NEDUMCHALIL TRUST HOSPITAL, REP. BY ITS DIRECTOR vs. THE ASSISTANT DIRECTOR OF INCOME TAX

WP(C)/27213/2014HC KeralaKLHC01072833201417 October 20144 pages

AI SummaryRemanded

What did the High Court hold?

The High Court of Kerala directed the Commissioner of Income Tax (Appeals) to pass appropriate orders on the stay petition (Ext.P2(a)) expeditiously, within one month from the date of receipt of the judgment. The Court further ordered that coercive proceedings pursuant to the notice (Ext.P3) shall be kept in abeyance until such time as the stay petition is decided. The petitioner was directed to furnish a copy of the judgment and the writ petition to the appellate authority for further action. The Writ Petition was disposed of with these directions.

What were the facts?

The petitioner, Nedumchalil Trust Hospital, is aggrieved by an assessment order dated December 31, 2013, for the assessment year 2011-2012, passed by the Assistant Director of Income Tax (Exemptions). The hospital filed an appeal and a stay petition before the Commissioner of Income Tax (Appeals). The petitioner's grievance is that despite the pendency of these appeals, the respondents are initiating coercive recovery steps, as evidenced by a notice dated October 10, 2014. The hospital approached the High Court of Kerala seeking to intercept these coercive proceedings.

What were the issues?

1. Whether the coercive proceedings initiated by the respondent are valid in light of the pending appeal and stay petition before the appellate authority? Assessee's Contention: The assessee argues that coercive steps should not be taken while their appeal and stay petition are pending before the Commissioner of Income Tax (Appeals). They rely on the principle that recovery actions should be deferred until the appellate remedies are exhausted or a decision is made on the stay application. Revenue's Contention: The judgment does not record specific arguments from the revenue regarding the validity of coercive proceedings. However, the revenue was represented by the Government Pleader.

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT: THE HONOURABLE MR.JUSTICE P.R.RAMACHANDRA MENON FRIDAY, THE 17TH DAY OF OCTOBER 2014/25TH ASWINA, 1936 WP(C).No. 27213 of 2014 (B) ---------------------------- PETITIONER(S) : -------------- NEDUMCHALIL TRUST HOSPITAL, 6-623, NEDUMCHALIL TRUST, MUVATTUPUZHA, ERNAKULAM-686 673, REPRESENTED BY ITS DIRECTOR : DR.BINOY MATHAI. BY ADVS.SRI.KMV.PANDALAI SMT.S.HEMALATHA RESPONDENT(S) : --------------

THE ASSISTANT DIRECTOR OF INCOME TAX,

(EXEMPTIONS), RANGE-4, CENTRAL REVENUE BUILDING,

I.S.PRESS ROAD, ERNAKULAM, KOCHI-682 018.

THE COMMISSIONER OF INCOME-TAX(APPEALS)-II,

KERA BHAVAN, KOCHI-682 016. BY SRI.JOSE JOSEPH, SC, FOR INCOME TAX & BY GOVERNMENT PLEADER SMT.SOBHA ANNAMMA EAPEN. THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 17-10-2014, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

RVS.

WP(C).No. 27213 of 2014 (B)

APPENDIX PETITIONER(S)' EXHIBITS : ----------------------- EXT.P1 COPY OF THE ASSESSMENT ORDER DATED 31-12-2013 FOR THE ASSESSMENT YEAR -2011-2012. EXT.P2 COPY OF THE APPEAL DATED 27-1-2014. EXT.P2(A) COPY OF THE STAY PETITION DATED 27-1-2014 FILED ALONG WITH THE APPEAL. EXT.P3 COPY OF THE NOTICE DATED 10-10-2014 ISSUED BY THE 1ST RESPONDENT. RESPONDENT(S)' EXHIBITS : ----------------------- NIL. /TRUE COPY/ P.A.TO JUDGE RVS.

P.R. RAMACHANDRA MENON, J. --------------------------------------- W.P.(C) No.27213 of 2014 --------------------------------------- Dated this the 17th day of October, 2014. JUDGMENT Being aggrieved of Ext.P1 assessment order passed by the first respondent in respect of the assessment year 2011-2012 under the relevant provisions of the Income Tax Act, the petitioner has filed Ext.P2 appeal, along with Ext.P2(a) petition for stay, which are pending consideration before the second respondent. The grievance of the petitioner is that, without any regard to the pendency of the above proceedings, the respondents are proceeding with coercive steps, as borne by Ext.P3 notice, which hence are sought to be intercepted by this Court. 2. Heard the learned Government Pleader as well. 3. Considering the facts and circumstances, the second respondent is directed to pass appropriate orders on Ext.P2(a) petitions for stay, in accordance with law, as expeditiously as possible, at any rate, within 'one month' from the date of receipt of a copy of this judgment. Coercive proceedings pursuant to

W.P.(C) No.27213 of 2014 2 Ext.P3 notice shall be kept in abeyance till such time. Petitioner shall produce a copy of this judgment, along with copy of the writ petition, before both the second respondent, for further steps. The Writ Petition is disposed of.

P.R. RAMACHANDRA MENON, JUDGE sp

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