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850 orders · Page 7 of 17
The High Court, while acknowledging that it ordinarily should not interfere in such matters, decided to dispose of the writ petition in the interest of justice. The Court issued a direction to the second respondent, the Commissioner of Income Tax (Appeals), to take a decision on the application for stay (Ext.P4) filed along with the appeal (Ext.P3). This decision is to be made in accordance with the law, after providing an opportunity of hearing to the petitioner. The Court stipulated that this decision must be taken within a period of three months from the date of receipt of a copy of the judgment. No opinion was expressed on the merits of the appeal or the assessment order. The issue of the merits of the appeal itself was left undecided.
The High Court directed the Commissioner of Income Tax (Appeals) to decide the appeal (Ext.P3) within three months from the date of receipt of a copy of the judgment. This decision is to be made in accordance with the law, after providing the petitioner with an opportunity of hearing. Crucially, the court directed that the appeal should be decided without insisting on the payment of 20% of the tax demanded, as per a circular issued in 2017. Until a decision is reached on the appeal, recovery proceedings initiated pursuant to the assessment order are to be kept in abeyance. The ratio decidendi is that appellate authorities should dispose of pending appeals expeditiously, and recovery proceedings can be stayed pending such disposal, especially when a specific circular provides for waiver of pre-deposit conditions.
The High Court disposed of the writ petition with a direction to the third respondent, the Commissioner of Income Tax (Appeals), to decide the appeal (Ext.P2) in accordance with law. This decision is to be made after affording an opportunity of hearing to the petitioner. The Court specified that the disposal should occur within a period of three months from the date of receipt of a copy of the judgment. Crucially, the Court directed that the Commissioner should not insist on the payment of 20% of the tax demanded, as per a circular of 2017. Furthermore, recovery proceedings pursuant to the assessment order are to be kept in abeyance until a decision is taken on the appeal. The principle established is that appellate authorities can be directed to dispose of appeals expeditiously, and recovery can be stayed pending such disposal, with specific directions regarding pre-deposit amounts based on extant circulars.
The High Court disposed of the writ petition with a direction to the first respondent, the Commissioner of Income Tax (Appeals), to decide the appeal (Ext.P3) within three months from the date of receipt of a copy of the judgment. This decision is to be made in accordance with the law and after affording the petitioner an opportunity of hearing. Crucially, the Court directed that the decision should be taken without insisting on the payment of 20% of the tax demanded, as per a circular from 2017. Furthermore, the Court ordered that recovery proceedings pursuant to the assessment order shall be kept in abeyance until such time as a decision is taken on the appeal. The ratio decidendi is that appellate authorities should dispose of appeals expeditiously, and interim relief regarding recovery can be granted pending appeal disposal, especially when supported by circulars.
The High Court directed the Commissioner of Income Tax (Appeals) to decide the appeal (Ext.P2) within a period of three months from the date of receipt of a copy of the judgment. The Court further specified that the decision should be taken in accordance with law, after affording an opportunity of hearing to the petitioner. Crucially, the Court directed that the appeal should be decided without insisting on the payment of 20% of the tax demanded, as per a circular issued in 2017. Until the appeal is decided, recovery proceedings initiated pursuant to the assessment order are to be kept in abeyance. The principle established is that appellate authorities should dispose of pending appeals expeditiously, and in certain circumstances, recovery can be stayed pending appeal, referencing a circular for relief on pre-deposit.
The High Court of Kerala directed the Commissioner of Income Tax (Appeals) to decide the appeal (Ext.P4) within a period of three months from the date of receipt of a copy of the judgment. The Court further stipulated that the decision should be taken in accordance with law, after affording an opportunity of hearing to the petitioner. Crucially, the Court directed that the payment of 20% of the tax demanded should not be insisted upon, referencing a circular of 2017. Until a decision is rendered on the appeal, recovery proceedings pursuant to the assessment order are to be kept in abeyance. The principle established is that appellate authorities should dispose of pending appeals expeditiously and that interim relief regarding recovery can be granted pending appeal disposal, considering relevant circulars.
The High Court directed the Commissioner of Income Tax (Appeals) to decide the appeal (Ext.P3) within three months from the date of receipt of a copy of the judgment. This decision is to be made in accordance with the law and after providing the petitioner an opportunity of hearing. Crucially, the court directed that the disposal should not insist on the payment of 20% of the tax demanded, referencing a circular from 2017. Furthermore, recovery proceedings pursuant to the assessment order are to be kept in abeyance until a decision is taken on the appeal. The ratio is that appellate authorities should dispose of pending appeals expeditiously, and recovery can be stayed pending such disposal, considering relevant circulars.
The High Court directed the Commissioner of Income Tax (Appeals) to decide the appeal (Ext.P3) filed by the petitioner in accordance with the law. This decision is to be made after providing the petitioner an opportunity of hearing. The disposal must be within a period of three months from the date of receipt of a copy of the judgment. Crucially, the Court directed that the Commissioner should not insist on the payment of 20% of the tax demanded, referencing a circular from 2017. Furthermore, recovery proceedings pursuant to the assessment order are to be kept in abeyance until a decision is taken on the appeal. The core principle is that appellate authorities should dispose of pending appeals expeditiously, and recovery should be stayed pending such disposal, subject to specific conditions like those outlined in the 2017 circular.
The High Court directed the Commissioner of Income Tax (Appeals) to decide the appeal (Ext.P2) within three months from the date of receipt of a copy of the judgment. This decision is to be made in accordance with the law, after providing the petitioner an opportunity of hearing. Crucially, the Court directed that the appeal should be decided without insisting on the payment of 20% of the tax demanded, referencing a circular from 2017. Furthermore, recovery proceedings pursuant to the assessment order are to be kept in abeyance until a decision is taken on the appeal. The judgment does not address the merits of the original assessment or the grounds of appeal.
The High Court directed the Commissioner of Income Tax (Appeals) to decide the appeals (Exts.P3 and P8) in accordance with law. This decision was to be made after affording an opportunity of hearing to the petitioner. The court specified that the disposal should occur within a period of three months from the date of receipt of a copy of the judgment. Crucially, the court directed that the Commissioner should not insist on the payment of 20% of the tax demanded, referencing a circular from 2017. Furthermore, until a decision was taken on the appeals, recovery proceedings pursuant to the assessment orders were to be kept in abeyance. The court did not decide on the merits of the appeals themselves, but rather on the procedural aspect of their disposal.
The High Court disposed of the writ petition without expressing any opinion on the merits of the matter. It directed the Income Tax Appellate Tribunal (referred to as the third respondent in the judgment, though the ITAT is not explicitly listed as a respondent in the cause title, the direction is to the Tribunal) to consider the interim application (stay petition) filed along with the appeal. This consideration must be done in accordance with the law, after affording an opportunity of hearing to the petitioner, within 30 days from the receipt of a copy of the order. The operation of the garnishee notice was ordered to be kept in abeyance until the disposal of the interim application. The interim stay granted was explicitly stated to be only until the disposal of the interim application and not beyond.
The High Court disposed of the writ petition with a specific direction to the 3rd respondent (Income Tax Appellate Tribunal). The Tribunal was directed to consider Ext.P4, the interim application preferred along with the appeal, in accordance with the law. This consideration must be done after affording an opportunity of hearing to the petitioner. The entire process is to be completed within a period of 30 days from the date of receipt of a copy of the High Court's order. Furthermore, the Court ordered that the operation of the garnishee notice, Ext.P5, be kept in abeyance until the interim application is disposed of. The Court clarified that this interim stay is only until the disposal of the interim application and not beyond.
The High Court directed the Commissioner of Income Tax (Appeals) to decide the appeal (Ext.P2) in accordance with the law. This decision must be made after providing the petitioner an opportunity of hearing. The disposal is to be completed within three months from the date of receipt of a copy of the judgment. Crucially, the court ordered that the appeal should be decided without insisting on the payment of 20% of the tax demanded, referencing a circular from 2017. Furthermore, recovery proceedings initiated pursuant to the assessment order are to be kept in abeyance until a decision is taken on the appeal. The ratio decidendi is that a pending appeal should be disposed of expeditiously, and interim relief regarding recovery can be granted pending appeal disposal, especially when guided by circulars.
The High Court disposed of the writ petition by directing the third respondent, the Commissioner of Income Tax (Appeals), to decide the appeal (Ext.P2) in accordance with the law. This decision was to be made after providing the petitioner an opportunity of hearing, within a period of three months from the date of receipt of a copy of the judgment. Crucially, the Court directed that the decision should be made without insisting on the payment of 20% of the tax demanded, as per a circular of 2017. Furthermore, the Court ordered that recovery proceedings pursuant to the assessment order (Ext.P1) be kept in abeyance until a decision was taken on the appeal. The principle here is that the High Court can direct statutory authorities to dispose of pending matters within a reasonable time and can grant interim relief in appropriate cases.
The High Court directed the Commissioner of Income Tax (Appeals) to decide the appeal (Ext.P3) within three months from the date of receipt of a copy of the judgment. This decision is to be made in accordance with the law and after affording an opportunity of hearing to the petitioner. Crucially, the Court directed that the decision should be taken without insisting on the payment of 20% of the tax demanded, referencing a circular from 2017. Furthermore, all recovery proceedings pursuant to the assessment order are to be kept in abeyance until a decision is taken on the appeal. The principle established is that appellate authorities should dispose of appeals expeditiously, and recovery can be stayed pending such disposal, especially when a relevant circular provides for such leniency.
The High Court directed the third respondent, the Commissioner of Income Tax (Appeals), to decide the appeal (Ext.P2) in accordance with the law. The court specified that this decision should be made after providing the petitioner with an opportunity of hearing. The disposal is to be completed within three months from the date of receiving a copy of the judgment. Crucially, the court directed that the appeal should be decided without insisting on the payment of 20% of the tax demanded, referencing a circular from 2017. Furthermore, all recovery proceedings initiated pursuant to the assessment order (Ext.P1) are to be kept in abeyance until a decision is reached on the appeal. The court did not decide on the merits of the appeal itself, but rather on the procedural aspect of its disposal.
The High Court directed the Commissioner of Income Tax (Appeals) to decide the appeals (Exts.P3 and P8) within a period of three months from the date of receipt of a copy of the judgment. This decision is to be made in accordance with the law, after providing an opportunity of hearing to the petitioner. Crucially, the court directed that the Commissioner should not insist on the payment of 20% of the tax demanded, referencing a circular of 2017. Furthermore, the court ordered that recovery proceedings pursuant to the assessment orders be kept in abeyance until a decision is taken on the appeals. The court did not decide on the merits of the appeals themselves, but rather on the procedural aspect of their timely disposal.
The High Court directed the Commissioner of Income Tax (Appeals) to decide the appeal (Ext.P3) within three months from the date of receipt of a copy of the judgment. This decision is to be made in accordance with the law and after affording an opportunity of hearing to the petitioner. Crucially, the court directed that the appeal should be decided without insisting on the payment of 20% of the tax demanded, as per a circular issued in 2017. Until a decision is reached on the appeal, recovery proceedings initiated pursuant to the assessment order are to be kept in abeyance. The ratio decidendi is that appellate authorities should dispose of pending appeals expeditiously, and interim relief regarding recovery can be granted pending such disposal, especially when a circular provides for waiver of pre-deposit under certain circumstances.
The High Court disposed of the writ petition with a direction to the third respondent, the Commissioner of Income Tax (Appeals), to decide the appeal (Ext.P2) in accordance with law. This decision is to be made after affording an opportunity of hearing to the petitioner, within three months from the date of receipt of a copy of the judgment. Crucially, the Court directed that the appeal should be decided without insisting on the payment of 20% of the tax demanded, referencing a circular from 2017. Furthermore, recovery proceedings pursuant to the assessment order are to be kept in abeyance until a decision is taken on the appeal. The judgment does not record any specific issue left undecided.
The High Court directed the Commissioner of Income Tax (Appeals) to decide the pending appeals (Exts.P3, P8, and P13) within a period of three months from the date of receipt of a copy of the judgment. This decision is to be made in accordance with the law, after providing the petitioner with an opportunity of hearing. Crucially, the Court directed that the disposal should not insist on the payment of 20% of the tax demanded, referencing a circular from 2017. Furthermore, recovery proceedings pursuant to the assessment orders are to be kept in abeyance until a decision is taken on the appeals. The Court did not decide on the merits of the appeals themselves, but rather on the procedural aspect of their disposal.
The High Court directed the Commissioner of Income Tax (Appeals) to decide the appeal (Ext.P3) within three months from the date of receipt of a copy of the judgment. This decision was to be made in accordance with the law, after providing the petitioner an opportunity of hearing. Crucially, the Court directed that the disposal should not insist on the payment of 20% of the tax demanded, as per a circular of 2017. Furthermore, recovery proceedings pursuant to the assessment order were to be kept in abeyance until a decision was taken on the appeal. The ratio is that appellate authorities should dispose of appeals expeditiously, and recovery proceedings can be stayed pending appeal disposal, especially when a circular provides for waiver of pre-deposit under certain circumstances.
The High Court directed the second respondent, the Commissioner of Income Tax (Appeals), to decide the appeal (Ext.P2) in accordance with law. This decision is to be made after providing an opportunity of hearing to the petitioner. The disposal is to be completed within three months from the date of receipt of a copy of the judgment. Crucially, the Court directed that the payment of 20% of the tax demanded should not be insisted upon, referencing a circular from 2017. Furthermore, recovery proceedings initiated pursuant to the assessment order are to be kept in abeyance until a decision is taken on the appeal. The principle here is that courts can direct expeditious disposal of appeals, and can also grant interim relief by staying recovery proceedings, subject to specific conditions and circulars.
The High Court directed the Commissioner of Income Tax (Appeals) to decide the appeal (Ext.P3) within three months from the date of receipt of a copy of the judgment. This decision is to be made in accordance with the law, after providing the petitioner an opportunity of hearing. Crucially, the Court directed that the disposal should not insist on the payment of 20% of the tax demanded, referencing a circular from 2017. Furthermore, recovery proceedings pursuant to the assessment order are to be kept in abeyance until a decision is taken on the appeal. The principle established is that appellate authorities should dispose of appeals expeditiously, and interim relief regarding recovery can be granted pending appeal disposal, especially when a specific circular allows for it.
The High Court directed the Commissioner of Income Tax (Appeals) to decide the appeal (Ext.P3) within a period of three months from the date of receipt of a copy of the judgment. This decision is to be taken in accordance with law, after affording an opportunity of hearing to the petitioner. Crucially, the Court specified that the disposal should be without insisting on the payment of 20% of the tax demanded, as per a circular issued in 2017. Furthermore, recovery proceedings pursuant to the assessment order are to be kept in abeyance until a decision is taken on the appeal. The principle established is that appellate authorities should dispose of pending appeals within a reasonable time, and recovery can be stayed pending such disposal, especially when a specific circular permits waiver of pre-deposit under certain circumstances.
The High Court, without expressing any opinion on the merits of the case, disposed of the writ petition with a direction to the ITAT (3rd respondent) to consider the interim application (Ext.P4) filed along with the appeal in accordance with law. This consideration must be after affording an opportunity of hearing to the petitioner, within 30 days from the receipt of a copy of the order. The Court ordered that the operation of the garnishee notice (Ext.P5) be kept in abeyance until the disposal of the interim application. It was clarified that the interim stay granted is only until the disposal of the interim application and not beyond.
The High Court, without expressing any opinion on the merits of the matter, disposed of the writ petition. It directed the 3rd respondent (Income Tax Appellate Tribunal) to consider the interim application (Ext.P4) filed along with the appeal in accordance with law. This consideration was to be done after affording an opportunity of hearing to the petitioner within 30 days from the date of receipt of a copy of the order. The Court also ordered that the operation of the garnishee notice (Ext.P5) be kept in abeyance until the disposal of the interim application. It was clarified that this interim stay was only till the disposal of the interim application and not beyond.
The High Court directed the Commissioner of Income Tax (Appeals) to decide the appeal (Ext.P3) within a period of three months from the date of receipt of a copy of the judgment. This decision is to be made in accordance with the law, after providing the petitioner with an opportunity of hearing. Crucially, the court directed that the appeal should be decided without insisting on the payment of 20% of the tax demanded, referencing a circular from 2017. Furthermore, recovery proceedings pursuant to the assessment order are to be kept in abeyance until a decision is taken on the appeal. The court did not decide on the merits of the appeal itself, but rather on the procedural aspect of its disposal.
The Court noted that the order dated 26.11.2019, passed under Section 154 of the Income Tax Act, 1961, is appealable as per the provisions of sub-clause (c) of sub-section (1) of Section 264 of the Income Tax Act, 1961. Faced with this, the learned counsel for the petitioner sought permission to withdraw the writ petition with liberty to avail the statutory remedy. The Court granted this permission, allowing the withdrawal of the writ petition with the liberty to pursue the appropriate legal recourse. No decision on the merits of the Section 154 order was made.
The High Court directed the second respondent, the Commissioner of Income Tax (Appeals), to decide the appeal (Ext.P3) in accordance with the law. This decision must be made after providing the petitioner with an opportunity for a hearing. The disposal is to be completed within three months from the date of receipt of a copy of the judgment. Crucially, the Court ordered that the decision should be made without insisting on the payment of 20% of the tax demanded, referencing a circular from 2017. Until the appeal is decided, recovery proceedings initiated pursuant to the assessment order are to be kept in abeyance. No specific issue was left undecided; the court provided a clear direction for the disposal of the pending appeal.
The High Court, while noting that it "ought not to have interfered" in the matter, disposed of the writ petition in the interest of justice. The Court directed the third respondent, the Commissioner of Income Tax (Appeals), Thiruvananthapuram, to decide on the application for stay (Ext.P4) filed along with the appeal (Ext.P2) in accordance with law. This decision is to be made after providing the petitioner an opportunity of hearing, within a period of one month from the date of receipt of a copy of the judgment. The Court explicitly stated that it was not expressing any opinion on the merits of the case. The principle derived is that while writ jurisdiction may not be the primary recourse for such matters, courts may intervene to ensure timely disposal of statutory appeals and applications, especially when delays are apparent.
The High Court disposed of the writ petition with a direction to the Commissioner of Income Tax (Appeals) (second respondent) to decide the appeal (Ext.P3) in accordance with law. The Tribunal mandated that an opportunity of hearing be provided to the petitioner. The decision on the appeal must be taken within three months from the date of receipt of a copy of the judgment. Crucially, the Court directed that the disposal should not insist on the payment of 20% of the tax demanded, referencing a circular from 2017. Furthermore, recovery proceedings pursuant to the assessment order are to be kept in abeyance until a decision is taken on the appeal. No specific issue was left undecided; the court directed the appeal's disposal.
The High Court directed the second respondent, the Commissioner of Income Tax (Appeals), to decide the appeal (Ext.P3) in accordance with law. This decision is to be made after providing the petitioner an opportunity of hearing. The disposal is to be completed within a period of three months from the date of receipt of a copy of the judgment. Crucially, the Court directed that the appeal should be decided without insisting on the payment of 20% of the tax demanded, referencing a circular of 2017. Furthermore, recovery proceedings pursuant to the assessment order (Ext.P1) are to be kept in abeyance until a decision is taken on the appeal. The principle established is that appellate authorities should dispose of appeals expeditiously and that recovery can be stayed pending appeal, especially when a circular provides for such leniency. No issue was expressly left undecided.
The High Court disposed of the writ petition with a direction to the Commissioner of Income Tax (Appeals) to decide the appeal in accordance with law. This decision is to be made after providing the petitioner an opportunity of hearing, within three months from the date of receiving a copy of the judgment. Crucially, the court directed that the disposal should not insist on the payment of 20% of the tax demanded, referencing a circular from 2017. Until the appeal is decided, recovery proceedings initiated based on the assessment order are to be kept in abeyance. The court did not decide on the merits of the appeal itself, but rather on the procedural aspect of its timely disposal.
The High Court directed the Commissioner of Income Tax (Appeals) to decide the appeal (Ext.P3) in accordance with the law. The Commissioner was instructed to provide an opportunity of hearing to the petitioner before making a decision. The court specified that the decision should be made within three months from the date of receipt of a copy of the judgment. Crucially, the court directed that the Commissioner should not insist on the payment of 20% of the tax demanded, referencing a circular from 2017. Until the appeal is decided, recovery proceedings initiated pursuant to the assessment order are to be kept in abeyance. No issue was expressly left undecided.
The High Court directed the third respondent, the Commissioner of Income Tax (Appeals), to take a decision on the petitioner's appeal (Ext.P3) in accordance with the law. This decision is to be made after providing the petitioner with an opportunity of being heard. The disposal is to be completed within a period of three months from the date of receipt of a copy of the judgment. Crucially, the Court ordered that the Commissioner should not insist on the payment of 20% of the tax demanded, referencing a circular from 2017. Furthermore, recovery proceedings initiated pursuant to the assessment order are to be kept in abeyance until a decision is reached on the appeal. No issues were expressly left undecided.
The High Court disposed of the writ petition with directions. The petitioner was directed to file stay petitions for their pending second appeals (Exhibits P8 to P10) within two weeks. The Income Tax Appellate Tribunal (respondent 3) was directed to consider and pass orders on these stay petitions within two months of their filing. Until orders were passed on the stay petitions, and provided the petitions were filed, recovery proceedings pursuant to the assessment orders (Exhibits P1-P3) were to be deferred. There was to be no insistence on payment of the demand raised in Exhibit P11. The Court did not decide on the merits of the appeals or the validity of the demand, but rather focused on the procedural aspect of stay petitions and recovery.
The High Court of Kerala, after considering the rival submissions, was inclined to dispose of the writ petition by directing the first respondent, the Commissioner of Income Tax (Appeals), to consider the appeals filed by the petitioner (Exhibits P5, P7, P9, P11, and P13) as expeditiously as possible. Furthermore, the Court directed that recovery proceedings based on the assessment orders (Exhibits P1, P6, P8, P10, and P12) shall be deferred until such time as the appeals are considered and a decision is rendered. The Court did not delve into the merits of the assessment orders or the appeals themselves, focusing solely on the procedural aspect of expeditious disposal and interim relief.
The High Court held that the insistence on payment of 20% of the tax demanded as a condition for granting a stay pending appeal is unsustainable. This decision was based on the Division Bench judgment in W.A.No. 1529 of 2019 and connected cases, which considered the peculiar aspects involved and the Full Bench decision in Mavilayi Service Co-operative Bank Ltd. v. Commissioner of Income Tax, Calicut. The Court quashed the order imposing the 20% payment condition (Ext.P4). The Court directed the first respondent (Commissioner of Income Tax (Appeals)) to consider the petitioner's appeal (Ext.P3) within three months. Pending consideration of the appeal, there was to be no insistence on payment of 20% as demanded, and further recovery proceedings pursuant to the assessment order (Ext.P1) were to be kept in abeyance.
The High Court, considering the limited relief sought by the petitioner, was inclined to dispose of the writ petition. The Court directed the first respondent, the Commissioner of Income Tax (Appeals), to consider Exhibit P3 appeal on its merits as expeditiously as possible. Furthermore, the Court ordered that recovery proceedings based on Exhibit P1 assessment order shall be kept in abeyance until orders are passed on Exhibit P3. The principle derived is that the High Court can direct expeditious disposal of appeals and stay the recovery proceedings pending such disposal when the prayer is limited and reasonable. No issue was expressly left undecided.
The High Court of Kerala, considering the limited relief sought, disposed of the writ petition. The Court directed the 2nd respondent (Commissioner of Income Tax (Appeals)) to consider and pass orders on Exhibit P2 appeal as expeditiously as possible. Furthermore, the Court ordered that recovery proceedings based on Exhibit P1 assessment order shall stand deferred until orders are passed on the appeal. The primary reasoning was to ensure that the assessee's right to appeal is not rendered nugatory by immediate recovery actions, pending a decision on the merits of the appeal and the stay application.
The High Court of Kerala, in light of a Division Bench decision in W.A.No. 1529 of 2019 and connected cases, which considered the peculiar aspects and the Full Bench decision in Mavilayi Service Co-operative Bank Ltd. v. Commissioner of Income Tax, Calicut [2019 (2) KHC 287], held that the insistence on payment of 20% of the tax assessed while the appeal is pending is unsustainable. The Court found the demand for remittance of 20% of the tax assessed, pending consideration of the appeals, to be illegal. Consequently, the writ petition was disposed of, directing the first respondent (Commissioner of Income Tax (Appeals)) to consider the petitioner's appeals expeditiously. Further recovery proceedings based on the assessment orders, including the demand for 20% of the tax, were ordered to be kept in abeyance until the appeals are decided.
The High Court held that the insistence on payment of 20% of the tax assessed as a condition for granting a stay pending appeal is not legally sustainable. The Court referred to its own Division Bench judgment in W.A.No. 1529 of 2019 and connected cases, which considered all relevant aspects and the Full Bench decision in Mavilayi Service Co-operative Bank Ltd. v. Commissioner of Income Tax, Calicut [2019 (2) KHC 287]. Based on these precedents, the Division Bench had previously held that demanding a proportion of the tax demand as a condition for stay was improper. Consequently, the High Court quashed Ext.P4, which imposed the 20% payment demand. The writ petition was disposed of with a direction to the third respondent (Commissioner of Income Tax (Appeals)) to consider Ext.P2 appeal within three months of receiving the judgment. Coercive steps based on Ext.P4 were ordered to be kept in abeyance.
The High Court considered the limited relief sought by the petitioner, which was for the expeditious disposal of the stay petition and to keep recovery proceedings in abeyance until an order is passed on the stay petition. The Court found merit in this limited prayer. Accordingly, the Court directed the second respondent, the Commissioner of Income Tax (Appeals), to consider the stay petition (Exhibit P3) and pass orders on its merits within a period of two months from the date of receipt of a copy of the judgment. Until such orders are passed on the stay petition, the recovery proceedings based on the assessment order (Exhibit P1) were ordered to be kept in abeyance. The Court did not decide on the merits of the assessment order or the appeal itself.
The High Court, considering the limited relief sought by the petitioner, directed the Commissioner of Income Tax (Appeals) to consider the stay petition filed by the petitioner and pass orders on merits within a period of two months from the date of receipt of a copy of the judgment. Until orders are passed on the stay petition, recovery proceedings based on the assessment order were directed to be kept in abeyance. The Court did not decide on the merits of the appeal or the stay petition itself, but rather on the procedural aspect of expeditious consideration.
The High Court considered the limited relief sought by the petitioner. It directed that the appeal (Exhibit P3) be considered as expeditiously as possible. Furthermore, the Court ordered that no recovery would be made based on the assessment order (Exhibit P1) until the appeal was decided. The demand for remittance of 20% of the assessed tax as per Exhibit P4 was also stayed until the appeal's disposal. The Court did not decide on the merits of the assessment order itself, focusing solely on the procedural aspect of recovery pending appeal.
The High Court held that the demand for remittance of 20% of the assessed tax pending consideration of the appeals cannot be sustained, in light of the Division Bench judgment in W.A. No. 1529 of 2019 and connected cases, which considered the peculiar aspects and the Full Bench decision in Mavilayi Service Co-operative Bank Ltd. v. Commissioner of Income Tax, Calicut. The Court quashed Ext.P5, the demand for 20% payment. The writ petition was disposed of with a direction to the first respondent (Commissioner of Income Tax (Appeals)) to consider the petitioner's appeal expeditiously. Until the appeal is decided on merits, further recovery proceedings pursuant to the assessment order were to be kept in abeyance. No issue was expressly left undecided.
The High Court of Kerala, considering the limited relief sought by the petitioner, disposed of the writ petition. The Court directed the 2nd respondent (Commissioner of Income Tax (Appeals)) to consider and pass orders on Exhibit P3 (the appeal) as expeditiously as possible. Furthermore, the Court ordered that all coercive steps based on Exhibit P1 (the assessment order) shall be deferred until a decision is taken on the appeal. The Court did not decide on the merits of the assessment order or the appeal itself, focusing solely on the procedural aspects of expeditious disposal and stay of coercive action.
The High Court held that the insistence for payment of a proportion of the demand as a condition for granting a stay pending appeal is unsustainable. This decision was based on the Division Bench's consideration of relevant aspects and the Full Bench judgment in Mavilayi Service Co-operative Bank Ltd. v. Commissioner of Income Tax, Calicut. Consequently, the demand for remittance of 20% of the tax assessed pending the appeal could not be sustained. The Court directed the second respondent (Commissioner of Income Tax (Appeals)) to consider the petitioner's appeal within three months. All coercive steps based on the demand order (Ext.P4) were ordered to be kept in abeyance, and the order freezing the petitioner's account was to be lifted forthwith, allowing the petitioner to operate its accounts.
The High Court of Kerala, in light of a Division Bench decision in W.A.No. 1529 of 2019 and connected cases, which considered the peculiar aspects and a Full Bench decision in Mavilayi Service Co-operative Bank Ltd. v. Commissioner of Income Tax, Calicut [2019 (2) KHC 287], held that the insistence for payment of 20% of the tax assessed while the appeal is pending is unsustainable. The demand for remittance of 20% of the tax assessed pending consideration of the appeals was deemed illegal. Consequently, the Court directed the first respondent (Commissioner of Income Tax (Appeals)) to consider the petitioner's appeals expeditiously. Further, all recovery proceedings based on the assessment orders, including the demand for 20% of the tax, were ordered to be kept in abeyance until the appeals are decided.
The High Court directed the Income Tax Appellate Tribunal (ITAT) to consider the petitioner's appeal as expeditiously as possible. Furthermore, the Court ordered that recovery proceedings based on the assessment order shall be kept in abeyance until final orders are passed in the appeal. The Court considered the limited relief sought by the petitioner. No specific findings were made on the merits of the deduction claim under Section 80P, as the writ petition was disposed of on procedural grounds.