M/S KENCHAMBA FERTILISERS vs. COMMISSIONER OF INCOME TAX(APPEALS)

WP/12769/2023HC KarnatakaKAHC01030230202309 August 2024Bench: S.R.KRISHNA KUMAR4 pages

AI SummaryRemanded

What did the High Court hold?

The High Court, in its order dated August 9, 2024, disposed of the writ petition without expressing any opinion on the merits or demerits of the rival contentions. The Court deemed it just and appropriate to direct Respondent No. 1, the appellate authority, to consider and dispose of the appeal filed by the petitioner as expeditiously as possible, in accordance with law, within a period of three months from the date of receipt of a copy of the order. Furthermore, the Court directed that till the disposal of the appeal by Respondent No. 1, the other respondents shall not take any precipitative or coercive steps against the petitioner. The petition was disposed of subject to these directions.

What were the facts?

The petitioner, M/s Kenchamba Fertilisers, a partnership firm, filed a writ petition before the High Court of Karnataka. The petitioner was aggrieved by an ex-parte assessment order dated March 31, 2022, which also imposed a penalty. Consequently, the petitioner filed a statutory appeal on October 1, 2022, along with an application for stay, before the Commissioner of Income Tax (Appeals) - Respondent No. 1. The petitioner's grievance was that neither the appeal nor the stay application had been disposed of by the appellate authority, and the respondents were initiating coercive steps to recover the demand. The petitioner sought directions for the disposal of the appeal and to keep the demand in abeyance.

What were the issues?

1. Whether the High Court should issue a writ of mandamus directing the Commissioner of Income Tax (Appeals) to dispose of the petitioner's appeal within three months and to refrain from making any demand of income tax until then. 2. Alternatively, whether the High Court should issue a writ of mandamus directing the Commissioner of Income Tax (Appeals) to pass orders on the petitioner's stay application, or direct the Assessing Officer to consider the petitioner's application to keep the demand in abeyance until the appeal is disposed of. Assessee's Contentions: The petitioner argued that an ex-parte assessment order dated March 31, 2022, imposing a penalty, was passed against them. They filed a statutory appeal on October 1, 2022, along with a stay application, but these have not been disposed of. Meanwhile, the respondents are taking coercive steps to recover the demand, necessitating the present petition. The petitioner relied on the principle of natural justice and the need for timely disposal of appeals. Revenue's Contentions: The learned counsel for the respondents submitted that necessary directions may be issued to the appellate authority to dispose of the appeal within a stipulated time frame.

AI-generated summary — verify with the full judgment below

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NC: 2024:KHC:32005 WP No. 12769 of 2023

IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 9TH DAY OF AUGUST, 2024 BEFORE THE HON'BLE MR JUSTICE S.R.KRISHNA KUMAR WRIT PETITION NO. 12769 OF 2023 (T-IT) BETWEEN:

M/S KENCHAMBA FERTILISERS (A PARTNERSHIP FIRM) KENCHAMBA BUILDING MAGGE ROAD, ALUR TALUK HASSAN DISTRICT - 573 129. REPRESENTED BY ITS PARTNER MR. K. M. JAYARAJU AGED ABOUT 78 YEARS …PETITIONER (BY SRI. MAHESH R UPPIN, ADVOCATE) AND: 1. COMMISSIONER OF INCOME TAX (APPEALS) NATIONAL FACELESS APPEAL CENTRE DELHI - 110 002.

ASSESSING OFFICER NATIONAL FACELESS ASSESSMENT CENTRE DELHI - 110 002.

INCOME TAX OFFICER WARD-1 AND TPS AAYAKAR BHAVAN 2ND STAGE, BELUR ROAD, HASSAN - 573 201. …RESPONDENTS (BY SRI. E.I. SANMATHI, ADVOCATE)

THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO DIRECTING R1 TO DISPOSE OF THE APPEAL DATED 03/10/2022 MARKED AS ANNEXURE-F BEARING ACK NO 611943590031022 FILED BY THE PETITIONER WITHIN A PERIOD OF THREE MONTHS AND TILL THE DISPOSAL OF THE SAID APPEAL, NOT TO MAKE ANY DEMAND OF INCOME TAX FROM THE PETITIONER OR IN THE ALTERNATIVE DIRECTING

Digitally signed by VEDAVATHI A K Location: High Court of Karnataka

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NC: 2024:KHC:32005 WP No. 12769 of 2023

THE R1 TO PASS ORDERS ON APPLICATION FOR STAY DTD 03/10/2022 BEARING NO NIL MARKED AS ANNEXURE -G OR DIRECT THE R2 TO CONSIDER THE APPLICATION DTD 07/10/2022 BEARING NO NIL MARKED AS ANNEXURE- H MADE BY THE PETITIONER TO KEEP THE DEMAND IN ABEYANCE, TILL THE DISPOSAL OF THE APPEAL.

THIS PETITION, COMING ON FOR PRELIMINARY HEARING IN B GROUP, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR JUSTICE S.R.KRISHNA KUMAR

ORAL ORDER

In this petition, petitioner seeks the following reliefs;- "

PRAYER WHEREFORE the Hon'ble Court be pleased to: - i). Issue a writ in the nature of mandamus directing the 1st Respondent to dispose of the appeal dt: 3-10-2022 marked as ANNEXURE - F bearing Acknowledgement No. 611943590031022 filed by the Petitioner within a period of three months and till the disposal of the said appeal, not to make any demand of Income Tax from the petitioner;

OR IN THE ALTERNATIVE

i). Issue writ in the nature of mandamus directing the first respondent to pass orders on application for stay dt: 3-10-2022 bearing No.- NIL- marked as ANNEXURE 'G' or direct the second respondent to consider the application dt: 7-10-2022 bearing No. -NIL- marked as ANNEXURE 'H" made by the petitioner to keep the demand in abeyance, till the disposal of the appeal; and

ii). grant such other relief as may be deemed fit to grant under the circumstances of the case in the interest of equity and justice.

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NC: 2024:KHC:32005 WP No. 12769 of 2023

INTERIM PRAYER

Pending disposal of the writ petition, the Hon'ble Court be pleased to stay operation of the Demand Notice dt: 20-09-2022 bearing DIN & Notice No. ITBA/PNL/S/156/2022- 23/1045712061(1) issued by the 3rd Respondent marked as ANNEXURE "C" in the interest of justice. "

Heard learned counsel for the petitioner and learned counsel for the respondent and perused the material on record.

Learned counsel for the petitioner submits that aggrieved by the Exparte Assessment Order dated 31-3-2022, imposing penalty, petitioner has filed statutory appeal on 1-10-2022 along with an application for stay, before the appellate authority.

It is the grievance of the petitioner that neither the said appeal nor the application for stay filed by the petitioner have been disposed of till today, and instead the respondents are proceeding to precipitate and take coercive steps in the matter. As such, the petitioner is in this court by way of present petition. 5. Per contra, learned counsel for the respondents submits that necessary directions may be issued to the

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NC: 2024:KHC:32005 WP No. 12769 of 2023

appellate authority, to dispose of the appeal, within a stipulated time frame. 6. In view of the aforesaid facts and circumstances, without expressing any opinion on the merits/demerits of the rival contentions, I deem it just and appropriate to dispose of this petition, directing the respondent No.1/appellate authority to consider and dispose of the appeal filed by the petitioner as expeditiously as possible, in accordance with law, within a period of 3 months from the date of receipt of the copy of this order. 7. It is further directed, till disposal of the appeal by the respondent No.1/appellate authority, the other respondents shall not take any precipitative/coercive steps against the petitioner. 8. Subject to the aforesaid directions, this petition stands disposed of.

Sd/- (S.R.KRISHNA KUMAR) JUDGE

AKV_List No.: 2 Sl No.: 43_CT:SK

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