two weeks from the date of the order, the demands shall be kept in abeyance until a decision is taken on the stay petition. The Court further provided that if the petitioner encounters any difficulty in filing the stay petition electronically with the National Faceless Appeal Centre, he is permitted to file it with the jurisdictional assessing authority, who shall then facilitate its uploading for consideration by 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 on the merits of the assessment order or the appeal.

What were the facts?

The petitioner, Thiruvangadan Somanathan, proprietor of Sangeeth Radios, is challenging an order of assessment for assessment year 2014-15, issued under the Income Tax Act, 1961. He has filed an appeal before the National Faceless Appeal Centre, which is stated to be pending. Meanwhile, he received a demand notice proposing recovery of amounts due under the assessment order. The petitioner approached the High Court of Kerala seeking a stay on the recovery proceedings until his appeal is decided.

What were the issues?

1. Whether the demands against the petitioner, arising from the assessment order for AY 2014-15, should be suspended until a decision is rendered on his pending appeal before the National Faceless Appeal Centre? (Question of law and procedure) Assessee's Contention: The petitioner argued that the demands should be suspended until his appeal is decided. The petitioner relied on the pendency of his appeal before the National Faceless Appeal Centre. Revenue's Contention: The respondent department submitted that the petitioner had not filed a stay petition in his appeal. However, they agreed 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 suggested that if the petitioner faced difficulties uploading the stay petition, he could file it with the jurisdictional assessing officer, who would facilitate its uploading to the National Faceless Appeal Centre.

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. 42930 OF 2022 PETITIONER/S: THIRUVANGADAN SOMANATHAN AGED 69 YEARS S/O. KRISHNAN, PROPRIETOR, SANGEETH RADIOS, THALASSERY, MANANTHAVADY.P.O., MANANTHAVADY -670 645, PIN - 670645 BY ADV G.KEERTHIVAS RESPONDENT/S: 1 INCOME TAX OFFICER , NATIONAL FACELESS ASSESSMENT CENTRE, MAYUR BHAWAN, CONNAUGHT LANE, NEW DELHI., 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. 42930 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 2014-15. 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.

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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

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APPENDIX OF WP(C) 42930/2022 PETITIONER EXHIBITS Exhibit p1 TRUE COPY OF THE ASSESSMENT ORDER DATED 19.3.2022 ISSUED BY THE 1ST RESPONDENT Exhibit p2 . TRUE COPY OF THE DEMAND NOTICE DATED 19.3.2022 FOR THE ASSESSMENT YEAR 2014-15 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

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