THE DISTRICT LOTTERY OFFICER vs. THE ASSISTANT COMMISSIONER OF INCOME TAX (TDS)

WP(C)/9772/2021HC KeralaKLHC01027007202123 April 2021Bench: HONOURABLE MR. JUSTICE P.V.KUNHIKRISHNAN5 pages

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What did the High Court hold?

The High Court directed the 2nd respondent, the Commissioner of Income Tax (Appeals), to consider and pass appropriate orders on the stay petition (Ext.P7) expeditiously, at any rate, within a period of four weeks from the date of receipt of a copy of the judgment. Furthermore, the Court ordered that until final orders are passed on the stay petition, the respondents shall not take any coercive action pursuant to Exts.P2 and P5. The Court did not decide the merits of the appeal itself, but rather focused on the procedural aspect of ensuring the stay petition is considered promptly and that coercive steps are held in abeyance during that period. The ratio decidendi is that a statutory appeal and stay petition should be considered expeditiously, and coercive steps should be restrained pending the disposal of the stay petition.

What were the facts?

The petitioner, the District Lottery Officer, Ernakulam, is responsible for lottery ticket distribution and prize disbursement up to Rs. 1 lakh. The petitioner is aggrieved by an order imposing penalty (Ext.P2) and a subsequent demand notice (Ext.P5). To challenge these, the petitioner filed a statutory appeal (Ext.P4) and a stay petition (Ext.P7) before the Commissioner of Income Tax (Appeals), the 2nd respondent. As coercive steps were being taken by the respondents, the petitioner filed this Writ Petition (Civil) seeking directions for the expeditious disposal of the appeal and stay petition, and a stay on coercive actions until the appeal is decided.

What were the issues?

1. Whether the 2nd respondent (Commissioner of Income Tax (Appeals)) should be directed to consider and dispose of the statutory appeal and stay petition filed by the petitioner expeditiously? 2. Whether coercive action should be stayed pursuant to Exts.P2 and P5 until the disposal of the appeal and stay petition? Assessee's Contentions (Petitioner): The petitioner argued that they have filed a statutory appeal and a stay petition against the penalty order and demand notice. They contended that coercive steps are being taken by the respondents and sought directions for the expeditious disposal of their pending appeal and stay petition, and a stay on coercive actions until the appeal is decided. The petitioner relied on the fact that they have approached the appellate authority. Revenue's Contentions (Respondents): The judgment records that the learned Standing Counsel for the respondents was heard. No specific arguments or reliance on any authorities, circulars, or precedents by the revenue were 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 P.V.KUNHIKRISHNAN FRIDAY, THE 23RD DAY OF APRIL 2021 / 3RD VAISAKHA, 1943 WP(C).No.9772 OF 2021(V) PETITIONER/S: THE DISTRICT LOTTERY OFFICER, DISTRICT LOTTERY OFFICE, 7TH FLOOR, REVENUE TOWER, PARK AVENUE, ERNAKULAM - 682 011. BY GOVERNMENT PLEADER SMT.VINEETHA B. RESPONDENT/S: 1 THE ASSISTANT COMMISSIONER OF INCOME TAX (TDS) TAX BUILDING, I. S. PRESS ROAD, KOCHI - 682 018, ERNAKULAM. 2 THE COMMISSIONER OF INCOME TAX (APPEALS) TAX BUILDING, I. S. PRESS ROAD, KOCHI - 682 018, ERNAKULAM. THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 23.04.2021, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

W.P.(C)No.9772 of 2021 -2- Dated this the 23rd day of April 2021 J U D G M E N T This Writ Petition is filed for issuing appropriate directions to the 2nd respondent to consider and dispose of the Statutory Appeal and Stay Petition filed by the petitioner as evident by Exts.P4 and P7 and further to stay any coercive action pursuant to Exts.P2 and P5 till disposal of the Appeal and Stay Petition. 2. The petitioner is an officer responsible for the distribution of lottery tickets to registered agents and also for disbursement of prizes up to Rs.1 lakh arising out of the conduct of lotteries in Ernakulam District. He is aggrieved by Ext.P2 order imposing penalty and issuance of subsequent demand notice. Aggrieved by the same the petitioner submitted Ext.P4 Appeal. Ext.P7 Stay

W.P.(C)No.9772 of 2021 -3- Petition is also filed. Meanwhile, coercive steps are taken by the respondents. Hence this Writ Petition. 3. Heard the learned Government Pleader and the learned Standing Counsel for the respondents. 4. After hearing both sides, I think this Writ Petition can be disposed of directing the 2nd respondent to consider Ext.P7 Stay Petition within a time frame and there can be a direction to the respondents not to initiate any coercive steps till the disposal of the same. Therefore, this Writ Petition is disposed of directing the 2nd respondent to consider and pass appropriate orders in Ext.P7 Stay Petition as expeditiously as is possible at any rate within a period of four weeks from the date of receipt of a copy of this judgment. Till final orders are passed in Ext.P7, the

W.P.(C)No.9772 of 2021 -4- respondents shall not take any coercive action pursuant to Exts.P2 and P5. Sd/- P.V.KUNHIKRISHNAN, JUDGE STK/RR

W.P.(C)No.9772 of 2021 -5- APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1 TRUE COPY OF SHAW CAUSE NOTICE F.NO.ACIT(TDS)/KOCHI/DIST. LOTTERY/2013-14/CHND00204B. EXHIBIT P2 TRUE COPY OF THE PROCEEDINGS IMPOSING PENALTY. EXHIBIT P3 MEMORANDUM OF APPEAL. EXHIBIT P3(a) TRUE COPY OF THE GRIEVANCE RESOLUTION DIN AND LETTER NO.ITBA/ADM/S/26/2020- 21/1031645073(1). EXHIBIT P4 TRUE COPY OF THE MEMORANDUM OF APPEAL FILED BEFORE THE SECOND RESPONDENT FOR THE ASSESSMENT YEAR 2014-2015. EXHIBIT P5 TRUE COPY OF THE LETTER INTIMATING COERCIVE STEPS. EXHIBIT P6 REPLY SUBMITTED BY THE PETITIONER BEFORE THE 1ST RESPONDENT TO EXHIBIT P5. EXHIBIT P7 A TRUE COPY OF THE STAY PETITION ALONG WITH A COVERING LETTER.

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